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Changing regulations could cause off-grid “avalanche”

Solar panel suppliers in South Africa are predicting an “avalanche” going semi-off-grid or off-grid in response to new regulations that increase the costs of operating solar panels while attached to the grid.

According to the new regulations, 78-year-old Andrew Louwrens has an illegal solar electricity installation in his garden – despite having used solar panels since 2012.

Andrew, a retired SA Rugby administrator, received a letter from the City of Cape Town late last year ordering him to replace his illegal small-sale generation system – at his own expense – because it did not comply with regulations introduced after it was installed. Things got worse when, on Christmas eve, the council threatened to cut off his electricity if he didn’t comply.

“I installed the system in good faith in 2012. I was doing my bit for society,” Andrew said. “I also didn’t want big electricity bills when I retired, [and I have been] happily exporting excess electricity into the grid.”

Michel Malengret, an associate professor at the University of Cape Town, which owns the company that installed Andrew’s system, said the inverter he installed for Andrew had been approved globally, and at the time of installation there had been no local regulations.

“Using solar energy was very expensive then and government’s impression was that it would never happen,” Michel said.

Power utility Eskom said it viewed “the embedded generation connections, made without the required approval and permission, as illegal” and would not consider “retrospective applications”.

Cape Town’s mayoral committee member for energy, Xanthea Limberg, said residents had to ensure installations complied with standards and to replace non-compliant inverters with acceptable ones. But Michel argued that customers’ hands were tied by the expense of such replacements.

“Council only adopted regulations two years ago, so now those like Andrew who installed solar beforehand must fork out another R7000 for a new inverter. They must then pay a fixed charge of R13 a day for the ‘privilege’ of exporting excess energy into the grid,” he said.

Andrew and Michel suggest people in the same situation go partially on and off the grid, and stock up on batteries to store electricity.

Michel said that although Eskom had made it “virtually impossible” for “solar guys to work with the grid” he predicted there would be “an avalanche” of people going off the grid as the price of batteries came down.

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South Africa finds answer to Eskom failure

As China expands its presence in Africa, a new wave of renewable energy companies are bringing off-grid innovation to the continent while Western competitors stand around and watch.

JinkoSolar, a Chinese solar module manufacturer has declared that it is supplying South Africa’s first  utility scale, off-grid photovoltaic solar system. The 1 MW plant will supply electricity to a chrome mine in the Limpopo province, in the north east of the country.

Oil-replacement photovoltaic solutions are continuing to emerge as a fully-proven power source in mission-critical situations.

This installation will sharply reduce the daytime diesel usage at the mine in the northernmost South African province, an area in which utility company Eskom is active, but repeatedly letting its customers down, allegedly through a mixture of corruption and poor management in the opinion of some. Reports suggest that the State-owned utility will shortly seek yearly price increases of between 14.6% and 19% – well over the rate of inflation.

Installation in the Limpopo mine will be designed and constructed by Solea Renewables and will employ 4,170 JinkoSolar modules. The plant is likely to be completed in October of this year.

Mhlanzi, the Director of Solea Renewables, stated that, “Mines and other consumers face power supply constraints due to capacity challenges at Eskom. The delivery of our PV plant will not only benefit (the chrome mine), but in turn help reduce the ever increasing energy demand Eskom faces.”

JinkoSolar, indicated in announcing the supply deal, that it has “great expectations” for the country. According to, Kangping Chen, Chief Executive Officer of JinkoSolar, “The region’s booming population, strong economic growth and abundant sunlight represent an exciting opportunity for solar and for JinkoSolar.”

As well as ordering a clean-up of Eskom management criminality, South Africa has taken a number of steps in recent months to drive the growth of cleaner energy in the country. In August, the US Export-Import bank signed a declaration of intent (DOI) with the Industrial Development Corporation of South Africa which will see the Ex-Im bank provide financing up to US$2 billion worth of US technologies, products and services to South Africa’s energy sector, with a focus on clean-energy development. This is expected to lead to bribery by US energy companies, and  further corruption during the tendering process

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