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Mr Godongwana forgot the heroes of our economy, rooftop solar micro entrepreneurs


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Mr Godongwana forgot the heroes of our economy, rooftop solar micro entrepreneurs

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2nd November 2023

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Rooftop-solar-generation generates more than 20% of our needs and saves Eskom three Medupi’s of R702-billion, beats loadshedding, pollution and poverty.

Mr Godongwana could have given poverty a deadly blow if he has conceded to Cofesa’s plea to reallocate from these billions to-

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  • Zero Vat and Zero import duties on rooftop solar systems and equipment, Cancel 45% duty and tax increase on imports from China to South Africa.  
  • Boost freewheeling for solar generator-enterprises (like households, factories, schools) to trade on power grids. 
  • Boost micro grids in residential estates and townships for households to sell power to their neighbours and into the grids.
  • ‘Electricity welfare’ is now a newly identified human right like education, a ‘meaningful socioeconomic benefit’ benchmark for low-income residents instead of the present 50KW. 350KW per month will amount to an estimated R50-trillion per year. 

55% of households have to choose between electricity and food. They have monthly incomes of less than R6 000 a month and with a pre-payment metre cannot afford about R800 - nearly 15% of their monthly income - to buy R350 kWh.

Enabling households to trade in rooftop solar energy will beat poverty and pollution. Energy is the most precious commodity on earth. Cape Town’s power-purchasing from households leads this trend. It is financed by R1-trillion earmarked for green power generation by the banking sector. Like in Vietnam more households will soon sell energy to the grid and to neighbouring houses.

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Vietnam cut value-added tax

From poverty in the 1980’s Vietnam increased their GDP four times boosted by a cut in value-added tax and a decline in borrowing cost, they now aim to rank as 10th largest economy in the world by 2050. In Vietnam, in one-year rooftop-solar generates surplus energy.

Trading in energy increased the GDP of Bangladesh five times. 

Rooftop solar micro-entrepreneurs are transforming our economy as well. This empowerment tool will accelerate when more metros start buying power from rooftop-solar-entrepreneurs. This will save government an estimated R100-billion annually for enterprise development. The cost of one job created by government is calculated at R750 000 with a failure rate of 75% within the first year. 

Solar silicon prices had declined by almost half from early February 2023 and the world’s largest solar manufacturer has slashed the prices of silicon wafers by 31% bringing solar panel prizes down 21% with battery prices also decreasing proving President Xi Jinping’s goodwill. At the 2023 Brics he stated his partnership: ‘Our relationship has entered a "golden era" enjoying broad prospects and a promising future’. We implored Mr Godongwana to treat China as ‘partner’ not as ‘competitor’. As partners, we do not have to (and we cannot) beat China’s economy of scale, quality and price in the manufacturing of solar panels and equipment and some other products. 

Archbishop Tutu said, ‘Poverty is man-made’. Amen.

Written by Lawrence McCrystal and Hein van der Walt, Cofesa

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