In January of 2016 the Income Tax Act of South Africa was amended to allow for the faster depreciation of renewable energy implementations by companies wishing to install their own power plants. Previously the standard 50/30/20 rule, as applicable to most standard plant machinery, was applied to the installation of photovoltaic systems for the purpose of power generation. This amendment allows companies to be able to write off 100% of the installation of systems with less than 1MW (Mega Watt) of generation capacity within the first year of implementation, regardless of whether the solar plant has been producing for the full tax year, for larger solar implementations the standard rules apply.

The costs included under the provision are:

They physical hardware (Inverter, Solar Panels, etc.)
The labour costs involved
The costs for mounting and racking for the solar installation, including the supporting structures or foundations
The electrical integration into your existing electrical circuits
Should the installation be financed, the finance charges may not be claimed under section 12(b) as they are deductible under Section 11(bA).

The other provision to this act is that the system/asset has to be brought into use for the purpose of the taxpayer’s trade.

The section of the 2016 Income Tax Act dealing with this can be found below:

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“Machinery, plant, implements, utensils or articles or improvements thereto (the asset) used in farming or production of renewable energy An allowance will be granted for assets owned by a taxpayer or acquired by the taxpayer as purchaser in terms of an “installment credit agreement” as defined in the VAT Act, and brought into use for the first time by the taxpayer –

in the carrying on of farming operations except –
any motor vehicle of which the sole primary function is the conveyance of persons;
any caravan;
any aircraft (other than an aircraft used solely or mainly for crop spraying); or
any office furniture or equipment);
for the purpose of trade to be used for the production of bio-diesel or bio-ethanol; for the purpose of his trade to generate electricity from –
wind power;
photovoltaic solar energy of more than 1 megawatt; not exceeding 1 megawatt; or concentrated solar energy;
hydropower to produce electricity of not more than 30 megawatts; and
biomass comprising organic wastes, landfill gas or plant material.

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*This content is brought to you by SolarSaver

Facing hippos and elephants while transporting solar equipment to remote safari lodges by boat and 4×4 became all in a day’s work for the SolarSaver team when they recently installed battery-solar off-grid systems at the remote Nambwa Tented Lodge and Kazile Island Lodge in Namibia for African Monarch Lodges. Both lodges now operate 100% off solar power 24 hours a day.

Remote lodges are increasingly turning to solar power rather than diesel to operate off-grid, according to Stefan Kleemann, Senior Engineer for SolarSaver Group. The provider of customised rooftop solar photovoltaic solutions is currently completing a number of solar projects in Namibia and South Africa through a rent-to-own model that makes it possible for businesses like the lodges to completely switch to solar power or supplement grid power with no capital outlay. The lodges pay only for the greener power generated by the solar installation.
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Air conditioning, refrigeration, cleaning appliances, pumps, lighting, television, device charging and heating are among the main sources of energy consumption at safari lodges. Nambwa Tented Lodge, perched high in the tree canopies on the elephant migratory routes in the Bwabwata National Park, required a 50kWp installation.  Kazile Island Lodge, located on a private island in the park, installed 25kWp to take care of all power requirements.

“Namibia’s hot dry climate and abundant sunshine for over 300 days per year make it an ideal spot to harness the energy of the sun.” says Kleemann. “These lodges are in remote natural landscapes and are not connected to the national grid. Previously, the lodges were generating power on-site using diesel generators, which generate hazardous exhaust gases and noise, as well as being are costly due to the high cost of maintenance and fuel transport to remote destinations. Solar power provides a peaceful, green solution that has the added advantage of saving costs.”

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A reconfigured drilling rig drives a rectangular metal pole into the ground, producing a metallic sound that rings across the veld. These poles are the building blocks of a R660-million, 40MW solar power station that will provide electricity to Gold Fields’s South Deep mine southwest of Johannesburg.

This is the first self-generation project of this scale – before the 100MW bar was introduced – to be granted regulatory approval in South Africa’s mining industry. DM168 can exclusively report that it has attracted the attention of the “procurement mafia”, which industry sources say has moved from targeting construction projects to attempts to shake down the mining industry.


Gold Fields says it is drawing a line in the sand and will not be intimidated, echoing a broader industry pushback against this attempt to muscle into procurement contracts and revenue.

“We can confirm that several of our senior managers have been approached anonymously by email and WhatsApp, often with threatening demands for procurement contracts in two current ongoing projects, including the South Deep 40MW solar plant. These approaches have come at the same time as business forums have sprung up, similarly demanding favourable procurement opportunities,” Martin Preece, executive vice-president South Africa at Gold Fields, told DM168.

“We have stringent and transparent procurement processes in place, underpinned by a firm commitment to sound governance and ethical business practices. Diverting from this is at odds with who we are as a business and will put us on a dangerous trajectory leading to the hollowing out of our business,” Preece said.

“Hollowing out” has been used to describe the fate that befell South African SOEs during State Capture under former president Jacob Zuma. But hollowing out state organs – under the cover of opaque political networks from within for the sake of extraction and patronage – is one thing. Coming at publicly listed companies with secondary listings in the US is another.

Global companies such as Gold Fields, which are scrutinised by bodies such as the US Securities and Exchange Commission (SEC) and fund managers both foreign and domestic, cannot easily yield to mob pressure. A fund manager in Boston can try to assess the risk associated with, say, policy uncertainty. But a plain racket making “threatening demands” for a cut of your contracts? That’s beyond the pale. With environmental, social and governance issues taking centre stage in boardrooms, such strong-arm tactics are hardly going to fly.

Take, for example, Rio Tinto’s decision to suspend its Richards Bay Minerals operation after the assassination of general manager Nico Swart. Boardrooms react to blatant criminal menace. It highlights the risks of doing business in SA and the consequences of a failing state. To say it’s bad for investment is an understatement.

“We take these approaches very seriously and continuously assess the risk to our people and the business. We also keep the local SA Police [Service] informed and are working through the Minerals Council SA to deal with the wider issues of violent crime confronting the mining sector in the country,” Preece said.

Of canaries and vultures
This attempt at twisting Gold Fields’s arm is like the canary in the coal mine when SA is making its first serious efforts to reduce its coal usage against the backdrop of the UN COP26 in Glasgow. SA mining companies have a rich pipeline of renewable power projects to reduce their reliance on Eskom and meet increasingly ambitious decarbonisation targets. Roger Baxter, CEO of the Minerals Council, has said that the mining industry is ready to build 2GW of renewable energy to the tune of between R30- and R40-billion.

On top of that tempting pie is the $8.5-billion deal struck in Glasgow with developed economies to finance South Africa’s “just energy transition”.

Planned industry projects and Glasgow financing is over R150-billion – a figure that is just too big for South Africa’s criminals and corrupt cadres to ignore. A Russian nuclear deal may be a pipe dream, but here is real money and projects. South Africa has an abundance of sunshine and wind to drive a switch to clean energy. But it is cursed with scavengers flocking to the decaying remains of a body politic rotting under that solar glare.

And these scavengers can tap into a swelling vein of social discontent that is the consequence of sluggish economic growth, sky-high unemployment, rising poverty, shoddy policing and the state’s failure to provide basic services. The recent local government elections were testimony to this monumental failure. This is where the roots of “community protests” lie that mining executives say are ginned up by the thugs wanting a piece of the procurement action.

“It’s illegal behaviour whereby groupings of people, including possibly business people, are mobilising communities against mines on a day-by-day basis in an attempt to leverage by almost [forcing] some sort [of] response into procurement,” Paul Dunne, the CEO of Northam Platinum and vice-president of the Minerals Council, told DM168 recently. He said there were several elements to it.

“There is the criminal behaviour by business people, and this is very wrong and will not be tolerated by mining companies. If we give in to this kind of pressure, we are in for a hiding second to none. So we will resist it with everything that we’ve got.

“There is another dynamic to consider. How are the business people able to mobilise the communities? It’s because there is a dearth of economic opportunities. So it’s an easy mobilisation.

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​“People want jobs, and they haven’t got service delivery from government – power, water, roads, clinics, schools, you name it. We are operating in some of the most impoverished parts of the country. That’s fertile ground for mobilising genuinely unhappy people.”

Dunne said “all mining companies have experienced it”, and he was speaking from experience.

Northam’s Booysendal mine, in the rural hinterland on the Limpopo and Mpumalanga border, has only two access points. “It is very easy if someone wanted to block the road, and that happens from time to time whereby a truck might be hijacked and jack-knifed across the road or burnt. If you do that at the critical point in time in the mining shift, you will effectively stop the mining shift because people simply can’t get to work,” he said.

“Some of it is related to attempts to leverage the mine management to award particular contracts to particular groupings. We will not tolerate that. I want to make that very clear.”

Gold Fields is also sending this message about its solar plant project in the impoverished west of Gauteng. Security and mining sources say these mafias started in the construction sector and moved into mining. Hardly any new mines are being built, so the looming renewable build binge is the next big target, bringing mining and construction neatly together.

Security sources who alerted DM168 to the moves on Gold Fields say renewable and other environmental projects such as tailings dams are high on the radar of such elements. It is important not to dismiss the legitimate grievances that local communities in South Africa have with the mining sector. Rooted in the apartheid past and hardened by subsequent governance failures, these can play out, notably in former homelands, where mining companies have cut deals with traditional authorities that have left local populations high and dry.

But shady operators can take advantage of these situations, and it can be difficult in the murk to hear the community’s understandable cries among the criminalised chaos.

Gold Fields says that, while shady business people may claim to speak for the “community”, it is doing its bit. “Many of the spurious business organisations and individuals, which claim to represent local communities, and to speak on their behalf, are, on the contrary, not from our host communities and are representing narrow personal interests,” Preece said.

“Our efforts have been focused on creating real value for our nine host communities, who are located in the vicinity of the mine. We believe that by creating jobs and investing in these communities we can make a real, positive difference to our communities.”

The company says that two-thirds of South Deep’s employees and contractors hail from its host or nearby communities, and 25% of its procurement spend in 2020 came from these sources. That may not seem like much, but South Deep is a mechanised operation extracting gold from 3km below the surface. That requires costly and sophisticated technical equipment that, sadly, is not manufactured on the West Rand. The company says its solar project will draw on the local workforce, and female-owned companies are in line to score contracts, which are tendered on its website.

Meanwhile, the sun shines on the Republic, and the wind blows. This should be a magnet for investment and upliftment, not to mention the environmental and climate pay-offs, which is what the drive to renewables is ultimately all about. But the vultures are circling in the updraft, and the canaries down below are chirping. DM168

This story first appeared in our weekly Daily Maverick 168 newspaper which is available for R25 at Pick n Pay, Exclusive Books and airport bookstores. For your nearest stockist, please click here.

Eskom announced on Tuesday that it had shared its Transmission Development Plan (TDP) for the period 2022 to 2031 with stakeholders during a virtual public forum.

This forms part of the power utility’s transmission licence requirements issued by the National Energy Regulator of South Africa.

It calls on Eskom to publish a TDP annually.

Eskom said that 30GW of new generation capacity is expected to come online during this planning period — mainly from renewable energy sources such as solar photovoltaics and wind.

This represents more than two-thirds of Eskom’s coal-based generating capacity of 44,055 megawatts (44.1GW). Eskom’s total installed capacity is 51,920.2MW.

The power utility noted that this 30GW of new solar and wind generation capacity would be built in areas with limited electric network infrastructure.

Former South Africa Wind Energy Association CEO Ntombifuthi Ntuli previously told MyBroadband that wind power would make up a total of 14.4GW of power supply by 2030.

“Wind energy will play a significant role in the energy transition as it will contribute 18% to the total power system by 2030,” she stated.

Eskom said that it would need to build an additional 8,300km of extra-high-voltage lines and 119 transformers to bring on board 58,970 MVA of transformer capacity over the next ten years.

“The total Eskom Transmission capital plan amounts to R178 billion over the next ten years,” said Eskom group executive for transmission, Segomoco Scheppers.

“Of this amount, R144 billion is required for new capacity expansion projects to meet the reliability requirements, connection of new generation capacity and loads, as well acquire servitudes.”

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​Scheppers said a further R34 billion is required for refurbishments to the existing asset base and procurement of production equipment, as well as strategic spares.

“As a state-owned entity, Eskom understands the critical role it plays in enabling South Africa’s economic recovery efforts,” stated Scheppers.

“Without reliable electricity, there can be no sustainable economic recovery or growth.”


Segomoco Scheppers, Eskom group executive for transmission
Scheppers also said that work is underway to connect utility-scale renewable generation projects for Bid Window 5 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

These projects are expected to be connected to the national electricity grid by 2024/25.

“We are also making our systems ready to connect the additional 2,000 MW capacity procured through the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP),” said Scheppers.

This capacity is meant to relieve pressure on Eskom’s grid and reduce the need for load-shedding.

However, the RMIPPP involves controversial Turkish powership supplier Karpowership.

In 2017, the South African Department of Energy (DoE) released Schedule 2 to the Electricity Act of 2006, which revised the licensing and registration requirements for categories of generators. Under these new rules, generators smaller than 1MW are exempted from having to obtain a license but need to be registered with NERSA. Every form of home electricity generation – including solar photovoltaic (PV) panels and backup generators – will have to be registered with the government under draft rules published by the National Energy Regulator of SA (NERSA) for public comment. The proposed SSEG rules were published for public comment by NERSA on its website on 26 April 2018.

These rules have yet to be implemented. The Organisation Undoing Tax Abuse (OUTA) called on NERSA to scrap these rules, and in May 2018 that is exactly what they did. Nevertheless, the City of Cape Town has implemented these rules in their municipality as of May 2019, and the City of Tshwane has followed suit in 2021. This was done as a pre-emptive move towards legislation that is on hold now.

OUTA gave on their newsroom platform the following statement.“The Department of Energy (DoE) should not interfere with the safety and specifications of the requirements or standards of embedded energy generation, as this is best overseen by the South African Bureau of Standards (SABS) and other regulatory bodies who often take their guide from other countries where the specifications for solar panels, generators, wind turbines and other systems have already been set.” Ronal Chauke, OUTA’s Energy Portfolio Manager said “The administration required by these draft rules is cumbersome and unnecessary. Government should work with its citizens to promote access to reliable energy rather than overburdening them with costs and administrative requirements.”

IN SOUTH AFRICA, THERE ARE NO OFFICIAL REGULATORY RULES ENFORCED BY THE GOVERNMENT THAT NEED TO BE ADHERED TO WHEN IT COMES TO PV SYSTEM INSTALLATIONS.

Homeowners installing solar energy systems must comply with the registration requirements applicable in certain areas, but official conformity codes regarding certain aspects of an installation do not currently exist. This could be a big problem. With specific South African PV industry regulation not yet in place, it is an unfortunate fact that many smaller “installers” are not adequately qualified and do not prescribe to any standards. This can lead to dangerous situations that can even lead to electrical fires. While there are compulsory wiring standards for general electrical installations, there is no dedicated national standard for PV installations yet. Ask your installer about the installation standards they follow.

The standards and quality management are driven by the industry and even quality assurance is achieved in this manner. You can also play an important part in ensuring that your PV system is true to the industry standards and requirements. Collecting as much information as you can about this aspect could save you a lot of heartaches when it comes to the safety and performance of your system. Let’s look at some rules and regulations that are being practiced by reputable installers.

At the core of every PV system is an electrical system that carries electricity generated by your PV panels to your wall outlets to be utilised in every electrical need that you might have. As such, installers should always. And when you are connected to the grid, you have the extra responsibility to ensure the grid is protected and not compromised by your PV system. Every electrical system has the risk of electrical shock, arcing, and fire when not correctly installed; your PV system is no different and installers should always follow the Electrical Installation Regulations of the OHS Act. The following errors should be avoided:
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The Photovoltaic (PV) market has always been an exciting one. The growth and new solar power technology developed has left even the biggest sceptic thinking twice about the opportunities that will arise and the goals that will be achieved by this amazing technology. In a world where Eskom has left us disappointed and in financial trouble time and time again, PV has been a way out of the sticky situations created by our utility provider. South Africa has adopted solar with such vigour primarily due to the country’s overburdened and monopolised energy infrastructure. And the innovation and development of this technology is a very exciting thing to observe and be a part of. In this article, I will look a bit closer at new PV technology and what could be possible in the future.

Less than 2% of the world’s electricity has come from solar power, but new inventions are likely to change that. 

You might think that vast, arid deserts are the perfect place to install solar farms. After all, desert sunlight is intense and you rarely have to worry about clouds. Plus, there is plenty of wide-open space. But there is one problem – solar panels don’t do well with heat. Solar panels work most efficiently at temperatures below 25°C. This is because when solar panels get hot, the electrons pick up that extra energy from their environment, which puts them in a more excited state. And when they are already excited, they have less room to absorb energy from the sun. They work best in moderate climates where, unfortunately, it can sometimes be hard to find the space to set up a giant field of solar panels.

But since the 2000s, countries around the world have been implementing what seems to be a win-win solution. A system called agrivoltaics. In agrivoltaics, solar panels get installed over crop fields. That way there is no need to clear extra space just for the panels. On top of that, the crops help keep things cool as they release water through their leaves. The release of water works just like sweating – evaporating water removes heat from a plant, which brings down the plant’s temperature and also cools the surrounding area. So they keep an optimal environment for panels to work noticeably more efficient.

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​First project in commercial housing
Once the design has been completed, the system can be planned within about ten days. The first glass
balustrades with integrated solar films went into operation in May at condominiums in Stuttgart
Möhringen. “We are pleased to demonstrate how well our balustrades perform in this project. This
proves that our technology also works excellently in commercial housing,” adds Issa.

Italian inverter manufacturer, Enertronica Santerno S.p.A, has announced that its Board of Directors has approved an investment plan for the expansion of the manufacturing activities in South Africa. Enertronica Santerno has been actively operating in the South African market for close to ten years now.

The AIM Italia listed company says it will invest around Euro 1 million (R17 million) in South Africa, spread over three years. The investment provides for the capability of manufacturing inverters for both standard photovoltaic applications and for electricity storage systems, for a total power of almost 1 GW and maximum production capacity of more than 500 MW per year. 

“After a period of marked slowdown, the South African energy market is moving once again towards a constant growth pace over the coming few years, due to the renewed commitment of the public authorities, with investment plans dedicated to renewable energy,” the company said. 

The project will be implemented starting from a production structure established over several years of operations in the country and which has proven to be highly reliable and successful, so that the Group will be able to deliver locally assembled inverters by the end of 2021. The whole Investment will be financed through internal resources of the Group with no impacts on the level of indebtedness of the same.

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The company built a production plant in 2013 for the manufacturing of supporting structures for photovoltaic panels which supplied steel works for around 400 MW of panels. Subsequently, inverter-based power stations for a total capacity of around 600 MW were locally built with a 50% local content, making Enertronica Santerno one of the leading local producers in South Africa in its own market sector. 

The purpose of the Investment is the implementation of local manufacturing of inverters for renewable energy (photovoltaic) and electrical systems with storage, in order to supply products with a local content higher than 40%, exceeding, therefore, the minimum requirements recently imposed within the REE-IPP (Renewable Energy Independent Power Producer Procurement Programme) Bid 5 framework, where inverters are included in the list of components with a minimum required Local Content, as specified in Appendix 5A – Designated Local Content (Economic Development Obligations), ED Sub-Element 200-SR-03B.

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THE recent announcement by President Ramaphosa of the new 100 MW threshold for embedded electricity generation, up from just 1 MW, was welcome news for many companies. However, while big businesses are jumping to investigate their self-generation options, there are many others who are destined to remain in the dark.

The ability to invest in on-site power generation is a luxury afforded to mature businesses with reliable cash flow – and a lot of space. A clear example of this is the 40 MW solar plant planned for Gold Fields’ South Deep mine in Gauteng, with a R660-million price tag and spanning the area of 200 soccer fields.

“Yes, R660 million is a significant investment, but so are the benefits of operating our own solar plant. Unaffordable and unrelenting Eskom tariff increases, and unreliable supply of electricity is a major risk for all mining companies,” comments Martin Preece, EVP of Gold Fields South Africa. The solar plant will be funded from the mine’s positive cash-flows over the next two years, and will generate 22% of the average electricity consumption of the mine.

“Other mining companies have developed or are in the process of developing their own solar plants,” says Preece.

This is great news for the sustainability of the mining industry, both in terms of business and the environment. But what about the thousands of other companies and SMMEs in South Africa? They now face two challenges: 1) a lack of resources for their own self-gen project and 2) the ongoing problems with Eskom – which may just get worse as many of the utility’s blue-chip customers get off the grid.

The solar farm at South Deep will translate into a R120 million annual saving of the cost of electricity for the mine. That is R120-million less to Eskom, which is already facing dire financial constraints. Add to that, the Deep South solar plant is planned at less than half the newly announced threshold for generation capacity. A single 100 MW plant could deprive Eskom of R300-million in business.

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Preece has confirmed that since the announcement, Gold Fields is now investigating upping capacity to 70 MW. Many mines are sure to follow suit, potentially generating billions of Rands worth of their own power each year. While many stakeholders have hailed the new regulations as key in alleviating grid pressure and give Eskom room to complete much-needed maintenance and construction, it could well have the opposite effect. Losing business to self-generation might worsen Eskom’s woes, and grid-reliant businesses will be caught in the crossfire.

The “good” news is: this won’t happen overnight. Preece says, “It will take years for all the planned renewable projects to be commissioned. Until then, the industry will still be solely dependent on Eskom, and the utility’s high tariffs and continued load-shedding will be a major obstacle.”

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In this increasingly connected world, where everything from our coffee machines to our thermostats is becoming “smart,” it should come as no surprise that the IoT is starting to play a role in solar panel installation.

IoT— which stands for “the Internet of Things” — refers to any device that can connect to another device (such as a smartphone) via the internet. In other words, when you take an ordinary device and connect it to the internet, it gets an added level of intelligence that enables it to “communicate” in real-time with other devices.

The IoT has promising applications in solar energy generation, since it can mitigate the higher cost of maintenance and regulate power usage. Let’s see how solar solutions can be upgraded by IoT and how it can help you better manage your assets.

The integration of the IoT in a solar energy system 
To harness the IoT in renewable energy production, the generation, transmission, and distribution equipment are outfitted with smart sensors. This enables you to monitor and control the working of the equipment remotely via real-time connectivity.

A solar energy system for commercial use comes with some kind of monitor, which may be a physical monitor at your home or an app you can access online. Some providers don’t offer a monitoring service, in which case you can track solar energy production through the system’s inverter itself.

With a traditional sensor installed in the solar system, you can keep tabs on how your system is working, including your solar panels’ daily energy production. It also allows you to identify particular issues in your system should they crop up.

The IoT provides the same functions, but when your energy system is part of a massive network of similar devices, its newfound cognition improves the efficiency of the entire system. You can now automatically monitor and control a variety of elements in the system. 

The high-tech sensors collect and send large amounts of real-time data from energy meters and inverters which is then stored in the cloud. The data is processed and presented to you in the form of SMS notification, reports, alerts, mails, notifications and useful insights. 

Insights you can get from an IoT-connected solar energy system
The solar unit’s performance
Health of the PV panels, batteries, and overall system
Your energy usage
Actual vs. modeled energy production
The energy you supply to the grid
When and how you’re loading your system
System faults diagnostics
Predictive analytics
An IoT monitoring system will alert you as soon as anything goes wrong with your solar system. You don’t need to worry about issues going unnoticed as the installer will quickly diagnose and resolve any issues, which will reduce downtime. 

A final word about connectivity requirements
For a successful IoT enabled solar solution, it requires the availability of consistent internet connectivity. A wireless or fibre internet solution will serve as the backbone of the IoT features and functions, linking together all devices and systems. 

A high-speed, uncapped, low-latency internet connection is able to cope with big spikes of incoming data, making it the ideal fit for IoT purposes. This type of internet solution is less prone to poor network performance, which could cause you to miss important data indicating performance issues.

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