Eskom plans to reduce power consumption by 3 000MW by 2012 and by 8 000MW (10%) by 2025. Solar water heaters are key to this drive and this effect the utility has budgeted R2-billion for their installation in business and homes.

However, Eskom’s general manager for investment strategy Andrew Etzinger has warned that limited capacity in the industry will result in slow progress initially – while the project will yield massive results in the long term, there will have to be a gradual build up to achieve this

Eskom, which has invited applications from the commercial and industrial sector, could increase the allocation if the project outperformed expectations. Suitable projects have become attractive to investors due to the economics of heating water using the sun and environmental benefits.

The utility will fund the training of 1 000 people to install water heaters and is to actively market South Africa as an investment destination for the manufacture of soalr water heating facilities.