Net metering - now, "legal"

On March the 30th for the first a net metered domestic tariff was published at the City of Cape Towns Draft Budget. That are the good news, but there are more bad one.

The City wants to charge a Service Fee of R 17.21 per day for 2011/2012 and  R 19.16 per day for 2012/2013. That ends up to max. R 574.80 per month ex. VAT.

The will pay for the delivered electricity R 0.9315 per kWh for 2011/2012 and R 1.034 per kWh for 2012/ 2013. Means in the highest domestic block that they will 25% less then they will charge you for the electricity.

Per example - if you install a 5kW Photovoltaic System, which will cost you approx. R 135,000 plus VAT. This system will produce in average per day 25kWh or 750 kWh per month. Multiplied with the tariff you will get R 775.50 plus VAT. Now you have to deduct the Service of R 574.80 plus VAT. Means your "income" is R 200.70 plus VAT - from this amount you have to cover your investment, your maintenance and your higher insurance cost. Means you will never have a Return of Investment in your life time, that of your kids and the kids of your kids...

You done a nice investment for the City of Cape Town and ESKOM, but not for yourself - because you pay for the system, you deliver the electricity cheaper to the City and you pay the City to do so.

Only in bigger scale systems it will change - but still, you will not benefit from your investment as you should.

 It looks like that the City did it to have it done, but make it  not financial liable for the domestic home owner to do it.

Comments are welcome.