How much money have you actually saved installing solar ?

[Tradie]

If you installed a load shedding solution, then I would agree with you 100 %, in fact most load shedding solutions are just bottomless money pits. I have a load shedding solution, I switch it off until we have power issues.
I also agree with your comment about it being for convenience, why have an endless money pit when you can optimise the system to create some form of return or at least save on your electricity bill?

Just remember not everyone lives in a single room with a candle and a gas stove, some people run their business from home, some want the convenience of switching on the tap for a hot shower every night (we live in the 21 century) , or need the security for the property, or what may seem like a silly thing to others, opening the gate remotely could save your life or at least reduce the risk of being hijacked at the gate.

If eskom could provide a stable power supply we wouldn't be having this discussion, the reality, billions have been spent, why not optimise your system?

At the end of the day, installing solar is more about convenience than saving money.

If one uses the money that would have been used to install solar on money making ventures, a lot more can be made than the savings that having solar will offer one.

If one takes the money saved on the electricity bill seen as a percentage of the cost of installing the system, it is clear that installing solar is a dumb idea if saving money is the sole motivation of the project. That money can be put to better use.

As I said, it's all about convenience and it is my opinion that this ROI talk is only sales talk.

[Tradie]

Lets look at the numbers from the inverter, some figures randomly taken from an inverter

PV - 325.7

Load - 885.7

Export - 102.1

Import - 707

Discharge - 17.7

Charge - 27.3

The PV produced is 325.7 kwh for the month, which has to be split because the exported kwh is a lot less than the used kwh

For example 325,7kwh - 102.1 kwh = 223.6 kwh

The export rate in our hood is only R1.25, compared to the tariff R2.97

Export value - 102.1 x 1.25 = R127.62

the solar used is far more valuable - 223.6 x 2.97 = R664.09

Imported - 707 x 2.97 = R 2099.79

the charge and discharge value

27.3 - 17.7 = 9.6 kwh

[Tradie]

Bill from the utility - import 707 kwh

707 kwh x R2.97 = R2099.79

The saving would be the PV used plus the PV exported

PV used = PV total less the PV exported

325.7 kwh - 102.1 kwh = 223.6 kwh

223.6 kwh x R 2.97 = R664.09 (tariff rate)

102 kwh x R1.25 = R127.5 (export rate)

Total saving = R664.09 + R127.50 = R791.59 per month

[Tradie]

Just when you thought, great my system is optimised and my system is saving me R 791.59, this is not an average, it is the best month of the year, then you have to subtract the initial cost of the system, including all other stuff, like registration, the maintenance cost, monthly utility fees.

Total saving for the year R791.59 x 12 = R9499.08 per year (it is less than this but we being optimistic today and it was designed a sa load shedding solution, not focused on ROI)

System cost R120 000.00

R120 000/R9499.08 = +/- 12 years.

[GCE]

Just when you thought, great my system is optimised and my system is saving me R 791.59, this is not an average, it is the best month of the year, then you have to subtract the initial cost of the system, including all other stuff, like registration, the maintenance cost, monthly utility fees.

Total saving for the year R791.59 x 12 = R9499.08 per year (it is less than this but we being optimistic today and it was designed a sa load shedding solution, not focused on ROI)

System cost R120 000.00

R120 000/R9499.08 = +/- 12 years.

You are not allowing for a 10% increase per year in Elec pricing which effectively works to an extra 10% saving per year
You would then be looking at between 8 and 9 years

Year 1 9,499.08
Year 2 10,448.99
Year 3 11,493.89
Year 4 12,643.28
Year 5 13,907.60 57,992.83
Year 6 15,298.36
Year 7 16,828.20
Year 8 18,511.02 108,630.42
Year 9 20,362.12 128,992.54
Year 10 22,398.33
Year 11 24,638.17
Year 12 27,101.98

Total 203,131.02
Cost of Purchase 120000

[GCE]

On any solar system if it is an over design on PV and especially batteries the pay back period will become longer.

It would be like starting a courier company and having a contract to delver 200Kg's from PE to Cape town every 2nd day - I base my rates on what the market dictates at the moment and then buy a 10 Ton truck for the transport - I am never going to make money , but if I bought a 0,5ton bakkie and did the delivery I could make money and pay off the bakkie

Likewise with solar - If I put up a 60Kw plant that can supply me with +/-360Kwh of electricity every day but only actually use 20Kwh a day , I will never have a savings - If I put up a 5kw plant that supplies +/-30Kwh a day my return with improve and if i stick up 3Kw plant that gives me around 18Kwh per day i will use every Kw and my rate of return will improve compared to the 5kw and definitely the 60kw

In the end - Courses for horses

[Justloadit]

My personal experience is a monthly saving of approximately 150kW to 180kW on my dual Solar geyser solution, and an average of 200kW to 150kW on my 5.5kW Deye, which has 2.7kW PV and 2 by 5kW Lithium batteries.
My Water heating system has made an ROI with in 4 years, and bear in mind that I get 300L of 65°C of hot water 320 days a year, with a average consumption of 1kW a day from the grid as a backup for the rainy days and over consumption of hot water.
ROI on the inverter is going to be more like 10 years.

Inconvenience does not even come into the equation. Seamless operation during frequent power losses and load shedding.