Need help with getting start in solar

In this regard, though I am a bit more permissive perhaps in my thinking, I too think the big issue with the Voltronic (why I an never recommend it to someone who is severely budget-strapped, which is the main selling point of these units), is that they have no paperwork at all. They only have a CE mark (the self-certified compliance mark, which has been jokingly called the “china export” mark since they all have it).

I’m going pretty much by the letter of NRS097 here, which if I recall, specifically delegates the compliance of a UPS used as an standby SSEG to SANS-10142.

The sticking point with these inverters have always been whether the internal transfer switch is “suitably interlocking”. For such standby units, the code requires that it be impossible to have both the grid and the generator connected. The generator (aka inverter) should only power up if the grid has been suitably locked out (this is if my memory on the topic serves).

One way to do that is to make the interlock physical. For example, two contactors with a physical interlock between them, which is something you can buy as a kit for many brands: For making star/delta starters (if the interlock fails you will create a massive short across all three phases).

The Voltronic, to my knowledge, doesn’t do a physical interlock. The relays are individual relays, which can in theory get stuck in a manner that leaves both sides connected.

Now make no mistake, I was explaining yesterday to @JacoDeJongh that the Multi also has individual relays, in fact it need it to be that way in order to do the tests it does (TN bonding, etc). But the Multi is tested and certified for that reason.

So for literally a decade now, that’s what some of us have been saying. Someone will have to send a model to a testing house, such as Bureau Veritas, or TÜV Rheinland, to have it certified. Somehow it never happens.

From the sound of things, the DA is now forcing the JHB people to also register their solar systems because it seems like the existing regulations were never policed… This will cause a lot of unhappiness to those with non-compliant inverters or installations…

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It’s for this very reason that I based my purchase on the CoCT approved inverter list, even though I’m in JHB. I figured it’s only a question of time when JHB would wise up.

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This change by DA is probably a good thing, as it will may lead to some existing small systems electing to feed the grid - seems a complete waste of excess Solar electricity.

Although my system is compliant, I was discouraged from applying to feed in as CoJ.

  1. CoJ don’t have a simple, online, quick process to process applications.
  2. CoJ don’t have a single place where you can get all the information needed.
    Google struggled to find the times for Peak/Standard/Off Peak for “Domestic TOU 1 Ø”. Found a link on myBB.
  3. Not financially viable - there’s the small matter of R825.32 (inc VAT) Service+Capacity Charge that we have to pay for the privilege of selling electricity at a discounted rate.
  4. SARS will want UPTO 45% of any Solar income

I sized my system for self consumption.
If I was going to sell, I would have added another 12 panels and an additional battery or two to load shift.

My quick calculations seem to indicate that it’s not financially viable and I would end up paying in ~R300 to supply CoJ.

I’m looking for creative ways to use the excess electricity that I have in the afternoon - considering hydrogen electrolysis or clean water from air humidity or crypto mining - etc.

If ZA/CoJ were serious about this they would provide rebate incentives like the very successful Solar Homes program in Australia and similar programs in EU, US, etc.

Seems to me that ZA/CoJ don’t want cheap electricity.
You’re welcome to try and convince me otherwise in this thread.

EDIT: Added UPTO SARS rate

Nice income you have there… :stuck_out_tongue:

(No worries, I think most people with solar systems on their roof must be around this bracket, if not even higher).

Should have said that SARS want’s UP TO 45% of any sales.
45% is the SARS marginal rate :slight_smile:
Pity I don’t fall in that bracket :frowning:
|337,801 – 467,500|+31% of taxable income above 337,800|
|467,501 – 613,600|+36% of taxable income above 467,500|
|613,601 – 782,200|+39% of taxable income above 613,600|
|782,201 – 1,656,600|+41% of taxable income above 782,200|
|1,656,601 and above|+45% of taxable income above 1,656,600|

I more in the 31%-41% bracket which is still a substantial percentage.

The issue is that SARS will want tax on any solar revenue.
I suspect there is no SARS framework to claim depreciation on equipment by private individuals.

For a business adding solar you can claim your capital expenditure back from SARS in that first year.
But not for indiviuals.

I’m actually not sure they will, since you will never get cash out, due to being required to be a net consumer. If the city sends you a cheque, then sure, but otherwise I don’t think so.

And then, anything you purchase which helps you generate income is deductible, so your solar installation would be deductible from your income tax, but the calcs would get quite difficult. I can imagine they would want to see how many kWh are fed in as opposed to consumed on-site, stored, etc.

It would be easier if you had a home office – standard HO rules would apply i.t.o. eligibility, claimable percentage and so-on. You have to follow the same rules as businesses, so 3y for computers, 4-5 for networking, typically the straight-line method. Not sure what the solar period would be, but probably a long time since the equipment lasts so long. Batteries will have a faster write-off period, but I’m unsure of specifics.

And you are going to be audited every year, ask me how I know. :slight_smile:

The admin overhead will probably mean it’s really not worth it, but if you’re already keeping by the HO rules, adding solar is quite easy. Just remember to make sure the kids don’t play in the office over the weekend (yes, really).

Edit: As per @Louisvdw’s comment, without a home office, individuals can’t claim things that save money, but they can claim things that generate income. But that means letting SARS into your entire life. Even if everything is above board, the admin is massive. (And the solar won’t generate income unless the city allows you to be a net producer.)

For a business there full depreciation in the first year. I’m not sure if that will work for home office as well and as Marius mentions you WILL get audited for home office claims.

Here is the article about the business tax breaks from a few years ago

From 1 January 2016, a little-known amendment to Section 12B of the Income Tax Act (Act 58 of 1996) allows for depreciation in the year of commissioning of the full (100%) cost of a grid-tied solar PV system of less than 1 MW used for electricity generation by a business in the course of its operations.

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Which is why I am simply not doing it. By far the simplest solution is to say “here, I get a salary, here is your PAYE, gimme back my medical aid money… okay bye, until next year!”. Worth the extra tax you pay in my opinion.

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I am the same. There’s all sorts of knock on impacts of claiming a home office, including when you sell the house. Basically, I work for an audit firm that also does tax consulting (I do not have experience in accounting or tax) and none of the advice we got when we all started to work from home recommended claiming for a home office.

Yes, the tax is structured to give you some relief when you have a lot of legitimate HO expenses, not as a freebie for those “smart enough”.