- May 11, 2017
- Posted by: solaradmin
- Category: Of Interest
Solar Power is now the cheapest electricity in the world. Solar power can reduce your electricity bill at home and your business, with a great return on investment. Send me your electricity bill today so that I can calculate your savings opportunity today!
The Return on Investment of a solar power system will depend on the following
- Size of the solar system
- Solar Energy available at your location
- Orientation and angle of the Solar modules
- Movement of the Solar Modules
- Capital Cost
- Tax Incentives to reduce the Capital Cost
- Electricity Tariff
Solar System Sizing:
The most cost effective solar system size is to match your energy usage at 12:00 with solar energy. All the solar power will be used in your operations and you will not depend on lower feed-in tariffs from municipalities. The power consumption can be measured with a power meter to determine the usage at 12:00.
Grid-Tied Solar systems are modular, and can be expanded over time. You can start with a smaller system, and add to it once the expected solar savings has been confirmed.
Orientation of the Solar Modules:
The orientation and angle of the solar modules will determine the yield of your solar power system.
North orientation will yield the highest return on your solar system. Eastern orientation will reduce expensive Time of Use electricity
The optimal angle for solar systems in Gauteng is 32 °. A solar power may be designed with a smaller angle, but more solar modules to compensate for reduced yield.
Movement of the Solar Modules:
Solar modules mounted on a moving tracing system produce a higher yield. A dual tracking system will produce 20% higher yield. The additional capital cost for tracking is far more that the 20% additional yield.
The best yield on a solar system is when no tracking is used, and the solar panels are mounted on the roof. The 20% loss of efficiency can be made with additional solar modules. This will be cheaper than installing the tracking frames and mechanisms.
Income Tax Incentive:
As per the Income Tax Act 58 of 1962, Part 12B – Deduction in respect of certain machinery, plant, implements, utensils and articles used in farming or production of renewable energy
Extract from Subsection (2)
As from 1 January 2016 Section 12b of the Income Tax act (South Africa) was amended from an allowance of ONE year (100%).
Solar Energy Map
Not all areas on Earth or in South Africa received the same amount of energy from the sun. The Solar energy map indicates the amount of sunshine hours you can expect in your area every year.
The coastal areas have more cloudy days while the Northern Cape has the highest energy in South Africa.
The yield from the solar system will depend on a the Energy from the sun and the equipment used. To accurately predict the yield from a solar power system advanced computer simulations are performed to predict the solar yield using the weather information of the last 20 years. The solar yield is sensitive to the orientation and angle of the solar modules. The yield may also differ a lot from summer to winter.
Every municipality has their own bundles of tariffs, and none of these bundles correspond to each other. The tariffs in South Africa range from R 0.96 / kWh to R 2.06 / kWh. Some tariffs penalise for peak demand, while others have different rates in the different times of the day.
To calculate the yield on your solar power system, the electricity tariff need to be analysed first. Send me a copy of your electricity bill today, so that I can calculate the savings available to you today!
Below we will calculate the Return on Investment for a typical solar power system.
Area: Wynberg, Sandon
Electricity Cost: R 2.06 / kWh