As solar energy becomes more accessible and affordable, many households have switched to rooftop solar combined with battery storage, to either try to prevent the crippling load shedding and power failures that plague the country, or to save on their monthly electricity bill. Although it seems that load shedding is largely a thing of the past, it still rears its ugly head from time to time when people least expect it.
To the surprise of many customers, installing solar panels does not always eliminate their utility bill – and in some cases, the power utility may impose additional charges on solar-powered homes as is the case coming to light in SA. At first, this might seem counterintuitive, but there are several reasons behind this worldwide practice that make sense.
Firstly, maintaining the grid costs a lot of money and even homes with solar panels usually stay connected to the electrical grid. This connection ensures a consistent power supply during days when solar generation is poor, or at night when solar generation is nil. Eskom still needs to maintain the grid infrastructure – the power lines, substations, and transformers – to support this ‘backup’ connection.
When solar customers reduce or eliminate their electricity bills through solar installations, they still use the grid, but contribute less to its maintenance. Over time, this can shift infrastructure and administrative costs to non-solar customers – often the lower-income households who cannot afford solar installation. Solar customers could end up paying significantly less for grid services they still occasionally use, which shifts the financial burden onto their customers who do not have solar installations.
To cover these fixed costs, Eskom imposes a fixed service charge on all customers, including those with solar. They are also actively seeking to introduce a ‘solar surcharge’, a higher fee for customers with solar installations. Many customers are very vocal regarding this idea, but while many people dislike the notion, it does make sense as it contributes to the continued upkeep of the national grid.
Secondly, the large influx of distributed solar systems introduces complexity to the grid. The power utility must now invest in new technologies and systems to manage energy flowing both in and out of the grid. These upgrades are necessary to prevent voltage issues, ensure reliability, and protect both upstream and downstream equipment.
The last reason that has been bandied about is one that I battle to come to terms with. Often it has been said that solar incentives favour wealthier homeowners who can afford to invest in rooftop solar. This may be true in some countries overseas, but certainly not in SA. The only ‘incentive’ we have for the initial and substantial financial outlay is to be free of load shedding and power failures. I cannot agree that this should be a valid reason to further penalise customers who have solar installations. Extra surcharges on solar installations cannot correct income inequality and I feel that this is what politicians are trying to do when they bring up this point.
Renewable energy solutions in the form of solar is here to stay. The country needs to learn to embrace it and manage not only the infrastructure, but also its customers. Forcing customers to go completely off-grid is not an option for an already-struggling utility.
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