If you’re a small to medium business and receive your electricity bill from the City of Joburg, you should seriously consider rooftop solar.
Grid tie solar PV systems generate kilowatt hours (kWh) and City Power’s (Joburg’s electricity provider) kWh tariff for small businesses is one of the highest in the country.
By comparison, here are the tariffs for small businesses by major city:
|City||Tariff Name||kWh Tariff|
|Joburg||Consumption > 3000kWh per month||Business Conventional||Summer: R2.6033|
|City of Cape Town||Consumption > 1000kWh per month||Small Power User 2||R1.2975|
|Nelson Mandela Bay (Port Elizabeth)||Flat rate||Small Business Scale 32||R2.0053|
|Ethekwini (Durban)||Flat rate||Scale 1||R1.9358|
What is a Small Business in Joburg? A building that has a 150A/100kVA electricity supply. Typically, small office buildings and small factory unit type businesses,
If your main supply to your building has 150A breaker, you are a small business and should be billed on the Business tariff.
Why is solar attractive?
A business that uses 15 000 – 20 000 kWh per month would require a solar system of approximately 30kW, at a cost of R420 000 – R460 000.
A Monday-Friday business could pay off this system in 3.5 – 4.5 years, a return of 22 – 28%.
In Rand terms, this system can save R80 000 – R110 000 per year.
*These calculations are purely indicative and not guaranteed. Every site is different and would need to be individually assessed to give an accurate proposal.
The City of Joburg is receptive of rooftop solar and the registration process is fairly simple and efficient these days.
Medium size businesses
Typically small factories and larger commercial buildings.
If your electricity supply is bigger than 100kVA, you will be billed on Industrial Low Voltage tariff, which has a kWh tariff + a demand tariff.
This is still 14-33% higher than Cape Town for a similar tariff.
Customers can achieve capital payback of 4 years on these tariffs as many also use some power on weekends, which enhances the payback of solar.
Section 12B of the income tax act permits a company to depreciate 100% of the capital cost of a solar system in year 1. For many business owners this is a very attractive proposition.
But if capex is an issue, we can offer a funded solution that will put money in your pocket from day 1.
Small and medium size businesses are the lifeblood of any economy. Every Rand saved is important and solar PV will play a massive role in ensuring that these businesses in Joburg have lower input costs, keeping more people employed.