WITH the looming November 24 deadline to update prepaid electricity meters, nearly 2.8 million South African households must act swiftly to avoid potential service interruptions. This urgent requirement comes at a time when households are already feeling the impact of rising electricity costs and Eskom’s newly introduced tariff structures.
CEO of Alumo Energy, Rein Snoeck Henkemans, underscores the importance of keeping informed in the face of these challenges.
“The pressure on households is only increasing, particularly as Eskom’s latest tariff adjustments may penalise lower-usage customers, including those with grid-tied solar. It’s crucial for consumers to understand their options and make informed decisions to secure their energy needs and protect their budgets,” he said.
Under Eskom’s revised Homeflex tariff, time-of-use rates now come with capacity charges that could disproportionately impact lower-consumption users who only rely on the grid as a backup such as households with grid-tied solar systems. In this structure, homes using less grid electricity may see additional fees, raising their overall energy costs compared to high-consumption users.
Solar power remains a practical solution amidst these escalating costs. Households equipped with solar can optimise their savings by configuring systems to work in alignment with the new tariff system.
“Properly set up, solar systems that include grid-tie limiters can reduce or eliminate unnecessary charges from the grid,” Snoeck Henkemans explains. “This approach is especially critical for prepaid customers looking to avoid extra penalties,” said Snoeck Henkemans.
With persistent power outages and climbing tariffs, the shift toward solar energy is growing. South Africa’s solar uptake has expanded significantly, with rooftop solar installations jumping from 983 MW in March 2022 to over 4,400 MW by mid-2023, according to energy expert Anton Eberhard. This trend reflects a global shift towards energy self-reliance, especially among cost-sensitive consumers.
For prepaid customers, solar offers tangible financial relief in an era of rapid price hikes—33.8% since 2022 alone. However, integrating prepaid meters with solar setups can pose technical challenges, as these meters don’t differentiate between grid-drawn electricity and solar-produced energy. This can lead to unexpected charges without the right configuration.
“It’s essential for users to set up their solar systems in a way that avoids charges on the power they generate themselves,” notes Snoeck Henkemans. “Using grid-tie limiters can help redirect excess energy within the household, ensuring users aren’t inadvertently charged for their own solar output,” he added.
As the update deadline nears, Eskom has urged prepaid users to recode their meters to avoid disconnection. This has intensified the urgency for prepaid users with solar, as a properly configured solar setup can provide backup power and reduce reliance on the grid during uncertain times and ongoing outages.
Snoeck Henkemans said solar energy offers a way for prepaid customers to regain control over their energy costs.
“Investing in solar is a step towards a sustainable future and provides essential protection against price hikes and potential disconnections. For many, this is about ensuring their homes stay powered without the constant worry of increasing costs.” Solar energy’s cost benefits are compelling.
Households can expect a return on investment within four to five years, leading to long-term financial relief. By reducing monthly expenses and ensuring a reliable energy supply, this approach brings stability for families facing a challenging economic climate.
As South Africa’s energy landscape continues to evolve, prepaid customers are encouraged to view solar as a proactive way to secure their energy future. With the right information and system setup, consumers can better navigate these turbulent times while remaining empowered and connected.
Saturday Star