Solar water heating delay hurts investments

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Coupled with this, the rollout of the renewable energy independent power producer (IPP) procurement programme was unpredictable.

Department of Trade and Industry chief director of green industries Gerhard Fourie told MPs the R4.7bn allocated to the Department of Energy for the solar water heating programme in 2014-15 had not been spent. He said the department planned to roll out 1-million solar water heating systems by the end of the 201415 financial year. But according to the medium-term budget policy statement and adjusted estimates of expenditure, it had not installed any system by mid-year.

"If we don't spend money the (solar water heating systems) industry is not going to go anywhere," Mr Fourie said. "The industry to my mind is just about dead because they have not spent money in the last 12 months or so." To get going it would have to rely on government subsidies.

According to Mr Fourie, the department cited the poor quality of installations and unreliable verification of the number and location of the installed systems as reasons for its nonperformance.

South African Photovoltaic Industry Association chairman David Chown said the delays in the bid windows and the unpredictability of the IPP procurement programme "wreak havoc in the value-chain".

He also said the industry was eagerly awaiting the outcome of the fourth bid window, which closed in August, and for further details about the fifth one. It was not possible to obtain comment from the department before going to press.

Source: Business Day