Page 53 - Energize October 2022

VIEWS AND OPINION

Off the grid: Is it time for small and medium

enterprises to flick the switch to solar?

by Alan Shannon, Nedbank

The economic challenges in South Africa are daunting for most businesses. When coupled with the

impact of load shedding, there are compelling reasons why many small and medium enterprises
(SMEs) are actively seeking out alternatives to the current reliance on an unstable power grid.

ight now, a wait-and-see approach is less appealing as many businesses seek to avoid
the losses incurred during power outages, coupled with tariff hikes and the additional
Rmeasures designed to work around these issues. The urgency to act is there and each
stage of load shedding costs the country hundreds of millions of rand, according to the
Council for Scientific and Industrial Research (CSIR). With that in mind, should SMEs make
the switch to sustainable options such as solar?
There is no doubt that South Africa, with its burgeoning population, represents one of
the most attractive off-grid opportunities in the world for mini grids and solar technologies.
The country also benefits from some of the most sustained sunlight in the world, and many
have pointed to renewables as the answer to the country’s electricity woes.
South Africa will undoubtedly benefit from a move towards greener technologies and so
will the planet. It is, however, a business strategy that must be carefully considered, as the
costs and implementation of going off the grid is not a one-size-fits-all approach. Clients are
encouraged to assess the options with the same diligence as any other business investment. Alan Shannon
Going off the grid will undeniably reduce your monthly bill and attract a growing
number of environmentally conscious consumers, but the initial investment must
be considered. Currently the costs do not deter many businesses from their initial while opening the door to scale up in
enthusiasm. Factors such as storage or space required for the technology as well as future to solar panels and additional
possible downtime for installation must also be considered. Will those incredible solar- batteries. From a hybrid solution which
powered solutions affect your business insurance cover and costs? This must be explored is more budget friendly, the switch
as well. The result of sustainable solutions must include business sustainability. For large- to self-generating power, as costs go
scale manufacturing plants, there are already a host of success cases, but the same cannot down, is largely a better approach
be said for the SME sector. for most SMEs already battling other
With the costs of going off-grid still likely to be more than most SMEs can afford, market-related challenges.
scalable, quality solar PV hybrid solutions still represent great value. They take care of A forward-thinking strategy that
a business’ immediate backup power needs during load shedding and power failures, addresses both the current need and a
future aim places a business in a stronger
position to provide backup power and
build a platform for saving a fortune in
electricity costs in the future. It may not
be time to go off-grid just yet, but there is
every reason to start laying the foundation
to reap the benefits.

About the author
Alan Shannon is an executive for small
business services at Nedbank.
Source: salome.mabe@bcw-global.com

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rogerl@nowmedia.co.za

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