Dissemination of solar water heaters in South Africa

Abstract

Global concern over a looming energy crisis, water scarcity and man-made climate change are driving a huge demand for clean technologies, which focus on preserving the earth’s resources. In South Africa, the economy is very energy-intensive with coal being the main national energy supply. In view of the growing depletion of fossil fuel, it is important for South Africa to adopt a more sustainable energy mix. This study examines the potential for widespread dissemination of solar water heaters (SWHs) in South Africa. Barriers and constraints to market expansion are analyzed to determine strategies for overcoming these barriers. It is found that payback period of a SWH is shorter than the life-span of the system itself, indicating that SWHs are economically viable even with low production cost of electricity and thus represent a profitable investment proposition for end users, manufacturers and distributors. However, the subsidy programs offered by the government of South Africa may not be sufficient to facilitate diffusion. This is attributed to the high initial capital cost of the system and low affordability of the majority of the South Africa population with low income. Alternative financing mechanisms are required.