Is taking your property off the grid a good investment?

South Africa’s energy crisis has been a persistent issue since 2007, and for the past 15 years, we’ve had to deal with constant scheduled and unscheduled blackouts or ‘loadshedding’. With the country’s power stations constantly breaking down or depleting their emergency reserves, these blackouts seem unlikely to end anytime soon.

After years of biting the bullet and putting up with candlelit dinners, interrupted workdays and defrosted food, it might be time for you to consider alternate solutions so you don't just have to rely on the grid.  If you’re interested in doing so, here’s what you should consider.

Alternate Solutions

If you don't want to rely entirely on the grid, you’ll be faced with four options: powering your home with diesel, gas, batteries or solar power. Here’s what each option entails:

• Diesel: You can power your home with a generator that runs on diesel. Diesel generators come in a range of sizes and only require fuel to operate.This can allow you to go totally off grid but would be an expensive solution. It is great solution though for those load shedding periods or general power outages.
   
• Gas: You can replace your existing electrical appliances with ones that run on gas. You can also purchase a gas generator to power your existing appliances.
   
• Batteries: You can set up a battery system to meet all or some of your electricity needs. These batteries rely on electricity to recharge themselves between uses so you would remain grid-tied.
   
• Solar: You can move to a grid-tied solar system where your home runs on solar panels and is connected to the electricity grid, allowing you to feed excess energy back to the grid for profit (if your municipality allows it). You can also opt for an off-grid system, which charges solar-powered batteries and/or generators to exclusively run your home.

Things to consider when going off the grid or looking at grid-tied solutions

Many factors will impact your decision to go off the grid and the type of system you’ll eventually choose. Here are some practical constraints to keep in mind:

• Cost: Every option comes with a cost, and some might have a costing structure that doesn’t suit your wallet. You might prefer a more affordable pay-as-you-go option that doesn’t tie you into a financial commitment. Alternatively, you could prefer to pay for an entire system upfront or make monthly instalments towards it.
   
• Convenience: A seamless off-the-grid power source is one that automatically switches between grid and off-grid power. This means that unscheduled or inconvenient power outages won’t impact you. Other options will require to you manually switch to your alternative power source. If you can’t afford to be without power for even a second, you’ll want to go for an automatic option.
   
• Consumption: Your electricity needs might be comprehensive or minimal. For example, if you’re single, work outside the home and rarely cook, you probably won’t need an extensive power solution or one that works 24/7. If you use medical equipment at home, work from home or have a large household, you might prefer a more capable system that can meet multiple needs at once.
   
• Construction: Your current living situation can impact what kind of system you can opt for. If you’re renting a home or living in a sectional title property, you could be restricted from installing any system that involves changing the structure of your home. If you own a freestanding property, you won’t face such restrictions.

The advantages and disadvantages of going off the grid

Depending on what option you choose, you can face the following advantages and disadvantages:

Diesel

Diesel is probably the most easily accessible source of alternative power you can get in South Africa. This makes it a convenient and cost-effective choice. The downside to diesel generators is that they’re very noisy and can emit harmful fumes. This might make it a poor option for those without gardens or who live in apartment complexes. It’s also a non-renewable fuel source, meaning that it could become scarce or expensive in future. You can get quieter generators but they also come at an increased cost.

Gas 

Gas is an established power source that’s easy to access and relatively affordable. Unlike diesel, it’s easy to transport and store in canister form and operates quietly and without producing poor-smelling emissions. Gas can even power individual appliances like stoves or geysers. However, like diesel, gas is a finite power source. It also comes with its own safety concerns, as gas leaks can be deadly and pressurised gas canisters can explode if stored and used incorrectly. Gas installations often also require strict compliance which should be borne in mind.

Battery 

Batteries are arguably the easiest to integrate into your existing home and lifestyle. They usually fit into your current electrical system, charging when you have power and automatically kicking in when the power is out. You can choose from a range of battery systems with some only able to keep your laptop and phones charged and others able to power your entire home, including your lights and security system. The larger your battery system is, the more you can expect it to cost and the more space it will take up. Batteries also have a finite lifespan – although compared to using diesel and gas, it will last you longer.In order to convert the DC current from batteries into AC current which your home needs, you would also need an inverter. Inverters come in different sizes and you would need to assess what your power requirements are to determine what inverter size and battery capacity you would need.

Solar 

A solar system is suitable for freestanding properties as it can involve installing large solar panels, inverters and batteries. The initial costs of this option can run into hundreds of thousands of rands, but a quality system can last you for a lifetime with specific parts requiring replacement after a certain number of years. Choosing solar power will increase the value of your home, as long as you install a regulation-compliant system. It’s also important to ensure that your system is installed by engineers and technicians familiar with the laws surrounding solar system installations in residential homes. A failure to do so can mean any insurance claims you file in future regarding your home, or its contents are rejected.

Choosing to go off the grid isn’t a decision to make lightly, and if you own a home, it’s one that can have major financial and practical repercussions on your future. If your home is financed and you want to know more about the off-the-grid financing options available to you, contact SA Home Loans today for assistance. 

Cost estimates provided in the Sustainable Living in South Africa series of articles are approximate and valid at the time of publication.