Abstract

In this current era of continuous power cuts and annual electricity price increases, the awareness has never been
greater to be more energy conscious and energy sustainable. As responsible citizens of South Africa,
implementing systems to be more energy efficient is a must.
This project describes in detail from a typical consumer energy load analysis to the installation of a 4 x 250W
solar panel grid-tied hybrid system. Considering the load shedding crisis in many parts of South Africa it was
decided that a full solar system kit including a back-up system for a 12 hour supply of electricity in the case of
extreme black outs. The major components of this system include, an inverter-charger, regulator and deep cycle
batteries in addition to the 4 x 250W solar panels.
The capital investment required was found to be approximately R73500.00 incl. VAT. This cost covered the cost
of all equipment and installation. Further costs involved were found to be new batteries after every 10 years,
maintenance every 5 years and an insurance premium on the installation increase every 10 years. Considering
various factors, a discounted cash flow analysis was done over a 5 year period. It was found that it is not feasible
since the installation will not pay for itself over 5 years with a net present value of R62034.20. A further analysis
over a 20 year period showed a positive net present value of R11958.37, this is due to the expected yearly
escalation rate of the electricity tariff.
A financial analysis was done in order to determine if a bank loan or personal savings will be ideal for the
payment option. It was deduced that the payment option will be determined by the monthly excess cash of a
household. A household with excess cash of approximately R8000 will benefit from a personal saving, whereas a
household with R2000 excess cash will find it more beneficial to take loan

Contents
1.

Introduction......................................................................................................................................................4

2.

Theoretical Background....................................................................................................................................5

3.

Consumer Appliance Energy Load...................................................................................................................7

4.

Equipment List and Specifications...................................................................................................................7

5.

Discounted Cash Flow......................................................................................................................................8

6.

Discussion.......................................................................................................................................................10
General Considerations.......................................................................................................................................10
Choice of appliances to include in solar power network.....................................................................................10
Solar network operation......................................................................................................................................10
Integrating the solar power network to the Distribution Board...........................................................................11
Replacement of equipment and maintenance......................................................................................................11
Pricing and quotations........................................................................................................................................11
Payment Options.................................................................................................................................................11
Discounted Cash Flow analysis..........................................................................................................................11

7.

Conclusions....................................................................................................................................................13

References.............................................................................................................................................................. 14
APPENDIX A: Schematic of proposed solar power network installation...............................................................15
APPENDIX B: Description of the Hybrid system..................................................................................................16
APPENDIX C: Prices and Quotations....................................................................................................................19
APPENDIX D: Financial Data...............................................................................................................................20
APPENDIX E: Sample Calculations......................................................................................................................21
Sizing of the Inverter..........................................................................................................................................21
Sizing of the Solar Panel Array...........................................................................................................................21
Sizing of the battery bank...................................................................................................................................21
Rating of the regulator........................................................................................................................................21
Loan Repayment.................................................................................................................................................21
Budgeting...........................................................................................................................................................22

List of Tables
Table 1: Consumer Energy Load..............................................................................................................................7
Table 2: Equipment list with specifications..............................................................................................................7
Table 3: DCF Duration analysis................................................................................................................................9
Table 4: Loan finanical data....................................................................................................................................19
Table 5: Budgeting finanical Data..........................................................................................................................19

List of Figures
Figure 1: A Basic Solar powered system (Plan My Power, n.d.)...............................................................................5
Figure 2: Projected revenue over 20 years................................................................................................................8
Figure 3: Cost of Solar vs Generator vs Eskom for 5kWh per day (Plan My Power, 2015) courtesy of Dr. Gawie
van der Merwe..........................................................................................................................................................9
Figure 4: Schematic of proposed installation..........................................................................................................14

1. Introduction
Each day the sun radiates a large amount of energy called solar energy. Solar energy is considered to be a
renewable resource since there is an unlimited supply of solar energy available (NEED, 2015). Solar energy use
dates back to the 7th century B.C where magnifying glass were used to concentrate suns rays to generate heat and
thus create fire (US Department of Solar, 2015). The more modern application of solar energy is to convert the
suns rays into electrical energy via photovoltaic panels (US Department of Solar, 2015). Solar energy could be
used in common households for everyday use, photovoltaic panels may be used to charge batteries that can be
used to power lights and small appliances when there is a power outage or even to reduce the usage of grid
supplied electricity and therefore reducing the monthly electricity bill. Implementing solar energy to a household
does not only benefit the user, but will also reduce the strain on the grid by a small amount. If many people
consider installing solar systems in their homes, it may be a possible way to combat load shedding.
The process of installation includes the design of the solar system and obtaining quotes for the most cost effective
system. The objective of this assignment is the size the installation of a 1kW array of solar panels to a residential
home, and thus evaluate the feasibility of such a project over a long term period using financial analysis tools.

2. Theoretical Background
Photovoltaic panels use power from the suns rays and converts it using semi-conductors into Direct Current (DC)
to electrical energy. This electric current travels to a regulator to charge a battery bank of deep cycle batteries.
This ensures the batteries are charged using the correct voltage. Most appliances in homes use Alternating
Current(AC) thus an inverter is needed to convert the electricity from the solar panels and battery bank into
useable AC current (Plan My Power, 2015).
What is the difference between a Back-Up, Grid-tied, Hybrid, and Off-Grid System?

Back-Up power systems are designed to provide an energy supply for the time period that the user specifics.

This supplies the user with power in the event of an ESKOM blackout.
The Grid Tie system is the most cost-effective system because it has no storage facility (battery bank). Power
is available as long as there is solar energy available to harness. The benefits of a grid-tied system is that it

has a low capital costs, shortest payback period, and a simple installation. (Ample Power, 2015)
A hybrid system is a combination of a grid-tied system and back-up system, solar panels would supply power
directly to the load while charging the batteries. At night the batteries can power a certain load. In the case of
a blackout the batteries will be able to supply power to a certain secured load. The benefits of a hybrid
system include a reduced electricity bill, expandable in case more power is needed, and an uninterrupted

power supply (Ample Power, 2015)

An off-grid systems is the same concept as a hybrid system, but with a much larger generation capacity
which is able to power a whole household continuously. Although very costly, the benefits of going off-grid
will be full green energy implementation, and peace of mind of no power outages (Ample Power, 2015)

It is important to note the difference between kilowatt hour (kWh) and kilowatt peak (kWp). Kilowatt Hours
(kWh) are the equivalent to the units on your electricity bill or the units purchased for a prepaid meter i.e. 1kWh =
1 Unit. So if you require 1000W over 5 hours, you will require a 5kWh system or 5 units. Kilowatt peak refers to
the cumulative amount of power generated. For example the kilowatt peak of 4 x 250W solar panels will be
1000kWp. The annual average of 5hrs peak sunlight is commonly used to calculate solar power, this varies
according to location therefore for Durban, KwaZulu-Natal, and 6hrs of peak sunlight was taken as realistic. This
means that a solar panel array of 1kWp will generate an average of 6kWh (or 6 units) per day. When sizing an
inverter we will need to know the kWp of the load at maximum power. In other words, we will need to know how
many watts all your equipment will add up to. So if you had 5 x 50W lights, your kWp would be 250Wp or

0.25kWp.
2

Figure 1: A Basic Solar powered system (Plan My Power, 2015)

Solar panels are classified according to their power output in Watts. The project outlined that a maximum of
1000W solar panels are to be used.
Solar regulators or charge controllers transfer energy from the solar panels to the batteries preventing over charge
of the battery bank. MPPT (Maximum Power Point Trackers) are modern solar regulators which allow panels to
be connected in series to create higher voltage and step the output down to 12V, 24V and 48V.
Inverters or Inverter-chargers are the main component of any solar system and require AC power. Inverters
convert the DC power from the battery bank and from the regulator to AC current to run appliances.
Deep cycle solar batteries are designed to charge and discharge thousands of times. Testing has shown that in
order to increase the life and performance of these batteries they should not be discharged below 50% of their
storage capacity. The Depth of Discharge (DOD) varies according to make of battery. Deep cycle batteries are
rated in Ampere hours (Ah), which basically indicators the current that can be supplied over time period (Rouse,
2015) e.g. 180Ah, the battery can supply 180 Amps for 1 hour or 90 Amps for 2 hours.

3. Consumer Appliance Energy Load

Research into the most commonly used appliances, quantity of lights and hours of usage have been carefully
tabulated in order to determine a realistic energy load of the residential home under consideration. Certain luxury
items such as DSTV , multiple TVs and computers were considered acceptable items to be included in the load
analysis as a person who would be interested in going green would certainly be able to afford these and use them
often.
Table 1: Consumer Energy Load

Applianc
es

Quanti
ty

Wattage
(W)

Total
(W)

Lights
TVs
DSTV
HiFi
Fridge
Freezer
Microwav
e
Kettle
Total

15
1
1
1
1
1

10
50
45
100
250
102

150
50
45
100
250
102

1
1

1000
1000

1000
1000
2697

Estimated
usage (hours
per day)
6
4
4
4
8
8

Total
(Wh/d)

0.25
0.25

250
250
4996

900
200
180
400
2000
816

4. Equipment List and Specifications

Table 2: Equipment list with specifications

QTY
ITEM DESCRIPTION
1
Solar Inverter-Charger
4
Deep and high cycle solar batteries
6
Battery interconnect cables
4
4

'A' grade solar panel

Single rail

MPPT
Solar panelflex wiring with protective
tubing
Bi-Pass switch

20
1

SPECIFICATION
2000W for 24 volt system
200Ah 12 volt (24 hr reserve)
24V configuration.
250W (potential yield 6000Wh)
for 250W x panel
100V input and 50A output at 24V High voltage
2 x 10M of 6mm

The sizing of each major component may be found in APPENDIX E: Sample Calculations

5. Discounted Cash Flow

Table 3: DCF analysis over 5 years

Year

0,0
73500,
0

Capital Investment
Total Revenue per year
New Batteries (10
Yearly)
Insurance
Maintenance (5 yearly)
Total Expenses
Net Revenue
Discount Factor

1,0

2,0

3,0

4,0

5,0

Income
0,0
3230,3
Expenses

3650,2

4124,7

4660,9

5266,8

0,0

1200,0

1200,0

1200,0

1200,0

0,0
73500,
0

1200,0

1200,0

1200,0

1200,0

1200,0
700,0
1900,0

2030,3

2450,2

2924,7

3460,9

3366,8

1897,4

2140,1

2387,4

2640,3

2400,5
-62034,2
-36.3

7,0

NPV
Sum of NPV
IRR (%)

73500,
0

The projected project revenue over a 20 year period

Figure 2: Projected revenue over 20 years

Table 4: DCF Duration analysis

Duration
5 years
10 years
15 years
20 years

NPV
62034,
2
48800,
8
22793,
6
11958,
4

IRR
-36,3
-11,0
3.0
8,3

Cost of Solar vs Generator vs Eskom for 5kWh per day

Generator

Off Grid Solar

Eskom

Gr

Figure 3: Cost of Solar vs Generator vs Eskom for 5kWh per day (Plan My Power, 2015) courtesy of Dr. Gawie van der Merwe.

6. Discussion
General Considerations
When people invest in a solar power system they tend to decrease their electrical usage and become more energy
conscious. The following implementations should be made prior to the installation of a solar system. Halogen
lights should be replaced with LED lights which use up to 90% less electricity. Solar lights are inexpensive,
require basic installation and are ideal to replace all outdoor lights. Geysers are the most energy hungry appliances
in all households, geyser timers, blankets and piping insulation would ensure minimum heat loss and therefore,
that this unit uses as little energy as possible on a daily basis. Solar water heating kits should be considered to
drastically reduce your electricity bills. Although the initial investment is relatively high the payback period will
be short due to removal of one of the most energy intensive units. A major incentive of installing a solar hybrid
system is that banks and property market acknowledge the capital investment and adds significant value to the
property. This value appreciates over time. It can also be expanded at will in future if you wish to take more
appliances of the grid, at no loss. Meaning new equipment can be installed together with existing equipment.
Batteries are an optional extra, but will be a benefit because it will be a stable power supply rather than a
fluctuating supply direct from the panel. Batteries will also be a backup when there are power outages.

Choice of appliances to include in solar power network

Since only a few appliances could be run using the solar hybrid system, some considerations had to be made in
order to determine which appliances will be suitable. Firstly 15 energy saving lights were chosen, this will be
beneficial during a blackout. Not all lights were taken to be run on solar power since, it is assumed at any one
time, not all the lights will be on simultaneously, which should be the case in any energy conscious household.
Basic entertainment such as 1 TV and HiFi system with a DSTV decoder, it would be wasteful to run multiple
TVs during a blackout. A fridge and freezer were chosen because in the case of an extended blackout for example
a day or two, food preservation will be difficult. Items which are used on a daily basis but are only run for short
periods of time are able to run of the solar energy without drawing too much power. For example a kettle and
microwave are ideal for this, these items are used couple times a day and will be useful in a blackout. More
appliances can be used as long as the total power per day required is less than the 6000kWp of the panels
generation capacity per day

Solar network operation

After the solar panel array, there is a grid-tied inverter. This inverter requires power to be present before it can
supply power from the solar panels to the house. This, by design, means if there is a blackout, there will be no
power supplied to the house (even during the day from power generated by the solar panels). In order to prevent
this from happening, an inverter-charger and battery system was installed ahead of the grid-tied inverter, this will
immediately activate when there is a power outage. Thus certain appliances will be powered by the batteries, this
is called the secured load. In order to prevent the batteries feeding power back into the grid and attempting to
power neighbouring houses, an Automatic Transfer Switch (ATS) or bi-pass switch is installed between the main

distribution board and the grid. This will also protect any linemen which are working on nearby poles in the case
of a fault. A detailed operation can be found in APPENDIX B: Description of the Hybrid system

Integrating the solar power network to the Distribution Board

This is a simple installation procedure. The breakers for the selected plugs and lights chosen to be covered by the
system will be isolated on the DB board, this can be seen in APPENDIX A: Schematic of proposed solar power
network installation (Figure 4). There is also the option of installing a dedicated DB board but this will be more
costly.

Replacement of equipment and maintenance

After 10 years the batteries would be to be replaced , this has been accounted for in the DCF analysis, although in
10 years time the energy storage mechanism will be more efficient and cheaper. The lifetime of panels today is
around 30 years. The solar panel array will be situated on the roof and are thus exposed to the elements. A 5 yearly
maintenance cost of R700 has been included as well as an insurance premium of R100 per month (reference)
which is extremely necessary for such an expensive installation.

Pricing and quotations

The individual prices of solar panels and the necessary components required to generate, supply and store
electricity were researched via their online product price lists. Thereafter the two most comprehensive suppliers
Plan My Power and Sustainable.co.za. Both quotes are shown in APPENDIX C: Prices and Quotations. The
following details where assumed to include costs of installation: the location of the solar panel array, the type of
roof and materials (tiles), the distance from the panels to the charge controller, the distance from the charge
controller and battery bank and the distance between the battery bank and inverter. The latter four items were all
assumed to be located in the garage for easy access.

Payment Options
Plan My Power has the payment terms of a 70% deposit and the balance upon satisfactory installation. Most
people would capitalize 70% of the total amount and amortize the balance over a period of 5 to 10 years, perhaps
20 years on large installations. Other possibilities of payment options would be taking a loan, and repaying the
bank over a set period of time, also when planning a high cost expenditure forward planning in terms of budget
and savings may prove to be the cheaper option. This can be seen in Table 5 and Table 6 in APPENDIX D:
Financial Data, where an analysis of a bank loan compared to a saving plan is done. It will be dependent of the
availability of excess cash each month. For example a household with approximately R2000 excess cash each
month can either take a loan over a minimum of 4 years with a monthly cost of approximately R1900 per month,
or in terms of saving it will take approximately 33 months to save up the capital required. The loan in this case
would be preferable because the installation will happen sooner and the panel will reduce monthly costs of
electricity.
On the other hand, a household having an excess of R8000 a month can save the required capital within 9 months
(R74447.25), whereas a loan over 12 months will have a higher total repayment (R77336.85 over 12 months).
9

Discounted Cash Flow analysis

The price of electricity for residential homes of category scale 4 has been found to be R1.475/kWh (ESKOM,
2015). This price has been increased accordingly by 12.69 % per annum in the discounted cash flow analysis as
per ESKOMs published documentation (ESKOM, 2015). A yearly average, which takes into consideration days
with extra sunlight and overcast days, of 6kWh/day was used and assuming 365 days of operation. The power
generated over a yearly period is expected to 2190kWh. This power generated is used as the income revenue as it
is the amount saved in terms of the electricity costs. Expenses include new batteries every 10 years (which will
not affect a 5 year DCF analysis), the cost of batteries were assumed to be halved every 10 years due to
enhancement in technology, maintenance every 5 years so ensure the panels are secure and fully operational,
insurance costs are included on a yearly basis and is expected to increase every 10 years by 15%.
It was found that over a 5 year period the net present value (NPV), using a discount factor of 7%, was
R62034.20 with an internal rate of return (IRR) of -36.3%. This may be attainable in countries where the inflation
rate is negative and the value of money increases over time, currencies of first world counties such as the US$,
will have a negative inflation as the dollar gets stronger on the international market.
By doing a DCF analysis over 10, 15 and 20 years, it was found that the NPV was R48800.80, -R22793.60 and
R11958.40, respectively, with an IRR of -11.0%, 3.0% and 8.3%, respectively. Only after a period 20 years there
will be a positive NPV and hence the system will be earning money after paying for itself. From Figure 2, it can
be seen that the breakeven point lies just after 18 years and the system will be fully paid off. Figure 3 provided
from Dr. Gawie van der merwe depicts the cumulative cost/ savings over a period of 20 years, the graph strongly
agrees with the results of the financial analysis shown in Figure 2

10

7. Conclusions

A 1kW solar hybrid system will not pay for itself over a 5 year period
The NPV after 5 years was found to be R62034.20 with an IRR of -36.3%
The system will only pay for itself after 18 years
After 20 years the NPV will be R11958.40 with an IRR of 8.3%
Financing the project will depend on the monthly excess cash available.
o Personal saving will be more suitable if the excess cash per month is around R8000
o A loan will be suitable if the excess cash per month is R2000
In the long run, a project of this nature will be feasible.

11

References
Aladdin Solar, LLC, 2008. Diagram and Description of a Typical Aladdin Solar Grid-Tie PV System with Battery
Backup. [Online]
Available at: http://www.aladdinsolar.com/gridtiebatterybackup.html
[Accessed 21 September 2015].
City of Capetown, 2015. Energy in your home. [Online]
Available at:
https://www.capetown.gov.za/en/EnvironmentalResourceManagement/EnergyEfficiency/Documents/SLH
%20energy%20audit%20pp%2044-47.pdf
[Accessed 8 August 2015].
ESKOM, 2015. Latest news on the 2015/16 tariff submission. [Online]
Available at: http://www.eskom.co.za/CustomerCare/TariffsAndCharges/WhatsNew/Pages/2015-16-Tariffsubmission.aspx
[Accessed 8 August 2015].
NA, L., 2015. Going Solar. [Online]
Available at: http://goingsolar.co.za/
[Accessed 8 August 2015].
Plan My Power, 2015. Solar Systems Explained. [Online]
Available at: http://www.solarpanel.co.za/solar-systems-cost-explained.html
[Accessed 20 September 2015].
Plan My Power, n.d. Photovoltaic Solar system calculator. [Online]
Available at: http://www.solarpanel.co.za/solar-power-calculator.html
[Accessed 23 September 2015].
Prelec Power Solutions, 2015. Home Appliance Wattage Consumption Guidelines. [Online]
Available at: http://www.erakiprelec.co.za/wattage-consumption.html
[Accessed 8 August 2015].
Sustainable.co.za, 2015. Solar storage batteries. [Online]
Available at: //www.sustainable.co.za/solar-power/solar-storage-batteries.html
[Accessed 23 September 2015].
Wholesale Solar, 2015. How Much Power Do Your Appliances Use?. [Online]
Available at: http://www.wholesalesolar.com/solar-information/how-to-save-energy/power-table
[Accessed 23 September 2015].

12

APPENDIX A: Schematic of proposed solar power network

installation

13

Figure 4: Schematic of proposed installation

14

ESKOM

AC

DC

PV PANEL 1

DC

PV PANEL 2

Distribution
Board
(2 Zones)

DC

PV PANEL 3

DC

PV PANEL 4

IN

Battery Bank

GND

OUT

REGULATOR
DC

InverterCharger

AC

INVERTER

Load 2
(Unsecured Load)

Load 1
(Secured Load)

APPENDIX B: Description of the Hybrid system

1.

During the day hours + Power On

2.

During day hours + Power Cut

During the day the on-grid inverter feeds the grid with solar

The-on grid inverter stops. The solar current cannot be used and is

current. The grid supplies all the users.

lost

3.

During day hours +Power Cut

Install an off-grid inverter-charger

4.

During the day +power on

The on-grid inverter feeds the grid with solar current. The grid
supplies the unsecured and the secured loads through the bypass of
the off-grid inverter. The off-grid inverter charges and maintains
the battery from the grid.

15

5. During the day hours +power cut

6. During the day hours +power cut

When the grid shuts down, the secured loads are

When the batteries are not fully charged the off-grid

supplied by the battery through the off-grid inverter-

inverter-charger charges the batteries with the solar

charger.

current from the on-grid inverter. The on-grid inverter

supplies the secured loads.

7. During the day hours +power cut

8. During the day hours +power cut

When the battery is full, the on-grid inverter is

If the heavy loads have to be supplied, the battery

disconnected and the secured loads are supplied by the

current is added to supplement the solar current top

battery through the off-grid inverter-charger

supply the heavy loads.

16

9. During night hours + Power cut

10. During night hours +Power on

The off-grid inverter-charger supplies the secured

The grid supplies the unsecured loads and the secured

loads from battery

loads through the by-pass pf the off-grid invertercharger. The off-grid inverter-charger charges and
maintains the battery from the grid.

17

APPENDIX C: Prices and Quotations

1. Plan My Power via email

2. Sustainable.co.za Quote via email

Qty Item
4
250W PV Modules
1
40 Amp MPPT Charge Controller
4
200Ah 12V Batteries (24hr backup
1
2kW 48V Bi-Directional Inverter/ Charger
Total (Excluding installation and VAT)

Unit Cost (R)

2406.14

Total(R)
9624.56

4 806.14
3 914.91
13 682.46

4 806.14
15 659.64
13 682.46
43 772.80

The cost of installation was estimated at R 3500 per day, and a system of this size would not take more than a day
to install.
18

APPENDIX D: Financial Data

Table 5: Loan financial data

LOAN
Loan Amount [R]

Standard Bank
NEDBANK
FNB

73500
Rate
(%)
9,5
9,5
9,5
1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

12,0

24,0
7,9E-03

36,0

48,0

60,0

72,0

84,0

96,0

108,0

3374,7

2354,4

1846,6

1543,6

Total Payment

6444,7
77336,
9

80993,2

84759,2

88634,4

92618,2

Total Interest Paid

3836,9

7493,2

11259,2

15134,4

19118,2

1343,
2
96709
,7
23209
,7

1201,3
10090
7,7
27407,
7

1096,0
10521
1,2
31711,
2

1015,0
10961
8,7
36118,
7

Payback Period
Interest Factor
Loan repayments

10,0 Years
Month
120,0 s

951,1
11412
8,6
40628,
6

Table 6: Budgeting financial Data

BUDGETING (SAVING EACH MONTH)

Combined household monthly
salary
Percentage of income saved
(%)
Saved Amount
Interest Rate (%pa monthly)
Interest Factor
i
Period
1,0
Monthly total
8000,0

80000,0
10,0
8000,0
10,0
8,3E-03
2,0
16066,7

3,0
24200,6

4,0
32402,2

5,0
40672,2

6,0
49011,2

7,0
57419,6

8,0
65898,1

9,0
74447,3
19

Percentage of income saved

(%)
Saved Amount
Period
4,0
Monthly total
8100,6

2,5
2000,0
8,0
16474,5

12,0
25131,1

16,0
34079,9

20,0
43330,8

24,0
52893,8

28,0
62779,7

32,0
72999,2

36,0
83563,6

20

APPENDIX E: Sample Calculations

Sizing of the Inverter
4 x 250W solar panels were chosen to make up the required 1kW

Sizing of the Solar Panel Array

A panel to inverter ratio of 1:2 in generally used, to avoid over sizing and under sizing.
Assuming the Kettle and Microwave wont be used simultaneously for 15 minutes each day the peak load on the
system will be 1697W (2697W -1000W). The inverter wattage must always be greater than that of the load
wattage.
Therefore a 2000W inverter will be the most suitable in this scenario.

Sizing of the battery bank

2kW 24V Inverter, battery voltage must be the same as the inverter voltage to avoid losses. Add

22000 W
=83.33 A
24 V
Round up to 90A and multiply by 2 to get 180A to account for 50% depth of charge. This means 4 batteries of
180A will be able to power the 2kW inverter for required time and allow a 50% discharge. 200A batteries were
chosen to add a slight extra reserve and cost approximately the same as 180A batteries.

Rating of the regulator

1kW 24W panels

1000 W
=41.67 A
24 V
Rounding up to 42A. The minimum regulator required will be 42A. A 45A or 50A were considered.
A 50A regulator was chosen as a 45A is too close to the minimum and wearing over time may decrease its
efficiency.

Loan Repayment
Monthly Installment (MI )=L x

i
n
1( 1+i )

For 12 months:

9.5
(
1200 )
MI=73500 x
9.5
1( 1+(
1200 ) )
Total Repayment:
Total Interest paid:

12

=R 6444.70

R 6447.70 x 12=R 77336.90

R 77336.90R 73500.00=R 3836.90

21

Budgeting

( 1+i )n1
FV = A x
i

For a saving of R8000 each month

FV =8000 x

Total paid:

( ( ))
1+

10
1200

10
1200

=R 74447.30

R 8000 x 9=R 72000

Interest Earned:

R 74447.30R 72000=R 2447.30

22