Grid-tied renewable energy solutions for the residential customers in Midrand, Gauteng, South Africa

Abstract

South Africa is experiencing electricity shortage crisis that is causing loadshedding. The electricity shortage crisis has been going on for almost fourteen years without a successful solution. Loadshedding has become a common occurrence and it is moving from bad to worse. The electricity crisis is caused by various factors. The slow and delayed implementation of energy policy by the government. The overdue new build programme that has been running for nearly fifteen years that included the recommission of previously mothballed coal-fired power stations such as Camden, Grootvlei and Komati and building of new power stations Medupi, Kusile and Ingula, and the aging and poorly maintained Eskom power stations.

This business venture proposes a grid-tied residential renewable energy system (RRES) to address the electricity shortage crisis for residential customers in Midrand, Gauteng, South Africa. The grid-tied residential renewable energy system is an innovative renewable energy power system that will generate electricity for the residential customers and is fused with fourth industrial technologies to create great customer experience. Internet of things technology will be used to monitor and control all the appliances, entertainment systems, lighting and security system remotely in the homes of the customers. Artificial intelligence technology will be used to automate data analysis and visualisation for the customer generation and consumption data for their homes. RRES aims to disrupt the traditional way of supplying electricity and avoid loadshedding for residential customer.

The business venture research aims to quantify the demand for RRES to determine the business venture viability. It seeks to understand and identify determinants that motivate or hinder individuals from purchasing and installing the RRES. Given that there has been low adoption rate of renewable energy systems in South Africa. The outcome from the study will inform the development of business venture, on how to address the low adoption rate of renewable energy systems by residential customers and create a business venture that is aligned to the customer’s demand and needs. Furthermore, it targets to develop a business venture that would survive for long and launch efficiently to the market.

In order to determine the viability of the business opportunity and gain insights on key drivers and barriers that influence the purchasing and installing of RRES, a cross-sectional online survey was conducted involving 321 respondents from Midrand. The survey questions were based on the persuasion attributes of the Roger’s theory of innovation diffusion. The survey showed that there is a huge demand in Midrand with 85% of participants interested in purchasing and installing RRES. Financial projections analysis also showed that the business venture is viable, as the company will be profitable and has a positive net present value (NPV)