Net metering - Update

The new domestic tariffs are approved at the City of Cape Towns Budget. That are the good news, the Net Metered Domestic Tariff is a little bit better then in the darft.

The City wants to charge a Service Fee of R11.21 incl. VAT per day for 2012/2013.That ends up to max. R 347.39 per month incl.VAT.  The will pay for the delivered electricity R 1.04481 incl. VAT per kWh for 2012/2013.

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 783.61 incl. VAT.

Now you have to deduct the service fee of R 347.39. Means your "income" is R 436.22 incl. VAT - from this amount you have to cover your investment, your maintenance and your higher insurance cost. Means your Return of Investment will be above 25 years.

You made a nice investment for the City of Cape Town and ESKOM, but not really 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.

The following questions should be ask to the City of Cape Town - Why a service fee? What for? Why not get paid the electricity supplied by the PV System equivalent to the highest rate for electricity charged by the City of Cape Town?

Comments are welcome.