1 Solar Water Heating Update Presentation to the Select Committee on Economic Development 09 November 2010.

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Presentation transcript:

1 Solar Water Heating Update Presentation to the Select Committee on Economic Development 09 November 2010

2 BACKGROUND

Presentation outline 3-Confidential- BACKGROUND

Presentation outline 4-Confidential- Experience with Tariff Based Rebate Program - Eskom

Comments from Market on Rebate Programme 5 “We are currently averaging 100 – 200 per month (reflected in Eskom stats)” - One big national player “Burst geyser is not good time to sell SWH” “Rebate programme just isn’t doing it for market” “Market needs a serious shake- up” “It would be embarrassing to give you our sales numbers” 3126 installed on Eskom rebate from Jan 2009 – Apr 2010 Average for new rebate level (Feb 2010 to April 2010) = 443 units per month

Presentation outline 6-Confidential-10/10/2015 ** August shows total figures since programme inception. August figures for residential and Low pressure not split Update October figures for Eskom’s Standard residential claims not yet available Experience with New Diversified Approach Cumulative total per month

Presentation outline 7-Confidential-10/10/2015 Municipal Areas with Active Roll-out Programmes for Low Pressure Systems (using Eskom rebate) Municipality Roll-out Start date Installed in Oct 2010 NMBM20-Jul Mossel Bay27-Sep Saldanha4-Oct Kroonstad1-Sep Mangaung (Bloemfontein 27-Sep Potchefstroom27-Sep TheewaterskloofOct

Presentation outline 8-Confidential-10/10/2015 Other Implementations of Solar Water Heating CompanyInitiatives Implemented BMW6500 litre per day system SABS Rosslyn Change rooms8 units Western Cape Environmental Affairs 1000 units (in Darling) Japanese embassy Installed 410 solar panels which includes water heating needs Hotel Da Vinci (Sandton)30000 litre per day system

Presentation outline 9-Confidential-10/10/2015 What is in the pipeline?... (1) Program funded from fiscus to install systems in Tshwane, Sol Plaatjie and Naledi by end March Eskom is the implementing agent. It gave contractors a letter of intent to commence, whilst contracting is being finalised. Installation expected to commence end of November Program involving local banks and insurance industry to install residential systems without any rebates. Voluntary program by industry in lieu of their contribution to energy efficiency.

Presentation outline 10-Confidential-10/10/2015 What is in the pipeline?...(2) Programme to address hot water provision in rural areas – Managed by Department of Rural Development and Land Reform. Programme to install in government owned residential dwellings – Managed by Department of Public Works. New building regulations will enforce energy efficient practices in new buildings (including SWH and other technologies). The regulation was gazetted for public comment and is in process of being signed off for promulgation by Minister of DTI.

Presentation outline 11-Confidential-10/10/2015 What is in the pipeline?...(3) Tax incentive for implementing energy efficiency Awaiting concurrence of Minister of Finance Other Municipal Programmes Ekurhuleni eThekwini Noupoort

Presentation outline 12-Confidential-10/10/2015 What are the Key Challenges that will Increase Rate of Rollout if Addressed? Capital cost of components and systems is too high (pricing ranges from R9000 to R35000 for a 200 litre system) Funding for capital costs of units Large uninformed consumer base i.e. lack of consumer awareness of the solar water heating (SWH) benefits Funding for education and awareness campaigns Skills shortages – necessary for safe scaled up installations

Presentation outline 13-Confidential-10/10/2015 Addressing the challenges...(1) Training Skills program initiated with CETA, eSETA, donors – unit standards developed and accredited training available for -NQF Level 4 : Solar Water Heating plumber -NQF Level 2 : Hot water installer

Presentation outline 14-Confidential-10/10/2015 Addressing the challenges...(1) Localisation Many companies supply Solar Water Units as importers or as knock-down units and assemble locally. There are initiatives to manufacture locally e.g A factory is being set up in the Eastern Cape. Discussions are also underway with suppliers to set up additional factories in Eastern Cape and Gauteng. Preference will be applied for local systems when rebates are applied for. The Department of Trade and Industry (DTI) is spearheading the second Industrial Policy Action Plan (IPAP 2) process which provides for local manufacture of SWH. A working group on SWH localisation is being established. SABS reports that they are scaling up testing capacity, particularly in the regions, to remove any bottlenecks the industry may experience in launching new products

Presentation outline 15-Confidential-10/10/2015 Education and Awareness Department of Energy has developed a comprehensive above-and-below-the-line education and awareness plan. The Department is seeking partnerships with the private sector to execute the plan. Funding Additional fiscal allocations applied for Tariff-based rebate cemented in Integrated Resource Plan (Nersa will be compelled to make adequate rebates available in the future) Addressing the challenges...(2)

Presentation outline 16-Confidential-10/10/2015 Conclusion Target of 1 million systems by 2014 can be achieved, especially when the electricity tariff doubles in 2013 We will exceed threshold of systems this financial year Education and awareness building is critical for increased uptake SWH is a key component of the industrial policy action plan to create jobs and has to be intensified Rands Illustrative affordability challenge