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The worsening load-shedding crisis is causing homeowners to seek alternatives to Eskom’s electricity supply.

Many consumers have since opted for Solar power, an attractive option if you’re considering an entry-level solution to survive power outages or looking to get completely off the grid, according to consumer finance website, JustMoney.co.za.

Owners of standalone homes have leeway when installing solar power systems.  But what rules and regulations should you consider if you live in a residential estate or complex?  

Property specialists James Honiball at Eagle’s Landing Estate Homeowners’ Association and Retha Kriek at Rozewood look at what homeowners in a complex should know about when moving to solar power.

Homeowners’ associations and sectional title body corporates may regulate installations, says Retha Kriek, managing director of boutique property management agency Rozewood.

“Body corporates are managed under the Sectional Titles Schemes Management Act, which is very specific about how common property must be managed, and how approval must be given for installations of items on the common property,” said Kriek.

When installed on common property, solar panels are typically placed on the complex’s roof or carports. Every solar request requires a special general meeting, with 33% of owners or their proxies present. At least 75% of those in attendance must vote in favour of the resolution.

Kriek says conduct rules can be amended, but the Community Schemes Ombud Service (CSOS) must approve these new rules.

“In the case of private installations, the body corporate should ensure there are rules and a framework that makes it easier for owners to receive approval for solar installation,” she says.

“Given the current circumstances in our country, this should be treated as an emergency, not a discretionary requirement for units.

“If the body corporate is of sufficient size, it can approach suppliers that install solar solutions for the complex as a whole. There are options to fund such installations, with rebates on the rates for owners – although this isn’t feasible for smaller complexes due to economies of scale.”

Owners governed by a homeowners’ association will need to study the conduct and architectural rules within the memorandum of incorporation, says Kriek.

“The homeowners’ association would have to recognise the need to update their rules if they don’t make provision for electricity.” 

Kriek says you don’t need governmental permission to install solar panels.

“In July 2022, President Cyril Ramaphosa outlined government plans to abolish a 100MW licensing cap on private-sector renewable energy projects,” said Kriek. 

Considerations for complexes

James Honiball, chairperson and director of Eagle’s Landing Estate Homeowners’ Association, says there are several options for energy conservation that complexes can consider.

• Renting solar panels for common areas, rather than purchasing them outright, can reduce upfront costs and the risk associated with owning and maintaining panels.
• Sharing systems or costs with neighbouring properties or developments can dilute costs.
• Installing batteries to help store excess energy generated by solar panels and making it available for use during periods of high energy demand or when the panels are not generating electricity.
• Encouraging residents to upgrade their appliances to more energy-efficient models, such as Energy Star-rated appliances. This will reduce the complex’s overall energy consumption.
• Installing smart meters that can provide real-time information on energy consumption and help residents understand the need to reduce their energy usage.

Selecting a solar installer

The interest in solar power has also created opportunities for fly-by-night operators, as this sector is unregulated. 

The Consumer Goods and Services Ombud (CGSO) office reports an increase in the number of complaints related to buying and installing solar systems and generators. 

The CGSO received 202 complaints between February 2022 and 9 February, 2023. These include compliance certificates not issued, payment accepted but goods undelivered, and systems not installed within agreed time frames. In addition, almost half of these suppliers refuse to cooperate with the office when it conducts investigations. 

Insuring your solar system

In a sectional title scheme, the unit is indicated on a sectional title plan that is registered in the Deeds Office. A homeowners’ association is administered as a non-profit company and is governed by the Companies Act. Insurance in a sectional title complex is added to the complex insurance as part of the common property and recovered from individual owners. With a homeowners’ association, the owner is responsible for insuring the solar system with their own insurer. 

Shafeeka Anthony, Marketing Manager of JustMoney, reminds those living in residential estates or complexes that a cheaper solar option may not be the best choice in the long run.

Anthony offers the following tips when researching solar panel installers:

Determine your requirements: Establish your energy usage and needs.

Choose an established company: The installers should have at least three years’ experience, technically competent staff, and efficient post-installation service. Check reviews and request contactable references.

Shop around: Obtain three quotes with comparable information on system size, price, brand and model, and estimated energy production. 

Agree on an installation schedule: Don’t pay upfront and wait weeks for the team to arrive.

Get a warranty: The panels should come with a manufacturer’s warranty, but you will also require a warranty on the installer’s work.

Choose the right financing option: Banks, and bank-approved solar suppliers, market solar panel payment packages. These include rent-to-own, outright equipment purchase, a subscription service, and paying for generated electricity only. Determine the best choice for you. 

“Taking energy security into your own hands is not cheap, as the initial costs can be extremely high,” said Anthony. “Do thorough research and review your options to check you are not in the dark.”

Questions may be edited for brevity and clarity.

Disclaimer: News24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, News24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

POWER CRISIS

 Solar panels installed at Tweeling by Rural Free State on January 20, 2023 in Frankfort, South Africa. It is reported that the private company has been managing the Mafube municipality’s electricity network extremely successfully since 2011, the company has replaced substations, built solar farms and also replaced power poles. (Photo by Gallo Images/Rapport/Elizabeth Sejake)

By Julia Evans and Natalia Gonzalez Blanco Serrano

In a case before the Johannesburg High Court on 5 April, a small community in the Free State took on Eskom for the right to use independently generated solar power to mitigate the effects of rolling blackouts in the city of Frankfort.

Eskom is trying to stop residents in Mafube Municipality from implementing “voiding”, the process of using alternative, non-state-sponsored energy to make up for energy deficits as in the case of load shedding.

“We’re going to fight for that voiding,” CEO and engineer at Rural Maintenance Chris Bosch told Daily Maverick in the courtroom after arguments were heard. “Because remember, if you’re in a small town, if you’re a small business, you either have a petrol generator running when the power is off, and if you’re poor, you have nothing.” He added that supplying energy when the grid cannot will allow residents to have at least an hour and a half of additional electricity.

Eskom is strongly opposed to Mafube Municipality using its own separately sourced energy and is concerned that “it would encourage customers throughout the country who have additional embedded generation capacity to claim similar relief”, according to its affidavit.

Urgent application by Rural Maintenance

The applicants in the case, which include Rural Maintenance, its subsidiary and the Mafube Business Forum, are seeking to preserve the status quo – allowing them to keep providing power to Frankfort, thus alleviating load shedding – until the National Energy Regulator of South Africa (Nersa) finds a resolution or investigates their complaint.

Rural Maintenance is a private company that has managed the network distribution on behalf of the Mafube Local Municipality for the past 11 years. 

Bosch said that before the company took over management of the network the municipality was collecting R1.7-million a month, way below the R5-million Mafube needed to pay Eskom every month, on top of salaries and material costs.

“And the network was buggered,” said Bosch. “There wasn’t electricity in town for days on end.” 

He explained that since the municipality and Rural Maintenance entered a 25-year agreement, of which 14 years remain, the municipality has saved money and the distribution has improved.

Rural Maintenance’s subsidiary, Rural Maintenance Free State (RFS), began providing the town of Frankfort (in the Mafube Municipality) with power from a new solar PV plant, FF Renewables, at the end of 2021.

The solar farm now has four different plants in operation. The first was commissioned at the end of 2021 and started producing 700 kilowatts (KW) for Frankfort, and after the other three plants were commissioned at the end of 2022, the solar farm was providing the town with a total generation capacity of 4.26 megawatts (4,260 KW) by the end of that year.

Since RFS has the access to and right to use the solar plant as an embedded generation facility, it is currently providing Frankfort with electricity from the privately owned solar PV farm during daylight hours, which include load shedding periods, to alleviate Eskom’s rolling blackouts.

An embedded generation facility is an electricity generation plant that is connected to a distribution network (which carries electricity from substations to homes and business), not Eskom’s transmission network (which carries electric power from power stations to the substations).

FF Renewables is a private company whose 21 shareholders include private individuals, farmers and businesses (including Rural Maintenance) active in the Mafube community.

Bosch told Daily Maverick that the solar farm was originally started to help economic growth in Frankfort, and because Rural Maintenance said it couldn’t in the short and medium term provide Frankort with further electrical capacity because its networks were constrained.

After the solar farm was ready, the power generated had no designated outlet, so the asset manager of the solar farm and Rural Maintenance set up an interim arrangement whereby the solar farm would provide power to Frankfort as an embedded generation facility.

Now Frankfort has had two sources of supply: one from the Eskom transmission grid and another from the solar farm. “We’re paying them [15%] less than what we would pay Eskom,” Bosch said.

Advocate Etienne Lasuschagne (standing), who is representing the applicants in the case (Rural Maintenance and co), presents his argument to the Johannesburg High Court (Gauteng Local Division of the High Court of South Africa) on 5 April 2022. Azhar Bham, senior counsel representing the respondents of this case (Eskom) and Advocate Catherine Kruyer, seated to the left. (Photo: Julia Evans)

Advocate Etienne Lasuschagne, who is representing the applicants in the case (Rural Maintenance and co), argued that “RFS is in a position to do something which Eskom can’t, and that is that it can keep what is called critical loads live”. He explained that critical loads include water and sanitation services within Mafube and neighbouring towns.

“As soon as you turn off electricity to reticulation services pertaining to water reservoirs and sanitation services the inevitable result is the drying up of reservoirs and spillage of sewage into the ecosystem,” said Lasuschagne.

Ifeel that Eskom and the government aren’t ready to let go of the vertically integrated utility model and believe that Eskom will rise again – this is very difficult to imagine.

It’s important to note that the solar farm’s points of connection with the Mafube distribution network are downstream from Frankfort’s national grid connection; they don’t have to “wheel” power through the Eskom national grid.

Lasuschagne explained in court that until the end of January this year load shedding was administered by Eskom, but then the parties entered into a three-month trial, starting on 30 January, where RFS would “self-load shed” on behalf of the municipality.

But then on 16 March, Rural Development said it had received correspondence from Eskom saying that if it didn’t stop voiding, the utility would not allow RFS to control load shedding anymore.

Eskom argument

During the trial on 5 April, Eskom opened its argument by asking the court to think on a macro level, to consider this instance as just a small part of a larger system, as opposed to viewing Mafube as a standalone case. Its fear is that considering instances like Mafube’s in a vacuum causes people to lose sight of Eskom’s management of the entire national grid.

“If the relief sought by the applicants is granted, large numbers of Eskom customers will claim an entitlement to similar relief, and Eskom’s ability to effectively manage the grid will therefore be severely compromised,” its affidavit reads. 

Bosch told Daily Maverick after the hearing: “We say the only way we’re going to fix South Africa is on a macro level: fix one municipality and get a solution that works, fix number two, get a solution that works, and before we know it, there’s 50 or 60 municipalities which are better.”

In its affidavit, Eskom continuously stressed the danger of having more than one energy provider plugged into the grid. 

Read more in Daily Maverick: Solar panel customers will finally be able to sell excess electricity into the SA grid

Circumstances like Mafube’s on a larger scale, the company argued, would cause Eskom to “be unable to discharge its statutory duty to manage the grid – introducing a real threat of a national blackout occurring, which would have catastrophic consequences for the entire country”.

This point, however, did not appear in verbal arguments before the judge.

Instead, Eskom’s lawyers focused on RFS’ technical mishaps in getting their voiding approved by Nersa, as well as their filing of documents for the case. 

Azhar Bham, senior counsel representing Eskom, accused RFS of using “small footpath solutions, all of which fall outside the carefully structured rules and regulations”.

They also argued that RFS failed to approve its alternative form of electricity supply through Nersa, which, as custodian of the Electricity Regulations Act (ERA), it should review before any changes or implementations are made.

The missing affidavit

Although there were originally four applicants in the case, the third applicant, Mafube Local Municipality, failed to provide its own signed affidavit before the court hearing closed on Wednesday afternoon. Bham expressed concern about the legality of the party’s absence and what it might mean for the outcome of the case.

Daily Maverick approached Mafube municipal manager Mothusi Lepheane, asking whether the municipality supports this application with Rural Maintenance, seeing as Mafube Local Municipality is named as an applicant in the case.

Lepheane responded: “No comment.”

But according to Bosch, Lepheane was on board with Rural Maintenance’s plan from the start, saying: “Eskom cannot do this to the people in Mafube” and that the affidavit would come.

But then the treasury official for the municipality told them, “this has got nothing to do with Mafube, this has got to do with people outside trying to make sure that this project doesn’t happen”, and when they asked for the affidavit again, it never arrived.

Rural Development speculated that the reasons for the missing affidavit could be political interference, especially because senior counsel Bham continuously brought it up with the judge on Wednesday.

After hearing arguments from the applicants and respondents on Wednesday, Judge Edwin Molahlehi reserved judgment. 

Johannesburg High Court Judge Edwin Molahlehi has reserved judgement of the case between Rural Maintenance and co versus Eskom, heard at the Johannesburg High Court of South Africa in Johannesburg on 5 April 2023. (Photo: Julia Evans)

The bigger picture

Theo Covary, who holds a PhD in energy policy from UCT, told Daily Maverick: “I feel that Eskom and the government aren’t ready to let go of the vertically integrated utility model and believe that Eskom will rise again – this is very difficult to imagine.”

Read more in Daily Maverick: Introducing the four crime cartels that have brought Eskom and South Africa to their knees

Bosch reiterated this point, saying that “if [using our own solar-supplied energy] now works, everybody sees that this is the way to go. What is now the next step is to increase the PV plant and add batteries because now our batteries don’t come from Eskom. Our batteries actually come from a new generation source. And that helps the grid.”

Other municipalities, including Johannesburg, Cape Town and eThekwini, have said they are working on building small-scale embedded generation, independent power producer programmes and wheeling to help to achieve municipal energy independence and energy security built on sustainability. DM/OBP

Source: https://www.dailymaverick.co.za/article/2023-04-06-frankfort-battles-eskom-over-use-of-solar-to-reduce-load-shedding/