Is getting solar really worth it? Here’s how much you could save

Have you considered switching to solar but wondering if it’s really worth digging into your pocket for? Well, an expert says it’s often worth the investment.

As the country jumps between load-shedding stages, and many more to come before Christmas, South Africans are looking at alternative energy sources to keep their properties powered up.

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While using solar energy can trim down the electricity bill, many are concerned about the high cost of installation and equipment and question whether the benefits really outweigh the price tag.

Executive Head of Standard Bank’s LookSee platform Marc du Plessis tells The Citizen that solar power systems are assets that keep producing, meaning every kilowatt generated has a Rand value.

He says that while there is no one-size-fits-all answer to how much you stand to save from investing, a 8 panel solar system producing around655 kWh a month can reduce your bill by an estimated R1,600 a month. These funds that have essentially been ’released’ can be used to help pay for the investment through products like the LookSee Solar Loan.

This saving will change depending on how your household uses electricity, what appliances you have and how long they run, the per kWh tariff from your electricity provider, and even the direction of your roof.

Kick the habit

Du Plessis warns against bad electricity habits like using high-voltage appliances such as washing machines, dishwashers and pool pumps during the night. Instead run them during the day, when solar capacity is higher.

“If you don’t change your behaviour and keep on running your appliances when the sun is not shining, you’re not going to yield more savings,” he explains.

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He goes on to say that when solar energy capacity is low, like during a cloudy day, a property switches to limited backup power, eventually drawing electricity from the grid – which increases the monthly electricity bill. 

To track your production vs. usage, a mobile app can help you monitor how much electricity is being generated by your solar system in real time.

Direction matters

Du Plessis says the size and number of solar roof panels also play a part in how much you save, as does the direction your property faces.

“Solar panels come in a variety of sizes, and it may seem logical to opt for panels with the highest wattage output. However, smaller panels can be beneficial, as they allow for better coverage of your roof area,” he says, adding it’s important to speak to a solar provider before making a purchase.

Houses in the Southern Hemisphere often have north-facing roofs and more sunlight throughout the day, which is great for getting the most out of your solar system.

While roofs facing east or west can generate solar power, they tend to produce less electricity because they don’t get as much exposure to the sun. South-facing roofs are not practical for solar power.

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Wondering if your roof is a money-maker? LookSee’s Solar Score holds the answers.

It gives your property a score based on how much solar power it’s likely to generate.

Saving on repayments

Unlike assets such as cars, whose value depreciates with daily usage, Du Plessis says installing solar is a worth the long-term investment.

LookSee provides a Solar Loan to help people get off the grid.

Du Plessis says unlike regular home loans and unsecured personal loans, whose interest rates can increase drastically, these LookSee’s Solar Loans are capped.

“Your interest rate is personalised and will never exceed Prime plus 2.5%,” he says.

A property owner with a medium-sized solar system would pay between R1 600 and R1 800 monthly over a period of five years.

The solar financing expert says LookSee’s Solar Loan is open to anyone, including property owners who are not Standard Bank customers and those who haven’t had a home loan before. 

“It’s based on affordability, credit records, and a standard risk-based process.”

Du Plessis suggests property owners use the money saved towards repaying their Solar Loans.  

“If you’ve got extra funds because you’re now producing your own power, you can pay off that loan faster and reduce the interest.”

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Increasing property value

Property owners can also increase or hold the value of their properties by going solar.

This is because homes with solar infrastructure tend to be more sellable than those without.

Properties with excess power can supply some of it to the Eskom grid in return for a fee, with property owners in the Cape region already starting to do so.

These factors have convinced many to ditch the load-shedding schedule and jump into solar, saving sometimes thousands of Rands along the way.