Lance Greyling, DA Shadow Minister of Energy, has called on Tina Joemat-Pettersson, Minister of Energy, to confirm on record that her department has plans and processes in place to allow for the smooth transition of the solar water heater rebate programme from Eskom to the Department.

In a letter to the minister Greyling expressed his concern that Eskom risks creating a major disruption in the solar water heater industry with its “woefully inadequate” notice of withdrawing from the program.

“If a new rebate programme does not start running immediately after Eskom withdraws, there will be a complete stop in installation and many companies and thousands of employees will be out of business and work,”said Greyling.

He noted that the Solar Water Heater industry should have seen massive growth over the past five years given the importance of solar water heaters in reducing energy demand on the grid. “Instead what we have witnessed is the government falling woefully short of its target of installing 1 million solar water heaters by 2014.”

According to Greyling the industry is also facing a precarious financial state due to the uncertainty given to the market by government’s constantly changing policies.

Since its inception in 2008 the rebate programme has subsidised the installation of solar water heaters in low-cost housing projects, 417 000 as at 30 September 2014. The complete system was funded by Eskom, with households getting the geyser at no cost.

Rebates range from around R5 000 and R12 000 depending on the size of the geyser and achieved energy savings of up to 50% to households.

The government’s energy savings target requires 10 000GWh to be replaced by power from renewable sources. The Department of Energy believes that 23% of this target can be achieved by solar water heating.

“This latest move by Eskom is indicative of an entity in complete disarray, looking for any and all ways to remove themselves from delivering on their mandate,” concludes Greyling.