1. Communicare Boom Flats Retrofit: Financial Analysis
Megan Sager, Consulting for Sustainable Solutions
NASHO AGM, 8 November 2017
20 September

2. Boom Flats Retrofit
Financial analysis
One of the key reasons social housing was selected is the high utility burden on the poor
Poor households allocate 2-3x as much of their budget to electricity and other household fuel as rich households
3,4%
National average
Source: Statistics South Africa Living Conditions Survey 2014/15
20 September

3. Boom Flats Retrofit
Financial analysis
At Boom Flats, however, residents spent less on electricity pre intervention: 3-6% household income
Baseline consumption per unit averaged 274 kWh pm, reflecting energy poverty
kWh
Middle class average
Source: Meter data, SEMS
20 September

4. Boom Flats Retrofit
Financial analysis
After an initial anomalous spike, the retrofit has led to a measurable decrease in electricity consumption
Spike driven by increased geyser element operation due to removal of manual control of geyser controllers & overcast weather
kWh
Middle class average
Source: Own analysis based on SEMS meter data
20 September

5. Boom Flats Retrofit
Financial analysis
Water consumption has decreased by 25% year-on-year post retrofit, from initial 6.4kL per unit pm (May-Sept)
The post-retrofit unit average of 4.8 kL pm for the same period is within the free 6kL allocation for indigent households
kWh
Middle class average
Retrofit underway
Source: Own analysis based on utility bills
20 September

6. Tenant impact has been positive but highly variable
Boom Flats Retrofit
Financial analysis
Tenant impact has been positive but highly variable
On average, tenant financial position has improved since the retrofit took place:
Electricity expenditure fell by an average 12.2% year-on-year in Q4 2016, from R254 to R223 pm;
In real terms (i.e. once inflation is allowed for) saving ~ 17%
There is a high degree of variability in these savings, however, with some tenants actually increasing expenditure post retrofit
• Possible causes of variability:
Fluctuating occupancy levels e.g. increase in dependents living in unit
Variation in knowledge of optimal technology use (although tenant training was provided)
Variation in use of manual geyser control
Variation in efficiency of technology, for example orientation of solar water heater systems on roofs
Compensating consumption associated with suppressed demand (energy poverty)
Source: Own analysis
20 September

7. Boom Flats Retrofit
Financial analysis
Electricity savings were inversely related to baseline consumption (water not billed for)
Highest initial users saved 25% on average, while lowest spent an extra 67%
kWh
Middle class average
Source: Own analysis based on utility bills, City of Cape Town tariffs
20 September

8. Savings extend beyond the household level
Boom Flats Retrofit
Financial analysis
Savings extend beyond the household level
Landlord
Monthly saving of R600+ comprising:
Water saving of R20 / day
Sewerage saving of R1 / day
Municipality
Electricity subsidy saving during winter peak: R /kWh
Reduced need for new water infrastructure
National +
Reduced Eskom peaker plant requirement
Reduction in GHG emissions
Source: Own analysis
20 September

9. While savings may appear small, the impact can be great
Boom Flats Retrofit
Financial analysis
While savings may appear small,
the impact can be great
For the most vulnerable, energy and water efficiency can mean improved quality of life and free up an extra R100+ pm. Higher occupancy, income and operational knowledge positively influence savings.
In water scarce South Africa, a monthly saving of 1.6kL per lower household can substantially improve water security. In Cape Town alone, 821 million litres could be saved annually if all low income HHs received similar retrofits (~1.5 days’ City water demand).
With carbon emissions of 1 ton / MWh Eskom electricity produced, and the utility’s current revenue shortfall of R32bn, we cannot afford to rely on expensive, carbon-intensive peaker plants for residential demand.
Source: Own analysis
20 September

10. Thank you
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