Solar Radiation

South Africa enjoys almost the perfect climate for solar water heating. South Africa average more than 2 500 hours of sunshine per year, and average solar-radiation levels range between 4.5 and 6.5kWh/m2 in one day, compared to half that for cities like London in the Northern hemisphere.

Solar energy is the most abundant permanent energy resource on earth and it is available for use in its direct (solar radiation) and indirect (wind, biomass, hydro, ocean etc.) forms. This commentary is limited to the direct use of solar radiation, the earth’s prime energy resource.

Carbon Tax

Recognising the importance of reducing carbon emissions and foreseeing the benefits that a low carbon economy can bring, the South African government has committed to ambitious greenhouse gas emissions reductions of 34% by 2020 and 42% by 2025 against a business as usual curve. Policies, frameworks and financial instruments need to support these commitments for any hope of achieving such reductions. The purpose of a carbon tax, seen too often as a way to increase the tax base, is intended more to send the necessary price signals to change consumer behaviours and stimulate investor appetite to shift towards low carbon options. With a commitment to implement revenue recycling measures the effects on economic growth in the broader economy should be minimal.

A carbon tax penalises companies and individuals that emit more carbon. Emissions can occur from various sources although the most common is fuel combustion in transportation and electricity generation. To put this into perspective, 1kg of carbon dioxide is emitted for every kilowatt hour of electricity generated in South Africa. The net result is that becoming energy efficient and lowering energy consumption becomes increasingly important.

Using pricing signals a carbon tax is designed to create incentives for companies, businesses and individuals to change their behaviors, consumption patterns and products from being carbon intensive to low carbon alternatives. This transition to low carbon options reduces our reliance on polluting fossil fuels and ultimately reduces emissions.