The National Solar Water Heating Conference

THE NATIONAL SOLAR WATER HEATING CONFERENCE

“Building Consensus On Accelerating The Rollout Of Solar Water Heaters In South Africa”

November 2009

Solar Water Heating Conference – November 2009 THE NATIONAL SOLAR WATER HEATING CONFERENCE

“Building Consensus On Accelerating The Rollout Of Solar Water Heaters In South Africa”

Held by

The Department of Energy

In Collaboration With

The Renewable Energy Market Transformation Unit based at the Development Bank of Southern Africa.

November 5, 2009

Indaba Hotel and Conference Centre, Johannesburg.

CONTENTS

EXECUTIVE SUMMARY

2 How government aims to launch by April 2010 a bold programme to substantially cut the cost of solar water heating (SWH) and accelerate the mass rollout of at least 1 million units within five years.

OPENING SESSION

7 Elizabeth Thabethe, Chairperson, Parliamentary Portfolio Committee for Energy, looks at the socio-political significance of SWH in South Africa.

9 Keynote Address by Ms Dipuo Peters, Minister of Energy. 12 Nelisiwe Magubane, Acting Director-General, Department of Energy, surveys the status of SWH in South Africa.

15 A Corporate Perspective: Ebrahim Asmal, Head: Group Sourcing, Santam, provides feedback on the Santam SWH Pilot Programme.

Solar Water Heating Conference – November 2009 SESSION TWO 16 International Perspectives Professor Dieter Holm, Regional Co-ordinator of the SOLTRAIN Programme, assesses international experience in SWH implementation.

18 OR Pearl, Head of Trade & Economic Office, Embassy of Israel to South Africa, explains why his country has been so successful in utilising solar water heating. 19 Prospects for the Solar Water Heating Industry in South Africa Dylan Tudor-Jones, Chairman, Solar Water Heating Division of the Sustainable Energy Society of Southern Africa, outlines how the industry association aims to become sustainable. 21 The Draft National Solar Water Heating Framework A plan to instal 1 million SWHs within five years is presented by Ompi Aphane, Acting Deputy Director General: Electricity, Nuclear and Clean Energy, Department of Energy; Yaw Afrane-Okese, Project Co-ordinator of the Renewable Energy Market Transformation (REMT) Unit at DBSA; and Paul Harris, a REMT consultant from Integrated Energy Solutions.

SESSION THREE 27 Creating An Enabling Environment Duncan Abel, Director, Unlimited Energy, explains how Programmatic CDM can be used as a means to support the SWH rollout.

28 Marie Roux, Department of Public Enterprises: Employment and Skills Development Agency, outlines capacity building programmes for SWH installation and maintenance.

CLOSING SESSION 31 The Way Forward The Department of Energy’s Ompi Aphane sets out timelines for finalising the SWH framework and its implementation.

32 List of delegates that attended the Conference.

Solar Water Heating Conference – November 2009 1 Executive Summary

Introduction ing and installing SWHs;

overnment aims to launch, l Create a competitive and sustain- by April 2010, a bold pro- able local SWH equipment manu- Ggramme to substantially cut facturing, installation and mainte- the cost of solar water heaters and ac- nance industry in South Africa; and celerate the mass rollout of at least 1 million units within five years. l Create sustainable new livelihoods Unveiled during a National Solar through job creation. Water Heating (SWH) Conference convened by the Department of Energy The National Solar Water Heating (DoE) on November 5, 2009, the new Strategic Framework was presented to National SWH Strategic Framework some 800 delegates who were asked promises to deliver multiple benefits to submit comments on the plan which for the country and consumers facing the DoE aims to finalise within the first mounting electricity bills. quarter of 2010. According to the DoE, installation of Implementation is scheduled to be- The Framework 1 million units in households will: gin by April or May to meet a deadline imposed by Minister of Energy Dipuo l Save 620 megawatts (MW) of Peters. aims to unblock coal-based electricity, equivalent “The Minister has given us march- to about 12% of the generating ing orders to get going and deliver the single biggest capacity of Eskom’s new 4 800MW 1 million SWHs within five years,” Yaw Medupi power station. This would Afrane-Okese, project co-ordinator of obstacles to the enable better utilisation of scarce the Renewable Energy Market Trans- current electricity generation ca- formation (REMT) Unit at the Develop- utilisation of SWHs: pacity, and, as Ompi Aphane, DoE ment Bank of Southern Africa, told the Deputy Director General: Electric- conference. their high cost; ity, Nuclear and Clean Energy, told The Framework aims to unblock the the conference: it is more cost- single biggest obstacles to the utilisa- supply chain effective to save electricity than it is tion of SWHs: their high cost; supply to build new power stations; chain constraints; and limited local supply capacity. constraints; and l Reduce domestic electricity bills This has discouraged SWH in South by between 30% and 50% and Africa and stalled a R2 billion Eskom limited local shield households from sharply ris- programme to subsidise the rollout of ing electricity tariffs; 925 000 SWHs. Even with a special re- supply capacity. bate that reduces costs by about 20%, l Make solar water heating (SWH) the Eskom programme has attracted accessible to all South Africans in- fewer than 2 000 customers in the first cluding low income and poor 18 months of its implementation. households; DoE hopes that substantial cost reductions will lead to large-scale de- l Contribute towards achieving gov- mand for SWHs, particularly at a time ernment’s target to generate 10 000 when Eskom is pushing to increase its GWh from renewable energy sour- electricity tariffs by as much as 35% a ces by 2013; year for at least the next three years. A key requirement now is to make l Lower South Africa’s abnormally available to all South African house- high carbon emissions and contrib- holds affordable, fit-for-purpose, high ute to the country’s Long-Term quality and environmentally eficient Mitigation Strategy (LTMS) to com- SWH systems. bat climate change. Possible rev- Details of the Framework are still enue from carbon credits could being finalised through consultation contribute to reducing costs of buy- but the essential elements are:

2 Solar Water Heating Conference – November 2009 EXECUTIVE SUMMARY l The establishment of a dedicated This must be done through a Pro- agency that will procure South Afri- grammatic CDM process covering can Bureau of Standards-approved all SWH installations under the SWH equipment in large quantities programme. at discounted prices to supply all market sectors including the mid- l Other funding is anticipated from dle, low income and indigent possible exemption of VAT sales household sectors that are current- tax on SWH systems, inward in- ly not being serviced. vestment incentives from the DTI, skills training funds from relevant l The agency will be funded through sector education and training agen- a number of revenue streams cies, and a number of other sourc- linked to delivery and perform- es. The key to success will be to ance. It is intended that they will co-ordinate a range of funding include the electricity demand side streams and to ensure these are management subsidies funded via efficiently leveraged to maximise tariff income for the substitution delivery. of electric geysers with SWH systems and that Eskom will transfer l Six main SWH markets have been this amount to the agency in terms identified, ranging from upper in- of rules to be set by the National come to informal settlements in the Installation of 1 million solar Energy Regulator of South Africa existing residential market plus water heaters (SWHs) would (NERSA). new build and the electric geyser avoid the need to generate insurance replacement market. In 620MW of coal-based electricity. l The other critical funding stream is addition, the commercial and in- This is, for example, equivalent to intended to come from significant dustrial markets are also embraced the generating capacity of three carbon offset sales that should flow within the national strategy and units of Eskom’s Camden Power from the profound environmental specific SWH solutions have been Station (below). As the Department benefits and reductions in South identified to suit each market. of Energy’s Ompi Aphane pointed Africa’s carbon emissions footprint. out during the national SWH Revenue from carbon credits l SWH suppliers will be encouraged Conference: it is more cost earned from registration of the pro- to focus on specific markets and effective to save electricity than gramme under the Clean Develop- geographical areas within these it is to build new power stations. ment Mechanism (CDM) is viewed markets according to prescribed In addition, SWH will save as the critical enabler for the resi- technical, installation and operat consumers between 30% and 50% dential SWH programme. Without ing methods especially for residen- of their electricity costs and help this funding, it is unlikely that ad- tial sectors currently not serviced. to reduce South Africa’s excessively equate funding will be available. The upper income household mar- high carbon emissions.

Solar Water Heating Conference – November 2009 EXECUTIVE SUMMARY ket that is currently fully catered for l A scene-setting opening session will be left to accelerate delivery. focused on government’s commitment to a mass rollout of SWH and l Full system and operating speci- including the role of the insurance fications are being prepared for all industry in promoting SWH; residential market sectors. l A session in which international l It is anticipated that all existing ac- experience in SWH rollouts was credited SWH system suppliers will discussed, and the National SWH have an important role to play in Framework was presented; enabling the acceleration of delivery. l A session on enabling measures such as carbon credits and capac- The plan will assist the transformation ity building initiatives to support of the SWH industry association into a the rollout of SWHs; and “The overwhelming more responsive and sustainable body; programmes to overcome the critical l A closing session in which a time- attendance of the shortage of plumbers and increased table for formalisation of the training of plumbers qualified to install Framework was presented. National SWH SWHs; and insurance companies pro- actively encouraging clients to replace Setting The Scene geysers with SWHs and to install SWHs Conference makes in new houses. Elizabeth Thabethe, Chairperson of the Parliamentary Portfolio Committee for me confident that The six market segments, including Energy, pledged “the unqualified sup- some 11 million households, are: port of Parliament in the endeavour to the installation of bring about an energy mix that will en- 1. The upper income market with 1.2 sure the prevalence of clean energy for 1 million solar million electric geysers; future generations”. (see page....) 2. The middle to low income geyser Making her keynote address, Minis- water heaters will market with 3 million geysers; ter Dipuo Peters declared: “The over- 3. 6 million households without gey- whelming attendance of the National be achieved before sers; SWH Conference makes me confident 4. The geyser replacement market that the installation of 1 million solar which absorbs 300 000 geysers a water heaters will be achieved before the five-year target year; the five-year target I have set.” 5. New-build homes (250 000 a She said the SWH programme had I have set.” year); and the potential to create up to 100 000 6. The industrial and commercial jobs across the SWH value chain, in- market. cluding manufacturing, installation and maintenance. The 1 million target is an initial figure “The intention is to mobilise a wide meant “as a rallying point” although it range of government departments and is primarily targeted at the un-served development priorities around the residential middle, low income and solar water heating programme,” the indigent market sectors, Aphane told Minister said. “It is envisaged that the the conference. solar water heating rollout in the coun- He added that the final target try will lead to many businesses spring- would include installations made ing up for the sole purpose of filling the under the Framework plan as well sky rocketing electricity demand with as those rolled out under other pro- solar hot water systems, which in turn grammes, such as a Central Energy will generate a commendable critical Fund initiative to support installation mass for the creation of manufacturing of some 400 000 SWHs in Nelson capacity and job opportunities.” (see Mandela Bay and Erkhuruleni mu- page...) nicipalities. Nelisiwe Magubane, Acting Di- rector-General of the DoE, noted that Conference Structure electricity tariff increases and the electricity supply security challenges of the The conference consisted of four ses- last two years had made South Africans sions: more receptive to using alternative

4 Solar Water Heating Conference – November 2009 EXECUTIVE SUMMARY technologies for water heating. How- crease. ever, the costs of SWH and the frag- “The key advantage of solar obliga- mented manner in which SWH was tions is that the State does not need to being implemented were holding the fund SWH. The onus on funding SWHs country back. is placed on consumers of hot water.” Outlining numerous, disparate (see page...) SWH initiatives, she explained that Israel, which introduced solar obli- the National SWH Framework and gations as long as 30 years ago, now implementation plan was the basis for had 95% of its households using SWHs, “a prescribed and bold intervention OR Pearl, Head of Trade & the Eco- to confront the issues and focus the nomic Office in the Embassy of Israel country on achieving an initial instal- to South Africa, told the conference. lation target of 1million SWH systems He pledged that Israel would willingly within the next four to five years.”(see provide support to South Africa in its page...) rollout programme. (see page...) “International Role Of The Insurance Industry The SWH Industry Association experience proves Ebrahim Asmal, Head of Group Sourc- The SWH industry association was po- ing at insurance company Santam sitioning itself to play an increasingly that SWH schemes pledged industry support for a mass constructive role in large-scale instal- SWH rollout. lations, Dylan Tudor-Jones, Chairman Santam, he said, annually replaces of the Solar Water Heating Division that rely on through its claims processes an aver- (SWHD) of the Sustainable Energy So- age of 40 000 geysers. “It therefore ciety of Southern Africa, told the con- government makes sense to give clients the option ference. to replace their conventional geysers The SWHD aimed to become self- subsidies are with solar water heaters. This supports reliant and sustainable. It was under- our environmental vision as well as na- taking numerous initiatives to make not sustainable. tional energy objectives.” participation in the organisation more Santam had launched a pilot project inclusive; to open new revenue streams Funding will become in September 2009, but uptake had through a new funding proposal and been slow because SWH remained too by introducing new categories of mem- increasingly difficult expensive, explained Asmal. bership; and to turn the SWHD into a “The national policy being devel- more responsive and pro-active body. oped by government will certainly help This would result in the develop- as market volumes in rolling out this process more speed- ment of a stronger industry association ily,” he said. “We want to partner with and the successful transition from elec- increase.” everyone, from government through to tric geysers to SWHs, he believed. (see the private sector, to make sure that the page...) SWH rollout works.” (see page...) The Draft National International Experience SWH Strategic Framework In SWH Rollouts The Framework was set out by three South Africa lagged 30 years behind presenters: Ompi Aphane, Acting the leaders in SWH installation even Deputy Director General: Electricity, though the country had twice as much Nuclear and Clean Energy, Depart- sunshine, Professor Dieter Holm, Re- ment of Energy; Yaw Afrane-Okese, gional Co-ordinator of the SOLTRAIN Project Co-ordinator of the Renewable (Solar Thermal Training and Demon- Energy Market Transformation (REMT) stration) Programme, told the confer- Unit; and Paul Harris, a REMT consult- ence. He said South Africa should ant from Integrated Energy Solutions. follow the leaders’ success formula (see pages....) which was based on making SWH ob- Aphane said that based on installing ligatory. 70% of the targeted 1 million SWHs in “International experience proves high-income households at R15 000 a that SWH schemes that rely on govern- unit, and 30% in low income house- ment subsidies are not sustainable,” he holds at R8 000 a unit, total funding of said. “Funding will become increas- R12,9 billion would be required. An ingly difficult as market volumes in- amount of this magnitude could not be

Solar Water Heating Conference – November 2009 5 EXECUTIVE SUMMARY funded sustainably by the fiscus. work. The alternative was to raise funding Harris provided a detailed break- through the Eskom electricity tariff as down of the South African residen- a demand-side initiative and through tial market for SWH including those CDM funding. homes with electric geysers, those Afrane-Okese said that at the without and the various income levels. current rate of SWH installation, it Following detailed market and needs would take over 15 years to reach the research, affordability analysis, existing 1 million target. In order to accelerate hot water service levels and a range of the rate of installation, the National other relevant data, a series of fit-for- SWH Strategic Framework envisaged purpose SWH system designs have the establishment of an institution or been prepared for each of the market agency that will procure SWHs on a sectors and needs clusters. large scale and negotiate substantial In all cases a superior hot water discounts in order to reduce prices. service, 10-year system guarantee and Accredited The agency will be funded through other enhancements will be included. an increase in Eskom’s electricity tariff Supply chain recommendations to en- subcontractors for and carbon offset sales, and will lev- sure a successful SWH mass rollout erage not only financing of SWHs but were outlined. the middle, low also funding to support programmes such as skills training. Carbon Credits The Framework was based on divid- income and indigent ing the market into segments and pro- Revenue from carbon credits earned viding systems and streamlined supply by saving greenhouse gas emissions household sectors chain management tailored to suit each through SWH installation will not be market sector. A particular requirement sufficient alone to drive a mass roll- will move all was to ensure universal access to SWH out of SWHs. Nevertheless, without it, technology particularly to the middle, electricity demand side management equipment to low income and indigent residential subsidies will also not be adequate so market sectors that are currently not all funding lines will have to be ob- pre-assigned serviced. tained and maximised, Duncan Abel, Only in this way could SWH also a Director of Unlimited Energy told the geographical areas provide substantial socio-economic conference. benefits across South Africa. He outlined the need to register the As examples, under the orchestra- rollout as a Programmatic Clean De- and undertake tion and accountability of a new na- velopment Mechanism project cov- tionally mandated SWH supply entity, ering all approved SWH installation, mass marketing and the residential sectors currently not and estimated South Africa could earn serviced will be offered high qual- some R2 billion from carbon credits installation of SWHs ity, highly affordable SABS-approved over a 10 year period. (see page...) SWH systems. on a street-by-street Following detailed research these Capacity Building systems have been specified and will basis. be sourced in bulk from either local With only 3 000 registered plumbers in or overseas manufacturers (initially South Africa, a lack of skills has been at least) according to a rigorous open identified as a major obstacle to a mass competitive tender. SWH rollout. Other elements of a streamlined Marie Roux of the Department of supply chain operation will also be Public Enterprises’ Employment and sub-contracted according to an open Skills Development Agency outlined and competitive tender process. far-reaching programmes to train quali- Accredited subcontractors for the fied and semi-skilled plumbers in SWH middle, low income and indigent installation and maintenance, and to household sectors will move all equip- attract new entrants to the trade. (see ment to pre-assigned geographical page...) areas and undertake mass marketing and installation of SWHs on a street- The Way Forward by-street basis. They will be required to establish The DoE’s Ompi Aphane outlined local area offices that will undertake steps government would take to en- after-sales service and maintenance able implementation of the Framework by April 2010. (see page...) 6 Solar Water Heating Conference – November 2009 OPENING SESSION The Socio-Political Significance of Solar Water Heating

he South African Constitu- tion and Bill of Rights provide Tfor certain rights that we need to constantly keep in mind as we seek to define policy directions and provide public goods and services.

Of critical importance are rights to:

l Environmental protection, for the benefit of present and future generations, through reasonable legislative and other measures.

l Ecologically sustainable development and the use of natural resources while promoting justifiable economic and social development.

l Access to adequate housing.

Access to energy is critical. When the African National Congress assumed office in 1994, access to electricity stood at 36% at a time when the elec- Thembani Bukula, Regulator Member responsible for electricity tricity system had more than adequate Elizabeth Thabethe, Chairperson, at the National Energy Regulator excess capacity. Parliamentary Portfolio Committee of South Africa, who was We have been able to extend access for Energy (right). chairperson of the opening to a number of services for our people, session. and access to electricity has reached 70% despite rapidly increasing popu- He told the Conference there lation growth and the challenges that could no longer be any doubt we face in the region. over whether there was a large We also advanced to providing enough solar water heating (SWH) access to operational subsidies and market in South Africa or about grants, such as free basic electricity to how many units could be installed. the indigent. South Africa, he said, had 11 While energy prices have been rel- million households and the atively affordable to many, the major- potential for installation of some ity of our people have continued to be 6 million SWHs. engaged in a life and death battle for survival. We have continued to extend “There cannot be a better a helping hand by continuing to im- incentive than that,” he said. prove the lives of our citizens. “We are developing a plan to On the energy front, we have con- roll out solar water heaters and tinued to see more challenges bedevil- all that is left to do is to execute ling this sector. that plan.” Volatile crude oil prices, accompanied by increasing prices of petrol, have had an impact on the economy and the stability of our currency. We have seen the collapse of some of the major economies in the world

Solar Water Heating Conference – November 2009 7 OPENING SESSION and the repercussions that this has had sented by growth in this sector. on the economies of developing countries as exports plummeted, jobs were These principles will have to underpin lost and stock markets crashed. every initiative that the Ministry of En- South African Revenue Services ergy puts in place for sustainable de- now has to contend with under-col- velopment of the energy sector. lections and this has had serious impli- Deployments of solar technologies cations for our country, with reduced should ultimately be a lifestyle issue in revenues resulting in budget cuts. South Africa since we have excellent The costs of the capital programme radiation in almost all provinces, with for the expansion of electricity gen- the greatest radiation levels being in eration capacity by our national util- the Northern Cape. ity have increased, presenting a major We need to recognise that clean challenge to raise sufficient capital to and renewable resources are needed ensure security of supply. to be exploited by current and future This state of affairs, culminating in generations. the financial and resource tightrope Since time immemorial, our coun- that we all are walking, has encour- try has relied on burning fossil fuels to aged us to look at alternatives for the meet almost all our thermal heating provision of energy services. applications. This is no longer as sus- Energy issues were placed high on tainable as it was, particularly taking the agenda at the ANC national con- into account climate change. ference in Polokwane which resolved The Minister of Energy has the un- to: qualified support of Parliament in the endeavour to bring about an energy l Ensure security of supply of energy mix that will ensure the prevalence resources, and pursue an energy of clean energy for future generations. mix that includes clean and renew- We need to ensure that this project is a able resources to meet the needs of success and that it is extended to assist our fast growing economy without our brothers and sisters in Africa and in compromising our commitment to the Diaspora. sustainable development. The success and growth of the South African economy rests on the sustain- l Put more effort into obtaining a ability of the energy sector. We want Solar water heating in 1 million greater contribution from renew- to see wealth, skills, enterprise devel- homes will save South Africa able energy sources, including solar opment, job creation and prosperity some 600MW of coal-based and wind power. being advanced through interventions electricity, but the country also such as this. needs to develop other sources l Put in place a clear programme of We have the tools in our hands to of renewable energy such as incentives for investment, as well shape our own destiny. Let us work wind power and Concentrated as the development of requisite hu- together – as government, the private Solar Power to secure greater man resource capacity, to take full sector and civil society – for the benefit security in energy supply. advantage of the opportunities pre- of all.

8 Solar Water Heating Conference – November 2009 OPENING SESSION Keynote Address

t is so impressive to witness such cases by sheer stroke of luck, some of overwhelming attendance of this the natural resources were discovered INational SWH Conference and it and for some their utilisation became makes me confident that the installa- available to mankind with the devel- tion of 1 million solar water heaters opment of technology. will be achieved before the five years Mankind was able to tell time and target I have set. season using the orientation of the sun Millions of years ago, in the proc- in the sky. Humans were able to sus- ess of the formation of the universe, tain food production by understanding various elements combined in a man- the natural patterns of the cycles of the ner unknown to man to form what we sun in the skies. would today regard as national en- There are those countries that have dowments. the least of those resources, but have Each country in its formation has instead developed intellectual proper- been endowed with resources in the ty and industrial capacity so that they ground, on the ground, in the seas can produce goods and service that and the oceans, and in the skies. Some can be traded. countries are endowed with mineral Solar energy has been with us since resources, some have strong wind the beginning of time and will prob- regimes, some crude oil, some wa- ably be in existence till the end of time ter, some mountains, some snow and when the sun becomes a dead star. freezing weather, some rain and for- For now, its potential remains un- ests, while others have sunshine. The der-utilised by humans of modern lucky few have a combination of these times. Current uses of solar energy are Ms Dipuo Peters, Minister of Energy. natural endowments. in the form of drying, lighting, heating, These resources have been at the agro-processing, warfare, and electric- root of many civil wars and regional ity generation, to mention but a few battles and indeed world wars as the applications. fight for dominance over resources be- The harnessing of solar technol- came the order of the day. For some, ogy remains smallest in developing the realisation of the resources was countries. South Africans have relied dormant for centuries. on coal and oil to meet their energy Based on the development of hu- requirements and have set aside other man intellectual capacity and in some possibilities.

(Right, and overleaf) Delegates who attended the National Solar Water Heating Conference.

Solar Water Heating Conference – November 2009 9 OPENING SESSION We are now in a situation where nificant role in the South African en- tough choices have to be made regard- ergy sector and contribute immensely ing our energy mix. towards sustainable development of These are the choices of sustainable our country. development and of the legacy our Renewable energy technologies are generation wants to leave for future undoubtedly some of the key technol- generations. These are the choices of ogies best suited for mitigation of and co-existence of mankind in harmony adaptation to environmental concerns with nature. This marks the dawn of a associated with fossil energy con- new era. sumption. At a time when plans are unfolding Now is the opportune time for us to to increase our electricity generation take local renewable energy industries capacity and when electricity price seriously, as the market for the renewa- increments are coming in quantum ble energy industry starts to show signs leaps, we need to reflect and ask dif- of growth. South Africa’s ficult questions. According to Renewables 2007, Are there affordable, renewable and Global Status Report, more that abundant sunshine, sustainable alternative energy options US$100 billion was invested in renew- to enhance our energy security, energy able energy capacity, manufacturing mild climate and diversity and climate change needs? plants, and research and development Asked differently: how much coal- in 2007, a true global milestone. technological based electricity can we adequately It is interesting to note that the displace from the system? largest share of annual investment in know-how make South Africa’s abundant sunshine, renewable energy took place in Ger- mild climate and technological know- many, China, the United States, Spain, this country ideal how make this country ideal for solar Japan and India. Despite the fact that energy technology applications such Africa has abundant renewable energy for solar energy as solar heating and photovoltaics for sources, we don’t see it featuring any- electricity generation. where in the list, and this needs to be technology The applicability of solar technolo- corrected. gies is more varied in the commercial Africa portrays a general depend- applications such sector because some buildings, such ence on imported capital goods, con- as offices, have very low hot water sumables and services. However we as solar heating demand. However, other applications cannot have a situation where the rest appropriate for commercial applica- of the world is moving ahead while and photovoltaics tions must be explored. we, as a continent, remain behind. We shall endeavour to create a It is clear from the reports that in- for electricity platform on which renewable energy vestment in renewable energy projects technologies, especially solar water in Africa remains fairly small. This generation. heating technologies, will play a sig- poses a challenge to accelerate the decisions of our leaders in respect of regional co-operation and development to improve the economies of scale for the establishment of a viable renewable energy market in the continent. Not only should we be the market; we will be called upon to become actively involved in value added local production of our renewable energy processes. We have made big strides in developing Renewable Energy Feed In Tariffs (REFITs) to incentivise the renewable energy industry for electricity generation. Focus will now be given to the non-grid side in which solar water heating falls. In my Budget vote speech, I indi- cated that:

l We are aware that our country is

10 Solar Water Heating Conference – November 2009 OPENING SESSION literally festooned with a variety of costs discourage many households Power workshop where we engaged initiatives particularly in the field of from installing them. relevant and interested parties to craft solar energy. Appropriate policies and incentives action plans. These initiatives require a co-or- can, however, increase public uptake In addition to the workshop, we re- dinated response. During the course awareness while providing economi- cently concluded a Memorandum of of this year, we shall be convening cally beneficial incentives to install Understanding with the Clinton Cli- a conference of all stakeholders the systems, augmenting the benefits mate Initiative (CCI) programme of the organised in this industry so that, to all South Africans, especially the fis- William J Clinton Foundation. together, we develop a clear action cal benefits that are derived through We expect that the Foundation will plan going forward. avoidance of electricity generation assist us to assess opportunities in re- from conventional power stations. newable energy, more especially in l The Department of Energy will en- With such tailor-made policies, the field of Concentrated Solar Power, sure that 1 million solar water heat- South Africa can make solar hot water and to explore the possibility of builders are installed in households and a mainstream product with environ- ing Solar Parks. commercial buildings over a period mental and economic benefits that We may need to explore the con- of five years. extend beyond the home. cept of solar parks for industrial or These benefits demonstrate the commercial applications in respect of This major programme has the po- need for South Africa to encourage the water heating. tential to create up to 100 000 jobs installation of solar water heaters in We have also put together a Solar across the value chain, including the country. Water Heating Framework that will be manufacturing, installation and main- It is not enough to provide generous used in our quest to install 1 million tenance. subsidies in order to create a strong, solar water heaters in households and Solar water heating is a well estab- durable market for a technology. commercial building over a period of lished technology worldwide which Instead, incentives should be paired five years. has been used for heating in all sectors with other enablers, such as standards, This will mark the beginning of for decades. While conceptually sim- product certification, institutional ar- an extensive solar energy industry in ple, solar water heating systems con- rangements, market stimulants, and South Africa. tinue to improve as newer technolo- public awareness to ensure that con- I urge you to interrogate rigorously gies enhance their performance. sumers are purchasing a quality prod- the detailed framework that will be Solar water heating is one of the uct. They should be designed so as to presented to you. We await your in- most cost effective renewable energy encourage the orderly and sustainable valuable inputs. Our plan is to update sources. growth of the industry over the long the draft Solar Water Implementation A typical residential solar water term. Framework with your inputs immedi- heating system reduces the need for Funding for the Solar Water Heat- ately after this conference, and to em- conventional water heating by ap- ing Programme will be derived from bark on implementation in no time. proximately two fifths. It minimises the the electricity tariff as a demand-side We are certainly anticipating that expense of electricity or fossil fuels to initiative for the benefit of the electric- with the progress made thus far, re- heat the water and reduces the associ- ity industry. newable energy technologies, espe- ated environmental impacts. Since my Budget vote speech, we cially solar energy, will now play a One of the key attributes of solar have hosted a Concentrated Solar crucial role in our economy. water heating in the current national electricity supply landscape is that this technology represents an elegant and flexible contribution to the management of electrical supply and demand (load) matching. The intention is to mobilise a wide range of government departments and development priorities around the solar water heating programme. It is envisaged that the solar water heating roll-out in the country will lead to many businesses springing up for the sole purpose of filling the sky rocketing demand for the solar hot water systems, which in turn will generate a commendable critical mass for the creation of the manufacturing capacity and local job opportunities. While solar heating systems save money over their lifetimes, the upfront

Solar Water Heating Conference – November 2009 11 OPENING SESSION Status of Solar Water Heating in South Africa

n November 2003, we adopted a electricity challenges which impacted White Paper on Renewable Energy our economy negatively were encoun- I(RE) which set a clear target of 10 tered. In order to prevent that, we con- 000 GWh of renewable energy to be sidered a number of options. achieved by 2013. The White Paper on Energy Efficiency (EE), Demand Side Renewable Energy reaffirms our com- Management (DSM), thermal load re- mitment engraved in the White Paper duction, fuel switching and solar water on Energy of 1998, which is the over- heating were highly considered as part arching policy. of the options to mitigate against elec- Our main commitment is to ensure tricity shortages. energy security through diversifying We are blessed with abundant the energy mix. South Africa is well sunlight hours and solar intensity but endowed with a variety of resources, despite this, the general public and and for us to diversify our energy mix householders have over the years con- is not a mission impossible. tinued to use coal-generated electric- One of the most important pre- ity to heat water mainly as a result of occupations for many governments inexpensive electricity tariffs that were around the world is energy security, extended during the era of excess ca- and South Africa is no exception. Re- pacity. newable energy will significantly con- Recent electricity tariff increases tribute to energy supply security by in- and the electricity security of supply creasing diversification of our energy challenges of the last two years have resources, promoting access to energy made South Africans more receptive to and services, and contributing to sus- the concept of using alternative tech- Nelisiwe Magubane, tainable development through the op- nologies for water heating. Acting Director-General, timum use of cleaner energy resourc- A factor that has held us back from Department of Energy. es. A number of renewable energy embracing renewable energy tech- sources and technologies are available nologies has been the costs of such in South Africa, but most still need to interventions, mainly as aresult of the be developed to their full potential. fragmented manner of implementation We all recognise the need to diver- and the low volumes of demand. sify energy supply by developing ad- Costs remain stubbornly high; we vanced non-polluting, more efficient, struggle with a fragmented local supply affordable and cost-effective energy industry with limited resources; and technologies to meet the rising glo- huge swathes of the household sector, bal demand for energy, particularly in such as low income families, remain developing countries. When looking unable to gain access to these exciting at these alternative energy sources, energy-saving and environmentally- an increasing number of countries, sustainable modern technologies. including South Africa, recognise the South Africa also faces constrained role thatrenewable energy can play in electricity supply capacity and an un- the reduction of greenhouse gas emis- sustainable greenhouse gasses emissions. sion footprint from extensive coal- South Africa has one of the highest based electricity generation. solar radiation levels in the world. Our South Africa is seriously lagging solar energy is relatively predictable behind other developing countries in and well distributed throughout the taking up solar water heating systems, country, although it has some regional mainly as a result of historically low variations. We are committed to en- electricity tariffs. It is necessary for us suring that solar energy will contribute to act decisively and swiftly and to immensely towards diversification of develop a plan that will be driven by our energy mix. government to remove obstacles hin- In late 2007 and early 2008 we dering the accelerated uptake of re- felt the repercussions of relying heav- newable energy interventions for mass ily on a few sources of energy. Serious implementation across all sectors of

12 Solar Water Heating Conference – November 2009 OPENING SESSION the South African economy. Western Cape Earlier this year, our department Provincial Government hosted a solar water heating workshop where all stakeholders were invited The Provincial Government has rolled- to help us in drawing up a definitive out about 1 000 solar water heat- programme of action for large-scale ing units mainly in low-income rural rollout of solar water heating. It was homes. apparent that a paradigm shift was needed. It was also evident that a co- The Kuyasa Project ordinated approach was essential for us to move forward. About 1 000 residents of Khayelitsha The following represents a snap have been assisted to reduce their shot of the current South African solar electricity bills by up to 40% through water heating initiatives and activities: the installation of solar water heating units, insulated ceilings and energy- The UNDP/CEF 500 efficient light bulbs. This project has Recent electricity SWH Pilot Project been registered under the Clean De- velopment Mechanism and now aims tariff increases The Project was initiated in 1999 by to be a Gold Standard CDM Project. the Central Energy Fund and funded and the electricity by the Global Environmental Facility Nelson Mandela Bay and the United Nations Development Metropolitan Municipality Programme. It aimed to install 500 security of supply solar water heating units and develop The NMBMM has set an ambitious quality standards for the industry. The target to install 60 000 solar water challenges of the objectives of the pilot were achieved. heating units by 2012. The NMBMM 500 solar water heating system were is also cooperating with the CEF in an last two years have installed in Johannesburg, Cape Town attempt to obtain carbon funding for and Durban, and a test rig, which is the project. made South Africans now standing at the SABS, was bought and quality standards were improved. The Private Sector more receptive to the Eskom solar water heating Many large corporate bodies have em- concept of Rebate Programme barked on solar water heating projects. The short-term insurance industry has The Programme contributes approxi- committed to a pilot project under the using alternative mately 20% of the total cost of install- auspices of the Department of Public ing solar water heating systems and Enterprise for the replacement of tradi- technologies for aims to support the installation of 1 tional geysers with solar water heating million units. Around 1 600 units have units. The private sector installs an av- water heating. been installed since the programme erage of 15 000 systems a year. was initiated. It is clear that we have initiatives City Power, Johannesburg geared to harness solar energy but that they are not properly co-ordinated. City of Joburg is currently running This conference aims to consolidate with a programme to finance solar and co-ordinate these fragmented ini- water heating units and recuperate tiatives. costs through a rental agreement with When we embark on the journey homeowners. Some regulatory issues to accelerate deployment of solar wa- are delaying programme implementa- ter heating technology, it is necessary tion. for us to have an understanding of the market: how it is constituted; what the The City of Cape Town needs are; and the levels of income and affordability. The City of Cape Town has pioneered Only once a clear understanding the introduction of a solar water heat- of market needs is specified, will it be ing by-Law that seeks to support its possible to turn to supply-side issues strategy to achieve 10% penetration such as suitable products, pricing, sub- in private homes by 2010 and 10% of sidy schemes, funding, regulation, and city-owned buildings by 2012. delivery and installation activities.

Solar Water Heating Conference – November 2009 13 OPENING SESSION We undertook a detailed market l Of great importance is the fact that analysis based on data from the AMPS 54,7% or 5 350 000 households 2008 residential household survey, have electricity but do not have with data provided by the Eighty-20 a geyser. These households heat Market Research Company. A snap washing water on stoves, often with shot of the market analysis indicates: electricity. While primarily found in poor l There are around 11 million house- and low income sectors, some are holds in South Africa. also found in the middle income segment. l The number of installed geysers across South Africa totalled 4 522 This is an unacceptable situation, and 000 in 2008, up from 4 022 000 in it is now time for a decisive, urgent 2006. and transforming intervention. The Na- tional Solar Water Heating Framework l Only 1,2 million households fall in and implementation plan to be pre- the upper income bracket, with sented at this conference is intended to only a portion of these in a finan- be the basis for a prescribed and bold cial position to make use of the cur- intervention to confront the issues and rent Eskom solar water heating pro- focus the country on achieving an ini- gramme that supports installation tial installation target of 1 million solar of systems with an average price of water heating systems within the next South Africa’s first solar water R15 000. four and half years. heating pilot project involved In order to successfully implement installation of 500 systems in a l Some 2,1 million households with the plan within this time-frame, it will project undertaken in 1999 by geysers are deemed to be middle be critical to address the following key the Central Energy Fund with income, with the electric geyser policy issues: support from the United Nations penetration level being 76%. Development Programme. l Finalise the integrated National The project set initial quality l Only 970 000 geysers are used in Solar Water Heating framework. standards for systems and led the low income and poor segments, to the establishment of a solar with a penetration level of 21%, l Mandate the utility. water heater test rig at the South making affordability a major con- African Bureau of Standards. straint to a mass roll out. l Clarify the roles of stakeholders, Ministries, providers and regulatory and legal issues.

l Develop solar water heating market rules via the National Energy Regulator of South Africa.

l National building codes and regulations.

l Building inspectorates for solar water heating approvals and by- laws.

l New build, modernisation and geyser replacement legislation.

l Creation of a sustainable solar water heating market.

l Local manufacturing.

l Fiscal investment incentives.

Let us all work together to place the South African solar water heating industry on a high pedestal.

14 Solar Water Heating Conference – November 2009 OPENING SESSION A Corporate Perspective Santam Solar Water Heater Pilot Programme Feedback

ven in the current global eco- reducing the environmental impact of nomic recession, many compa- our business, and being accountable. Enies have maintained their focus Among a number of initiatives, we on climate change, and an increasing have launched a solar water heating number of South African companies (SWH) project. are looking at its impact on their busi- Santam annually replaces through nesses. its claims processes an average of 40 South Africa was the first African 000 geysers. It therefore makes sense country to undertake carbon trading, to give clients the option to replace and the Carbon Disclosure Project their conventional geysers with SWHs. (CDP) was introduced in South Africa This supports our environmental vision in 2007, with Santam becoming the as well as national energy objectives. first short-term insurance company We launched a pilot project in Sep- to participate. Santam was rated 7th tember 2009 in partnership with the among South Africa’s top 100 listed Department of Public Enterprises, Es- companies in the 2009 CDP survey. kom and Unlimited Energy. The global insurance industry is be- We have found that the uptake is coming more vulnerable to the increas- slow and the bottom line is that SWH ing risks posed by climate change, but is too expensive. Even taking into ac- at the same time new opportunities count such funding opportunities as have emerged. the Eskom subsidy and carbon credits, What role can an insurance com- there is still a significant shortfall that pany play? We have the ability to in- must be met by the client. fluence a wide range of stakeholders The various challenges have been Ebrahim Asmal, who are under our direct control, and identified and these are being ad- Head: Group Sourcing, Santam. as a leading insurer we are able to in- dressed in order to roll out the pro- fluence the industry in which we oper- gramme nationally. The national policy ate. being developed by government will Santam looks at practices in our certainly help in rolling out this proc- business that support the drive to re- ess more speedily. duce climate change, and at how we We want to partner with everyone, can reduce our carbon footprint. from government through to the pri- The Santam Environmental Vision vate sector, to make sure that the SWH is to be ready for the future and to be roll out works. a hub of expertise in innovative environmental risk management. We are pro- active in addressing climate change threats to our stakeholders. Santam operates in line with Climate- Wise Principles. This (Right) Insurance company Santam involves being a is among the JSE Top 100 companies leader in risk analy- participating in the annual Carbon sis and playing a Disclosure Project which requires role in public policy- them to report on their greenhouse making, supporting gas emissions reductions targets and climate awareness progress in meeting them. Santam among customers, is now exploring ways in which it incorporating cli- can support clients to switch to solar mate change into in- water heating. vestment strategies,

Solar Water Heating Conference – November 2009 15 SESSION TWO International Experience in Solar Water Heating Implementation

outh Africa is lagging 30 years behind the leaders in the utili- Ssation of solar water heating (SWH) even though the country is endowed with twice the amount of sunshine they have. China is the leader in terms of total installed capacity expressed in megawatts/thermal (MWth), followed by Turkey, Germany, Japan and Israel. China has installed capacity in excess of 10 000MWth. South Africa’s installed capacity stands at 173MWth, with Israel, for example, having as much as 3 455MWth. However, in terms of total capacity per 1 000 inhabitants, the world leader is the small island state of Cyprus with some 651 kilowatts (kW), followed by Israel and, surprisingly, Austria, which is hardly renowned for having exces- sive sunshine. South Africa stands at only 3,6kW, equivalent to a ranking of 35 out of 49, or less than 1% of its Professor Dieter Holm, Regional Dr Manny Singh, General potential. Surely, South Africa’s target Co-ordinator of the SOLTRAIN (Solar Manager of the Energy should be to beat Cyprus. Thermal Training and Demonstra- Development Corporation of the For all the tax money South Africa tion) Programme sponsored by the Central Energy Fund, who acted as has sunk into ill-fated nuclear adven- Austrian Development Agency. facilitator of this session. tures, the country could have installed no less than two SWHs in every South African home. That would have made South Africa the world champion in SWH and established a key export industry to Africa and the rest of the world. It would have created sustainable jobs, mitigated our carbon footprint and reduced the impact of our Eskom crisis. SWH installations in South Africa have been increasing at a rate of about 17% a year, but this growth rate is in- sufficient to justify significant investment in the industry. Worldwide, renewable energy, and particularly SWH, is a growth industry in an otherwise sad and depressed global economy, and offers high job creation potential. Some 200 000 jobs are estimated to have been created worldwide through the production, installation and maintenance of solar thermal capacity. This is an increase of some 50 000 jobs since 2005.

16 Solar Water Heating Conference – November 2009 SESSION TWO SWH therefore offers an opportu- subsidies are not sustainable. nity for large-scale job creation which Funding will become increasingly is vital in developing countries such as difficult as market volumes increase. South Africa. Industry does not invest in government Disparate, small-scale SWH initia- schemes with a limited horizon. Thus, tives will not help South Africa to re- the opportunities for establishing local alise its potential. What is needed is a industries with concomitant job crea- national initiative with defined, ambi- tion are lost. tious, enforceable targets and, most The key advantage of solar obliga- important, a system of accountability tions is that the State does not need to ensure that targets are met. to fund SWH. The onus on funding Several developing countries have SWHs is placed on consumers of hot set themselves ambitious targets and water. are well on the way to achieving them. In reality, installing SWH increases In order to accelerate the use of SWH, the cost of a building by only 1% to all leading countries have introduced 2%. This is a negligible cost that liter- either subsidies or obligations on ally disappears into the noise! By plac- consumers of hot water and, in some ing on owners of new and renovated cases, both. buildings the obligation to bear this Solar obligations are regulations cost, public funds will only be used to that oblige consumers to cover a de- install SWH in public buildings and to fined share of the costs of providing enforce the obligations of private sec- solar energy for heating. tor building developers. They generally refer only to domes- Solar obligations are successfully tic hot water demand and prescribe being used in many countries. a minimum solar share ranging from On the small island of Barbados, for 30% to 80%. They are usually applied example, two out of five households to new buildings and to those under- already use SWH. Closer to home, going major renovation. Namibia issued a Cabinet directive in The first solar thermal obligation 2007 that all State buildings must be was enacted by Israel as long as 30 equipped with SWHs. years ago in response to concerns South Africa has the ideal climate about security of energy supply in the for SWH installation and should fol- aftermath of the second oil crisis. low the success formula of introduc- Solar obligations define which ing solar obligations accompanied buildings will be required to install by flanking measures ranging from SWH; the amounts of renewable heat research and development through to they are expected to contribute; tech- training and raising awareness of the (Below and overleaf) 95% of homes nical parameters for calculating the value of SWH. in Israel have solar water heating. contribution; who will be held accountable for failure to meet targets; how the process will be controlled; what sanctions will be imposed; and what flanking, or additional support, measures will be required to meet targets. Of particular importance is to ensure that the obligation can be legally enforced and that there is convincing justification for its enactment and enforcement. In assessing the benefits and costs of solar obligations, account must be taken of the fact that many future buildings will last well into the 22nd century. By then, fossil fuels utilised for heating will be exceptionally scarce and expensive. In the long term, 100% of the energy needs of buildings will need to be covered by renewable energy. International experience proves that SWH schemes that rely on State

Solar Water Heating Conference – November 2009 17 SESSION TWO The Israeli Experience

srael is a powerhouse in the area a $20 000 government grant. It made of renewable energy and a global a return on its investment after only the Ileader in solar thermal energy. Is- first year and is now saving $80 000 a rael has the highest penetration of so- year in energy costs. lar water heaters (SWHs) along with Cyprus and Greece. Some 95%, or Social Benefits Of SWH In Israel two million households, use SWH in Israel. First and foremost, SWH saves money Solar collectors produce 3 000MW and gives consumers more money to which saves about 4% of the coun- spend. try’s electricity production, and Israeli SWH has also created large num- companies now sell SWH systems bers of jobs. An entire industry around throughout the world. SWH has developed in Israel and Israel made SWH installation man- companies now export equipment for datory as long ago as 1980. Every use in buildings ranging from homes building constructed since then had to to hospitals, hotels and factories. install SWH. The only exception was buildings higher than 27 metres, or Cost Efficiency eight storeys, though with today’s technology it is possible to install SWH in A particularly important factor in a buildings of this size and in even larger successful SWH programme is the structures. issue of cost efficiency. It is not suffi- In addition, Israel removed bureau- cient to simply regulate and educate cratic barriers to SWH and the govern- the market. If the technology does not Or Pearl, Head of Trade & Economic ment made it as easy as possible for save money, if the return on invest- Office, Embassy of Israel to South consumers to install systems. ment takes too long, if maintenance Africa. Another major factor in our success is too expensive, SWH will remain a has been market education. lifestyle of rich people who want to be Israelis no longer need encourage- greener. ment to install SWH and landlords are Israel set very high standards for willing to use the technology because SWH equipment and this prevented they know this will make the use of inefficient systems. their properties more attrac- tive to rent. New Developments A number of countries In Solar Energy have subsequently made SWH installation mandato- The Israeli government has introduced ry. A particularly interesting a feed-in tariff which is encouraging example is Barcelona which companies to establish solar farms. made SWH mandatory in Households and businesses with in- 2000. With the support of stalled solar panels can now also sell Israeli experts, this has led to electricity to the national grid. installation of 30 000 square metres of solar panels, and Conclusion Israeli companies now dom- inate the Spanish market. A successful SWH programme should If South Africa wants to not only aim to solve the energy prob- succeed with a SWH pro- lem. The economic, social and envi- gramme, the first step should be to ronmental benefits must also be pro- make SWH installation mandatory. moted. A particularly interesting success An Israeli company is now estab- story in Israel is the case of the Lot Ho- lishing a SWH manufacturing plant in tel on the Dead Sea. The hotel invested South Africa, and Israel is willing and $100 000 in SWH and various other able to work with South Africa to pro- energy saving measures and received mote SWH.

18 Solar Water Heating Conference – November 2009 SESSION TWO Prospects for the Solar Water Heating Industry in South Africa

he Solar Water Heating Divi- Response To Growing Demand sion (SWHD) of the Sustaina- Tble Energy Society of Southern In order to meet expected growing Africa (SESSA) aims to become a self- demand, the SWHD has been restruc- reliant and sustainable industry body tured into a number of portfolio-driven within the next few critical years. committees. These cover: It is undertaking numerous initiatives to make participation in the or- Finance and Membership ganisation more inclusive; to open new revenue streams through a new The SWHD has implemented an an- funding proposal and by introducing nual budget and created new income new categories of membership; and to streams. It plans to become an affiliate turn the SWHD into a more responsive of an international renewable energy and pro-active body. training provider to facilitate educa- This will result in the development tion and training courses. of a stronger industry association and Management of membership has the successful transition from electric been streamlined with the introduc- geysers to solar water heaters (SWHs). tion of web-based membership applications. The SWHD plans to give The objectives of SESSA are to: members the ability to update and manage their profile. l Promote and increase the use of re- New membership categories will newable energy through informal be introduced in 2010. education, demonstration and in- Dylan Tudor-Jones, Chairman, Solar formation dissemination to end-us- Complaints and Compliments Water Heating Division of the ers and other decision makers of all Sustainable Energy Society of levels; An industry Ombudsman has been Southern Africa. appointed. Some 30 complaints were l Establish the society as the main addressed in 2009 with successful out- regional centre for information on comes for complainants. renewable energy; and A members’ service rating tool and an annual members’ Service Excel- l Facilitate in the development and lence Award will be introduced. maintenance of appropriate standards for products, systems or meth- In-House and Legal Issues ods, and training. The SWHD is looking to develop ac- The Solar Water Heating Division cepted industry norms that will in- (SWHD) is the largest division of SES- clude installation and servicing meth- SA. All SWHD members are required odology. to sign a strict code of practice. As standard practice, issues involv- SWHD members include manufac- ing non-compliant members are dealt turers, importers, distributors, install- with through negotiation, but the ers, training providers, researchers and SWHD has appointed a legal repre- consultants. sentative in the unlikely event that is- Membership increased from 15 in sues cannot be resolved. 2007 to 216 in 2009 and it is growing daily as companies aim to take advan- Standards tage of government SWH installation programmes. The SWHD will: The number of members from the manufacturing sector is lower than it l Promote and educate consumers should be because the SWH market is on SABS standards and the need not mature enough, with most people for regulation through the SESSA still importing products. website.

Solar Water Heating Conference – November 2009 19 SESSION TWO l Educate SWHD members on relat- Plumbing Africa magazine is introduc- A delegate who did not identify him- ed SANS standards and promote ing a SWHD-specific monthly news- self said there was a great danger that and assist with compliance through letter. a SWH roll-out would attract fly-by- the recently introduced “SABS for The SESSA website will be updated night operators. He wanted to know Dummies” posted on the mem- to include features on FAQs for con- what policing mechanisms would be bers-only section of the website. sumers; an enhanced members’ di- put in place to prevent this. rectory and search tool; an industry l Continue to represent the SWH in- events listing page; a consumer sizing Another delegate asked whether the dustry on various SABS technical and quoting tool; a consumer return- Solar Water Heating Division (SWHD) committees and working groups. on-investment calculator; and a rating of the Sustainable Energy Society of Tool. Southern Africa (SESSA), would also l Support development of SANS include in its membership dealers in standards for collectors and future Associations heat pumps. component testing. The SWHD will continue to develop In response, Dylan Tudor-Jones, Chair- l Work with SABS in the develop- strategic partnerships with such or- man of the SWHD, noted that the as- ment of heat pump standards as ganisations as the Institute of Plumb- sociation had instituted a strict code a complementary renewable en- ing South Africa, the Plumbing Indus- of practice for members and had ap- ergy technology to SWHs. try Registration Board, the Electrical pointed an Ombudsman to effectively Contractors’ Association; the Institute deal with consumer complaints. Education and Training for Timber Construction, and Business He added that the SWHD intended Unity South Africa. to invite dealers in heat pumps to join Initiatives include: the association. Government and Utilities l Participating with primary stake- Ruth Rabinowitz, a director of the De- holders in the development of The SWHD will continue to work with mocracy Foundation, said the South training standards. government and utilities to promote African Bureau of Standards (SABS) SWH. was creating obstacles to development l Promoting SWH installation train- of the SWH industry by being too in- ing as an opportunity for training Banks and Insurers flexible in its system testing processes. providers through the free dissemi- She asked whether there was a way of nation of training modules. The SWHD will continue to work with fast-tracking testing. financial institutions to identify oppor- Referring to Israel’s success in roll- l Negotiating with an overseas re- tunities for, and constraints to, the de- ing out SWH, she asked whether an newable energy training counter- velopment of SWH-specific financing agreement could be reached in which part to create a local facility offer- products. an Israeli government department ing its courses in South Africa. could “buddy” the South African De- For more information on the SWHD partment of Energy in order to expe- l Developing a SWH industry skills of SESSA, please contact: dite implementation of the SWH roll- programme, including such topics Dylan Tudor-Jones out programme. as effective marketing, sales strate- Tel: 011 789 1384 gies and customer service. [email protected] In response, a SABS representative [email protected]; www.sessa.org.za said SWH dealers often failed to do l Commissioning the filming of a their homework and didn’t read speci- SWH installation training DVD fications when sending their systems to be disseminated free of charge Questions for testing. This wasted considerable to plumbers. time. He denied the SABS had a test- Lydia Boase of Monana Consulting ing backlog. l Working with various universities and Trading Services in North West and technicons on research, testing province expressed concern that the Prof Dieter Holm of the SOLTRAIN and promotional activities. province was being overlooked in Programme, added that the country moves to introduce solar water heating needed at least five or six testing sta- Communications (SWH). She said North West offered tions in order to expedite a SWH roll- great potential for SWH. out. The SWHD has for the first time started It had high radiation levels and its Or Pearl, Head of Trade & the Eco- advertising in a national homeowners’ biggest city, Rustenburg, was probably nomic Office in the Embassy of Israel publication. The SESSA website is be- the fastest growing in Africa. She also to South Africa, said Israel was excep- ing updated with news on members wanted to know whether emerging tionally keen to co-operate with South and projects. The SWHD has negoti- entrepreneurs who lacked access to Africa and would be willing to host a ated with various publications to pro- capital would be empowered to par- South African delegation to share its duce regular features on SWH, and ticipate in the SWH industry. experience.

20 Solar Water Heating Conference – November 2009 SESSION TWO THE DRAFT NATIONAL SOLAR WATER HEATING FRAMEWORK

The Framework was set out by three this would be made in Eskom’s next presenters: application for an increase in its tariff. The amount to be built into the tar- l Ompi Aphane, Acting Deputy Di- iff would be based on a similar prin- rector General: Electricity, Nuclear ciple to that applied in setting the Re- and Clean Energy, Department of newable Energy Feed-In Tariffs. Every Energy; kilowatt hour of energy saved through l Yaw Afrane-Okese, Project Co-- SWH installation will attract a certain ordinator of the Renewable Energy incentive, that is built into the tariff. Market Transformation (REMT) Unit Our thinking is that this money will at DBSA; and not accrue to Eskom but will be ring- l Paul Harris, a REMT consultant fenced and made available from a na- from Integrated Energy Solutions. tional SWH fund. We envisage the creation of a man- Introduction dated delivery entity that will be a repository of these initiatives. It will also outh Africa has traditionally be responsible for ensuring that all ac- met its electricity demand by credited measured and verified inter- Sbuilding more and more coal- ventions can be supported through this based power stations but now finds it- agency. self in a position where it cannot build The principle is that government them fast enough to met demand. will be able to track how we are doing At the same time, it has become and respond accordingly, and adjust more cost-effective to save coal-based incentives for specific sectors upwards Ompi Aphane, Acting Deputy electricity than to build new genera- or downwards in order to ensure that Director General: Electricity, tion capacity. we are responsive to the requirements. Nuclear and Clean Energy, Solar water heating (SWH) is one We envisage a situation in which Department of Energy. way to reduce demand for coal-based Eskom, through rules set by NERSA, electricity. It has the potential to reduce will be able to provide the necessary residential demand by about 40% and signals for the money to flow through could defer planned capital expendi- to those who have intervened, and ture on coal, nuclear and gas-fired the agency will then be able to report power stations. to the Minister on how we are doing South Africa also has the capacity budget-wise. to become the largest manufacturer of Anybody can participate according SWHs in the developing world, with to pre-defined terms and conditions considerable socio-economic benefits. and we foresee an independent meas- The Minister of Energy has set a tar- urement and verification body or bod- get to roll out the installation of 1 mil- ies being accredited in order to track lion SWHs by 2014. The major issue to how we are doing according to base- be resolved is the question of how an lines that have been set. accelerated roll out of SWHs should be A parallel process will be run in funded. relation to certified carbon emissions Based on installing 70% of the 1 reductions and we are working at how million target in high income house- the benefits of this can be leveraged holds at R15 000 a unit, and 30% in and brought into the process. low income households at R8 000 We recognise that imports of SWH a unit, total funding of R12,9 billion equipment will need to continue dur- would be required. ing the initial phase of the programme. An amount of this magnitude could The Department of Energy is therefore not be funded sustainably by the fis- working with the Department of Trade cus. and Industry to ensure that local man- An alternative is to raise funding ufacturing is incentivised. If necessary, through the Eskom electricity tariff as duties could be levied to discourage a demand-side initiative. Provision for imports.

Solar Water Heating Conference – November 2009 21 SESSION TWO Implementation Plan For The National Solar Water Heating Framework

National Solar Water Heat- The Business Model ing (SWH) Workshop held in AMarch 2009 identified key ar- Basic business model principles: eas requiring intervention in order to ensure a mass roll-out of SWHs. l Self-funding programmes will en- These areas included policy targets deavour to get costs to be covered and support, financing, standards’ by subsidy plus customer contribu- implementation, manufacturing and tion. supply capacity. Due to the strong inter-linkages between these issues, the l Stepped prices: highest for upper development of a strategic framework income, lowest for indigent house- was seen by the Department of Energy holds. as the appropriate way forward. Current initiatives to support large- l Minimal Treasury support expect- scale installation of SWHs, such as ed. the Eskom rebate programme, focus on the 1,2 million households in the l Large-scale rollout to significantly higher income market. reduce costs. This focus has to broaden, and the National SWH Strategic Framework l New institution to deliver largely to therefore aims to serve the entire mar- the middle/low income market. ket consisting of some 11,2 million households. Primary sources of funding: The Minister of Energy has now giv- Yaw Afrane-Okese, Project en government and industry marching l Tariff support based on electricity Co-ordinator, Renewable Energy orders to get going on supporting the generation, transmission and distri- Market Transformation (REMT) Unit. installation of 1 million SWHs within bution savings. REMT is a joint initiative of the the next four to five years. Department of Energy and the World The Department of Energy is look- l Programmatic CDM funding, cen- Bank to facilitate development of the ing beyond this target by adopting an trally coordinated to give credibil- renewable energy sector in South aspirational vision: that by 2020, 50% ity and critical mass. Africa. REMT, which is based at the of residential water heating should Development Bank of Southern be supplied by SWHs and that there l Other small funding components. Africa, provides support for should be widespread use of SWH development of renewable energy and other heating technologies in the l Indigent support. policy, regulation and institutional commercial and industrial sectors. capacity. It also supports At the current rate of SWH instal- l DTI to support local manufac- development of renewable e lation, it would take over 15 years to turing. nergy projects. reach the 1 million target, or 75 years to reach a 50% market penetration, l Delivery entity funding model: self- and this calculation excludes future sustaining entity. growth in the number of houses. In order to accelerate the rate of in- l Individual programmes with costs stallation, the National SWH Strategic covered by income. Framework envisages the establishment of an institution or agency that l Cash flow funding required to fill will procure SWHs on a large scale gap between timing of expenditure and negotiate substantial discounts in and subsidy income. order to reduce prices. The agency will be funded through The Service Delivery Model a contribution from Eskom’s electricity tariff and carbon offset revenue and The Framework is based on dividing will leverage not only financing of the market into segments and provid- SWHs but also funding to support pro- ing systems and supply chain process- grammes such as skills training. es tailored to suit each market sector

22 Solar Water Heating Conference – November 2009 SESSION TWO and its specific needs. Registered sub- precise needs of each market contractors and Energy Services Com- sector. panies will be accredited, following a competitive tender process, to provide l A business model and funding the respective elements of the supply methods to ensure universal ac- chain. cess to all homes in South Africa In terms of marketing and installa- on a sliding scale basis with upper tion for example: for the middle and income householders contributing low income sectors, an appointed sub- significantly to the cost through to contractor will move all equipment to indigent homes receiving a “virtu- the allocated installation area and un- ally free” SWH system. dertake mass installation of SWHs on a street-by-street basis in the area. l Enabling the programme through Sub-contractors will also be re- institutional delivery models to quired to establish local area offices ensure economies of scale, clear that will undertake after-sales service, leadership and accountability for Core objectives of the National maintenance work and a local skills results. SWH Strategic Framework and capacity legacy. Participants in the national SWH l Institutional delivery models that l Reduce coal-based electricity programme for the middle, low in- integrate and leverage a range of fi- demand to ensure better uti- come and indigent residential market nancial, organisational, public and lisation of current electricity sectors will be required to meet the private sector activities to create a generation plant. following criteria: co-ordinated and focused delivery operation. l Provide universal access to l Affordability: installation of low- Deployment of a range of in- modern, affordable and envi- cost, best quality systems through come streams, training and new ronmentally beneficial SWH bulk buying on a high-volume, business incentives, skills training services for all households in low-margin basis. centres, the South African Bureau South Africa on an equitable of Standards, tax incentives, and basis. l Rigorous supply chain manage- private sector supply and installa- ment. tion. l Offset rising electricity costs to residential households through l Large-scale project management l A re-engineered supply chain, savings on water heating. and disciplined deployment of a driving costs down and efficiencies wide range of sub-contractors. up at every stage for the middle, l Accelerate water heating serv- low income and indigent residen- ice delivery, particularly to low l Protection of customer rights and tial market sectors. income and indigent house- interests. holds. l A new, stand-alone and compe- l Large-scale, professionally-orches- titively-resourced national SWH l Contribute towards achieving trated, rapid delivery. programme operating on a market government’s target to generate sector-targeted rollout basis to re- 10 000 GWh from renewable move delivery constraints. energy sources by 2013. The key principles that have been identified as the basis for an effective l Deploying large-volume buying l Contribute to South Africa’s strategy to achieve accelerated deliv- of specified SWH systems at dis- Long-Term Mitigation Strategy ery of SWHs are: count and stringent competitive (LTMS) to combat climate tendering and contractual arrange- change. ments with private sector installa- l A market-focused and needs- tion sub-contractors. l Create a competitive and sus- driven strategy to ensure maximum tainable local SWH equipment take-up and deployment of SWH. l Capacity building and job creation manufacturing, installation and with dedicated skills training and maintenance base in South l Segmentation of the total residen- accreditation. Africa. tial market into sectors and “needs clusters” plus a commercial/indus- l Sustainable South African low-cost, l Create sustainable new liveli- trial market. high-volume, SWH systems manu- hoods through job creation. facturing and installation industry l A “fit-for-purpose” limited range of within a defined time period after proven technology systems and the commencement of the national supply arrangements to meet the programme.

Solar Water Heating Conference – November 2009 23 SESSION TWO Detail Of The Implementation Plan

he National SWH Frame- MIDDLE TO LOW INCOME work is based on supplying MARKET Ttailored solutions to six spe- (earnings below R16 000 a month) cific markets. These are: The product type envisaged is a straight 1. The upper income market with 1,2 150 litre geyser replacement via a million geysers; 200litre solar system with a 2 sq metre 2. The middle to low income market copper collector and the choice of a with 3 million geysers; split or closed coupled system. 3. 6 million households without gey- Appointed subcontractors will focus sers; on a specific area and market a specific 4. The geyser replacement market package to households in that are. The which absorbs 300 000 geysers a suppliers would then move all equip- year; ment on-site, with installation teams 5. New-build homes (250 000 a working on a street-by-street, area-by- year); and area basis. The supplier will establish 6. The industrial and commercial an area support office with local main- market. tenance agents providing after-sales services. UPPER INCOME MARKET Households will receive a subsidy (earnings above R16 000 a month) calculated in terms of rands per kilowatt hours displaced plus related carbon This market requires complex, cus- offset income. They must also receive tom-installed systems with high lev- a share of carbon credits when the Paul Harris, Integrated Energy els of service delivery. A subsidy will programme is registered as a Program- Solutions. be limited to two SWH geysers per matic Clean Development Mechanism household, with the homeowner de- project, in order to ensure affordability ciding on the size and type of system and a high market take up. to be installed. New energy efficiency regulations HOUSEHOLDS and sharply rising electricity tariffs will WITHOUT GEYSERS make the switch to SWH more attrac- tive. This market of 6 million households is

Households vs Income Levels

Stove based water heating Middle income geysers Upper income geysers • Market 5.4 million • Market 2.0 million • Market 1.2 million • Poor/low/medium income market • Income R6 000 - R16 000/month • Income > R16 000/month Number of households

Low income geysers No Electricity • Market 1.0 million Non Electrified households • Market 1.3 million • Income < R16 000/month Monthly income Rands • Poor/low income market • Indigent income market Electrified without a geyser Electrified with a geyser

24 Solar Water Heating Conference – November 2009 SESSION TWO made up of formal dwellings (3,4 mil- from government. To limit increases lion); RDP houses (1,22 million); hos- in RDP housing costs, developers will tels and other multi-storey structures be required to draw stock from the na- (210 000); formal site-and-service units tional SWH programme and only be (500 000); informal plots with shack responsible for installation. and backyard dwellers (440 000); and traditional dwellings (1 million). GEYSER REPLACEMENTS

Design solutions: This will be covered by a combination of insurance cover and SWH system 100 litre roof mounted. subsidies provided to householders Low pressure SWH; roof mountable having to replace a defunct electric on inclined stand; mains pressure geyser. The existing plumbing trade, filled; tempered output. house insurance industry and SWH Cost: R3 200 + installation. supply sector will play an increasing role in promoting SWH when replac- Households will 55 litre roof mounted. ing electric geysers. Low pressure SWH; roof mountable With rising electricity tariffs there receive a subsidy on inclined stand; mains pressure are clear financial benefits to house- filled; tempered output. holders. calculated in terms Cost: R2 000 + installation INDUSTRIAL AND 55 litre pole mounted. COMMERCIAL MARKET of rands per kilowatt Low pressure SWH; free standing inclined at latitude; raised above build- Systems will need to be custom-de- hours displaced and ing level; manually fillable (requiring signed and could consist of SWHs or pump); tempered output. heat pumps, or a combination of the a share of carbon Cost: R2 000 + installation. two. Customers will obtain support funding through the national SWH credits from the Delivery Of Systems programme or through tax rebates. Tax rebates would be based on per- Programmatic Suppliers market to specific areas; forming an energy usage pre-measure- move equipment on site; install street- ment, the setting of a baseline, and Clean Development by-street; establish local support office installation of measurement and veri- to provide maintenance. fication equipment. The rebate would Households will receive a subsidy be based on electricity savings per Mechanism project. calculated in terms of rands per kilo- megawatt hour. watt hours displaced and a share of carbon credits from the Programmat- KEY POLICY INTERVENTIONS ic Clean Development Mechanism project. l Government to formalise the national SWH policy framework. NEW-BUILD HOUSEHOLDS l Cabinet to set SWH targets, with This market covers two sectors: delivery non-negotiable.

Upper to Middle Income Households l Eskom to be mandated to collect Sector to be covered via by-laws and SWH portion of its tariff and to regulations requiring all new homes channel this to the SWH mandated and commercial and industrial prop- delivery entity. erties to install SWHs. Process to be managed under l SWH funding agency to be set up the new energy efficiency rating for under the Public Finance and Man- homes, and can be enforced via the agement Act. normal building inspector role in the municipalities. l The National Energy Regulator of South Africa to issue rules govern- RDP and Affordable Homes ing SWH funding.

This sector must also be covered by reg- l National building codes and regu- ulation, but needs financial assistance lations to be revised.

Solar Water Heating Conference – November 2009 25 SESSION TWO l Formalisation of building inspec- the National Cost Benefit Analysis torate capacity in local authorities moving up to R35 billion. for SWH local building by-laws. Questions l New-build, modernisation and geyser replacement legislation to Richard Worthington of WWF South be formulated, promulgated, pas- Africa said repeated representations sed and enforced. had been made to the Department of Energy (DoE) requesting promulgation l Local manufacturing to be devel- of regulations making SWH installa- oped for large volume, lower cost tion obligatory. Draft regulations were systems and a DTI inward invest- published at the beginning of 2008, ment programme to be imple- but nothing had happened since then. mented. He asked when regulations would be promulgated making it obligatory to l Skills development, training and install SWH not only in houses but capacity building to be under- also in commercial and industrial taken. buildings. He wanted to know why regulations could not be promulgated l Large installation contractors to be within six months. required to undertake training Worthington expressed concern responsibility. about a provision in the National SWH Framework for Eskom to col- l Stepping up of entrepreneurs pro- lect funds for SWH through its tariff viding support services. and then channel these to the SWH funding agency. A similar process was The Department of Energy (DoE) Expected Impact Of The National followed when the National Energy Ef- assured delegates to the National SWH Programme ficiency Agency was established but Solar Water Heating (SWH) the Agency had to wait for two years Conference that national Installation of only 1 million SWHs before it received its initial tranche of electricity utility Eskom (below) will reduce demand for coal-based funding. He wanted to know how the would not be directly involved electricity by 620MW and avoid authorities would ensure that Eskom in the new programme to install 1 491 000 tons of carbon emissions. would transfer these funds. 1 million SWHs in South African Initial results of a National Cost Referring to Eskom’s programme to homes within five years. The Benefit Analysis on a target of 1 mil- subsidise SWH installation, Worthing- DoE’s Omphi Aphane explained lion (which excludes any new-build ton said a key problem in the scheme that funding for the SWH installations) shows the overall finan- was the lag between installation and programme would be raised cial benefit to the nation, taking into receipt of the subsidy. He wanted to through Eskom’s tariff but that account avoided electricity costs, costs know why a similar system was being the utility would not control of the programme etc., will be R12,8 adopted by the Framework. the funds. The funds would be billion over 20 years. ring-fenced and paid to a Similarly if the full vision of 5 mil- Ompi Aphane of DoE responded that national SWH funding agency lion SWH units is embraced the need Eskom was the only electricity “aggre- on instruction from the National for coal-based electricity demand gator” in the country and that funding Energy Regulator of South Africa. would be reduced by 3 100MW, with for SWH could only be channelled through its tariff. Money collected would be ring-fenced and transferred to the SWH funding agency on instruction from the National Energy Regula- tor of South Africa. This was not a business-as-usual situation in which Eskom would make the decisions regarding the funds. Referring to regulations making SWH installation obligatory, Aphane said the Constitution made it difficult to prescribe what people should do in their homes. He said the City of Cape Town had encountered major consti- tutional problems in its attempt to pass a SWH by-law.

26 Solar Water Heating Conference – November 2009 SESSION THREE Programmatic CDM as a Means of Supporting the SWH Roll Out

he Clean Development Mechanism (CDM) under the TUnited Nations Framework Convention on Climate Change pro- motes foreign investment in greenhouse gas emissions reductions projects in developing countries. The CDM usually applies to single, large-scale projects but a more recent mechanism, Programmatic CDM (pCDM), covers a large number of small units that are geographically dispersed and developed over a period of time. This includes a rollout of Solar Water Heating (SWH). There is only one registered pCDM project: an energy efficient lighting initiative in Mexico. Some 15 pCDM project are at the validation stage, and two of them cover SWH projects in Tunisia and Vietnam. In South Africa, two pCDM projects are at the validation stage, with one of them covering SWH. A new pCDP methodology is being Duncan Abel, Director, Unlimited Kevin Nassiep, Chief Executive undertaken in conjunction with the Energy. Officer of SANERI (the South National Sustainable Housing Facil- African National Energy Institute), ity and covers SWH, energy efficient who acted as facilitator for this lighting and insulation for low-cost session. housing. Another programme focusing on middle and higher income households is being developed as a SWH industry initiative and caters for all domestic installation of SWHs throughout South Africa. The programme allows for participation by local and national government, insurance companies, banks, property developers and homeowners. The programme is based on a 10-year life cycle for SWHs, and carbon revenue from the trading of certified emissions reductions will accrue to whoever is paying for installation of SWHs. SWHs covered by the programme must be approved by the South Afri- can Bureau of Standards and installed by members of the Plumbing Institute Registration Board.

Financial Benefits

There are numerous international play- ers who need to off-set their emissions

Solar Water Heating Conference – November 2009 27 SESSION THREE and who would be prepared to fund In order to further develop a pCDM a programme such as this by buying project, the SWH industry will need the carbon credits flowing from the to grow through improved marketing, project. quality control and consumer confi- Installation of 1 million SWHs dence based on awareness and educa- would result in avoiding carbon emis- tion campaigns. sions of 20 tons of CO2 per unit over a A number of factors are required for The Kuyasa low-cost housing 10 year period, with all the units saving successful implementation of pCDM project in Cape Town’s 20 million tons. Based on an average projects, including: Khayelitsha township was the first selling price of R100 per ton of CO2, project in Africa to be registered this would yield a total foreign curren- l Increased demand for renewable under the Clean Development cy inflow of R2 billion over 10 years. energy technologies; Mechanism. Homes have been The total emissions reductions of fitted with solar water heaters, 20 million tons is equivalent to 5% of l Government support and private ceiling insulation and compact South Africa’s annual emissions. The sector support; fluorescent lights. Carbon credits programme would therefore contrib- earned by the project will be used ute to meeting South Africa’s emissions l Consideration of pCDM in strate- to defray costs of the energy reductions and renewable energy tar- gies and policies; efficient development. gets. l Co-ordination of pCDM programmes;

l Letters of support for pCDM programmes;

l Feasibility studies to quantify pCDM potential;

l Consumer awareness building; and

l Financial support.

Carbon funding is not the silver bul- let that will drive the mass rollout of SWHs, but it is an important component of a co-ordinated national rollout driven by government and the private sector. Capacity Building For SWH Installation And Maintenance

n its role as Eskom’s main share- implement capacity building pro- holder, the Department of Public grammes, including initiatives to IEnterprises (DPE) has been support- ensure quality installation, inspec- ing the accelerated rollout of Eskom’s tion and maintenance of SWHs; Solar Water Heating (SWH) rebate programme. Initiatives include: l Working with the South African Insurance Association and individ- l Establishing a more sustainable ual companies to encourage their Plumbing Industry Registration clients to install SWHs; and Board (PIRB) and supporting it to l Exploring possibilities to use carbon trading through the Clean De- Marie Roux, Department of Public velopment Mechanism and other Enterprises: Employment and incentives to ensure sustainability Skills Development Agency. of the SWH rollout programme.

28 Solar Water Heating Conference – November 2009 SESSION THREE The Plumbing Industry Three main initiatives are being undertaken to develop SWH skills: South Africa requires at least 75 000 more artisans to support development l Qualified plumbers will be offered of infrastructure programmes. The a five-day course in SWH installa- plumbing industry has an estimated tion. An estimated R6 million will shortage of 10 000 qualified people. be needed to extend this pro- Some 13 000 people are currently gramme to all qualified plumbers. employed in the plumbing Industry with only 3 000 qualified as plumbers l Most of the 10 000 semi-skilled and a three-year apprenticeship and a plumbing workers have between passed trade test. five and 10 years of experience on Some 10 000 workers are semi- the job and therefore qualify to en- skilled, meaning they can do plumb- ter a Recognition of Prior Learning ing work but have no formal plumbing programme. education. Of these workers, 50% are They will be tested to identify South Africa requires illiterate. DPE is now working to im- gaps in their knowledge and to un- prove the skills of these workers and to dergo training in skills they are lack- at least 75 000 enable them to work towards obtaining. ing certification. They will also be able to under- more artisans However, there is a shortage of take training in SWH installation funding for training. Industry currently and will be enabled to go on to be- contributes 1% of its payroll for skills come fully qualified plumbers. to support training, and this amount is allocated to 23 sector education training author- l DPE is partnering with the National development of ities (SETAs). Youth Development Agency to at- This applies only to companies with tract young people to the plumbing infrastructure payrolls of more than R500 000 a year, industry. We originally put forward but only 5% of plumbing companies a budget of R200 million for train- programmes. The fall within this category. ing but this was declined. Most plumbing companies can Funding has now been secured plumbing industry therefore not apply for funding for from the Construction Education training from their SETA. and Training Authority, the Renew- has an estimated The PIRB therefore has to apply for able Energy Market Transformation funding on behalf of the companies (REMT) Unit, Eskom and industry to and to undertake training for them. train about 1 000 new entrants who shortage of 10 000 The only qualification offered until will undertake a full three-year ap- recently by the plumbing industry was prenticeship that will include SWH qualified people. an NQ Level 3 certification, equivalent training. to a Grade 11 school certificate. The plumbing industry has now The Insurance Industry instituted a new qualification at NQ Level 4, equivalent to a matriculation Some 600 000 geysers are installed an- certificate. nually in South Africa. Of these, 40% Two important elements were in- are replacement geysers and 60% are cluded in this qualification: SWH in- geysers installed in new houses. Most stallation and testing. companies that offer household insur- The SWH component has been reg- ance also provide bonds on new prop- istered as a separate programme at NQ erties. Level 2. The initial focus is on the train- DPE is therefore working closely ing of junior SWH installers who will with the insurance industry to encour- then go on to complete their plumbing age clients to replace geysers with qualifications. SWHs and to install SWHs in new The aim is to extend this programme houses. to as many as possible of the 10 000 Two major developments have al- unqualified semi-skilled plumbing ready taken place. A leading insurance workers. company recently launched a SWH A number of innovations are being programme for its clients, and the in- introduced to support training, such as surance industry has been given the instruction through the medium of film right to claim the Eskom SWH rebate for illiterate people. on behalf of clients.

Solar Water Heating Conference – November 2009 29 SESSION THREE Questions the PIRB which had funds to help them to improve the skills of employees and A delegate asked why existing plumb- possibly even to take them to a level ers were being trained to undertake where they could qualify as plumb- SWH installation and maintenance ers and sign off certificates of compli- when there were too few to undertake ance. conventional plumbing work. He sug- She added that DPE was also work- gested development of a course for ing to improve facilities at the 30 cen- people other than existing plumbers to tres that provided plumbing training qualify in SWH installation and main- and at the Further Education and Train- tenance. ing Colleges.

Another delegate expressed concern A delegate questioned the efficacy of that small companies would not have installing SWHs in houses that had no the resources and skills to compete in basic services, such as electricity. He the SWH market. As an example, he asked whether integrated solutions (Below) The South African said many small companies would could be found, such as using SWH plumbing industry has a shortage need to engage the services of quali- solar panels to generate electricity. of some 10 000 qualified fied plumbers to sign off certificates of technicians and only 3 000 fully compliance. Kevin Nassiep of the South African Na- qualified plumbers. Training new tional Energy Research Institute point- plumbers and qualifying them In response, DPE representative Marie ed out that SWH panels cannot gener- to install and maintain solar Roux pointed out the Plumbing Indus- ate electricity. He said his organisation water heating (SWH) systems is try Registration Board (PIRB) had insti- was looking at developing integrated critical to the success of the tuted a NQ Level 2 qualification solely solutions in which SWH could be in- national programme to rollout for SWH installers. stalled alongside electricity generating installation of 1 million SWHs She urged small companies that technologies such as bio-digesters and within five years. lacked resources and skills to approach thin film solar panels.

Solar Water Heating Conference – November 2009 CLOSING SESSION The Way Forward

he DoE’s Ompi Aphane explained that comments from delegates would be incorporated in a revised draft of the Framework before the Christmas break.DoE would also assess what Tregulatory issues needed attention in order to facilitate the SWH rollout. Funding of the SWH programme would be finalised in February 2010 when a ruling was made on Eskom’s application for an increased tariff which would include a provision for SWH. This would also enable DoE to determine the actual SWH installation target. DoE would finalise an implementation model as well as put in place institutional arrangements, such as the establishment of the agency that would be used to facilitate the SWH rollout. It would also look at using economies of scale to ensure effective, large-scale procurement of SWHs. In parallel with these processes, DoE would “get government’s act together” at national, provincial and local government levels. DoE hoped that implementation of the programme could begin by April or May 2010 with the first installations of SWHs under the programme. Importation of SWHs would need to continue but DoE hoped that by 2011 local manufacturing would be able to meet most of the demand. The way forward was detailed as follows:

November-December 2009: delivery entity clarified. Questions Strategy and Two delegates repeated concerns Framework April 2010: about Eskom’s involvement in the Planning. National SWH process, saying the utility would Strategy be caught in a conflict of interest. l High level Strategic Framework and It was required to sell electricity completion. Implementation and at the same time support a l Consultations. Launch programme to save electricity. l Inter Ministerial meetings. l Funding principles ratified, l Manufacturing tendering. Aphane responded by saying including NERSA and CDM. l Tendering, covering implemen- Eskom “will not play a central role, tation, marketing, sourcing, not in the planning, not in deci- End January 2010: installations, maintenance, sion-making around SWH targets Implementation financing, etc. and the levels of subsidies”. Planning. l Installation of first units in Eskom was merely a “conduit” targeted areas. for channelling funds to the SWH l Detailed implementation plan programme through its tariff. completed. 2011-2013 Referring to Eskom’s own SWH l Standard offer/M&V protocols rebate programme, Aphane said developed. l Continued installation of units, the different approaches to a SWH l Business cases finalised. moving to greater local manu- rollout would need to be recon- facturing. ciled. February 2010 2014 Another delegate called for the l Minister issues a section 34 fast-tracking of changes to build- determination (Integrated l Achievement of Minister’s ing codes that were required to Resource Plan) and sets EEDSM 1 mil lion SWH system target. facilitate obligatory installation of targets of 1 million SWHs. SWHs in new buildings. 2020 She asked that municipalities End March 2010 should then be given a model on l Further 4 million units targeted which to base enforcement of the l Repository/national mandated for completion. obligation.

Solar Water Heating Conference – November 2009 31 The National Solar Water Heating Conference - 2009 Participants’ List

Duncan Abel Unlimited Energy Peter Adams Vector Armin Aebehard Solar Answers Yaw Afrane-Okese DBSA - REMT Ajit Singh Ahuja Umlingo Trade and Industry (Pty) Ltd Nicole Algio CEF Marc Ambler Tritonova (Pty) Ltd - MD Corriesha Anthony Embassy of Israel Ompi Aphane Department of Energy (DoE) James Appelcryn Modular Construction Rahsaan Arscott Eskom Dave Ashworth Smart Solar Ebrahim Asmal Santam Ronnie Atkinson DG Thermal Pema Atool Sasol Thabang Audat Department of Energy (DoE) Sisa Baai Mining and Transportation Ndabeni Bagosi Future Generation Energy (Pty) Ltd Lindiwe Bakoro Afrika Borwa Infrastructure Fund Alan Vukosi Baloyi ABSA Private Bank Chris Baloyi Recofon (Pty) Ltd Mteto Bam Thunzi Consulting (Pty) Ltd Khululekile Banzi Bush TV Naas Barnard Ekurhuleni Wayne Bedser Solarhart Marc Bellanger CEF & The French Development Agency Craig Bergsteedt Energy Data Ralph Berold Independent George Beukes TWP Projects (Pty) Ltd Mohamed Bhabha Thuthuka Group Capital Rivaaj Bitharthee Toyota Tsusho Africa (Pty) Ltd Ralf Bittkau City of Johannesburg - Councillor Richard Black Solartech Energy Technologies Lydia Boase Xolani Booi Manzezulu Consulting Reinah Bosch Sasol Chem City Janine Bosch-Wessels Lembe Consulting Lenard Botha Green Electricity Leun Botha Green Electricity Johan Bothma Nupower Daniela Branga-Peicu TUT Barry Bredenkamp CEF (NEEA) Stephen Brent Sappi Gert Brink Private Mvuleni Bukula Nelson Mandela Bay Municipality Thembani Bukula NERSA Nerina Burger Industrial Development Corporation Brian Burgess HBI Dumisani Buthelezi Department of Trade and Industry Balaam Buziba Inkoleko Trading Themba Camane City Of Johannesburg

32 Solar Water Heating Conference – November 2009 Jill Carolissen Citrine Construction Trevor Carty Hrs Insurance Cristian Cernat Voltas Technologies Motlali Pula Chabaku Ex Member, Parliament Melvin Chagonda Ster Kinekor Moviestop Olga Chauke Department of Energy (DoE) Phindile Chauke Sapa Ronald Chauke National Treasury Ravan Chetty Nationwide Electrical - Project Director Kinesh Chetty One Carbon South Africa Signe Chiloane Makhue Investments Nellie Chiolane Makhue Investments Isaac Choma Phumi Trading cc Zanie Cilliers Sustainable Energy africa Daniel Coetzee Coetzee Boerdery Marietjie Coetzee Coetzee Boerdery Martin Coetzee Coetzee Boerdery - Project Manager Fatima Collins DBSA - REMT Arlene Conrade fedusa Kgomotso Cooper Lesedi Solar Solutions Theo Covary Unlimited Energy Caren Cupido Carbon Check (Pty) Ltd Hekhmat Currimjee Synergistic Distributors Machule Dabula Shining Star Petro Chem Trevor Dacre Solsquare Virginie Dago French Development Agency Rob Davidson Amandla Elanga cc Ian Davis Industrial Development Corporation (IDC) Roshney Dayal Michael De Bruyn ESSSA Hennie de Jager Solahart, Pretoria Jonathan de Vries Vuthela Resources Karen de Wet S&P Power Units Pieter de Wet MPSSC Mario Defreitas Ikomkhulu Karel Deist Safrelec Patrick Denga Lemosang Energy Services Marc Desfontaines Greencon Ken Dewar SASSDA Mqoliswa Dhlamini YCL Tsakane Ntokozo Dhlamini Department of Energy (DoE) Kgalape Diale Kungwini Local Municipality Molifi Diale Trio Infrastructure and Projects Matime Diale Matime Logistics (Pty) Ltd. Clifford Dikgale Out to Africa Mabel Dikobe Mveledzo Ronnel Dinsmore Innovation Norway Nnana Dirgo Patrick Diswai Marang Solar Tech Matone Ditlhake Peu Group Zazi Dladla Hentiq Mbuso Dlamini Palace Group Nkamyiso Dlamini Sisonke Dm David Dlamini Economic Skills Development Audrey Dobbins Enerkey Peet du Plooy WWF Jacques Du Preez Sun Africa Flip du Preez Arcelor Mittal South Africa Jaco du Toit MPhil Sustainable Development Management and Planning Luther Dube Eyethu Energy Systems Simphiwe Duma Psidot Technologies

Solar Water Heating Conference – November 2009 33 Clive Dutlow interneuron Vincent Earp Councilor City of Johannesburg Daryl Elliot Deloitte Consulting Chris Elliott Solarhart Rachelle Els Yefin Financial Services (Pty) Ltd Tankiso Fafuli City of Johannesburg - Councillor Dezlyn Farmer Standard Bank Roger Fawcett Airco Rod Fehrsen Yakani Ray Fernandez Solarhart George Ferreira Nelson Mandela Metro Zak Ferreira Dcisio Consulting (Pty) Ltd Tom Fluri Stellenbosch University Simon Foulds Export & Import SA Andre Fourie X Buy (Pty) Ltd James Fourie Sunflower Solar Howard Hughes Frank Multi Locking Security Systems Charles Freeman Solar Roofs Africa Tanja Fröhlich Embassy of the Federal Republic of Germany Vernon Froneman SETSA Johan Fuhri Auto Body Repairs Jimmy Furstenburg Clean Energy Solutions: Octavia Gama Eskom Kwezi Ganya Rural Solar Ambassadors Mike Gardner Alternative Energy Sanjay Gayapersadh Sunshine Solar Systems Blessing Gcabashe Zeranza Corporate Consulting Thulani Gcabashe Built Africa Harald Gerding KfW Development Bank Germany Stanley Gichia Public Works Brian Gilder Gilder Solar Geyser cc Rudolph Goddard Rowan Goeller Thulamela Fund Managers Adeline Goffin EQCP Mike Goldblatt PDG Tony Golding Department of Energy (DoE) Mark Gordon DPE - Chief Director: Energy David Gosling Sun Flower Solar Clint Gough Quantum Solar Distributors Stephen Gough NMBM Rajen Govender GW Business Solutions Gcobisa Gqada Eyethu Energy Systems Rynae Grewan Halo (Pty) Ltd Lance Greyling Independent Democrats Marinus Grobler IFS Group Marius Grobler Letsatsi Energy Resources Helene Gron Baobab Consulatant Hans H. Hahn Hahn Forum - Intellectual Property and Technical Consultant Paul Haarhoff Impact Strategic Management Services (Pty) Ltd Oliver Harmer Carbon Check (Pty) Ltd Liezl Harmse Eskom Wayne Harpur Alternative Power Paul Harris Integrated Energy Solutions Paul Harris IES Michael Hartley Solar Roofs Africa Chris Hazzard Integrated Energy Solutions Redawaan Hendricks Kenings Fleet Management Holm Henning SESSA Deon Herbst HelioSys Helmut Hertzog Atlantic Solar Mark Heyink Enervision

34 Solar Water Heating Conference – November 2009 Hennie Heyl Grinpa Greg Hide Enervision Clive Hill Master Builders Lindiwe Hlabangani Eyethu Energy Systems Caroline Hlangwane Mabogo Dinku Steven Hlapo Standard Construction Thandeka Hlatshwayo SARS Dieter Holm Private Consultant Jan Holsboer Inventum Lindile Horo Southern Sun Denis Hunt City of Johannesburg Marcelle Hunt Sasol Chem City Neriel Hurwitz Suntank Marc Immerman Lereko Metier, Capital Growth Fund Managers Andrew Janisch Suatainable Energy Africa Gabrie Jansen Consultant Langa Jele Nrcs Zhou Jingchuan Lekang Corporate Consultants Wim Jonker Klunne CSIR Ross Jordanov Future Generation Energy (Pty) Ltd Sarel Joubert Pacific Solar Technologies Francois Joubert The Oxygen Factory Moses Ka Moyo Inner-City Forum N Kama Nkosinathi Kama Batho Solar Systems Sydney Kanichowsky Nimrod SA Tamuka Kaseke Alt- E Sipho Katana Kwelerha Communal Property Association Nepo William Kekana Gauteng Province Rodney Kekana Isis Technologies Williams Kekana Ngaketse Engineering Rainer Kempf Solarzone (Pty) Ltd Harvey Keown Xstrata Coal Thomas Ketsise NUM Morris Kgama tut Bashir Khan The Alternative Energy Company Busisiwe Khanyile City of Johannesburg Philani Khomo EMS - Sales and Marketing Department Precious Khota Department of Energy (DoE) Lindiwe Khoza Gauteng Provincial Government Satch Khumalo Energy 55 Taurai Khumalo KZN-Trade & Investment - Sector Manager Bill Kirk Interneuron Kenny Kistan CSIR Greg Knill DEAT Juanita Knoesen Solarhart Mpho Komote Moyanda Prints Jack Koopman Lumentech (Pty) Ltd Stephen Koopman Eskom Leon Kritzinger Centlec Teri Kruger Synergetics Rhulani Kubayi NRM Consulting Paula Kuhn Standard Bank Michael Kupowitz Energy Saversand Services of SA Sizwe Kuzwayo CEF Lucas Kwanini Bantsho Management and Marketing Strategies ismail lambat Eskom Dorah Lebelo SACAN John Ledger SESSA Min hui (Marian) Lee AMEA Investment (Pty) Ltd Serake Leeuw Leeuwbosch Information

Solar Water Heating Conference – November 2009 35 Maphuti Legodi DME Matshese Legodi Empirical Solar Energy Margie Lekoma Mzansi Energy Solutions Dudu Lenzie Thabatha Transport & Projects Salala Lesela Jala Capital (Pty) Ltd Rapelang Leshotho Mocheko Le Bamphato Orapeleng Letsholonyane Siyenza Manje Bassy Letshufi Taletso FET Paulinah Letsoalo ABSA Reuben Letsoalo Moira Leukes EDI Holdings Mike Lohrentz Solar Beam Bouno Lopes Alternative Power Bruno Lopes Alternative Power Ben Louw IFSG Kaisara David Lueew Rekgone Transport Yvonne Lungcuzo Vuza Group Craig Lyons Kayema Energy Solutions Lebogang Mabelane Muntu Industries Mike Mabena Col Energy (Pty) Ltd Nathi Mabena Makembula Trading & Projects Obbey Mabena MalRams Investment Holdings (Pty) Ltd Thabo Mabena NRCS Letshego Mabena Department of Energy (DoE) Mzinqaba Mabenge Imitha Yelanga Technologies Gontse Mabotsa Rekgone Transport Nozi Mabulu Z-zone event solutions Glen Macdonald Sun Power Amukelani Machiwana Jan Mackay SANCOC Tarryn Maclean Alternative Solar Bethuel Madula Mveledziso Engineering Solution Thilivhali Bethuel Madula MTN Mpho Maepa Langa Solar Systems cc Jerry Mafereka Eskom Kagiso Mafoko Lemosang Energy Services Pelelo Magane Ceppwawu Saki Magoxo Nelisiwe Magubane Department of Energy (DoE) - Deputy Director General Sanjay Mahadevan-Iyer Superpower / MIG Mandlenkosi Mahlalela DEAT Brian Mahlangu Soweto Homes & Property Thabo Mahlatsi City of Johannesburg Frederick Mahlaule Public Works and Infrastructure Development Department David Mahuma Department of Energy Mfuni Majaja Department of Trade & Industry Nomfuneko Majaja Department of Trade & Industry Tebogo Majatladi NERSA Frank Major Voltas Technologies Frank Makamo SABS Yolisa Makepula Department of Energy (DoE) Phyllis Makgatlha Eyethu Energy Systems Theo Makgopa Uniq Holdings Mongwangwa Makgopja Representative Matshepiso Makhabane Dikepolana Resouces (Pty) Ltd Molefe Makhoana Spoton Networks G.P Makhubela DPE Shiva Makotoko ABSA Joseph Makudubela BATHO PELE Thathisihlalo Makunga Pamoja Asset Management David Bheki Makwakwa Sisonke District Municipality

36 Solar Water Heating Conference – November 2009 Phuti Malabie Shanduka Energy (Pty) Ltd Venter Malan African Emissions Trading Mashego Maleka Maruane Investments (Pty) Ltd Richard Maleka Sun Electricity John Malepa Auto Body Repairs Thembakazi N Mali Energy Innovation For Life Clyde Mallinson Clean Energy Solutions Esther Malobola Chemcity Phumelele Malu Arcay Communications CM Maluleke LEDET Mabu Mamadi Moepathotse Engineering Makhukhu Mampuru Innovative Sustainable Energy Solutions Thabo Manamela Tshitaha Construction Mojalefa Maniza Ansaline Trading Siyabonga Manqamane Siemens Southern Africa Sinenhlanhla Manqele Umkhanyakude District Municipality Sandile Maphumulo eThekweni Municipality George Maphwanya sacom Philpine Mapiyeye NRM Consulting Ibini Mara DBSA Justice Marabwa Solartech - Midrand Naome Maredi Shiza Manzi Theresa Maree Eon Consulting Ralf Markmann Solar Space Thomas Marsh Umthwalo Trading Brenda Martin Cut Carbon Karen Marx Manager Peter Maseema Tswane Municipality Piet Maseema Public Works and Infrastructure Development Department Phumla Mashalaba PB Distributors Pumla Mashalaba PB Distributors Julian Mashego Lesedi Consulting Engineers Peter Mashego Mashego Consulting Ronny Mashigo Faranani Paralegal Organisation Selele Mashilo ESCO Duduza Masilela AKP Trading 24 Levy Masombuka Lights Up Construction Mafemani Maswanganyi Kungwini Local Municipality Wilson Matekenya TUT William Mathamela Prograce Investment Eddy Mathe Pacific Mining Technology Rhulani Mathebula SABS Warren Mathers Ekurhuleni Metropolitan Municipality Tsholo Mathibe Department of Trade & Industry Dineo Mathonsi DBSA - REMT Joe Matsau Edwin Matshaba Matshaba Trading Jeremy May Consultant Liz Maziya Z-Zone Event Solutions Robert Mbatha Arcay Communications Shirley Mbeki HSBC Africa Shane Mc Arthur Voyamix (Pty) Ltd Cian Mc Clelland Inventum Donald McGillivray Afri-Coast Engineers SA (Pty) Ltd Heath McMaster Mikrosolar Lisa McNamara City of Johannesburg Rachel McWilliam Green Electricity Rochelle McWilliams Eset Sanele Mdabe Sasol Zakhele Mdlalose Department of Trade & Industry Lungelo Mehlomakulu LLM Investments

Solar Water Heating Conference – November 2009 37 Mongameli Mehlwana Competence Area Manager Patrick Mellon Solar Beam Chantal Meter Mzantsi Energy Solutions Kader Meyer DEAT Louise Meyer Powerz-On Solar system Sibusiso Mfeka Bua Connection CM Mgabo Sisonke D.m Sipho Mgxekwa Collateral Trading cc Charlotte Mhlongo Maswitiva Trading & Projects Vusi Mhlongo SibTech Robert Michel Swiss South African Co-operation Initiative Tommy Minakium Thembi Mjoli Psibot Stephen Mkhawane Nert Siphiwe Mkhwane Devtech Saint Mlangeni Simasa Moagi cc Lady Mmolaeng Solar Gen Alternative Energy Solutions Khulekani Mncube tut Mduduzi Mncube Department of Publiv Entrprises Andrew Mntambo CityPower LT Moatshe Winston Mocheko Mocheko Le Bamphato Leshan Modaliar eThekwini Electricity Kevin Modena HelioSys Bohlale Modise Raseabi construction and trading Daniel Modise Department of Energy (DoE) Naniki Moeketsi Department of Trade & Industry Sabubi Moeng Siqalo Project Management Lebogang Moepeng Uniq Holdings (Pty) Ltd, Sourh Africa Buti Mofokeng Kuntas Properties Daniel Mogafe SCA Energy Yoran Mogaladi Eskom Nuclear Division Joran Mogaladi Eskom Duku Mogodi Endulwini Resource Limited Obrey Mogopa Mashego Consulting Yvonne Mogopa Mabogo Dinku Levi Mogorosi Reseacher Kgomotso Mogotsi Ketso Communications Vincent Mogotsi Sun Electricity Ally Mohale Kuvonakala Energy Supply Rashid Mohamed Rashid Mohamed Construction Zakariya Mohamed Rashid Mohamed Construction Amos Mohulatsi AK stone guards Nape Mojapelo African Wilddogs Investment Flora Mokgahloa City of Johannesburg Musa Mokitimi Department of Economic Development & Tourism Caleb Mokoena City of Johannesburg David Mokoena Phumi Trading cc Musa Mokoena Department of Energy (DoE) Sidney Mokwala Motheo Property Investments (Pty) Ltd Joe Mokwena Backspace Construction and Projects Aron Molale R-Z Solar Technology Matseliso Molaoa ESCO Joe Molefe Maju Mafane Ruse Moleshe DBSA Sam Moleshiwa NABCAT National Council Chris Mollis Jam View Environmental Lehlohonolo Molloyi Mikrosolar Bekezela moloi Eskom Cecilia Molokwane Leratorato Business Enterprise Lerato Molokwane Lerato Rato Business Enterprise

38 Solar Water Heating Conference – November 2009 Elaine Molotsi Department of Public Enterprises Zikie Molusi Ansaline Trading Peter Monaise SELOF Kabelo Monchusi Ansaline Trading Vusi Montsho Bantsho Management and Marketing Strategies Sivi Moodley Impact Strategic Management Services (Pty) Ltd Charles Morris Pomoja Asset Management Glynn Morris Agama Energy Jarrediene Morris Nert David Morudu Empirical Solar Energy Mohale Moselekwa Rameshohli Construction and Projects Carmichael Moshao Moshao Trading Louisa Mosiane Santam Busi Mosito NERSA Zach Motaung R-Z Solar Technology Vincent Mothabele City of Johannesburg Devesh Mothilall COJ Duncan Motloung Umeme Africa Engineering Reuben Motona Eskom Elvis Motsele Spoton Networks Menchi Motsepe numsa Modiegi Motsepe Department of Energy (DoE) Teboho Motshohi eThekwini Muncipality Radiakwane Motsogi ESCO Dr Elias Motsumi Empirical Solar Energy M.E. Motsumi Motheo Property Investments (Pty) Ltd.) Luvuyo Mpambani Three Sixty Group Muzi Mpanza Hentiq Lufuno Mphaphuli Mphaphuli Consulting (Pty) Ltd Pheli Mphaphuli Mphaphuli Consulting (Pty) Ltd Maseru Mphati Mphati & Associates William Mphati Mphati & Associates Thabiso Mphutilele Inkoleko Trading Lwandle Mqadi Ecosecurities Smangele Mqguba Department of Energy (DoE) Duncan Msibi Backspace Construction and Projects Sipho Msikinya Mzalendo Consulting Siyabonga Mtati Imitha Yelanga Technologies Amanda Mtembu Sicelo Mtsali AK Solar Silelo Mtsali Cenrograt Company Feziwe Mtshali E3 Environmental Enterprises Ricca Mudau Department of Environmental Affairs Tshiphiri Muedi Industrial Development Corporation (Idc) Kenneth Mukoka Lufuno Mukwevho Department of Energy (DoE) Silas Mulaudzi Department of Energy (DoE) Salphina Mulauzi City of Johannesburg - Councillor Ronnie Mulder SASSA Josiah Munda TUT Mashudu Mundalamo DEAT Thomas Munn AAE Neville Munsamy Solahart, Pretoria Charles Murove Marbek Resources Consultants Grant Mushi Ketso Communications David Mutavhatsindi Makhado Municipality Takalani Mutobvu Department of Local Government and Housing Charles Mwaura Pamoja Asset Management Kevin Nadasen NERT Clive Naidoo Impact Strategic Management Services (Pty) Ltd Rammy Naidoo Goldwyn Led SA

Solar Water Heating Conference – November 2009 39 Thaven Naidoo Plasma Power Y Naidoo Vardhan Power Seelan Morgen Naidoo Irene’s Men at Work t/a Sunpower 24/7 Mangaliso Nake Shining Star Petro-Chem and Finance Services. Dianah Nangammbi Department of Energy (DoE) Zach Nare Department of Energy (DoE) Kevin Nassiep SANERI Louise Naude WWF Living Planet Unit Themba Ncalo Gauteng Civic Association Mbulelo Ncetezo NERSA Nick Ndaba Z-Zone Event Solutions Nonhlanhla Ndebele Department of Energy (DoE) Pancho Ndebele Emvelo Donald Ndhundhuma MEETI - Training Manager Thembi Ndiweni Innovation Group Lebohang Ndlovu Bush TV Melusi Ndlovu Sustainable Energy Africa Themba Ndlovu Emnambithi Business Forum Themba Ndlovu Ladysmith Municipality Mzi Ndongeni Shining Star Petro-Chem and Finance Services. Lutukela Nduna Department of Energy (DoE) Luncedo Ndzane Amahlankomo Construction & projects Peter Neilsson Nelson Mandela Bay Municipality Martin Nel SASSDA Ferdi Nell Netgroup Solutions Holdings Chris Nelson Solar Academy Sub-saharan Africa (Pty) Ltd Andy Nesengani Atka (Pty) Ltd Bethuel Netshiswinzhe DBSA Joe Neumann Chromagen-Afrilanga Max Neumann Afrilanga solar Industries (Pty) ltd Sivuyile Ngcizela Department of Public Enterprises Mandla Ngcobo Sisonke District Municipality Vuyani Ngcobondwane Mal Rams Investment Holdings (Pty) Ltd Dizana Ngesi Ikomkhulu Bizana Ngesi Umkhulu Logistics Thami Ngidi Siqalo Project Management Maduna Ngobeni Department of Energy (DoE) Sindiswa Ngobese Metrofile Dusty Ngwane NUM Mark Ngwenya Soul Net Communications Jane Nhamo Absa Bulelwa Njenje Voyamix Harvey Nkosi Indalo Solar Dr Joanna Nkosi Morley Nkosi and Associates Morley Nkosi Morley Nkosi and Associates Nomusa Nkosi Mjokile Thulisiwe Nkosi Mkhovu Twayi Monwabisi Nkula Matla Solar Water Heating Abel Nkuna 1A Trading Peter Nkwe Jhb Tech Inventions cc Peter Nkwe PMN Property Management (Pty) Ltd Thabo Nncube Thabo Consulting Frank Noble Teljoy Siphiwe Nodwele SCAEG Energy (Pty) Ltd Sikhumbuzo Nombembe Shining Star Petro-Chem and Finance Services. Mmuso Nonoise Mamellong General Trading cc Patrick Nthombothi Motlatso Electrical Maroasereme Ntsoane Industrial Development Corporation (IDC) Moroasereme Ntsoane Industrial Development Corporation (IDC) Sponono Ntuli Department of Energy (DoE) Nhlanhla Ntuli Treasury Dealer

40 Solar Water Heating Conference – November 2009 Themba Ntuli Green Gel Ntombifuthi Ntuli Danish Embassy Mbulelo Ntuthela Imitha Yelanga Technologies Jerry Nwamba TUT Sello Nyahu Letsema Projects cc Peaceful Nyathi Inner-City Forum Steven Nyembe Bonstev Consulting & Projects Steven Nyembe Bonstev Consulting & Projects Tebogo Nyezi Lemosang Energy Services Nondumiso Nyuswa Department of Energy (DoE) Ojo Olatunde Tuntec Technologie Vanessa Oliver Department of Economic Development & Tourism Peter Opperman Hannes Opperman Gauteng Provincial Government Joshua Ouma Selanya Consulting Engineers Steve Parry Plan My Power (Pty) Ltd Dinesh Patel AfriSun Solar (Pty) Ltd Kevin Patel Mendomark Rashid Patel Lantic Mohamed Patel Zero Energy Or Pearl Embassy of Israel Atool Pema Chemcity Minister D Peters Department of Energy (DoE) Samantha Petersen Samloans Junaid Petker Nxg Energy Johnson Pfaira Greenhouse Project Maureen Phaahla Moepathotse Engineering Tsholofelo Phajane Council for Geoscience Linda Phalatse City of Johannesburg Owen Phasha Mahlapong Trading Solly Phetla Department of Energy (DoE) Chipu Phillip Teffo Machite Engineering Aubrey Pholo Thakothando Trading Sisinyana Pholo Thusong Debt Counsellors Richard Pillay City of Johannesburg - Councillor Corrie Pistorius SAFRELEC Morena Pitsane Libetsa Home Pride Adam Pobe CENTLEC Tshepo Pofolo Poplos Construction Matseliso Polisa Safe Energy Depot Vithen Lee Pooran Vardhan Power Theunis Potgieter sancoc Jacques Pretorius Danish Embassy - Trade Officer Tinus Pretorius University of Pretoria Dino Procos Procos Energy Solutions Shauneen Procter Solar Beam Gauteng (Pty) Ltd Noma Qase Department of Energy David Qata Solar Academy Sub-saharan Africa (Pty) Ltd (SASA) Michael Raadt Brokers For Energy Dr Ruth Rabinowitz The Democracy Foundation Kelvin Radebe Ilizwi Industrial Holdings Philemon Raletjena Phumi Trading Basimane Ramadiro City of Johannesburg Meisie Ramakhula City of Johannesburg Sinnah Ramakhula City of Johannesburg Leon Ramatekoa Student Takalani Rambau Department of Energy (DoE) James Rambauli Veralli Energy Solutions Madhu Ramkolowan Posix Francina Rammabi Shomang Tumelo Ramolefi Greenhouse Project

Solar Water Heating Conference – November 2009 41 Ian Ramonyane Afrilanga Malrams Matsiliso Ramoribi Masa-Sele Energy Stephen Ramotsei MEETI Lerato Rapoo Nxg Energy Samuel Rapopo Letsema Project Mokale Rasetlola Public Works and Infrastructure Development Department Alex Raubenheimer Modular Construction (Pty) Ltd Raveendra ASA Enterprises SA TJ Rautenbach Nastep Suha Rawhani Masa-Sele Energy Glen Rebello Spoton Networks Horst Reiche Solarheat Jennifer Reimer Sustainability Services Lebogang Reliapeng Ekurhuleni Metro Lee Retson Mikrosolar Cynthia Reynders MEETI Mabale Ribane Ipozi Jonathan Richardson Solartricity Ashleigh Rodda Solar Roofs Africa Bjorg Rode Nord Pool Dave Rossiter Inti Solar and Geosolar Mike Roussos Focused Solar Power Generation (Pty) Ltd Marie Roux Department of Public Enterprises Alan Russel Airco Mike Rycroft EE Publishers Oupa Sako Gauteng Civic Association Nizam Samsoodeen SABS Sam Samsoodeen SABS Ian Sands IS Electrical cc Thomas Schaal Esa-Meridian Consulting (Pty.) Ltd. Mark Scheepers Eastern Cape Community Wind Energy Development Association Dieter Schmidt Sasol Martin Schneider Big Country Media - Publisher Sybil Schneider Big Country Media - Graphic Designer/Photographer Doran Schoeman Think Solar (Pty) Ltd Jabu Schoeman Solar Beam Gauteng (Pty) Ltd Dr Tina Schubert Program Officer Isaac Sebogodi Taletso Fet Ray-Ann Sedres Santam Lillian Sefike Rustenburg Local Municipality Monty Segapo Solarharvest John Sekwati Moyanda Prints Bahle Tshabalala Sekwele Sekwele Business Agency Thabo Selai Three Sixty Group Mamosai Seleka Department of Trade & Industry Zebulon Selemale Taletso Fet Ruby Sentsho Cosathu Maditse Seoke CENTLEC Mbuyiselo September Thabatha Transport & Projects Naughty Serepe Cosathu Kevin Setzkorn Merchantec Capital Reshan Sewnarain Sasol Jabulani Shabalala CEF Ka Shabangu Sunrise Technologies Nazreen Shaik-Peremanov School of Business Economics Mabutho Shangase Independent Development Trust John Shiri Optimum PM Consulting and Solutions cc James Shirley Kayema Energy Solutions Patrick Shivuri Irene’s Men at Work T/A SUNPOWER 24/7 Zamani Shongwe Inhlanzeko project management services Mphikeleli Sibeko SABS Commercial (Pty) Ltd

42 Solar Water Heating Conference – November 2009 Mbali Sibisi Centre for Iranian Studies Nhlanhla Sibisi National Business Initiative Gordon Sibiya Kayema Energy Solutions William Sihlangu Eskom Nico Sikwane Umeme Africa Engineering Adam Simcock Carbon Check (Pty) Ltd Sabelo Owen Simelane YCL Tsakane Dr Manny Singh CEF Manoj Singh eThekwini Municipality Nancy Sithari Public Works and Infrastructure Development Department Klaas Sithole Empirical Solar Energy Class Sithole Empirical Solar Energy Nandi Siwahla-Madiba City Power Johannesburg Thami Skenjana Sancoc Benjamin Smale German Development Institute Martin Smit City of Tshwane Angela Smith Restor Lea Smith Institute of Plumbing of South Africa Marlene Snowdon Inti Solar and Geosolar. Tebogo Snyer EDC, a division of CEF (Pty) Ltd Khosi Sokhuwi Lemosa Energy Services Hagen Spath Solsquare L Spencer Nastep Sipho Spogter JBSE Investments Marietjie Steenberg Solar Tech Nadia Steenberg Solar Tech Bert Steenberg Solar Tech Herman Strauss SABS Leandi Streeter Inti Solar and Geosolar Andre Swarts SAFRELEC Tristen Taylor Earthlife Tengo Tengela numsa Johan Terblanche Solar Academy Sub-Saharan Africa (Pty) Ltd Pelo Tezapi National Empowerment Fund Matome Thalakgale Kea Projects Tshilidzi Thenga Ekurhuleni Metro Diene Thiao Thabatha Transport & Projects Dawie Thirion Hotmix (Pty) Ltd t/a Xstream Hot water Cylinders Sean Thomas CEF & the French Development Agency James Thomson Mendomark Steve Thorne SouthSouthNorth Luanda Tlhotlhalemaje Q-Capital Derrick Tloubatla Decker Business Enterprises Andile Tom emc Steve Toner Coral-I Solutions Marcel M Toona Mamaroba M Systems Kim Trimmel CEF (Pty) Ltd Peter Trousdale Multigroup Peter Trousdale Multi-Locking Keith Trower Future Green Solutions Mbofholowo Tsedu TIPS Dinah Tsekeli Eomen for Challenge Brian Tshabalala Lightsup Construction Phumzile Tshelane Eskom Rabelani Tshikalanke City of Johannesburg Ronald Tshitahe Oshana Media cc Nkhumeleli Tshivhase Mubikwa-ive Tiny Tshudisane Cosathu Lazarus Tshwari L3T Solar Geyser Lotzn Tsokadikama Entirweni Construction and projects Jonathan Tsuene Ma-Afrika Energy Consultants - MD

Solar Water Heating Conference – November 2009 43 Dylan Tudor-Jones Solar Heat Exchangers Ndiafhi Tuwani Department of Energy (DoE) Kim Ullyett EE Publishers (Pty) Ltd Anselm Umoetok Department of Public Works Peter Underhay Eskom Theuns van Aardt Powerz-on solar system Nidene van den Heever Solsquare Andries Van der Linde Solartricity (Pty) Ltd Christy Van der Merwe Engineering News Robert van der Merwe Fuel Cells Africa Trevor van der Vyver SABS Compliant Solar Water Heaters Anton Van heerden emc E van Helden Emfuleni Local Municipality Braam Van Niekerk Nastep Henk Van Schalkwyk Solar Services Frik van Straten UASA Francois van Tonder Innovation Group Len van Wyk Amatola Green Power (Pty) Ltd - MD Denise van Wyk Santam Mark van Wyk Vardhan Power Charles Van Zanten Kwikot (Pty) Ltd Jacques vd Bergh Solarhart Paul Vermeulen City Power Athol Victor SASSDA Malcolm Vowles SABS Campbell W Barnes Inspired Evolution Mokgalo wa Mualudzi Mecca Power Contruction Clifton Wagner Vardhan Power Erik Wandrag The Oxygen Factory Emily Wang Prosgrow China Tony Watermeyer Kutlwano Engineering Consulting Derek Watson GW Business Solutions Martin Watson Hidrou-Land cc Herman Weber Kwikot (Pty) Ltd W Weiss Soltrain Trevor Wentzel Tira Anamari Wessels White Zulu Human Capital Managment Marilyn White Solar Works Mike White Sunsource Energy cc Tanya Wichmann British High Commission Ernest Williams Sitikile Investments Mark Willoughby SolarTech Alexander Wilson DG Thermal Holle Wlokas Richard Worthington WWF South Africa Cedric Worthman Eskom Shaun Worthmann Eskom Rillosl Ws Eclipse Company Chia-Chao Wu Matla Solar Water Heaters Sicelo Xulu City Power Nina Yose Industrial Development Corporation (IDC) Ricky Yu Matshaba Trading Ben Zaaiman Dcisio Consulting (Pty) Ltd Khanyiso Zihlangu Department of Energy (DoE) Silas Zimu City Power - MD Lindile Zincume Oden Zin Engineers Zixolisile Zonke New Energy Technologies Mandla Zulu Friendly Energy Themba Zulu nactu Yvonne Zuma Imitha Yelanga Technologies De Wet Zwarts Solar Geysers Pretoria Tshwane

44 Solar Water Heating Conference – November 2009 THE NATIONAL SOLAR WATER HEATING CONFERENCE This publication was commissioned by the Renewable Energy Mar- ket Transformation (REMT) Unit on behalf of the Department “Building Consensus On Accelerating The Rollout of Energy (DoE) and produced by Big Country Media cc. Of Solar Water Heaters In South Africa” The REMT Unit is funded by the Global Environmental Facility through the World Bank. The unit is based within the November 2009 Development Bank of Southern Africa and is accountable to DoE.

Solar Water Heating Conference – November 2009 For more information on the REMT Unit please contact Dineo Mathonsi: Tel: 011 313 3598 E-mail: [email protected]

Report prepared by: Big Country Media: Tel: (011) 803 5155 Cell: 083 294 1673 E-mail: [email protected]

This publication has been printed on environmentally friendly REMT Unit staff members: Triple Green paper produced by SAPPI in KwaZulu-Natal from waste (above) Fatima Collins, Business sugar cane fibre, a by-product of the local sugar production process, Development Specialist, and as its primary source of pulp. (below) Dineo Mathonsi, Project Administrator. The pulp is bleached through an elemental chlorine-free process that complies with US Environmental Agency and World Health Organisation regulations.

This also makes the paper more easily recyclable. Wood fibre used in the paper making process is certified by sustainable forestry organisations.

Solar Water Heating Conference – November 2009 THE NATIONAL SOLAR WATER HEATING CONFERENCE

“Building Consensus On Accelerating The Rollout Of Solar Water Heaters In South Africa”

Held by

The Department of Energy

In Collaboration With

The Renewable Energy Market Transformation Unit based at the Development Bank of Southern Africa.

November 5, 2009

Indaba Hotel and Conference Centre, Johannesburg.

Solar Water Heating Conference – November 2009