Competition watchdog wants more regulation in renewables market
The body is to investigate excessive pricing and collusion after receiving consumer complaints
28 August 2024 - 19:42
by Denene Erasmus
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The Competition Commission said SA needed to establish mandatory certification of solar panel installers and product quality standards to ensure products were fit for purpose.
The commission also said it would investigate excessive pricing and collusion among competing suppliers after receiving complaints from consumers.
It said the renewable energy sector needed to be better regulated, especially with regard to the renewable energy products for households and businesses.
“We have a mandate to investigate all complaints we receive. Energy-related complaints are being prioritised. We also hope the results of our survey will create more awareness and encourage the public to bring us any complaints they have on excessive pricing and collusion in the market for renewable products for households and businesses,” said Engetelani Ndobela, an analyst at the Competition Commission.
The competition watchdog launched the results of its survey on renewable energy products in Pretoria on Wednesday.
The survey included responses from 979 households and 300 businesses from across SA. Most business respondents (70%) were microenterprises and small businesses.
As could be expected, there was a large spike in purchases of solar panels and inverters between 2022 and 2023 due to the intensity of load-shedding over that period, said Sithabiso Buthelezi, a senior analyst at the Competition Commission.
As previously reported by Business Day, a report released by residential solar company GoSolr showed that about 2,630MW of rooftop solar was installed in 2023, nearly half of the total installed capacity of 5,790MW.
During the first half of 2024, SA homes and businesses installed about 590MW of solar power, and based on this trend total installations for 2024 will be down about 50% from 2023.
The dramatic decrease in load-shedding — SA has now been free from load-shedding for five months — contributed to the lower demand for rooftop solar. However, the solar industry expects steep electricity tariff hikes by Eskom over the next three years will drive future demand for their product.
The commission’s survey further showed that just over 40% of households surveyed spent less than R20,000 on their alternative energy solution, and about 30% spent between R20,000 and R100,000.
De Wet Taljaard, a technical specialist for solar energy at the SA Photovoltaic Industry Association (Sapvia) told Business Day there was a structure through which all electrical contractors must get registered to receive certificates of compliance.
“Unfortunately, there are cases of noncompliance, and we do see cases in the solar industry where people do installation work without the necessary registration,” he said.
This became more prevalent in 2023 during the “solar boom” when households and businesses were desperate to find alternatives to Eskom’s unreliable supply.
“Out of desperation people didn’t necessarily go through all the steps that they should have to verify the credentials of installers, and unfortunately unscrupulous providers took advantage of the situation,” said Taljaard.
Sapvia is trying to address this problem with its PV GreenCard Programme. All certified PV GreenCard installation companies must be registered electrical contractors, employ a registered installation electrician or master installation electrician as well as an assessed PV GreenCard individual.
To receive certification installation companies must commit to adhere to national installation standards and regulations as well as industry best practices.
All certified PV GreenCard installation companies are listed on PV GreenCard website, which is accessible to the public.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Competition watchdog wants more regulation in renewables market
The body is to investigate excessive pricing and collusion after receiving consumer complaints
The Competition Commission said SA needed to establish mandatory certification of solar panel installers and product quality standards to ensure products were fit for purpose.
The commission also said it would investigate excessive pricing and collusion among competing suppliers after receiving complaints from consumers.
It said the renewable energy sector needed to be better regulated, especially with regard to the renewable energy products for households and businesses.
“We have a mandate to investigate all complaints we receive. Energy-related complaints are being prioritised. We also hope the results of our survey will create more awareness and encourage the public to bring us any complaints they have on excessive pricing and collusion in the market for renewable products for households and businesses,” said Engetelani Ndobela, an analyst at the Competition Commission.
The competition watchdog launched the results of its survey on renewable energy products in Pretoria on Wednesday.
The survey included responses from 979 households and 300 businesses from across SA. Most business respondents (70%) were microenterprises and small businesses.
As could be expected, there was a large spike in purchases of solar panels and inverters between 2022 and 2023 due to the intensity of load-shedding over that period, said Sithabiso Buthelezi, a senior analyst at the Competition Commission.
As previously reported by Business Day, a report released by residential solar company GoSolr showed that about 2,630MW of rooftop solar was installed in 2023, nearly half of the total installed capacity of 5,790MW.
During the first half of 2024, SA homes and businesses installed about 590MW of solar power, and based on this trend total installations for 2024 will be down about 50% from 2023.
The dramatic decrease in load-shedding — SA has now been free from load-shedding for five months — contributed to the lower demand for rooftop solar. However, the solar industry expects steep electricity tariff hikes by Eskom over the next three years will drive future demand for their product.
The commission’s survey further showed that just over 40% of households surveyed spent less than R20,000 on their alternative energy solution, and about 30% spent between R20,000 and R100,000.
De Wet Taljaard, a technical specialist for solar energy at the SA Photovoltaic Industry Association (Sapvia) told Business Day there was a structure through which all electrical contractors must get registered to receive certificates of compliance.
“Unfortunately, there are cases of noncompliance, and we do see cases in the solar industry where people do installation work without the necessary registration,” he said.
This became more prevalent in 2023 during the “solar boom” when households and businesses were desperate to find alternatives to Eskom’s unreliable supply.
“Out of desperation people didn’t necessarily go through all the steps that they should have to verify the credentials of installers, and unfortunately unscrupulous providers took advantage of the situation,” said Taljaard.
Sapvia is trying to address this problem with its PV GreenCard Programme. All certified PV GreenCard installation companies must be registered electrical contractors, employ a registered installation electrician or master installation electrician as well as an assessed PV GreenCard individual.
To receive certification installation companies must commit to adhere to national installation standards and regulations as well as industry best practices.
All certified PV GreenCard installation companies are listed on PV GreenCard website, which is accessible to the public.
erasmusd@businesslive.co.za
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