Nersa tariff review may shock grid-tied solar users

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The review may turn the business case for current installations on its head but also encourage consumers to defect from the grid completely. NERSA_ZA Eskom_SA Moneyweb Eskom loadshedding

Consumers who generate their own electricity, typically using solar panels by day and relying on Eskom when the sun goes down or is obscured by clouds, may see a drastic increase in Eskom charges a year from now if energy regulator Nersa gets its way. That may turn the business case for current installations on its head but also encourage consumers to defect from the grid completely. Nersa started with a process to change the way electricity tariffs are determined in 2021.

The underlying assumption is that the fixed costs will be recovered through the energy charge. This however relies on the customer buying significant volumes of energy. Eskom will therefore hardly cover its fixed charges through such a tariff structure if the consumer only relies on it for back-up or peak supply a few hours per day.

 

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