Solar water heaters (SWHs) can effectively replace conventional electrical geysers, kettles and other water heating methods used to provide hot water for household cleaning and personal hygiene in both high- and low-income homes.

the case

• SWHs reduce the demand for electricity generated in coal-fired power stations
• thereby lessening emissions of harmful pollutants into the environment
• and mitigating against South Africa facing further electricity shortage crises by reducing peak demand
• SWHs create far more jobs than conventional power generating means
• lower energy consumption means lower electricity bills
• SWHs provide readily available hot water in low-income households that were previously reliant on time-consuming heating processes.

the opportunity

• SWHs offer government the means to achieve electrification targets
• much smaller increases in electricity supply required
• in high-income groups SWHs offer long-term savings and environmental benefits
• in low-income communities, similar benefits are provided, as well as drastic improvements in peoples’ quality of life.

So, although SWHs make more environmental and economic sense for high-income consumers, they offer important developmental service for poor users without harm to the environment.

Therefore, solar energy can act as a powerful agent to reduce inequality in society through a technology that provides significant social upliftment opportunities.

the benefits

• The energy that could be saved through SWHs is comparable to that produced by a small 300MW power station
• These savings are particularly valuable since
• a significant part would occur in peak electricity demand periods when national supply is shortest and generation most expensive, at up to R2.50/kWh for gas or diesel power generation
• during this time, residential electricity use accounts for up to 30% of demand. (Eskom (2009) 'Residential Load Management FAQ')
• savings would reduce residential electricity demand by roughly 18%.

what SWHs have got going for them                          

• It is a well-established industry in South Africa         
• Scale-up would ensure significant job creation,especially amongst semi-skilled individuals
• It provides a key entry point into ‘green economy’ development by addressing environmental and developmental needs.

what still needs attention in terms of implementation

• The industry is relatively small in terms of output
• The up-front installation costs are too high for most, but especially for low-income households
• Government policy and subsidy support are required to see the technology rolled out successfully.

what do we recommend to achieve the targeted roll-out?