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The above topic is a much-debated issue and is becoming increasingly pertinent as Eskom implements its 150%+ price increases over the coming 3 years.

In most peoples’ opinion, the capital cost of a solar geyser installation should be an asset (capitalised) and add value to the property into which it is going to be installed – rather like a garage or carport. Thus, what really constitutes running costs against Eskom charges (although not from a Cashflow standpoint, obviously!) is the annual depreciation of such a system.

An accepted figure for an average quality geyser is 10 years. It being so, let us take a system costing R10,000 and say that we are going to write this off completely over 10 years on a straight line method. Thus your annual costs would be R1,000.00 and your monthly costs some R83.00 excluding maintenance. This assumes that your geyser is worth nothing at the end of 10 years – which is obviously not the case when purchasing a good quality system. Also, Eskom prices, we can reliably assume, will not remain constant once prices have increased by 150%+ over the next 3 years!! Maybe adding another 50% over the next 7, would even be conservative! (representing less than a 10% annual increase).

This costing is a very encouraging picture, because if one is currently spending R750.00 per month on electricity -of which usually around half is geyser-related, then you are definitely scoring in a big way: R375.00 versus R83.00. Even spending half that total, would represent a considerable saving!

Now, take the position in say 5 years’ time: your Eskom charges would be in the order of R1,250 PM solely for your geyser, against the cost of R83.00 for the Solar option – a saving not to be sneezed at, I think you will agree. Of course this will go up - if the Government decides to put a tax on the energy you are drawing from the sun!!! (hopefully, not!).

Whatever the condition of the Solar Geyser at the time of selling the property onto which it is installed, it has a tangible value because of the electricity savings that it represents to the new home-owner. We can also assume that one wouldn’t necessarily have to replace the entire system after 10 years – as certain components will last longer than that.

The question of not having hot water in the morning, is a valid one - if people don’t like to shower at night and don’t wish to change their routine. This is especially possible during cold winter nights when ambient temperatures can bring the water temperature down much faster than those balmy summer nights! However, there is a ‘fix’ for this, and that is to couple the primary element into the solar geyser system with a timer (say 2 hours before required time?). This would obviate this drawback and yet only employ 2 hours of geyser heating time - as opposed to 24. Conventional geysers already have a built-in element; so this is not a problem and requires no extra modification -bar a timer.

If we take the example above, by installing a 2 hour timer, estimating that the ordinary geyser usually costs R375 PM and take one twelfth of that (2 hours as a fraction of 24) then the added costs should be in the region of R31.25 – still representing a considerable saving. I realise that this would require the old geyser to be retained, as the heating element would be required for the morning heat injection. Don’t forget that the water isn’t being heated from ‘stone cold’ as the geyser will retain quite a bit of the water heat. Just how much heat will be retained, will depend on the geyser and the quality of insulation.

The following costing examples can vary depending upon several factors:

1. Your local electricity charges
2. Whether your geyser is insulated (and how well)
3. Whether or not you opt for a Solar Geyser
4. Size of your family
5. Type of household appliances (Washing machines, Dishwashers, Showers, Baths, Pool)
6. Timers you may have installed
7. Interest rates you are subjected to.
8. Geyser maintenance

Reverting to the high capital up-front cost; the best answer is to finance it – if you can’t afford the cash payment. Below is a typical example of what your monthly costs could be, versus the potential savings:

FINANCING OPTION:

Financing your installed system at current rates at a capital cost of R10,000, over say 5 years, at current interest rates (they may still come down this year):