When is “Off-Grid” Actually “Off-Grid”? Expert Advice with 4 Options

Ways to cope with loadshedding

Beleaguered South African Electricity consumers have latched onto a new social media meme when they install a solar panel or two and a battery. They then rush out to their favourite hang-out and proudly boast about how they are going “off-grid.” Then they quote a number, normally somewhere below R150,000.00. When asked the question, “Does that mean that you don’t EVER receive a municipal or Eskom electricity account?” the person asking the question is often met with silence.

So, is going off-grid a good idea and what does it mean? Alan Straton of Straton Solar answers a few questions that relate to being off-grid.

• How much does an off-grid system cost?
• What is the difference between being off-grid and having a grid-tie system?
• Do you know what type of solar system you have installed?
• Of the four types of solar systems available which one gives you the best ROI?
• Which solar system should be incentivized by the government?

4 Different Types of Systems on Offer

Going off-grid isn’t the only solution to overcoming the challenges of increased loadshedding. Those cited below are all options whether you get your power directly from Eskom or your local municipality.

Off-Grid Systems

Going off-grid will require a substantial number of solar panels (Straton says “many more panels than normal”), at least an 8kW inverter, batteries to match, and additional power generation options such as wind, generator, or other portable generation.

The system will cost you a lot more than R250,000.00. Additionally, you will have officially removed your municipal or Eskom meter and cables connecting you to the national Eskom grid. This system will power your entire premises at all times, irrespective of loadshedding, as you will be completely independent of Eskom – ie off-grid.

Hybrid Systems

A hybrid system requires about 10-16 solar panels, normally a 5 kW inverter, batteries from 2.5 kWh and up, connection to the municipal or Eskom grid, and a smart meter (as supplied by Eskom or the municipality).

This will cost you anything from R125,000.00 to around R200,000.00. You will still be billed by the municipality or Eskom either via an electricity account or the smart meter that you will have to top up from time to time. This system will only power certain essential electricity circuits on your premises. These will be dependent on your inverter and the size of your battery.

Grid-Tie Systems

While the number of solar panels used for a grid-tie system is usually 10-16 it can vary. If you have 10-16 panels you will normally install a 5 kW inverter. You will also need a connection to the municipal or Eskom grid, and a smart meter.

A grid-tie system will cost you between R75,000.00 to around R125,000.00. You will still receive a municipal or Eskom electricity account unless you have a smart meter that you top up when you need to. Straton Solar calls this option, the Hippy Option as it is the cheapest and most cost-effective in terms of the life of any system. Additionally, most feed more electricity back into the grid than those systems with batteries. This means that they assist the grid in reducing loadshedding far more than other similarly sized systems.

This is the system that Alan Straton believes the government should incentivize. “Frankly,” he says, “our government should be heavily incentivizing the grid-tie-only systems only!” This system will be off during loadshedding, but it offers the best return on investment (ROI). “If you want the best ROI over a 20-year period, and your view is that loadshedding will be solved in the next five years, then just get a small portable backup solution and your entire solution will come in below R100,000.”

Battery Backup

This system utilizes an inverter and battery to power your essential circuits – no solar panels. 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. Otherwise, you can buy one of the myriad portable solutions available. Here you can spend from less than R1,000.00 (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 70c 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 close to R4.00 per unit for an off-grid system.

If you are a profitable business seeking to reduce your taxable income, then install the largest renewable energy system that you can afford, says Straton. “Your ROI will then happen from day one.”

NOTE:
This article is based on a press release originally published by MyPR under a Creative Commons license. sans10400.org.za is in no way associated with Straton Solar, but we believe the information shared is useful.