Solar Water Heating FAQs

Background information :: How to participate :: FAQs :: Pamphlets & Brochures :: Claim your rebate :: Solar Water Heating through Insurance

:: Customer feedback

Eskom Solar Water Heating Programme

Frequently Asked Questions

General Questions

What is solar water heating?
What are the benefits of solar water heating?
How much of my total hot water requirements can a solar water heater provide?
By how much will replacing a conventional geyser with a solar powered system reduce electricity consumption?
What is Eskom's involvement in the solar water heating programme?
How does the programme work?
Does the fact that the industry is still developing and has not been exposed to legal and quality regulations before contribute to a slower than expected roll-out of the programme in the country?
Do I need to install a new geyser or can solar panels be added to the existing system?
What happens in winter or on rainy days, when there isn't enough sunlight to heat the water?
How hot can the water get?
What is the life-cycle expectation of the system and more significantly the total energy savings on it?
Where can I obtain information on accredited suppliers?
Why is it important that a solar system be tested by SABS?
Why is it important that solar systems get the SABS mark approval?
Can I install the system myself?
How do I ensure the quality of the system I have purchased?
How much will it cost to install a solar water geyser?

1. What is solar water heating?

Solar Water Heating is a system for heating water using energy from the sun. Solar energy is collected by a panel, which is connected by pipes to a hot water storage device such as a hot water cylinder.

2. What are the benefits of solar water heating?

Solar water heaters can help save water heating costs by reducing the amount of gas and electricity needed to heat water. By using sunlight to heat water instead of combustible sources or fossil fuel-produced electricity, fewer pollutants are being introduced into the environment. Solar energy is not affected by the current shortage of electricity and does not stop providing hot water during load shedding.

3. How much of my total hot water requirements can a solar water heater provide?

A solar water heater can provide between 50 and 90 percent of your total hot water requirements, depending on the climate and model of heater.

4. By how much will replacing a conventional geyser with a solar powered system reduce electricity consumption?

The electrical geyser uses 30 - 50% percent of your household's monthly electricity bill. Replacing your conventional geyser with a solar powered system will reduce that percentage of your electricity consumption by up to 70 percent

5. What is Eskom's involvement in the solar water heating programme?

In order to reduce the growing demand for electricity, Eskom is embarking on energy efficiency and alternative energy programmes that promote energy savings on a large scale in order to mitigate system constraints. Eskom is working towards a goal to meet government's target of 10 000 gigawatt hours of renewable energy generation by 2013.

Page up

6. How does the programme work?

The programme is structured around a rebate which reduces the selling price of a SABS approved solar water heating system. The reduction in price is based primarily on the performance of the solar water heater and its associated electricity saving potential. You receive a rebate directly from Deloittes, the facilitating auditors of the programme.

Only registered products, complying with the following criteria, qualify for the rebate:

It must be a high-pressure system with pressure higher than 100kPa.

The system must have a timer to optimise energy savings and regulate everyday usage. Alternatively, a load management device, i.e. a geyser buddy or ripple relay, to control the usage in crisis situations must be installed.

The system must be appropriate for the household and area in which it is installed, in terms of size, frost protection and water quality compatibility.

It must have a comprehensive guarantee of at least five years.

The system must have passed the South African Bureau of Standards (SABS) tests, and comply with the South African National Standards (SANS) for thermal and mechanical performance and safety.

The supplier of the system must be registered with SESSA (Sustainable Energy Society of South Africa) solar water heating division.

The system must be installed by a registered installer and the customer will only be able to claim the rebate once facilitating auditors receive a final invoice from their supplier.

7. Does the fact that the industry is still developing and has not been exposed to legal and quality regulations before contribute to a slower than expected roll-out of the programme in the country?

One of the main benefits of the solar programme is that an effective quality standard is now in place, in accordance with building regulations which require SABS testing. It is a legal requirement that a certificate of electrical compliance has to be issued for new installations or any alterations to the electrical system including the replacement of a geyser.

The accreditation of a supplier by Deloitte, Eskom's facilitating auditors, takes 2 weeks. The SABS testing of a system takes from 6 - 8 weeks. However, the testing time is reliant on the available sunny days and from time to time, a back log at SABS means that there is a waiting list to get systems booked in.

For these reasons, a phased, cautious marketing approach will be followed by Eskom to ensure that suppliers are able to cope with the demand.

Page up

8. Do I need to install a new geyser or can solar panels be added to the existing system?

Standard geysers are not designed to be utilised with solar collectors as they do not have sufficient inlets and their linings are often not designed to withstand the temperature experienced from solar energy.

The supplier should evaluate the existing geyser and, based on your needs, the supplier can evaluate the possibilities of using the existing system.

9. What happens in winter or on rainy days, when there isn't enough sunlight to heat the water?

Solar water tanks are better insulated than electrical geysers and can keep water hot for a longer period of time. This ensures that there is always a tank full of hot water (and a back-up of hot water) in the early evenings/mornings provided the tank size is correct. An electrical back up system is allowed on the programme provided it has a timer switch that ensures it does not operate during Eskom's peak demand periods.

10. How hot can the water get?

Most solar systems heat the water to between 55 - 65 degrees Celsius. You should have a timer installed with your system, as it has been shown that this will give you the maximum energy saving and ensure you have hot water in peak periods.

11. What is the life-cycle expectation of the system and more significantly the total energy savings on it?

Each piece of equipment has a different savings profile which depends on various elements such as geographical area, water usage profile, number of users and the size of the system. However, on a 200 liter system, the SABS average is 5.67kWh per day at 16MJ input power.

The expected life of the equipment is 10 to 15 years; most systems are guaranteed for 5 years.

12. Where can I obtain information on accredited suppliers?

The suppliers that are part of the rebate programme (those that have passed quality and reliability tests) are listed on the supplier section on the Eskom DSM website. There are other suppliers in the market, but if they are not part of this programme to reduce costs to the consumer, they may not have been passed through the SABS testing or approval.

Page up

13. Why is it important that a solar system be tested by SABS?

The specifications on solar water heaters focus on three main areas, i.e. quality, performance and safety. Testing systems verify these requirements. As the payback periods are very important it is vital that the solar water heater is of a quality that ensures the longevity of a system. The mechanical performance tests e.g. hail, freezing and pulsation test are conducted to ensure that the minimum quality standards are met. The performance tests are conducted to determine how well the system works, the safety test determines if all the safety requirements are met including electrical and mechanical safety criteria.

14. Why is it important that solar systems get the SABS mark approval?

The SABS mark takes the test report and adds an evaluation of the manufacturer's ability to consistently produce quality solar water heating systems.

This means that if the testing indicated a high quality, durable and safe solar water heater design, and the manufacturing quality audit indicated that the manufacturing facility can manufacture high quality products consistently, the SABS will allow the manufacturer to use the SABS mark.

Page up

15. Can I install the system myself?

The installation of a solar system, to qualify for the incentive, has to be done by an approved installer. Even though the concept of the system may look simple, many areas can be damaged if the system is not installed by a qualified tradesman.

Accredited suppliers register their installers and undertake to oversee the installations to ensure that they comply with programme and building regulations and other applicable legal requirements.
Guarantees can also be lost if it becomes evident that someone without the correct technical expertise has tampered with the system.

16. How do I ensure the quality of the system I have purchased?

Purchasing a system that is registered on the Eskom programme ensures that the system and the supplier have been checked and audited, not only safeguarding you as a consumer but also giving you greater assurance of the system's quality. Buying an Eskom registered system means you qualify for a rebate, making your purchase good value for money.

17. How much will it cost to install a solar water geyser?

Costs can only be provided taking into account your specific hot water usage habits but an approximate cost can be given here. Installing a 200 liter solar water geyser costs approximately R10 000 with an additional R6 installation fee. The upfront cost of a solar water heater (including installation) is higher than electric or gas water heaters but the savings on your electricity bill will compensate for this over time. Once you have paid back your system, your hot water is for free!

Page up

Programme-related Questions

How does this subsidy work?
How much does a typical system cost and how much is the incentive?
How much can it save in your typical electricity bill?
How many suppliers have been registered and who are these suppliers?
Given our current electricity crisis, how much can solar water heaters help reduce demand?
What are the stumbling blocks in getting solar water heaters rolled out in SA, even with our abundant sunshine?
How much money has Eskom devoted to the subsidy programme?
What is the typical payback period for a solar water heater?
How do they typically work and in areas where temperatures drop below freezing, i.e. Gauteng, what can consumers do to protect this equipment?
Where can I get registered as a supplier on the programme?
The South African manufacturing capacity is only 10 000 per annum. Is Eskom actively addressing the shortage?
How does solar water heating work?
What is the rebate value for installing a solar water heater, to heat water for 4 people if the costs are estimated at R32 000 and Eskom only subsidises R4000.00, leaving the consumer with R28 000 debt.
It is an established fact that the manufacturers cannot meet demand and have no hope of doing so for quite some time. How does Eskom intend dealing with this aspect?
There is a shortage/non-existence of qualified installers, usually the role of the plumber. How will this be addressed in the short term?
Only three, at last count, manufacturers have the SABS mark. Tests cannot possibly be compared to the full mark. What window period, if any, is Eskom allowing for all other manufacturers/suppliers to obtain the mark?
Some solar suppliers have no intention of getting tested never mind the mark. How does Eskom respond to this?
The SABS has itself been tardy in handling testing in all the categories to obtain the mark.
Solar is exceptionally highly priced. The argument that the more that are purchased will bring down the cost is poor economics. Solar suppliers have been in SA for over 30 years and have still not managed to bring down prices. Whilst accepting the issue of quantity/demand should the government not be investing in some sort of subsidy to assist suppliers as is done in many other countries? As this is directly in Eskom's interest, should they not be pushing this?
The current subsidy/allowance offered by Eskom appears to give with one hand and take with the other. There appear to be costs when a solar system is installed that work out to more than the allowance given. Is this not misleading and counterproductive?
Does Eskom get complaints about the quality of solar water heaters?
Could you expand on the "rigours" of SA climate, please? In Gauteng it must withstand low temperatures and frost. What about the other provinces?
Do solar water heaters, with only a test certificate (and not the SABS Mark of Approval), qualify for this rebate?
The bulk of systems on the Eskom programme are very expensive, thus people will rather buy outside of the programme.
How many domestic households have made use of Eskom's solar initiative since it was introduced in 2008?
How much per month can households save?
What systems are households having installed? What are the most popular products?
Why is there an insistence on a five-year guarantee in respect of Eskom's domestic electricity rebate programme when the industry norm is far less?
How do suppliers qualify for accreditation?

1. How does this subsidy work?

Home owners who purchase a solar system from an Eskom accredited supplier will receive the rebate directly into their bank accounts after they have claimed it, provided that the system and the supplier have been registered on the programme, and that the installation is done by an installer registered by the supplier.

2. How much does a typical system cost and how much is the incentive?

View the current systems on the programme, their retail prices and their estimated incentives on www.eskom.co.za/dsm (click on solar water heating link).

The reduction in price (rebate) is based on the electricity-saving potential of the specific product as tested by SABS. In other words, the more energy efficient the solar system, the more electricity it will displace and thus the bigger the rebate. Each solar system will have its own rebate value according to the energy footprint measured by SABS.

The cost of installing a solar geyser varies between R 12 000 to R 35,000.00 depending on the size, type, and source (i.e. imported or locally manufactured). The rebate calculates to between 15 to 30% depending on the equipments' energy savings capability.

3. How much can it save in your typical electricity bill?

A geyser uses between 30 - 50% of the electricity used in a home. Typically taking overcast weather and usage patterns into account, 70% of this energy can be displaced by a solar system.

4. How many suppliers have been registered and who are these suppliers?

Nineteen suppliers and twenty nine distributors have been accredited thus far. The solar website (www.eskom.co.za/dsm - click on solar water heating link) will immediately be updated each time a new supplier is accredited).

5. Given our current electricity crisis, how much can solar water heaters help reduce demand?

If a 100,000 geysers were to be installed this would offset 300 MW worth of connected load. However if we take diversity and usage into account this equates to a 63 MW load that is actually removed during our peaks.

6. What are the stumbling blocks in getting solar water heaters rolled out in SA, even with our abundant sunshine?

Currently the stumbling blocks are the high price of solar systems, and supplier capacity. Historically South African's did not use solar to generate hot water, thus the industry is underdeveloped and needs time to develop. The skill required for installers is a concern but Eskom is working with SESSA's solar division and the ESETA to develop new training programs to train installers.

Page up

7. How much money has Eskom devoted to the subsidy programme?

Eskom DSM are currently managing the R2 billion allocated by NERSA for the solar programme, this covers programme development, marketing and funding the incentive.

8. What is the typical payback period for a solar water heater?

Paybacks are typically between 5 to 10 years, depending on geographical area, water consumption patterns, number of people in the household, type of system chosen, and energy cost.

9. How do they typically work and in areas where temperatures drop below freezing, i.e. Gauteng, what can consumers do to protect this equipment?

Refer to the website which explains in detail the different types of systems and the correct system to use for which area.

10. Where can I get registered as a supplier on the programme?

Anyone interested in becoming a supplier can contact Deloitte at e-mail eskomswhproject@deloitte.co.za

Any resident who wants to be updated on the progress of the programme and the progress of supplier accreditation can e-mail solar@eskom.co.za and be put onto the customer database for periodic updates.

Questions on solar can be answered by calling the DSM help desk on (011) 800-4744 during office hours.

11. The South African manufacturing capacity is only 10 000 per annum. Is Eskom actively addressing the shortage?

We are in discussions with a number of international suppliers and local funding institutes to establish manufacturing plants for this equipment in South Africa. We are also working towards minimising the import duties on the solar water heating equipment to promote imports of this equipment in the short term. This should be seen as an opportunity to kick start an industry that is ideally suited to South African conditions.

Page up

12. How does solar water heating work?

Solar water heaters use two natural events in order to function: dark coloured objects absorb heat (solar energy) and hot water rises. Technology has made this natural phenomenon a working reality for a reliable source of hot water in our homes and for a range of other applications.

A solar water heater is a combination of three elements:

Solar collector an energy device, designed to absorb solar radiation and transfer the energy to the energy transfer fluid or material passing through the collector.

Energy transfer medium - is a medium that through the process of conduction or convection, transfers the absorbed heat to the water. The type of material used is dependant on the design and needs of the installation. Where freezing of the transfer medium is a concern, the liquid used should be mixed with a non toxic coloured anti freeze liquid and a corrosion inhibitor.

Solar water system tanks/storage vessels should always be larger than conventional household geysers. This is because the sun is heating the total volume of hot water that is required for the day. For your conventional 150 liter electric geyser to heat 300 liter it will need to cycle and heat the extra body of water. A thermally insulated hot water storage vessel or geyser with a protected inner lining, copper, steel or a polymer should be used. There are solar water heating systems that work on a low pressure, but most are pressurized from 100 kPa to 600 kPa, depending on the materials used. (The Eskom programme will initially only pay rebates on high pressure systems).

Solar water heaters can be plumbed in series to pre feed your existing geysers, or can completely replace existing geysers. The complete system can be mounted on top of the roof, if the structure can hold the mass, or the hot water storage vessel can be mounted under the roof at a high level or at ground level in a utility room or cupboard. Solar water geysers/storage vessels function best when mounted vertically. However if there are physical or aesthetic concerns the geyser can be mounted horizontally.

13. What is the rebate value for installing a solar water heater, to heat water for 4 people if the costs are estimated at R32 000 and Eskom only subsidises R4000.00, leaving the consumer with R28 000 debt?

Solar Water Heating is currently expensive, and the payback period is long.
However we are working with the government and Eskom to increase the rebate value.

Work with DTI and other financial institutes to attract new suppliers and manufacturers to SA, which will in turn create a price decrease in the market place, is also underway. Please refer to our website for the system price list. The price list is based on the industry/market - related costs.

The current rebate value is established in line with the DSM framework established by NERSA for DSM. We may not change the incentive value or functionality without approval from NERSA, DME or ESKOM. This process must be followed and adhered to.

Page up

14. It is an established fact that the manufacturers cannot meet demand and have no hope of doing so for quite some time. How does Eskom intend dealing with this aspect?

Eskom is working on the capacity issue in a number of ways, both with local and international stakeholders and financial institutes. Our local support for local manufacturers will come as financial support for manufacturers via the DTI, IDC and other financial institutes or through investment from interested parties. Internationally we are working with the World Bank, DTI and other trade industries to promote the establishment or up scaling of local manufacturing plants with large international manufacturers or funders. We have also been in negotiations with large role players in South Africa that are gearing up to manufacture solar water heating equipment.

From the onset of this programme, there were on average 10 suppliers in South Africa, the industry has grown to in excess of 150 suppliers in the short space of a year. Although this is mostly the import market many suppliers will twin their imported collectors with locally manufactured geysers. The market should begin to cope better as they adjust to the higher demand, although the bulk of systems sold will remain with a large percentage being imported for some time.

15. There is a shortage/non-existence of qualified installers, usually the role of the plumber. How will this be addressed in the short term?

Eskom is facilitating the development of installer training and upskilling through the SETA's and various stakeholders such as the DPE. For the interim the role of training will fall onto the supplier and in-house training houses, although we are starting to see the development of independent trainers offering courses which will assist for the new entrants into the market.

Page up

16. Only limited manufacturers have the SABS mark. Tests cannot possibly be compared to the full mark. What window period, if any, is Eskom allowing for all other manufacturers/suppliers to obtain the mark?

We allow companies into the programme with only a test report, but provide them with an 18 month window period before requesting that they move to the Mark Approval. As at 24 November 2009 9 suppliers have the Mark Approval, with at least four in the process of application

17. Some solar suppliers have no intention of getting tested never mind the mark. How does Eskom respond to this?

There is currently no legal stipulation for suppliers to test and conform to all SABS standards. Eskom wants to see the inception of quality and safe systems into the market to ensure the longevity of the industry and therefore our communication strategy will largely revolve around customer education as to the benefit of purchasing an SABS tested system or one with Mark Approval. Our hope is to encourage customers to make an educated purchase so as to not be forced to purchasing again in a few years to due possible poor quality. The programme is in no way exclusive to a technology or supplier and we hope that the programme requirements that are in place to assist in ensuring a sustainable market and protect customers should be seen as a benefit and not a deterrent.

Page up

18. The SABS has itself been tardy in handling testing in all the categories to obtain the mark.

We are unable to answer on behalf of the SABS, other than we are in constant communication with them and will assist where we can to make the process smoother.

19. Solar is exceptionally highly priced. The argument that the more that are purchased will bring down the cost is poor economics. Solar suppliers have been in SA for over 30 years and have still not managed to bring down prices. Whilst accepting the issue of quantity/demand should the government not be investing in some sort of subsidy to assist suppliers as is done in many other countries? As this is directly in Eskom's interest, should they not be pushing this?

Eskom agrees that the more systems purchased will bring costs down in relation to economies of scale as we understand the high cost of the equipment is often equated to the raw materials used and the cost of labour. Bulk purchasing from manufacturers could possibly assist in the reduction of prices however this size of purchase is assumed to not be within most supplier's financial capacity. Proposals for increased funding are being made, however processes take time and funds are not always available. If funds do become available we will most certainly use it to support the industry in the best way possible, such as increasing the subsidy, assisting with training or testing.

20. The current subsidy/allowance offered by Eskom appears to give with one hand and take with the other. There appear to be costs when a solar system is installed that work out to more than the allowance given. Is this not misleading and counter productive?

This is a very unfortunate perception and misleading. The programme attempts to assist in the purchase of a quality solar water heating system with the highest possible savings while being installed to national standards.
The industry has before being ungoverned in terms of legal compliance and Eskom can not condone illegal installations. We therefore request that installations are done in accordance to all relevant legislations such as the Building regulations, the OSHACT and relevant bylaws. We further request that a timer be installed in conjunction with the systems as this ensures two important aspects;
We can ensure that the electrical elements of the systems are not on during peak electricity periods thereby assisting with the countries energy situation
A study has shown that through the use of a timer the customer could save up to 40% extra in energy savings. This should be seen as good practice for suppliers and will also assist in bringing customers payback periods down significantly.
The cost of the timer installation including the electrician callout is around R1000 and yes therefore we are adding to the cost slightly. However in terms of the above it is seen as a justified expense and quickly recovered in terms of increased savings.

Page up

21. Does Eskom get complaints about the quality of solar water heaters?

The number of suppliers selling systems has grown from around 10 to over 150 in the last year. The aim of the Eskom programme is to encourage consumers to purchase solar water heaters (even off the programme) however a great deal of the available systems are not designed for South African conditions and will not provide the consumers long term savings results. Eskom wants to protect the market against poor quality systems, thereby assisting to ensure the longevity of solar water heating in the country.

22. Could you expand on the "rigors" of SA climate, please? In Gauteng it must withstand low temperatures and frost. What about the other provinces?

Areas that experience frost such as Gauteng should only make use of freeze resistant systems. We do not have severe winters in South Africa, but we do have the occurrence of frost and temperatures below 4deg which can cause systems to burst and fail. One of the tests that the SABS does is a freeze test to ascertain whether the systems can actually withstand low temperatures. Non frost areas tend to be a narrow band of the South African coast line. All inland areas are prone to frost and consumers should therefore purchase a system that is tested to withstand frost conditions.
Further, water in South Africa can be very corrosive, especially when the water is hot. If systems are not manufactured to withstand our water quality then the components do not last for the guarantee period. Critical parts that need to be suitable to our water quality are valves, copper pipes, and the lining of the storage vessel.
Finally, South Africa has very high levels of radiation and therefore a systems performance can increase. Just because a system has an overseas test report does not imply it is designed to handle the high temperatures it will be exposed to here. Systems that get too hot are potentially very dangerous and should be configured for our radiation levels.

23. Do solar water heaters, with only a test certificate (and not the SABS Mark of Approval), qualify for this rebate?

Yes, however the Test certificate is only valid for 18 months and then the programme requests that suppliers move to the Mark Approval as this is a far better form of quality assurance as it is not simply a once off test on a system. The mark approval ensures that components tests are repeatedly of a good quality due to the regular system tests.

Page up

24. The bulk of systems on the Eskom programme are very expensive, thus people will rather buy outside of the programme.

The Eskom programme is open to all suppliers selling SABS tested or Mark Approved systems. Eskom does not control or set the prices of systems in any manner. The aim of the programme is to set a minimum quality standard to protect the customer and industry as a whole. There are a range of systems registered with the programme and some lower cost systems that are busy being finalised for registration.

25. How many domestic households have made use of Eskom's solar initiative since it was introduced in 2008?

At end September 2009 2261 systems were installed

Home owners who purchase a solar system from an Eskom accredited supplier will receive the rebate directly into their bank accounts after they have claimed it via Deloitte, provided that the system and the supplier have been registered on the programme, and that the installation is done by an installer registered by the supplier.

26. How much per month can households save?

The electrical geyser uses 30 - 50% of a household's monthly electricity bill. Replacing ones conventional geyser with a solar powered system will reduce that percentage of ones electricity consumption by up to 70%.

Page up

27. What systems are households having installed? What are the most popular products?

View the current systems on the programme, their retail prices and their estimated incentives on http://www.eskom.co.za/dsm (click on solar water heating link).

28. Why is there an insistence on a five-year guarantee in respect of Eskom's domestic electricity rebate programme when the industry norm is far less?

In South Africa the industry norm for a conventional electrical geyser was 3 to 5 years and that of solar geysers was between 3 to 10 years. Internationally the solar geyser norm is 5 to 10 years. The average expected life span of a solar system is between 10 and 20 years depending on a number of factors.

Eskom has chosen a 5 year guarantee as we require the quality of system to provide the consumer with a sustainable energy savings. But it is important to note that the 5 year guarantee is on the collector and geyser, and only 1 year on workmanship and pipes and pipe fittings.

An additional comment -
Eskom EEDSM strategic investment approach when selecting the energy efficient technologies to offer to the market is based on a number of aspects, the technology's savings contributions in the specific market, the load factor of the technology (the daily duration that technology is consuming electricity), to provide technologies based on international benchmarks/standards to ensure a life span of between 3 - 5 years with a minimal impact on the environment thus contributing to sustainability efficiency and lastly the cost of investment.

The stipulated period is also a minimum requirement for the EEDSM programme to effectively contribute to increase the reserve margin and to limit additional generation expansion programme

29. How do suppliers qualify for accreditation?

If a supplier does not provide a 5 year warranty then they can not participate in the Eskom programme.

To participate in the Eskom rebate programme, the solar supplier/retailer system has to abide by the following:

System must be SABS accredited.

The system components must carry a 5 year guarantee

The system must be installed by an accredited installation team (This is now being altered to be installed by an accredited Solar water heater installer as classified under the new PIRB board. Each system must now have a certificate of compliance on completion).