This article shares my personal experience with installing and managing a home solar system, providing insights into the process, costs, and long-term benefits.
I live in a small holiday home with high energy usage. A while back, I thought, “Let me see if a solar energy business is a good opportunity.” To evaluate it, I decided to build my own solar system and see if it made financial sense.
Back in 2013, everyone was talking about solar energy:
- “Solar energy gives you a great return.”
- “You’ll save on power costs.”
But there were sceptics too, so I thought the best way to decide was to test it out for myself.
The Journey: Building My System
I installed a 15.3 kW system that cost me about R220,000. I took an almost DIY approach and was lucky to connect with the Centre for Energy Research at Nelson Mandela University, where I met Ross, our technical expert and now a business partner.
Ross, who was busy with his PhD at the time, helped design the system and assisted with much of the work. By going this route, I managed to cut costs significantly. Professional quotes at the time were around R350,000, but I did it for far less. What’s even more interesting is that solar costs have dropped dramatically since then—a system of this size today would likely cost 50% less than in 2013.
The Financial Payoff
In the first year, the system saved me about R45,000 on electricity, which worked out to a 20% after-tax return. This is important because personal expenses, like electricity, are paid with after-tax money. For example, if your electricity bill is R1,000, you’d need to earn around R1,500 before tax to pay for it. Achieving a 20% after-tax return was an incredible result.
Since then, municipal tariffs and regulations have changed, which impacts returns. With some innovative changes and setting to your system and with the use of batteries, you can still achieve a good return. Currently, I’m saving about R60,000 a month, equating to a 27% return.
How Long Do Solar Panels Last?
When I first started, I was sceptical about the lifespan of solar panels. Ross assured me they’d last around 20 years, and I thought “not sure if I believe that”.
What I could very easily do is on a life-for-life basis per kw, have a look and see from the apps that are available, what is my 5.5kw system generating and what is my 15.3kw system generating and do a comparison at the very same time. Both are situated next door to each other so they should be operating at the same level.
What I found was that the old system was operating at about 95%, which equates to exactly what Ross told me at the time, so a solar panel degrades by about 0.5% per annum on average. The first year may be slightly more – over the last nine years I have lost about 5% on my panels.
Maintenance: What to Expect
People often ask us about our maintenance cost, and I generally believe that a solar system is a low maintenance cost. Over the last nine years, the only thing I’ve replaced is a small CR1032 battery—a flat, round battery.
However, regular checks are essential to ensure all contacts are working. We recommend routine maintenance—quarterly, biannually, or at least annually—to ensure everything is in good working order. Most systems perform well for the first 3–5 years with little to no issues, but as they age (10–12 years and beyond), , that’s when they may start requiring a bit more maintenance.
Should you have questions, please do not hesitate to reach out to our team.