MBA University of KwaZulu-Natal, Durban 2013.There is potential to use solar energy instead of electricity as an energy efficient method of
heating water. This study investigated the costs and benefits of solar water heater
manufacture in South Africa and aimed to provide a better understanding of the industry in
order to promote a better life for all.
Local manufacturers have already recognised the costs and benefits of solar water heaters.
This study drew on the findings of international practices and applied these to the South
African context. The costs and benefits include the high price of solar water heaters, lack of
awareness of the technology, the absence of legislation, a tedious process for rebates, nonmandatory
standards, insufficient training facilities leading to a shortage of skills and the low
price of electricity.
The research methodology was qualitative in nature and the study was supported by current
relevant theory and the results of six open-ended questionnaires completed by local
manufacturers. The information gathered from the questionnaires was analysed and compared
with the theory and international current best practice.
The benefits of solar water heating can be enhanced by more government involvement in the
development of policies to promote local manufacture and educate the public on alternative
energy sources. Poor public awareness of the technology can be improved through awareness
programmes at schools and frequent broadcasts on all media.
There is a dire need for the development of cost effective financing mechanisms as the high
costs of production directly influence the price of solar water heaters. Financial incentive
models such as rebates could be used more effectively to assist low and middle-income
groups with partial funding for the purchase of a solar water heater
