New opportunities for businesses to harness the power of solar
2022 has been a record year for load shedding with the amount of hours South Africans have been without power totalling 1 270 (i.e. 53 days) by the end of July, according to EskomSePush (sePush, 2022). For businesses, the national energy provider’s unreliability is not only inconvenient but also expensive and a risk that needs to be carefully managed.
Thankfully, with solar becoming more affordable, coupled with the availability of innovative financing options, such as Standard Bank’s PowerPulse, going off the grid (partially or entirely) is now more accessible, even for smaller businesses.
The cost of doing business in the dark
Although big businesses have moved away from Eskom’s grid, the effect of power cuts has been felt most acutely by medium- to small-sized businesses who can’t afford the high costs of alternative power. But as it turns out, they also can’t afford not to.
Businesses increasingly need to weigh up the cost of solar installation with the expense of relying on generators amidst soaring fuel prices, not to mention the production and time losses and the cost of repairing equipment damaged by power surges when the electricity comes back on.
As these extra costs eat into a business’ cash flow and profitability, making the switch towards solar looks to be a necessity for survivability.
A beacon of light
While it paints a dire picture for SMEs, it has created economies of scale and accelerated the move towards alternative power sources: higher production volume decreases the cost per unit. Therefore, the more businesses that install solar, the more affordable the product becomes, which ultimately means more businesses will be able to afford it.
As energy prices continue to rise, being less reliant on the grid could save your business money in the long run. Plus, there are tax incentives to installing a solar system, with a depreciation allowance applicable to solar (Steenkamp, 2016). With the economic case for solar combined with the environmental benefits of it, one can ignore the impact it could have on a business’ bottom line.
Financing alternative sources of energy
Solar has become a financially feasible option for companies wanting to install renewable energy, such as solar. However, the admin and regulatory requirements of getting the right products from the right suppliers can still be a pain point.
PowerPulse streamlines this process and saves you time and hassle to get your company running on renewables as quickly as possible. It’s a digital platform that helps businesses source alternative means of energy production, guiding them through the process, matching them with the right providers and assisting them with funding solutions, making it easier, faster and more cost-effective and ultimately helping your business reduce energy costs and have supply security.
You can access PowerPulse via OneHub or speak to one of our relationship managers today.
References
sePush. 2022. EskomSePush (version 3.9.5). [Mobile app] (Accessed 28 July 2022).
Steenkamp, L. 2016. ‘Powering up: A look at section 12B allowance for renewable energy machinery’. South African Institute of Taxation. [Online] Available: https://www.thesait.org.za/news/269950/Powering-up-A-look-at-section-12B-allowance-for-renewable-energy-machinery.htm#:~:text=Section%2012B%20of%20the%20Income,the%20production%20of%20renewable%20energy(Accessed 28 July 2022).