R/€ = 15.07Change: 0.19
R/$ = 13.38Change: 0.17
Au 1152.15 $/ozChange: 5.70
Pt 947.00 $/ozChange: 12.50
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Oct 16, 2012

Overhauled solar-geyser incentive to focus on industrial spin-offs

Building|Eskom|Industrial|Installation|Public Enterprises|SECURITY|Water|Contracting|Electricity Consumer|Electricity Tariffs|Energy|Maintenance|Manufacturing|Manufacturing Industry|Products|Andrew Etzinger|Power
© Reuse this

The South African government and Eskom have revised the contracting and funding models for the mass roll-out of solar water heaters (SWHs). In future, the programme will be funded by the taxpayer, rather than the electricity consumer, and will focus heavily on stimulating local manufacture and supporting small and medium-sized installers.

Currently, the deployment is incentivised through a rebate programme, funded from electricity tariffs. This rebate support has facilitated the deployment of 285 000 SWHs, which Eskom claims have delivered power savings equivalent to 46 MW.

But the utility’s Andrew Etzinger reports that changes will be made when the rebate expires at the end of the year.

The objective of installing one-million such geysers by 2014 remains intact. However, the redesigned programme will seek to integrate government’s economic objectives of building a larger-scale domestic SWH manufacturing industry, while also supporting smaller installation and maintenance companies.

A total of R4.7-billion will need to be secured from the National Treasury to meet the target and Etzinger has indicated that the first R1-billion should be transferred to Eskom “shortly”, in line with an agreement between the utility and the Department of Energy (DoE).

“The reason for the change is driven by a new contracting model that places greater emphasis on the local production of SWHs,” he explains, adding that the new approach is supported not only by the DoE, but also the Departments of Trade and Industry and Public Enterprises.

Under the proposed arrangement, Eskom will procure the units from domestic manufacturers and offer these on a “free-issue basis” to installers.

Government and Eskom say the model should provide demand security for manufacturers, while transferring the financial burden from small and medium-sized installers to Eskom.

Tenders have been issued for the supply of the SWHs and Eskom is in the process of evaluating the submissions received. “We will be communicating back to the market soon,” Etzinger says.

Eskom says the SWH roll-out, together with its other residential demand-side interventions, have achieved a saving of 181 MW to date. During the second phase, a savings target of 190 MW has been set.

A range of products have been developed in support of further business, industrial and residential power savings and these will be “aggressively driven” over the coming months and years.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Updated 4 hours ago US private equity firm KKR & Co LP is considering investing around $100-million in Africa within a year, a senior executive said on Tuesday. KKR is looking at the agriculture and food business, the energy industry and infrastructure projects, Dominique Lafont, a...
Article contains comments
Coega Industrial Development Zone
Commercial operation has started at the 335 MW Dedisa Peaking Power project, in the Coega industrial development zone, in Port Elizabeth. The R3.5-billion project was originated by the Department of Energy (DoE), with the build, own and operate contract awarded to a...
  JSE-listed property company Emira has appointed chartered accountant Greg Booyens as CFO, effective January 1, 2016.
Latest News
Thulas Nxesi
Updated 11 minutes ago Mining bosses and factory owners retrenching workers were threatening stability, Public Works Minister Thulas Nxesi told hundreds of Cosatu members in Cape Town taking part in the federation’s countrywide World Day march for Decent Work on Wednesday. “Retrenchments...
Updated 1 hour 32 minutes ago South African logistics utility Transnet is considering up to R200-billion ($14.5-billion) in cuts to its capital expansion plans over the next three years, two sources at the company said, as the global demand for iron ore and coal stalls. The utility, four years...
Updated 1 hour 44 minutes ago The EcoMobility Festival that is currently under way in Sandton marks the start of a long-term shift to an “ecomobile” future. Public transport, walking and cycling were set to become the transport modes of choice in future, with consulting firm Arup tasked with...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Sphere Holdings CEO Itumeleng Kgaboesele
Black-owned investment holding company Sphere Holdings plans to raise a further R1-billion in the coming months in support of its strategy to become a leading black industrial enterprise, which could ultimately seek a listing on the JSE.
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme.   LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96