07 May 2024
In response to the ongoing power challenges plaguing South African small and medium-sized enterprises (SMEs), the Southern African Stainless Steel Development Association (Sassda) recently hosted a webinar presented by renewable energy project management specialist Savannha Moon. This saw Director Eric Levy share viable solutions that prioritise quality, reliability, and financial savvy in adopting solar energy solutions.
During the webinar Levy elaborated; “The energy sector is quickly evolving to meet industry needs amidst growing regulatory challenges. To ensure long-term sustainability and safety, it is crucial to focus on high-quality components, especially batteries and inverters, as the market is flooded with varying qualities and standards.”
Navigating Power Alternatives: Tailored Solutions for Manufacturers
The webinar outlined several viable alternative energy options for South African manufacturers:
- Generators
- Generators have a lower initial outlay but have high operating costs due to fuel consumption and maintenance.
- Grid-Tied Solar Systems
- These systems are affordable but need a stable grid or backup through generators or batteries to stay operational.
- Battery Backup Systems
- Battery systems are costly upfront but have low running costs and offer significant savings over time. However, they require an external energy source for charging as they do not generate power.
- Hybrid Systems
- Hybrid systems combine solar and battery power, functioning with or without grid power. Although they are initially more expensive, their versatility and lower operating costs make them profitable in the long run.
A Commitment to Quality
Levy stressed the importance of investing in high-quality solutions to avoid pitfalls in an unregulated market, highlighting vital selection criteria:
In terms of Photovoltaic Panels, Levy said it was vital to choose Tier-One panels that are recognised for high performance and durability by Bloomberg NEF and maximise investment returns.
In the case of Inverters it’s important to prioritise reputable brands to ensure reliability and after-sales service, whether high-frequency or transformer-based inverters are needed."
When choosing a Battery option, quality products feature a high number of cycles, a deep discharge capability and a compatible Battery Management System (BMS).
Financing the Future: Accessible Energy Solutions
The webinar also presented several financing options tailored to alleviate the initial cost burden for manufacturers:
- Direct Finance
- This option offers straightforward loan options for purchasing solar systems outright, facilitating immediate ownership and long-term benefits.
- Lease-to-Own Agreements
- These contracts allow businesses to gradually take ownership of the energy system, spreading the cost over a manageable period.
- Power Purchase Agreements (PPAs)
- PPAs allow manufacturers to pay only for the power they consume, instead of the system itself. This reduces outlay and risk, while ensuring stable power supply.
Empowering South Africa's Manufacturing Future
What’s clear is that clean energy is crucial for stabilising and strengthening South Africa's industrial base. Sassda Executive Director Michel Basson says; "The shift from historic energy sources to renewable technology might be expensive and painful, but it aligns with global trends and contributes to our industry's efforts to be environmentally responsible. We remain committed to providing our members and the manufacturing community with the knowledge and tools to transform challenges into opportunities."