HomeIndustry SectorsFinance and PolicyEskom to cut rebate for solar water heaters

Eskom to cut rebate for solar water heaters

Solar heater installed
on a house roof
Cape Town, South Africa — ESI-AFRICA.COM — 14 April 2011 – South African power utility Eskom Holdings plans to reduce the rebate for solar water-heaters before the end of April, according to a letter sent to suppliers.

Fin24 reports that the letter “’ sent to solar hot-water cylinder suppliers participating in Eskom’s subsidy programme “’ confirms that Eskom apparently plans to reduce the rebate from 29 April.

It says that only those solar geysers installed before 29 April, and for which completed claim forms have been received by May 13, will qualify for the old rebate. The cut in the rebate for high-pressure solar geysers – the type that is usually sold to middle to high-income households – could be from 10% to 25%.

An imported 10-litre to 149-litre solar geyser currently receives a maximum rebate of R4 373, but after 29 April this will be only R3 280. This includes VAT and is about 25% less.

The discount on a solar geyser that has 80% of its content manufactured locally, and which has a capacity of 250 to 300 litres, will drop from a maximum of R9 960 to R8 964, a 10 decrease.

In the letter Andrew Etzinger, general manager of integrated demand-side management at Eskom, said the discount programme would end as soon as all the money budgeted for it this year had been exhausted.

According to Etzinger, 64,000 solar geysers have been installed so far through Eskom’s subsidised programme.