Eskom’s Rebate Scheme for Small-Scale Renewable Energy – Is it for You?

There are a few hurdles which need to be cleared as well as requirements which have to be met before attaining Eskom’s rebate, but none are so lofty that a business should shy away from investing in renewable energy. Furthermore, being able to circumvent load shedding should be quite the driving force behind making this decision.
So what is the process that needs to be followed to make this happen? And is this something your business can look into doing?

First step: Is Eskom’s rebate scheme a good fit for your business?


Before considering Eskom’s rebate, one needs to be aware that it is only applicable to those businesses which operate between certain hours on a weekday (6AM until 10PM – those times of the day when load reduction is needed). It is also important to note that Eskom won’t offer a rebate for any existing installations which a business might have.

Any energy solutions currently in place can’t be considered. There is also documentation which needs to be completed before a project can be considered.

The numbers: Minimums, maximums, and the money in


If a business does choose to participate and then sets up their own renewable energy solution, it is a requirement that they produce at least a minimum of 10kW (but less than 1MW) to be considered for the rebate scheme. Eskom then incentivises this generation by offering a rate of R1.20 per kWh created, which is then paid over the duration of the contract.

What Eskom expects: Qualification considerations


In terms of those renewable installations which qualify, Eskom notes that only equipment on the customer’s side of the meter will be eligible. These installations also need to be new as well as compliant with the relevant performance and safety standards. These systems should be freestanding and must also replace an existing grid connection so as to substitute energy that would have otherwise been drawn.

Necessary steps to take before plugging in


Any system a business ties into the grid in this manner must comply with specific requirements and, in some cases, a letter from the relevant authority or electricity utility will have to form part of the application process. Further, prior to implementing a project of this scope, businesses need to propose and have approved, the system which they have elected to use.

Further details on how to participate in this rebate scheme can be found either on the Eskom website or by making contact with one of their regional offices.

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