Electricity prices are hammering every industry in Southern Africa, however over the last 2 years, solar has become a very appealing offering. Howard Lipman of Tems Meat in City Deep, fed up with increasing electricity tariffs was a first mover, opting to use Emergent Energy.
Contractually bound by a performance guarantee, the ball is now in the solar providers’ court. If the performance doesn’t match the promises presented, Emergent Energy will have to pay. Solar EPC’s like Emergent Energy is backed by numerous financial institutions, having access to various power purchase agreements, instalment sales agreements and “welcome to solar” bonuses. After multiple electricity tariff hikes, financial managers must consider cost saving projects that can reduce bills up to 40% with payback periods of under 3 years.
The 12B tax incentive is the “cherry on the top” for hard-pressed energy consumers and is one Government initiative which really encourages businesses to go green.
“The penny has dropped! Cold stores will move in the 1st quarter of 2020. Another 10-15% tariff increase will be too damaging.” -Gregory Lovell (Business Development Manager at Emergent Energy) gregl@emergy.co.za
Although roof-based solar PV energy cannot supply all the electricity required in the event of a blackout, it will significantly reduce standby generator sizing and diesel consumption.