Alarm over solar rebate programme ‘gap’

080110 Solar geyser in Alexander township.photo by Simphiwe Mbokazi 909

080110 Solar geyser in Alexander township.photo by Simphiwe Mbokazi 909

Published Jan 13, 2015

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Cape Town - Eksom cease its rebate programme for solar water heaters at the end of the month and says the Department of Energy will take over the programme.

But the industry fears that there may be a gap between Eskom’s ending the programme and the department taking up the reins, and says just over three weeks’ notice is too short for it to adjust. They fear some companies may go out of business.

Eskom wrote to the solar water heater industry last Wednesday to say it and the Energy Department had agreed that the implementation, funding and management of the programme would in future be managed by the department. Programme funding from the Treasury had always been allocated to Energy, but Eskom was the implementing agent.

Eskom said it would process claims for the solar water heater rebates only if solar geysers were installed before or on January 31. The deadline for submitting these claims is 4pm on February 27.

Rebates range from around R5 000 to R12 000, depending on the size and make of the solar geyser.

Valerie Morris, who runs a solar water heater installation company in Fish Hoek, said Eskom’s letter had caused a “major disruption”.

“If the Department of Energy’s new rebate programme does not start running immediately when Eskom’s programme ends, there will be a complete stop in installation and many companies and thousands of employees will be out of business and work,” she said.

She had e-mailed the person in the Energy Department who Eskom said would handle inquiries, but had got an automated response with no content in the reply.

On Friday, the Sustainable Energy Society of Southern Africa (Sessa) wrote to the Energy Department, calling for a phase-out period of at least three months.

James Green, vice-chairman of Sessa, said many members had registered serious concerns, particularly being given just over three weeks to complete installations.

“We request and strongly suggest a phase-out period of at least three months during which time the rebate programme for high pressure solar water heaters is maintained in its current state.”

Green said moving the programme to Energy was a positive step, as Eskom’s track record in running it had been poor. Rebate payments were slow, with a lot of paperwork.

“But businesses are facing total uncertainty. Communication is desperately needed. We need Energy to say they will continue the programme as it is for the moment.

“We do want amendments, but we’re saying don’t break the wheel when it’s turning. Carry it on and then in consultation with all stakeholders, let’s make the changes.”

Eskom spokesman Andrew Etzinger said the Energy Department was the custodians of the programme, which Eskom had been implementing on their behalf.

The Cape Times asked the department if it would consider extending the handover period, but had received no reply by late on Monday.

Cape Times

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