The South African National Energy Research Institute (Saneri) addressed concerns for “intelligent subsidies” in order to boost the country’s solar water heater (SWH) industry. At the Renewable Energy market Transformation (REMT) Project, Saneri CEO Kevin Nassiep said, “We all acknowledge that the treasury wants subsidies to be phased out eventually…but you have to replace them with something that is more sustainable.”
He added that the renewable energy feed-in tariff (Refit) could be functional for the SWH industry if a utility model where an independent power producer makes solar-heated water available to clients while maintaining ownership of the units were in place. However, differentiated tariffs would need to be in effect.
Nassiep added that the industry needed to evaluate technology and ensure that “best-of-breed technologies” were used, as well as forging international partnerships, “so that if those best-of-breed technologies exist outside of the country, they are brought under the control of South African industries.”
He also stressed that the regulatory framework needed a great deal of attention in order to make this sector a viable option.