Solar energy has continued to be a reliable and cost-effective source of power. What cost benefits does this option provide?
Solar power is an alternative energy source that converts the sun’s rays into electricity. It is a renewable source of energy that is sustainable and has little to no negative impact on the planet, which is why many countries around the globe are opting for solar power as a means of meeting their energy requirements. Solar energy has become increasingly popular in South Africa due to its environmental benefits and cost-effectiveness which has attracted many to consider using solar power over hydro and coal-powered electricity.
Here’s what you need to know about the cost benefits of solar power in South Africa:
1.Solar power systems are becoming more affordable while electricity continues to increase in price
On an annual basis, people who rely on the Eskom electricity grid for power experience price hikes. This has a compounding effect in an economy that is strained and places additional pressure on consumers.
With a solar power system, you’ll pay less for electricity usage as solar energy is free. The only cost you’ll have to factor in is the initial cost of installing the solar panels.
2.A solar panel can make your home more attractive to buyers
Although solar panels may not necessarily increase your home’s value, installing a solar panel can make your home stand out in a saturated seller’s market, making it likely to be sold more easily.
3.Your business can be eligible for deductions from SARS with a solar panel
SARS offers tax incentives for taxpayers that allow companies to deduct the cost of their solar power system from their profits. This can be deducted as a depreciation expense. A great idea if you are a business owner or running a business from home.
4.The installation cost is easily recouped after a few years
The initial expense of installing a solar panel may be pricey, but within a few years, the cost of installation is recouped through your savings. After which, you can enjoy the benefits of free energy which will save you a lot more money in the long run.
5.Load shedding and power cuts won’t affect you
Load shedding is a common occurrence in South Africa. By depending on an off-grid energy source, you won’t be negatively affected by load shedding, which saves you money as your productivity won’t be hampered. You also have the added benefit of keeping food fresh despite load shedding and power cuts.
6.You don’t have to buy a generator in case of power cuts
Generators can be quite noisy and expensive to maintain, especially considering they need fuel to run. This hurts the environment as fuel is a major pollutant of the earth.
7.You can make your solar power system interact with the power grid
Your solar power system can feed energy back into the energy grid. If you choose to do this, you’ll receive credits from the government for selling your excess solar power. However, it’s important to note that it may take up to 7 years for you to start seeing a profit.
The points listed above illustrate how one can save money in South Africa by installing a solar power system at their home or place of business.