On December 30, 2017, Fin24 released an article featuring Mila Loubser, our head of Engineering Intelligence, and Cala van der Westhuizen, our Home Solutions marketing manager. The article discusses why small businesses should consider renewable energy.
Massive above-inflation tariff increases
The next eight years will likely see an above-inflation year-on-year electricity tariff increase of at least 6% to 8%.
The large investments Eskom is currently making in infrastructure are likely to affect energy tariffs in the near future. This will make it increasingly important for business owners to consider alternative sources of energy.
Since 2008 the average tariff increase in South Africa has been around 300%.
Possible carbon tax to be introduced
In light of the upcoming 2017 Budget Speech, we are also waiting to find out if the government will introduce a new carbon tax. If this is the case, tariff increases could be as high as 13%.
This trend will have the largest impact on small and medium enterprises (SMEs).
As we have seen in previous years, energy tariff hikes and other power related issues such as load shedding, had massive impacts on the operating costs and the already low profit margins of SMEs. There are, however, opportunities for smaller companies to reduce the impact of power costs and supply on their business.
SMEs should take advantage of the incentives provided for the installation of renewable energy solutions.
Renewable = Tax exemptions
SMEs need to keep in mind that they can claim a percentage of the cost of solar and other renewable energy solutions back from SARS. Some banks also offer financing to their business banking clients for renewable energy solutions.
Small businesses should consider renewable energy and also consider financing options from certain service providers. There are a number of benefits to installing solar energy solutions in small businesses. All of these benefits contribute to reducing operating costs and downtime in the event of power outages.
Read the full article here.