This is the second half of the story 'Rands and sense of greening your house'.
Altruistic investments
At this stage you may realise that you are well into this article and we have only discussed options for reducing energy consumption, but not for entirely unplugging yourself from Eskom. If you are a die-hard, finances-only type, may I suggest you stop reading here.
You will note that I still opted for calling this category an "investment", even though the options discussed here have negative returns. This is because if the environmental costs to our society and economies - called externalisations - are factored into the equation, most of these projects would yield positive returns. A growing number of governments are realising this and for this reason are making subsidies available to promote these options.
But right now, for you, these investments will result in a negative financial return and would need to be made out of the goodness of your heart for the greater benefit of humanity and Mother Nature, impressing your green friends, accumulating positive karma and other vague philosophical reasons. So, hold onto your wallet tightly - here goes.
Photovoltaic panels
Photovoltaic (PV) panels - sometimes also referred to as "solar electric panels" and not to be confused with solar water-heating panels - convert the sun's rays into electricity. If you cover your roof in these panels and are not a lavish user of electricity, you will be able to go off the grid.
To install sufficient solar panels and batteries to power a not-too-modest household, you are likely to shell out between R200 000 and R300 000, which means your break-even date has probably just disappeared into the next century.
If you consume electricity modestly, you can opt for a smaller, cheaper system - R100 000 or so - which will allow you to operate your lights, media devices and a modern, low-energy fridge, and to make semi-regular cups of tea.
You would have to convert to cooking on gas and you would have to install a solar water heater. About one-quarter of the cost of installation is for a battery bank to store your electricity.
The lifespan of solar electric panels is an impressive 30 to 40 years.
Batteries, depending on their type, will last between five and 15 years, which makes replacing them a costly exercise - it is probably well worth going for the more expensive type that lasts longer.
PV panels need to be cleaned every six months (more often if you live in dusty areas) to ensure efficient operation. Batteries, unless they are the sealed type, need to be topped up every six months.
Solar power, for now, is mostly used in rural settings where there is no access to Eskom's intermittent power supply.
That said, PV technology is evolving fast and the next few years will herald some exciting changes - both in the technology and as subsidies become available to make PV more cost-effective.
Recently, a University of Johannesburg team achieved a breakthrough in developing thin-film solar panels. These panels have the advantage over traditional PV panels in that they are much cheaper to manufacture - apparently about a quarter of the cost - which would make them competitive with the dirty, coal-generated electricity we use currently.
The thin-film panels are also more efficient - about 16 percent as opposed to less than 10 percent - in converting solar energy into electrical energy.
But don't hold your breath. While manufacture is starting this year in Germany, it will probably be some time until these panels are generally available. Initial production output is quite low and the global demand for PV panels is fierce, which means demand will significantly outstrip supply for some time.
The setting up of a South African plant is still a year or two away.
Wind turbines
Wind is another natural resource in near-infinite supply. However, harnessing it consistently and cost-effectively in a residential setting is an enormous challenge. Not only are you likely to dement your neighbours with the constant whirring of a wind turbine, the turbine will require regular servicing and will need to be mounted on a tall mast a few metres above the apex of your roof.
For a turbine of reasonable capacity - let's say four kWh, which means that with optimal wind conditions you can achieve enough output to blow-dry your hair while boiling the kettle for a cup of tea - you are likely to pay between R50 000 and R100 000. Once again, goodbye return on investment.
While wind generation is cheaper than solar generation, wind power is more erratic, and all the moving parts result in a shorter lifespan than PV systems - about 10 years versus 30-plus years.
Wind turbines in a residential setting are mostly used to augment PV power generation.
So to unplug yourself entirely requires a rather expensive financial leap that is open only to the most well-heeled and altruistic among us.
But don't despair completely. In Europe a number of countries have sufficiently deregulated and subsidised PV and wind-generation systems, allowing reasonable payback periods, especially because surplus energy can be sold back to the grid.
As a result, a growing number of communities and small towns in Europe are now implementing their own local wind, solar and biomass generation projects. (Biomass is material derived from recently living plants and animals.) South Africa will get there eventually - we do have an abundance of sun that is largely wasted on heating our roofs.
Closing thoughts
As you will have noted, there is much each of us can do to reduce our electricity consumption and dependence on Eskom, while saving money and reducing our carbon footprint. Doing something about your carbon footprint and gaining a measure of independence is satisfying. The hardest part about it is making the time to explore options and overcoming the change-resisting emotional inertia from which most of us suffer.
For those who would like to do even more, can I suggest two additional remedies? Although they do not help you reduce your consumption, they will assist you in mitigating the damage done by your greenhouse gas emissions.
For those living in Cape Town, the city will shortly be making available green electricity. This renewable electricity will be supplied by the Darling Wind Farm project, which will initially be sold for a premium of about 29 cents a kWh. The City of Cape Town website, www.capetown.gov.za, says the electricity will be injected into the national grid, so green electricity will not be separated from electricity generated by other means. Another source of green electricity is GreenX Energy ( www.greenxenergy.com), which sells electricity generated from biomass waste and small hydro plants.
As a last resort you can "offset" your emissions. A growing number of individuals and corporations are starting to offset their electricity and travel emissions by making payments to so-called offset programmes. These in turn either plant trees that absorb carbon dioxide or invest in energy-efficiency projects that help reduce the consumption of fossil fuels. Food & Trees for Africa ( www.trees.co.za) is a local initiative that allows carbon offsetting.
Carbon footprint
Human-produced greenhouse gases are emitted whenever fossil fuels - such as petrol, diesel, coal and gas - are burnt. These contribute to global warming.
Your individual carbon footprint is the total amount of carbon dioxide (CO2) and other greenhouse gases that you are responsible for emitting, whether directly or indirectly, over a given time period. The footprint size varies significantly depending on your personal consumption habits.
Three footprint sizes, in slightly simplified form, are presented here:
Low-income: the energy disempowered/poor
- Profile: no car, low-cost housing, use public transport or walk/cycle, don't fly.
- CO2 footprint: about four tons a year. This is impressive and you set an example for society. This is a target we should all be aiming for on our way to a sustainable footprint of one ton.
Middle to high income: the energy saver
- Profile: small car doing 10 000 km annually, small residence, uses electricity sparingly, compact fluorescent lights installed throughout home, solar water heater, two short-haul return flights a year.
- CO2 footprint: about six tons a year. This is commendable, but is still far from where we need to get to.
Middle to high income: the energy glutton
- Profile: large car doing 20 000 km a year, large residence, uses electricity rapaciously, no energy-saving initiatives, 10 short-haul and three long-haul return flights a year.
- CO2 footprint: 22 tons a year.
This pie graph provides a simplified breakdown by category for a typical middle- to upper-income bracket carbon emission footprint.
- This article first appeared in Africa Geographic, August 2007
Insure your green machines
If you install a solar water-heating system or expensive photovoltaic (PV) panels, don't forget to make sure the improvements are covered by your insurance. You will need to factor these improvements into your building's replacement cost and make sure this higher value is correctly reflected in your sectional title policy or homeowner's insurance policy.
Mike Addison, who specialises in building insurance, tells you (in related article 'Cover yourself' below) why it is important that your building is insured to its proper value, whether you live in a house or a sectional title unit. And he tells you how to make sure that the correct insurance is in place.
Addison says you must advise your broker if you have installed a solar heating system, wind generator or PV panels, so they can be taken into account. In addition, your insurer or insurance adviser may suggest that these items be insured on an all-risk basis.
An incident of "bursting or overflowing of water tanks, apparatus or pipes" is not automatically included in all policies, particularly commercial policies. However, sectional title trustees are obliged to insure these devices - within reason, which means as long as the tanks, apparatus and pipes are standard.
Addison says additional water-heating systems, such as a solar heating system, that have a replacement cost of, say, R5 000 or even R20 000 or more, may be regarded as non-standard items.
These should be brought to the attention of your insurer, whether you live in a house or a sectional title unit, and your insurer should confirm that the items form part of the insured risk. This information can be noted on your policy.
- Robert Zipplies is a corporate sustainability consultant and is working on a book about what we should do about climate change in South Africa. The book will be published later this year. Zipplies has over the past year implemented many of the above options (regrettably, not yet the costly altruistic investments) and has reduced his monthly personal electricity consumption by an average of about 45 percent to 135 kWh a month or R61 (at Cape Town rates), without suffering frost-bite or any other major inconveniences.
This article was first published in Personal Finance magazine, 4th Quarter 2007. See what's in our latest issue