From Left:
Wayne Thomas (CEO of Azusa)
Dr. Dino Petrarolo (CEO of Kayema)
Dr Rob Davies (Minister of the Department of Trade and Industry)
Mr. Linda Mngomezulu (Chairperson of the Small Enterprise Development Agency, Seda)
Ms. Hlonela Lupuwana (CEO of the Small Enterprise Development Agency, Seda)
Ms. Nafeesa Dinie (CEO of the Seda Atlantis Renewable Energy Business Incubator. SAREBI)

Tuesday the 5th of August 2013 heralded the launch of the Seda Atlantis Renewable Energy Business Incubator (SAREBI) in Atlantis (approximately 40kms from Cape Town). SAREBI was launched by the Honourable Minister Dr. Rob Davies of the dti and other dignitaries from Local and Provincial Government, Seda and the private sector.

The intention of SAREBI is to grow and nurture companies operating within the “Green Economy” through the provision of business support, facilitation of access to markets and access to finance as well as technology transfer and Joint Ventures.

Companies will be established in the incubator and will receive full support from Incubator staff and enjoy shared services and resources, enabling the company to focus on its core activity of growing its market and making money.

The intention of the Western Cape Provincial Government is to develop Atlantis into the Green Hub for the Province and thus it is envisaged that SAREBI will be a feeder for both upstream and downstream opportunities in the Green Hub and thus SAREBI is working closely with the Green Cape initiative.

Kayema are participating in SAREBI through a JV with Azusa and a tender proposal has been submitted for Cape Town City’s Solar Geyser roll out programme.

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Kayema Energy Solutions is pleased to announce the implementation of a new Six Sigma energy efficiency improvement project development system as part of their service offering to Commercial and Industrial clients looking to increase the efficiency with which they consume energy. The Six Sigma system was originally designed to be implemented by world class manufacturing and production companies to identify opportunities for improvement in all areas of the organisation and has in recent years expanded and transformed to be applied in virtually any organisation.

The objective of the Six Sigma system is to identify areas of possible improvements and develop solutions for problems with unknown causes, based on statistical foundations, quality control tools and an integrated project management methodology.

The benefits include:

• ·The reduction of carbon, water and energy in the end to end operations and across the whole supply chain of the organisation.

Kayema Energy Solutions is pleased to announce the implementation of a new Six Sigma energy efficiency improvement project development system as part of their service offering to Commercial and Industrial clients looking to increase the efficiency with which they consume energy. The Six Sigma system was originally designed to be implemented by world class manufacturing and production companies to identify opportunities for improvement in all areas of the organisation and has in recent years expanded and transformed to be applied in virtually any organisation.

The objective of the Six Sigma system is to identify areas of possible improvements and develop solutions for problems with unknown causes, based on statistical foundations, quality control tools and an integrated project management methodology.

The benefits include:

The reduction of carbon, water and energy in the end to end operations and across the whole supply chain of the organisation.

Build a Green Six Sigma brand for the organisation by using the methodology to drive company policies.

Improved Productivity, by improving the capability of people to deliver sustainable solutions.

Better reporting for tracking and trending on what is important.

“The purpose of the new Six Sigma approach is that Kayema will be able to provide clients with support for the rigorous execution of complex projects, the opportunity for reduction of costs through energy efficiency improvement and the development of a sustainable and profitable organisation.” Says Dr Dino Petrarolo CEO of Kayema.
The system was implemented to put Kayema on par with international best practices focused on continuous improvement strategies in any organisation or company. And will give Kayema the edge to seamlessly integrate into a client’s organisation as part of the continuous improvement strategy that drives to reduce waste and improve energy usage.

The process uses five stages namely define, measure, analyse, improve and control (DMAIC) to approach an energy efficiency project. The first logical step is to clearly define the opportunity or area of possible improvement. During the measure phase, data and information is collected on all components in the identified area that require any form of energy to perform its function. i.e. heating, cooling and electrical energy. The analysis will detect whether the area ear-marked for potential improvement is in actual fact a cause of energy inefficiency and which components in the area contribute to the inefficiency. The development of a solution to save energy is done during the “Improve” process where interventions are developed in combination with the results of the analysis and feasibility of the proposed intervention. Projects are implemented using the rigorous methodology and tools provided by Six Sigma to deliver projects on time, within budget and of the highest quality to meet a client’s needs.      Controls are implemented to continuously monitor and review the performance of the solution and to share the results of a successful energy improvement project.

Tilla van der Walt responsible for implementing the Green Six Sigma methodology stated that

“We identify the appropriate projects along with our clients (the best opportunities normally prioritised on a maximum reduction, capital costs or ROI basis). Once each intervention has been identified, Kayema first selects fit-for-purpose technology, and then best-in-class products and installers to achieve the desired outcome. The method allows us to customise every solution based on each client’s individual needs, goals, budget and time constraints, and ensures that every client receives the best value for money since they are investing in a solution, and not a company pushing a particular product. Where a specific intervention or component thereof, exists outside Kayema’s expertise, that portion is subcontracted to the appropriate client-approved specialist who are then managed by Kayema as part of the whole project.”

The implementation of the Green Six Sigma methodology ties in very well with Kayema’s mission to provide world class renewable and energy efficient solutions to clients through structured processes and procedures and subsequently support the company’s vision to become a ground-braking energy solutions company with creative cutting edge solutions and using technology as a mechanism to affect and improve the triple bottom line of any organisation.

• ·Build a Green Six Sigma brand for the organisation by using the methodology to drive company policies.

• ·Improved Productivity, by improving the capability of people to deliver sustainable solutions.

• ·Better reporting for tracking and trending on what is important.

“The purpose of the new Six Sigma approach is that Kayema will be able to provide clients with support for the rigorous execution of complex projects, the opportunity for reduction of costs through energy efficiency improvement and the development of a sustainable and profitable organisation.” Says Dr Dino Petrarolo CEO of Kayema.
The system was implemented to put Kayema on par with international best practices focused on continuous improvement strategies in any organisation or company. And will give Kayema the edge to seamlessly integrate into a client’s organisation as part of the continuous improvement strategy that drives to reduce waste and improve energy usage.

The process uses five stages namely define, measure, analyse, improve and control (DMAIC) to approach an energy efficiency project. The first logical step is to clearly define the opportunity or area of possible improvement. During the measure phase, data and information is collected on all components in the identified area that require any form of energy to perform its function. i.e. heating, cooling and electrical energy. The analysis will detect whether the area ear-marked for potential improvement is in actual fact a cause of energy inefficiency and which components in the area contribute to the inefficiency. The development of a solution to save energy is done during the “Improve” process where interventions are developed in combination with the results of the analysis and feasibility of the proposed intervention. Projects are implemented using the rigorous methodology and tools provided by Six Sigma to deliver projects on time, within budget and of the highest quality to meet a client’s needs.      Controls are implemented to continuously monitor and review the performance of the solution and to share the results of a successful energy improvement project.

Tilla van der Walt responsible for implementing the Green Six Sigma methodology stated that

“We identify the appropriate projects along with our clients (the best opportunities normally prioritised on a maximum reduction, capital costs or ROI basis). Once each intervention has been identified, Kayema first selects fit-for-purpose technology, and then best-in-class products and installers to achieve the desired outcome. The method allows us to customise every solution based on each client’s individual needs, goals, budget and time constraints, and ensures that every client receives the best value for money since they are investing in a solution, and not a company pushing a particular product. Where a specific intervention or component thereof, exists outside Kayema’s expertise, that portion is subcontracted to the appropriate client-approved specialist who are then managed by Kayema as part of the whole project.”

The implementation of the Green Six Sigma methodology ties in very well with Kayema’s mission to provide world class renewable and energy efficient solutions to clients through structured processes and procedures and subsequently support the company’s vision to become a ground-braking energy solutions company with creative cutting edge solutions and using technology as a mechanism to affect and improve the triple bottom line of any organisation.

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The system, which services all 59 apartments, staff quarters and a laundry is custom designed to operate in banks of between 3 and 6 200litre geysers, plumbed in series. This design allows the temperature of the water to increase incrementally with minimal electric backup, while still providing close to 12000 litres of hot water per day.

“The system will provide an estimated solar energy input of around 900 kilowatt hours per day, which will have a very positive impact on the resident’s monthly utility costs, and the environment.” Says Kayema GM James Shirley.

A full measurement and verification system designed by Kayema and installed by Greenwave Automation will allow the controller to detect any faults, and observe temperatures throughout the entire system at any given time.

Zak Ferriera, Kayema’s Project Manager comments. “Projects of this scale are never without their challenges, for Troon Gardens we had to devise a solution that allowed us to tie into the building’s existing reticulation and since the roof was fabricated from corrugated iron, we needed to erect an entire steel structure to support the solar tanks and panels.”

Although Kayema Energy was responsible for the complete system design and project co-ordination, they are quick to acknowledge the other key players who contributed to this project’s success including the structural engineer, Michael Moore from MMA. The consulting electrical engineer, Allen van Zyl from KKA and the electrical installers from Okai Vision Electrical.

Having completed similar large scale solar systems for many corporate customers in SA, Troon Gardens marks Kayema’s first large scale system on a residential apartment block.

“Contrary to the industry and market perception, Kayema’s engineering and design team has proven with the Troon Gardens solar water heating project that the switch from conventional water heating to renewable or energy efficient technology in residential apartment buildings is possible.”

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To view the presentation click on this link.

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“This agreement will provide a step change in our capability to service our chosen markets,” says CEO Dr. Dino Petrarolo. “With this milestone, we will be very well positioned to capture a significant share of the industrial and commercial energy service segments in the Southern African region.” The Joint Venture will offer products, services and financing in the following areas:

Solar PV, Solar Water Heating, Lighting, Heat Pumps, Energy Management & Metering, Bio Mass, Heat Recovery, HVAC, and other energy efficient support technologies

For more information please contact James Shirley on +27 11 202 0340 or james.shirley@kayema.com

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Fritz Klingenberg has joined Kayema Energy Solutions as Manager of Residential Retail Sales.

Prior to this appointment, Fritz enjoyed an extensive career in the automotive and petrochemical industries before following his passion for renewable and solar energy. Since this time he has fulfilled various management and operational positions, giving him a comprehensive understanding of the renewable energy business environment at various levels. Fritz aims to employ his collective knowledge and experience, adding value in further developing the residential business component for Kayema energy solutions. He is passionate about business development, people and the environment, and believes that sustainable living practices will contribute to a long-term stable society and quality living.

Dino Petrarolo, Managing Director of Kayema commented. ” It gives me great pleasure to welcome Fritz Klingenberg to the Kayema team. Fritz brings with him great experience in the renewable & solar industry to lead Kayema’s Residential Sales thrust in targeted market segments.”

“The renewable energy sector has undergone a fairly subdued beginning over the last 3 years, but is now poised to grow significantly for companies like Kayema who have endured but at the same time learned to adapt to the nuances of the market. We are confident that Fritz will add to this momentum by bringing some well timed experience and expertise.”

On a more personal level Fritz is a family man, married with 4 children, and a keen sports enthusiast having completed 7 Comrades marathons.

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Promethium director Harmke Immink said that since 2000 the CDP has, on behalf of its signatory investors, encouraged the world’s largest companies to measure and report their carbon emissions. “This year, CDP was backed by 551 institutional investors holding US$71-trillion in assets under management with questionnaires to the world’s largest companies asking them to report on their carbon emission,” said Immink.

“To address carbon reduction, Group Five implemented a total quality management culture that underpins every aspect of its operations and reinforces the centrality of sustainability,” said Celia Becker, country risk director at Group Five. A ‘green team’ was established covering all operating divisions and is responsible for the identification of opportunities and risks resulting from climate change. In addition Group Five has commented on the Green Paper on Carbon Tax directly and was also invited to participate in the carbon tax impact study to be performed by Treasury.

Demand for green buildings are increasing

She said the demand for green buildings is on the increase, and internal procedures are continuously evolving to accommodate this. “Becoming a leader in green buildings and acquiring a stake in the associated products for green buildings will aid in Group Five’s reputation of becoming a greener construction company, and result in actual emission reductions when implemented in construction projects.”

Another strategic business decision was the creation of the project development team in the energy division, dedicated to renewable energy. The role of this team is to play a bigger role in the early stage development of potential projects.

Group Five is also a founding member of the Green Building Council of South Africa (GBCSA). This council aims to lead the transformation of the South African property industry to ensure that all buildings are designed, built and operated in an environmentally sustainable way.

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The rebate values have already been reduced this year, and the numbers of
systems that each supplier may submit for rebate each month have been
limited in order to increase the amount of time the programme can run for.
For those still sitting on the fence about whether or not to convert to
solar water heating, I would recommend that they do so sooner rather than
later in order to ensure their rebate.
Smith: I really can’t say, but what I can say is that the solar rebate
budget is completed for the year. However, they are running a special
reduced rebate.
Bredenkamp: According to my knowledge, the rebate in its current form will
not last beyond 2011 unless a significant amount of additional funding is
secured for this purpose.
Tudor-Jones: When the money runs out?
How will Eskom replenish the money spent on the rebate programme?
Shirley: Unfortunately I can’t speak for Eskom (or NERSA). However, it is my
opinion that should the programme continues any additional funds would be
taken from the ever-increasing electricity prices.
Rewarding those who switch and penalizing those who choose not to switch to
solar (or at least a heat pump) seems to me like the best way to go while
our country is experiencing an energy shortage.
Bredenkamp: As consumers of electricity, the onus currently will rests on us
to pay back the money for this rebate program. Even if the funding model
changes from a tariff-based levy, we (as tax payers), will end up paying
through a treasury/fiscal allocation.
Smith: The idea is simple, subsidise solar systems which reduces load on the
electrical grid. With a reduced load there is no need for power stations.
Subsidising solar is cheaper than building a power station.
According to Frost and Sullivan, the SWH market experienced volatile growth
between 2007 – 2010 that was plagued by malfunctioning products,
fly-by-night companies and incorrect installations. Do you agree? If so why?
Do you disagree? If so why?
Shirley: I agree strongly that the SWH market has experienced volatile
growth. Unfortunately, many South Africans have paid good money for bad
systems on terrible advice from people trying to make a quick buck on solar
water heating.
A solar water heater should be selected based on reliability, service and
applicability to your needs (much like any other investment), rather than on
price.
Many of the systems that were brought into South Africa, while perhaps being
applicable to another country’s environmental conditions, were not relevant
to our local temperatures, weather patterns and water quality.
These factors have led to overheating in summer, freezing in winter,
bursting due to pressure or rapid component deterioration due to chlorinated
water – all of which have done damage to the name of the industry as a
whole. Even worse than this, though, is the poor quality of installation and
total lack of understanding of how the systems work by unqualified (and many
supposedly “qualified”) installers.
Regulations and industry bodies are in place to deal with this. However, it
is very difficult to police those operating outside of the rules unless
something catastrophic happens and the matter comes to the attention of the
ombudsman.
The good news is that we are now seeing fewer and fewer different
manufacturers in the market – those who are surviving and doing well seem to
be coming from “real” companies who have a long-term plan and will be around
long enough to honour their warranties.
Bredenkamp: Probably before 2007, when there were no Standards in place
and/or a test facility at the SABS.
Smith: I fully agree. The problem is the fact that a growth spurt resulted
in opportunists who did not care for the solar plumbing industry. These
people only came to pillage our industry and weren’t interested in adding
value to this market.
Tudor-Jones: I do agree. The Solar Water Heating Division of SESSA reported
at the March 2011 AGM that membership grew from 272 to 510 in 12 months.
They also reported that 168 members had resigned in the previous 8 months. I
know of a reported +/- 1000 collectors which failed during the June 16th
2010 black frost. This is one incident which caused many casualties within
the industry and does not include other issues of overheating and the like
that has also occurred since the influx of vac-tubes into the market.
How are building codes and regulations influencing the SWH market?
Shirley: SANS 10400X has now been promulgated, which means that within a few
months it could become law for any new building that at least 50% of the
water heating must be done by non-electric resistance means.
Since SWH is not applicable to every home or business, the client also has
the option to achieve this by, amongst others, using heat pumps or
installing a heat-recovery system.
It is becoming more important for developers, architects, specifiers, QS’s
and consulting professionals to develop an understanding of the functioning,
and advantages and disadvantages of each, and of which systems are available
in the market that they would recommend to their clients.
Bredenkamp: The regulations have only just been published and once properly
up-and-running, will have a positive effect, i.e. the requirement that where
hot water is provided, a maximum of 50% by volume can be supplied by the
traditional electrical-resistance water heater and 50% must be from a
renewable resource.
Smith: The building codes and regulations impacted the SWH market
drastically.
Tudor-Jones: We haven’t seen any impact as of yet, but we will see a
positive influence once the new SANS10400 PartXA2 becomes mandatory in Feb
2012.
Karel Deist, Head of Laboratory Solar – SABS: These standards are there to
support the market in a positive way. The standards and regulations protect
the end user against possible abuse and claims about the functionality of
these systems.
You have various standards and regulations that govern the installation of
SWH’s like the Occupational Health and Safety act (OSH), the National
Building Regulations and Installation codes.
There are two important clauses dealing with this matter in the said
Occupational, Health and Safety Act. The first one is clause 10 which states
the following:
General duties of manufacturers and others regarding articles and substances
for use at work
(1) Any person who designs, manufactures, imports, sells or supplies any
article for use at work shall ensure, as far as is reasonably practicable,
that the article is safe and without risks to health when properly used and
that it complies with all prescribed requirements.
(2) Any person who erects or installs any article for use at work on or in
any premises shall ensure, as far as is reasonably practicable, that nothing
about the manner in which it is erected or installed makes it unsafe or
creates a risk to health when properly used.
(3) Any person who manufactures, imports, sells or supplies any substance
for use at work shall.
(a) Ensure, as far as is reasonably practicable, that the substance is safe
and without risks to health when properly used.
(b) Take such steps as may be necessary to ensure that information is
available with regard to the use of the substance at work, the risks to
health and safety associated with such substance, the conditions necessary
to ensure that the substance will be safe and without risks to health when
properly used and the procedures to be followed in the case of an accident
involving such substance.
(4) Where a person designs, manufactures, imports, sells or supplies an
article or substance for or to another person and that other person
undertakes in writing to take specified steps sufficient to ensure, as far
as is reasonably practicable, that the article or substance will comply with
all prescribed requirements and will be safe and without risks to health
when properly used, the undertaking shall have the effect of relieving the
firstmentioned person from the duty imposed upon him by this section to such
an extent as may be reasonable having regard to the terms of the
undertaking.”
The second very important regulation that one should keep in mind is as per
the SA Government Gazette no. 22355, Notice No. 509 and Regulation no 7079
dated 8 June 2001.
Every consumer must comply withSABS/0252: Water supply and drainage for
buildings and SABS/0254: The installation of fixed electric storage water
heating systems, or similar substituting re-enactment or amendment thereof
if the consumer installation is of a type regulated by either standard.
This legislation requires that all new geyser installations and replacement
geyser installations performed after the 8th June 2001 must be in accordance
with the specification, which requires the installation to have a geyser
drip tray with overflow pipe piped to the exterior of the building. Vacuum
breakers must be installed on the hot and cold water supply and the overflow
from the safety valve and expansion relief valve must be piped to the
exterior of the building.”
What are the advantages of SWHs?
Shirley: The three main advantages of solar water heating are:
• They are reliable, especially thermosiphon systems which have no moving
parts. Incorrect installation or a total lack of maintenance is the most
common source of systems failing to produce hot water. Electric controllers
ensure that during periods of extended rainfall, or the very cold winter
days, the system reaches the desired temperatures.
• They are durable. Many systems offer 10 year guarantees, and flat-plate
collector technology has been proven over the past 30 years to operate very
well in conditions similar to South Africa. Clients can be certain, as long
as they invest with a reputable company, that they will certainly see a
great return on investment.
• They save money. It is not often that people get the chance to do
something that is good for the environment, good for society AND saves money
every month – a real triple threat.
Bredenkamp: The biggest advantage is the fact that we get to harness free
energy from the sun and generally would have accessible hot water during
times of extended power outages.
Smith: Renewable energy and lower energy costs are major advantages to SWH.
Tudor-Jones: The purchase of a quality solar water heater is a proven means
to save electricity, therefore money and our environment. They are built to
last and therefore have an excellent life cycle savings compared to that of
an electrical geyser. When comparing prices, the difference in cost between
the lower end, five year warranty models and the proven, ten year warranty
models is about R5000. This may seem like allot, but when you consider that
this is only one extra year of savings on your ROI in four years time,
compared to doubling your warranty, then the investment in quality is
absolutely worth it.
What are the disadvantages of SWH?
Shirley: High capital costs for a good system have been a major disadvantage
and slowed the sales of SWHs in South Africa. Finally there are attractive
financing options available for selected systems, and the monthly
installments can be offset by the savings. Instead of asking “how much does
the system cost?” can clients now ask “how much can I put back into my own
pocket every month?”.
Aesthetic reasons have also been a bump in the SWH rollout process. Two
years ago, we used to hear the term ugly almost every day. Now, however,
many homes display their systems proudly and most of our clients are
actually glad to show their neighbours that they are smart enough to install
a system.
Bredenkamp: SWH’s don’t always achieve the expected savings, i.e. very
dependent on the elements and human behavior. Another disadvantage is that
if something does go wrong, the consequential damage to property can be
quite significant.
Smith: The disadvantages of SWH’s are the fact that it is complicated to
install. There is a need for a higher plumber skill base, and for the last
15-years our plumbing skills base has been eroded due to the lack of
training. One can also say that another disadvantage is the fact that the
technology is complicated and the consumer does not always understand the
lifestyle shift. Another disadvantage is the fact that there were too many
fly-by-night companies selling one thing and the consumer not getting the
product that was promised to them. Thus the SWH market got a bad name.
Tudor-Jones: They are not always suitable for all applications due to
shadowing, roof type, orientation, inclination and often aesthetics. They
also have a higher capital cost than conventional geysers.
Where are the trends heading for SWH?
Shirley: The take-up on SWH has been slower than expected around the
country. However, the general public is now far more aware of the options
available to them. While many people want a SWH and understand all of the
benefits, there has been no need to switch. More than half of our clients
are people who have been quoted previously, and only made the decision to
switch when their electric geyser had burst and a replacement system was
necessary.
Every time the electricity price increases, sales volumes also spike – and
so long as it remains “cheaper” to install a solar water heater than to use
an electric geyser, the local market will continue to grow.
A couple of years ago it was very difficult to install an on-roof system in
South Africa, since home owners were concerned with the aesthetics of
systems. Recently, however, this has not been an issue and more and more
clients are opting for thermo-siphon systems because of better cost and
reliability over the split options.
Bredenkamp: Personally, I believe we will ultimately see more of a move
towards heat pumps in the middle-to-high income market sectors. They are
more reliable, predictable and ultimately more energy-efficient.
Smith: It is my opinion that the SWH trend is moving downwards. I strongly
feel that heat pumps will become the new solar solution.
Tudor-Jones: More up-market and environmentally-conscious homes will install
SWH whereas more middle-income, money-conscious homeowners will go for heat
pumps.
How long does a SWH last?
Shirley: A good SWH has a design lifespan of 20 years or longer, and should
have a warranty on physical components of 10 years – this ensures that every
owner will benefit financially over an electrical geyser, even if financed.
Flat-plate collector systems have been installed in many countries around
the world since the early 1980’s, many of which are still in existence
today. A poorly designed or installed system, however, may only last two
years. It is critically important that suppliers, installers and clients
understand exactly what each system does and the impact that various
environmental, water and time-of-use conditions have on each, so that they
can offer the best advice and make.
Bredenkamp: Depending on the specific quality of the system, but generally
the panels should last between 15 to 20 years and the reservoir tank five to
ten years.
Tudor-Jones: Some better quality, proven brands can last up to 20 years.
Cheaper models have been known to last between five to ten years. If ones
return on capital is only in year four for instance and there is a risk of
having to replace the unit or a major component of the unit in year five,
then the investment in a higher priced, better quality and longer lasting
unit becomes favorable.
Are we seeing more SWH products imported or locally manufactured? Why?
Shirley: While there are still more imported systems available than local
products, we are now seeing more and more locally manufactured components
and complete systems in South Africa. There are several reasons for this:
• In order to stimulate local employment and keep South African funds in SA,
Eskom’s rebate structure is changing to allow for greater rebates for
systems with a higher local content.
• The Department Of Trade and Industry is offering assistance for setting up
local factories in order to stimulate local employment.
• There are now sufficient skills in South Africa to ensure that quality
standards are met (and exceeded in many cases).
Bredenkamp: Definitely imported, and this has got to change if we really
want SWH’s to make a significant impact to the South African economy through
local job creation, etc. However, price and quality will always be the key
determinant and it remains a challenge to compete with China in this regard.
Smith: Most of our SWH’s are imported, and this is simply because no South
African manufacturer in their right mind will invest in such a market. What
surety does South African manufacturers have, if they put capital in for
factories and manufacturing lines etc, when their own government and
parastatals do not support South African products.
Tudor-Jones: There are still more imports. Local content specifications may
change this in future. Until there is less choice and a strong single
supplier emerges, local producers will continue to struggle.
How do insurance companies play a role in the SWH market, if any?
Bredenkamp: Some of them are coming to the party, but the challenge remains
that when a conventional geyser fails, the home owner basically wants the
general situation relating to access to hot water resolved, without delay.
If one first has to “think” about the pros and cons of SWH vs a conventional
heater (cost, electrical back-up, aesthetic impact on the roof, etc.), the
majority of customers opt to go for what they originally had installed.
Smith: Insurance companies play a massive role in the SWH market. They have
a capture market, however the problem is that SWH’s do not fit into their
models, i.e. the client wants hot water and they want it now, not later –
SWH on average has a lead time of three to five days.
Tudor-Jones: Most major insurers have chosen reputable suppliers and proven
brands as optional replacements when geysers fail but the uptake by the
insured is still very low. I feel the insurance industry holds the key to
turning around our solar industry as it makes the most sense to convert to
solar when a big chunk of your capital cost is covered by your insurance
company.
25° in Africa would like to thank James Shirley, General Manager of Kayema
Energy Solutions, Barry Bredenkamp, Operations Manager at the National
Energy Efficiency Agency, Lea Smith from the Institute Of Plumbers South
Africa, Dylan Tudor-Jones, Managing Director of Solar Heat Exchangers, and
Karel Deist Head of Laboratory, Water Meters and Solar – SABS, for their
contribution to this article.

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