Department of Economics

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An Exploration of the Effects of Solar Water Heaters on Selected Households in Thulamela Local Municipality: Challenges and Benefits
(2025-05-16) Sikhitha, Fhatuwani Robert; Nemushungwa, A.; Nkondo, L. G.
South Africa has abundant coal supplies, so electricity costs are significantly lower than in other countries, albeit the advantage of lower energy costs is slowly being eroded. The low electricity costs have l ed to the widespread use of appliances that almost exclusively utilizes electricity, including heating water through conventional electric geysers. Electric geysers account for an ything between 25% and 40% of average household s monthly electricity bi ll th is cost can be prevented through the use of Solar Water Heaters (SWH), given South Africa s high solar radiation levels. SWH has high initial costs compared with conventional electric geysers; however, they have short buyback periods which is furth er reduced whenever electricity tariffs escalate. Moreover, they have a relatively long lifespan of around twenty to twenty five years, which implies that if households can switch from conventional geysers to SWH s , they can essentially enjoy hot water for free for the remaining lifespan of the SWH s , thus ensuring significant financial savings and potential additional funds for household expenditures. Switching to SHW , potentially confers socio economic, environmental, and health benefits to households.