SUNConferences, Computers and Industrial Engineering 42

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Requirements for the Feasibility of PV Net Metering in South Africa
Graham Tongai Ndanga, Martin Gorn

Last modified: 2012-07-02


Many incentives have been considered in the birth of the solar Photovoltaic(PV) market in South Africa including Renewable Energy Feed-In Tarif (REFIT). But a conducted Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis for South Africa showed that another scheme such as net metering may be more viable particularly for the small to mid-size residential and commercial PV segments. This article, based on a similar proposal by the german parastatal for international cooperation (GIZ) for Kenya, seeks to outline the requirements and necessary conditions for the viability of a net metering scheme in South Africa. The basics of net metering are described, where pros and cons of certain aspects such as dual metering versus single metering are compared. The two main classes of requirements are: 1.) Economical 2.) Technical. Within economics, there are the operators concerns about irradiation and yield, conventional electricity price, levelized cost of electricity (LCoE) and return on investment. In economics there is however also the utility’s considerations of which the main would be loss of profit and administrative costs. Through mathematical modelling we have shown how in most situations the benefits for the utility(Eskom) outweigh the losses. For the technical aspect, the usual concerns are dealt with and the ways how particularly PV can even improve the grid quality.

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