Work is under way on the development of a R40-million manufacturing facility in the Eastern Cape, which will reportedly be able to produce up to 30 000 solar water heaters yearly for the power-stressed South African market.

The investment, known as Matla Solar Power, is being supported by black business entrepreneur Zwelakhe Sisulu, who is best know for his media and mining interests, Empowerdex director Chia-Chao Wu and the Eastern Cape Development Corporation (ECDC).

Sisulu and Wu have raised R20-million for the project, while the R20-million balance has been secured through a financing deal with the ECDC.

The new company expects the first solar water heaters to come off the production line by June and that the plant will employ about 200 people directly, and support up to 1 000 downstream installation jobs.

The initiative, which was announced on Tuesday, comes as several municipalities are considering ways to roll-out solar water heating systems as a way of reducing their overall power consumption and improving energy security and efficiency.

As geysers reportedly consume up to 40% of domestic power, the roll-out of solar water heaters could help municipalities in realising significant energy savings, which may also assist them in avoiding the possible penalties that could arise from a mandatory power conservation programme, should it materialise.

In fact, City Power, which operates Johannesburg’s electricity system, has already issued a request for proposals to potential vendors and is expecting to receive firm submissions by the end of the month.

CEO Silas Zimu told Engineering News Online that more that 100 people and organisations attended a prebid meeting on January 9, and that City Power was, therefore, optimistic that it could soon begin giving practical effect to its vision for the mass deployment of solar water heaters across the city.

He asserted that the key constraints related primarily to a shortage of manufacturing capacity, technicians and plumbers and finance. Nevertheless, he remained committed to delivering on an aspiration of installing at least 300 000 units across the city over the next few years.

It is also understood that Joburg’s sister Gauteng municipality, Ekurhuleni, has also issued a tender for solar water heaters, which led Sisulu to suggest that there could be demand for up to half-a-million units over the next three years in Gauteng alone.

Once completed, the East London factory will be capable of producing 30 000 units a year – a plant of significant scale in the South African context, considering that it is estimated that the local production currently stands at a paltry 10 000 units a year.

The outer shell of the factory was recently completed in the city’s industrial development zone (IDZ) and Sisulu said that assembly equipment from its partners in Taiwan should arrive within weeks.

Following 18 months of negotiation, Matla Power recently reached agreement with Taiwan’s Ming Yang, giving the South African company access to “cutting-edge” solar heating technology.

The negotiation process included several visits to Taiwan, accompanied by members of the Central Energy Fund, the Department of Trade and Industry and the National Home Builders' Registration Council. Consultations were also held with Taiwan's Industrial Technology Research Institute (Itri) and the South African Bureau of Standards.

“The Taiwanese lead the way in the research and development of solar-powered water heaters, and Ming Yang and Itri have enabled us to hit the ground running.

“Ming Yang’s management team is due to arrive in South Africa soon, along with the assembly equipment, and we will begin production of our first solar water heaters soon.”

Matla is also looking at partnering with the Walter Sisulu University, named after Zwelakhe Sisulu’s late struggle-icon father, on skills development and the provision of scholarships in Taiwan.

In addition, it will be creating South Africa's first ‘solar energy park’ in the East London IDZ in a bid to stimulate innovation in this sector.