
Weighing up the Value and ROI of Solar Installations in South Africa
Weighing up the Value and ROI of Solar Installations in South Africa
The sun’s solar energy is free and easily accessible to everyone, especially here in South Africa.
CALL FOR OUR EXPERT ELECTRICAL SERVICES TODAY
Reduce your carbon footprint
Generate electricity sustainably
Save money on your power bill
Reduce reliance on electricity from the grid
Secure your future power sustainability

The sun’s solar energy is free and easily accessible to everyone, especially here in South Africa where we bask in the warmth of 3182 hours of sunlight per year out of a possible 4383 available hours. With an average solar-radiation level ranging between 4.5 and 6.5kWh/m2 per day, solar power is the fastest-growing renewable energy source available today.
Solar energy’s advantage is that it is clean energy; it is easy to install, it requires very little maintenance, it does not discharge impurities, and it is silent, making it the number one solution for residential and commercial properties to reduce their reliance on electricity from the grid and from the ever-rising tariff increases from Eskom, the national supplier.
Over the past ten years, solar energy solutions have shown incredible growth, with South Africa committed to the Integrated Resource Plan which underpins an energy generation infrastructure development initiative set for 2030. This, together with the latest developments in solar technology means solar equipment is more streamlined and cutting edge, offering reduced cost benefits for both businesses and communities along the way.
If set up and installed correctly, choosing a solar energy solution will ensure you decrease the size of your carbon footprint, see the benefit of cost reductions on your electricity bill and see a return on the initial cost of your upfront investment (ROI) within an estimated 5 to 6 years on average.
What is essential during any switch-to-solar process is not to cut costs on the quality of your solar equipment, especially the quality and positioning of your photovoltaic panels.
Once your initial payback period is completed, your solar generated electricity then becomes a free resource and a savings model for your future.
How to calculate the ROI of your solar installation
The ROI calculation is done over the total lifetime of your solar panel installation, which makes quality, positioning and total energy hours gained so important, as it measures how much your solar panels can make or save you. The lifetime of your solar panels is deemed to be the same length as your warranty.
The solar payback period is calculated by understanding the cost of a solar panel and the value it generates per year. You’ll use that number to figure out how many years it will take you to balance out the cost of purchase, installation, and maintenance.
Add the one-off cost of equipment and installation to the projected cost of maintaining your solar panels and inverters for the rest of their lifetime.
Calculate how much you pay or paid for electricity each year without solar panels – this will be how much you saved or will save on your electricity bill.
The net benefit of your solar system is calculated by subtracting the total cost from the total benefit.
To calculate your ROI percentage, divide the net benefit by the total cost and multiple it by 100%.

Once your initial payback period is completed, your solar generated electricity then becomes a free resource and a savings model for your future.
5 Factors that improve the ROI of your solar system:
Installation: The more efficiently your solar panels are installed and arranged, the more energy you will be able to generate. They should face North and at an angle that catches the most sunlight for the longest period of time during the day.
Solar Panel prices depend on brand and size. Prices range between around R2500 for a 345W Monocrystalline Solar Panel and R4500 for a 540W Monocrystalline Solar Panel. Solar power systems tend to have a lifetime of approximately 25 years – and while some panels carry warranties of up to 20 years or more, other system components may have different or lesser warranties. It’s therefore essential to check the performance warranties of all the components, as well as their origin and quality.
Experience and the work quality of your expert electrical engineer or amateur solar installers work and technical advice will affect your investment. Improper installations of Solar Power Kits hanging, wiring your inverter and battery and the connection to your distribution board, as well as the installation of commercial solar photovoltaic (PV) systems can drive up maintenance costs in later years and severely diminish any potential cost saving benefits.
There will be a per panel installation price. If you need to install 12 solar panels, your installation cost will be higher than that of someone who only needs 6. For a 6 panel installation, you can expect to pay upwards of R12,000.
Choosing a microinverter that converts energy efficiently is one of the most essential components of a solar system. They turn the raw direct current (DC) energy collected by your solar panels into alternating current (AC) energy that can be safely used in your home or office. Look for microinverters that have High CEC and MPPT ratings and an extended warranty, so that you can get it fixed or replaced if it becomes less efficient.
Is solar power worth the investment?
South Africa aims to achieve 9600 MW of solar power capacity by 2030. Installing a solar system can be an excellent way to save money – or, in some cases, even open up new sources of income. This relates not only to cutting your electricity bill but may mean you are able to sell electricity not used back to the grid.
Total Off-Grid Solar Systems
If you want to remove all dependence on the national electricity grid, you will need to invest more money in a battery storage system, and ensure you have a correctly sized solar array to power those batteries, to keep you powered at night and through heavily overcast days or rainy days. This can start at R200,000 or more.
Depending on your location, you could be eligible for net metering – an electric billing tool that uses the electric grid to store excess energy produced by your solar panel system. The energy that your solar panels produce and do not use can be credited back to you, meaning you could potentially receive a credit toward your bill for unused energy and essentially sell solar energy back to the electrical grid.
Ensure that the service provider installing a PhotoVoltaic system is experienced and has a successful track record with the technology. In South Africa, the solar installation industry is not regulated. As a result, it is ESSENTIAL that you hire a company that has electrical engineering skills behind their name.
When considering investing in solar with an eye for the future, there is a wide array of funding options available to you, including from your own banking institution.
Let Kommetjie Electrotech do an accurate needs analysis of your domestic or commercial solar power requirements and a Solar PV feasibility study for your site when you call us on 079 531 2992 now.
#loadshedding #energyefficiency #alternativepower #solarsolutions #solarsouthpeninsula #rooftopsolar