Cape Town solar projects hit a new record
Category Market Update
The hottest topic right now for homes and businesses is solar and renewable energy. Applications for solar installations from both commercial enterprises and private households have hit record highs according to the City of Cape Town. It has also achieved the first infusion into the City's grid from a private supplier, but more about this further below.
The flooding in of solar applications has unfortunately led to delays in approvals. To facilitate faster approvals, the City of Cape Town has instituted a new ruling from the 1st of October. In terms of this, only systems equipped with City-approved inverters and professional certification will receive authorisation. The aim is to reduce the processing time so that end-users can get their systems installed as speedily as possible. It will in any event also benefit those who want to sell excess power back to the city.
Selling excess power back to the City of Cape Town (CoC)
It is envisaged that independent producers, both businesses and households, will in time be able to sell back excess power to CoC which they generated from their rooftop solar installations. The tariff approved by the National Energy Regulator of South Africa is 78.98c/kWh. The city's incentive (on top of the tariff) is 25c/kWh, following a recent increase of more than 10%.
City of Cape Town (CoC) achieves first infusion into the grid
In mid-September, it was reported that Growthpoint Properties achieved the first infusion of green electricity into the City of Cape Town's power grid according to an article in Solarquarter.com. Etana was a participating trader in the project. Solar energy generated at Growthpoint's The Constantia Village Shopping Centre was channelled into the CoC grid for consumption at Growthpoint's 36 Hans Strijdom office building in the Foreshore area, home to Investec and Ninety-One.
City of Cape Town is also investing in a Solar Project
The city has also embarked on a R1.2bn solar project aimed at shielding it from one stage of load shedding. The 60MW plant with solar PV and battery storage will be located just outside Somerset West with the site already identified. The longer term aim is to end load shedding altogether for the City of Cape Town.
Home solar panel installations are booming, and you can get a tax rebate this year
Solar installations in the USA have taken off tremendously as people are increasingly looking to end their reliance on fossil fuels and to become more self-reliant. Locally too, it is great news that the city is reporting that applications are streaming in.
A reminder that you are able to claim a once-off tax rebate in the 2023/4 tax year of 25% of the cost of new and unused solar photovoltaic (PV) panels, up to a maximum of R15 000 per individual. Solar is also one of the fastest growing features demanded by buyers.
Home is our Story and property my/our passion. Seeff is pleased that the Reserve Bank has kept the interest rate unchanged for the second time and we hope that it will remain stable and that the next step will be a reduction. We are still seeing strong demand across the Constantiaberg/Southern Suburbs areas. Feel free to contact one of our agents today to discuss your next property move.
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Author: Gina Meintjes
