When is “Off-Grid” Actually “Off-Grid”?

How Much does an Off-Grid System Cost?
The difference between Off-Grid and Grid-Tie
Do you know what type of solar system you have installed?
Of the 4 types of solar systems available which one give the best ROI?
Which Solar System SHOULD be incentivised FIRST by government?

Beleaguered South African Electricity consumers have now latched onto a new social media meme whenever we install a solar panel or two and a battery…

We all rush to our favourite hang out and proudly boast of how we are going “Off-Grid” and then we quote a number – normally somewhere South of (below) R150 000.00.

When asked the question; “So does that mean that you do not EVER receive a municipal or Eskom electricity account?” one is often met with silence.

Lets backpedal a bit and define the different types of systems on offer:

Off-Grid – this will include many more panels than normal, at least an 8kW inverter, batteries to match, additional power generation options such as wind, generator or other portable generation AND will cost you far NORTH of R250 000.00. PLUS – you will have officially removed your municipal (Eskom) meter and cables connecting you to the municipal (Eskom) grid. This system will power your entire premises with or without loadshedding as you will be COMPLETELY INDEPENDENT.
Hybrid – where you have around 10 t0 16 solar panels, normally a 5 kW inverter, batteries from 2.5 kWh and up, connection to the municipal (Eskom) grid, a smart meter (as supplied by the Municipality) and that will have cost you from R125 000.00 to around R200 000.00. PLUS you will still receive a municipal (Eskom) electricity account. This system will ONLY power certain essential electricity circuits on your premises – dependent upon your inverter and battery size.
Grid-Tie – where you have a varying amount of solar panels (10 to 16 is still the norm), normally a 5 kW inverter, connection to the municipal (Eskom) grid, a smart meter (as supplied by the Municipality) and that will have cost you from R75 000.00 to around R125 000.00. PLUS you will still receive a municipal (Eskom) electricity account. Straton Solar likes to call this option – the HIPPY OPTION as it is the cheapest and MOST COST EFFECTIVE option over the life of any system, PLUS as most feedback more electricity into the grid than those systems with batteries they ASSIST the grid in reducing loadshedding far more than other other similarly sized system. “Frankly says Alan Straton; “Our government should be heavily incentivising GRID TIE ONLY systems only!” This system will be OFF during loadshedding. “But,” says Straton Solar, “if you want the best Return on Investment over a 20 year period and your view is that loadshedding will be solved in the next 5 years then just get a small portable backup solution and your entire solution will come in below R100 000.”
Battery Backup – here you will ONLY have an inverter and battery to power your essential circuits. You can have a ‘wired in’ solution where a battery is supplied and an essential sub distribution board is created to power circuits during loadshedding OR you can purchase one of the myriad portable solutions available. Here you can spend from less than R1000.00 (for a router backup only) to R200 000.00 for a Tesla Powerwall.

“My best advice to potential clients is still for them to not make emotional decisions around loadshedding but to rather look at the long term numbers and long term return on investment,” says Straton. When you install any system with batteries you will have to buy new batteries at some stage. With a Grid-Tie only system you will save heaps of money over the 20 year lifespan of your system – current pricing indicates that you will pay LESS THAN R0.70 per unit of electricity as a FIXED COST over the life of your system as opposed to around R2.65 per unit for a decent Hybrid System and approaching R4.00 per unit for an Off-Grid system.

“BUT – if you are a profitable business seeking to reduce your taxable income then install the largest renewable energy system that you can afford – your ROI will then happen from Day ONE,” advises Straton.