Cape Town Mayor Geordin Hill-Lewis announced on Tuesday (24 January) that the city was granted an exemption from National Treasury for a competitive bidding process around the move.

The exemption was necessary as current legislation did not foresee a situation where cities would procure energy from independent power producers, only from Eskom.

“The result is an insurmountable admin burden not suited to the dynamic, decentralised process of buying and selling electricity that is wheeled into the grid by a great number of small-scale generators, all of whom are being paid at the same price, and at a cost that is cheaper than Eskom,” the city said.

With the exemption in tow, businesses – and in time, residents – will now soon be able to receive cash for selling their excess power into Cape Town’s grid, the city said.

“The sale of excess power by homes and businesses with Small Scale Embedded Generation (SSEGs), among other generation solutions, will contribute to Cape Town’s goal of 4-stages load-shedding protection within three years.”

According to Hill-Lewis, payments to commercial customers will be possible before June 2023, and within the year for any resident with the necessary city-approved generation capacity.

“If you’re thinking of investing in a solar system, it just got more attractive,” he said.

The city said it aims to buy electricity from as many city supplied customers as are willing to sell – and these customers may now produce as much power as they can from their approved systems and feed it into Cape Town’s grid.

“Under this plan, we will also pay these customers an incentive over and above the Nersa-approved tariff as they help us turn the corner on load-shedding,” it said.

Hill-Lweis said that this move will have the potential to end load-shedding in the city over time, together with its Independent Power Procurement programme and other incentives.

The National Energy Regulator of South Africa (Nersa) has approved a rate of 78.98c/kWh for this financial year for the city to pay power sellers.

The city also adding a 25c/kWh incentive tariff on top of this.

It said that it is focused on ending load-shedding over time, and has steadily been laying the groundwork to enable payment for excess small-scale power, including:

• Dropping a policy requirement for power sellers to be ‘net consumers’ of energy, which previously only allowed for municipal bills to be credited for excess power, instead of actual cash payments;
• Commencing a wheeling trial for commercial and industrial users, which is helping to iron out technical and billing issues ahead of mass-scale rollout;
• Allocating R15 million budget to pay for energy generated by small-scale embedded generators for the remainder of this financial year until June.

SSEG and wheeling customers who want to feed energy into the grid need to have their system approved and have an AMI (Advanced Metering Infrastructure) meter installed by the city.

“This is a bi-directional meter that allows accurate reporting of the amounts of energy consumed and generated. We know this meter is still too costly for many, and we are working on finding an alternative option of comparable quality and reliability.

“Customers who want to upgrade their systems to make use of this existing development need to have the upgrade approved by the city,” it said.

The city said that its power purchases will be fair, equitable, transparent and cost-effective in compliance with section 217 of the Constitution.

“The city furthermore does not envisage entering into further contracts with feed-in customers and is instead finalising a pro forma standard agreement,” it said.

Glassdoor’s employer branding survey examined what employees and potential job seekers want from their jobs.

The survey is based in the Unites States, but reflects growing and shifting trends in workplaces around the world – particularly in the age of remote work and digital nomadism.

The company said that the survey could show employees how they can improve their situation at work or signal that they should stay put as they work in an ideal environment.

Glassdoor noted that almost 70% of surveyees wanted to work for a company whose brand they are proud to support. At the same time, over 70% of respondents believed that it was important for management to play an active role in promoting the values and culture of the company.

Employees that are proud to work at their company likely have managers who cultivate a positive company culture.

Glassdoor said that if an employee is not proud of the work that they are doing and believes that no one in management can fix the situation, it might be better to resign.

Fair pay was also a serious concern for employees. Over 81% of employees surveyed said it was important for a company to pay its employees fairly and equitably, but only 66% believed that their employers were doing so.

If an employee is not being paid fairly, Glassdoor says that the employee should ask for a raise.

Additionally, 75% of employees also said it was important to receive great benefits which would improve their wellness. However, only 65% of employees said that they were satisfied with what they received.

Companies have been increasing the benefits that they offer employees over the years to ensure that the best employees are brought in.

Even if an employee is happy with their benefits, Glassdoor recommends they look at how competitive other organisations’ benefit offerings are.

Employees also want to see that their employers are committed to improving diversity, inclusion and equity (DEI). There must also be specific and measurable goals in place to strengthen DEI instead of vague statements made on the company’s website.

41% of surveyed participants were displeased with the sharing and progress made by their management regarding reaching DEI goals.

Moreover, the employer branding survey showed that a third of workers wanted improved transparency from their employers. This could relate to honest feedback, straightforward communication and pay transparency.

Employees also wanted measurable ways in which employers responded to feedback.

When looking at a job opportunity, Glassdoor recommends asking an employer how they respond to employee feedback.

2023 expectations 

Despite Glassdoor showing what employees want, the economic climate for 2023 will likely mean that companies will not be able to meet certain employee demands.

Universum CEO Mats Röjdmark said that employers in 2022 inflated their promises to new hires as demand exceeded supply. However, a global recession is predicted for 2023, which puts further strain on resources.

Employees will thus likely not be able to ask too much from their employees.

Moreover, Glassdoor’s recommendations to look at other opportunities may not be simple, as hiring declines are expected throughout 2023.

Despite no straightforward procedure for integrating a new rooftop solar initiative in the country, indications from the government point to a possible incentivisation for homeowners to get solar panels on their property.

On 23 January, President Cyril Ramaphosa said that rooftop solar panels are a significant source of new generation capacity in South Africa, adding that the government is currently working on a pricing structure to allow customers to sell surplus electricity back to the national grid.

“To incentivise greater uptake of rooftop solar, Eskom will develop rules and a pricing structure – known as a feed-in tariff – for all commercial and residential installations on its network,” he said.

Way before this announcement, some South Africans have taken energy security into their own hands. Solana Energy, a solar provider, said that within the residential solar sector, households imported over R2.2 billion worth of solar photovoltaic panels in the first five months of 2022 alone.

“With solar now becoming a regular feature for businesses of all shapes and sizes, residential users are investing in solar installations, and this growth is being accelerated due to prolonged load shedding,” Solana said.

Pressure to shift away from Eskom has also mounted with a recent electricity price hike authorised by the National Energy Regulator of South Africa (Nersa), which is allowing the utility to hike prices by 18.65% from 1 April 2023.

Moving to solar

According to Solana Energy, the biggest concern for South Africans looking to get into solar is the high cost of the initial investment.

Banking group Capitec estimates that the start-up costs to get solar installed and going off-grid can range from R150,000 to R350,000.

However, the bank noted that prospective solar users don’t need to go all-in or completely off-grid, with interim solutions also available. Banks and lenders are also capitalising on the growing demand for solar, creating new products and services to make the move easier.

Grant Smee, the managing director of Only Realty Property Group, said the increased popularity of solar power had given rise to various innovative financing options to make solar more accessible and more affordable.

Smee listed the following methods of getting your hands on solar:

• Outright purchase: Buying the system outright using one’s own funds.

• Financing the system through a home loan provider: Some of the major banks now offer the ability to ‘add the cost of solar installation to one’s home loan.

• Rent-to-own: Various solar financing companies have popped up in recent years, offering consumers the option to pay a monthly fee for solar, with the understanding that they will own the equipment after a certain period of time – usually five to seven years.

• A subscription service: Solar providers such as GoSolr offer a fixed-monthly subscription to solar power using their equipment. Prices generally start at R1,580 per month.

Financing

As stated by Smee, you can finance a system through a home loan provider – you can do this by seeking help from a bond originator.

Bond originators specialise in helping homeowners secure additional funding for various needs, including home installations.

One of the easiest options available is to increase an existing home loan, allowing homeowners to access a portion or the total amount of their original home loan and use it towards the installation cost of the solar system.

Another option is to apply for a re-advance, allowing homeowners to access a portion or all of their original home loan.

For homeowners without home loans, banks such as Absa, FNB, and Nedbank offer various options for homeowners looking to take out loans specifically for solar and backup systems to guard against load shedding.

Standard Bank, meanwhile, has services on offer for commercial and industrial clients.

Companies such as Hohm Energy are currently partnered with Nedbank, ooba and Hippo to service their clients. Hohm Energy is a marketplace linking homeowners to solar installers and financing options.

The costs

The cost of a solar solution depends entirely on the scale of the product or what type of system you want. There are four main frameworks:

• Load shedding backup: This is typically an inverter and a battery backup, charged by the grid when power is available. No solar panels are involved.
• Grid-tied solar: A grid-tied inverter with solar panels. You are still connected to the grid while allowing you to supplement your energy needs when the sun is shining.
• Hybrid system: A grid-tied inverter with solar panels and battery storage. The batteries are charged by solar or the grid depending on what power sources are available.
• Off-grid system: A solar system with battery storage. Energy generated from your solar system is stored in large battery banks, and you can operate independently from load shedding.

The more independent you move, the higher the costs.

According to Absa’s load shedding finance calculator, a household that spends R2,500 a month on electricity would need to spend over an estimated R190,000 to go completely off-grid through the use of solar panels, an off-grid inverter, battery storage and a backup generator.

As the requirements narrow – ie, using a grid-tied solution or just looking to reduce the energy bill – the estimated costs decrease. To install a system to get you through load shedding would cost just under R50,000.

While the estimates are simple guidelines, more complex analyses – like that from Hohm Energy – reflect similar pricing, with solar solutions for a medium-energy home coming in around R150,000 to R170,000.

Pricing estimates from Solana Energy put the cost of alternative energy between R60,000 for a system without panels to R290,000 for large-scale solutions.

Herein lies the big caveat for trying to move away from Eskom and load shedding. Because of the high cost of entry, whether financing the project outright or going the loan route, residents will ultimately end up paying more for the system than their typical monthly electricity bill.

The costs typically work out to be R3,500 a month for a household that pays R2,500 for electricity. (Note: This would vary greatly depending on electricity use and specific solar solution, but was the outcome for the author’s specific needs.)

Hohm noted that most solar solutions start “paying back” only after three to eight years – while financing options are for loan terms of around six years.

The benefit, however, is that residents will actually have electricity and not be slaves to Eskom’s permanent load shedding expected over the next two years.

To help better their chances of being successful in the search for employment, HR experts suggest that job seekers review their CVs, prepare better for the interview, and warn them to watch out for vacancy scams.

South Africa currently faces high unemployment rates, making finding a job challenging for many individuals. According to Statistics South Africa (StatsSA)’s latest Quarterly Labour Force Survey (QLFS), the current official unemployment rate is 32.9%.

What’s more concerning is that 59.6% of young South Africans between the ages of 15 and 24 are unemployed, while 34.5% of those looking for work are still unemployed.

These high unemployment rates in South Africa make finding a job challenging for many individuals. One obstacle facing job seekers in South Africa is the lack of job opportunities in certain sectors.

The country’s economy has been struggling, limiting job growth in many industries. This is particularly true for young graduates and entry-level workers, who may find it difficult to secure employment in their chosen field.

Compounding the issue is the high competition for available jobs. The high number of people looking for work allows employers to be selective and choose only the most qualified candidates – making it especially difficult for individuals without a lot of experience to secure a job.

Despite these challenges, there are still opportunities for job seekers in South Africa.

Anglo American HR advisor at Kumba Iron Ore, Joseph Makaringe, says it’s important for individuals to be proactive in their job search.

“Being an active job seeker in the labour market is a long and tedious journey which requires patience and tenacity. Having a positive attitude is key. Recruiters and HR professionals are always looking for top talent. Job seekers should remain ready to seize these opportunities,” said Makaringe.

Makaringe shared a few tips on what job seekers need to consider when entering the job market:

• Review your CV – Align the content of your CV with a specific organisation or job vacancy that you are interested in. Present your skills and strengths to correspond with the vacancy requirements. Most importantly, make sure that your contact details are correct.

• Prepare for the interview – Interviews are one of the most important stages of the recruitment process. This is the ideal opportunity for the candidate and the representatives of the hiring organisation to engage with each other regarding the organisational culture, the vacancy’s roles and responsibilities, etc. Therefore, the candidate should:

• • Prepare for the interview by conducting research about the organisation. Visit its website and read articles you can find about it. This will help you learn more about the organisation and formulate questions you might want to pose to the panellists when given the opportunity.

• • Try to remain calm and look presentable. Your attitude and how you present yourself are key to creating a lasting impression.

• Know how to identify scams – Knowing how to differentiate between legitimate vacancies and scams is important for all job seekers to save time and money.  Upfront payments are always tell-tale signs of scams. Poorly written job specifications, the lack of corporate contact details and the use of personal emails such as Gmail and Yahoo are also signs of potential scams. When searching for job opportunities, use well-established recruitment platforms or visit corporate websites to view available vacancies.