Is it worth installing solar panels in your home?

Our sunny climate makes SA a prime location for solar power. Couple that with the proposed 2024 electricity hikes, and you've got a strong case in favour of choosing solar energy for your house.

However, with high installation costs, space constraints, and a host of other possible negatives, it's worth doing a thorough analysis of whether solar panels are right for your needs.

It's important to also note that on 28 June 2024, a 10% import duty on solar PV panels was implemented to boost local manufacturing and reduce the reliance on imports. Therefore, if you do choose to install panels, first enquire about where they were manufactured, so that you can avoid paying the 10% duty.

How solar panels work
Solar panels convert sunlight into electricity using a process called the photovoltaic effect. Each panel is made up of numerous solar cells, typically containing silicon wafers. When sunlight hits the silicon, it energizes electrons within the atoms. The electricity generated by a solar cell is direct current (DC). Solar panels typically connect to an inverter, which converts the DC electricity into alternating current (AC), the type of electricity used in your home.

Some of the positives of solar energy
Less affected by load shedding
By generating your own electricity during the day with a backup power system, solar panels can significantly reduce your reliance on the national grid. The sun is the ultimate source of clean, low-cost energy.

Which also means a lower electricity bill
The more electricity your panels produce, the less you need to draw from Eskom's grid, leading to lower electricity bills. 

Increased saleability of your house
Various studies suggest that solar panels can increase a property's value by 3% to 8% in South Africa. Homes equipped with solar panels offer a major financial perk to potential buyers. A house with solar panels might also resonate with eco-conscious buyers who are willing to pay more for an environmentally friendly home.

Sell your solar power (in Cape Town)
The City of Cape Town has launched its new scheme to allow residential households to earn cash from the excess power generated from installed solar PV systems.

Decrease fossil fuels in our atmosphere
By generating your own electricity, you reduce South Africa's dependence on fossil fuels and contribute to a greener environment. Increased climate awareness has led to a growing number of green homes.

Some of the negatives of solar energy
High upfront costs
Installing solar panels and equipment requires a substantial initial investment.

The reliance on sunshine
Certain areas in SA get lots of rain throughout the year. These include the Drakensberg and other parts of KwaZulu-Natal, parts of Limpopo and Mpumalanga and the northern parts of the Eastern Cape. In those regions, there might not be enough annual sunshine to justify using solar panels.

Space requirements
You'll need sufficient rooftop space or land to accommodate enough panels to generate a meaningful amount of power.

Limited energy storage
Storing excess solar energy for the nighttime or cloudy days can be expensive. Battery systems, especially Lithium-ion, which are best for longevity, can add significantly to the cost.

If you're looking at a home that already has solar 
When you're shopping for a new home, an existing solar energy system is a big drawcard. However, there are certain questions you'll need to ask before saying yes.

How old is the solar system and roof?
Solar panels experience gradual degradation over time, and therefore require regular maintenance or replacement. While designed to last for decades (typically 25-30 years), older panels may be more susceptible to wear and tear or component failures. Solar panels also add weight to a roof.  A newer, structurally sound roof is better equipped to handle this additional load for the lifespan of the panels.

Who installed the solar panels?
Only trust solar systems that were installed by licensed contractors. Accreditation by organisations like SAPVIA and SESSA verifies that installers have the necessary expertise. You can always ask to see a copy of the installer's accreditation, such as their PV GreenCard.

Do they have a valid Certificate of Compliance (CoC)?
After a qualified electrician completes your solar panel installation, they will issue a CoC. This certificate verifies that the installation adheres to the South African National Standards (SANS) 10142-1, which governs electrical installations. A CoC is often required by insurance companies for coverage purposes.

Before moving into a home that has solar panels
Once you've confirmed all the above with the seller, there are still a few more solar panel-related actions to take before moving into your new home:

1. Ask for a copy of the warranty for the solar panels
2. Get access to the app that controls the solar system
3. Ask the seller to explain how the solar system works
4. Update your insurance policy to include the solar panels. Some solar systems are covered by your HoC policy. If not, you will need to add it and should obtain a valid and current CoC as mentioned above.

Ultimately, your decision depends on a few factors
Before installing a solar system, or buying a house that has one pre-installed, consider factors such as your budget, the roof suitability and sunlight hours in the area. By weighing the positives and negatives, and getting quotes from reputable installers, you can make an informed decision about whether solar power is the right choice for you or not.