ESKOM SOLAR WATER HEATING PROGRAM

1. ESKOM SOLAR WATER HEATING PROGRAM Eskom launched the Solar Water Heating (SWH) program in the beginning of 2008. The aim of the SWH is to assist customers in the purchasing of quality solar water heaters. For a system to be part of the program it should have obtained an SABS conformity certificate on mechanical soundness and installed according to predetermined conditions. The customer can then claim back a rebate funded by ESKOM. Countries throughout the world are increasingly using solar energy. Areas that do not have nearly as much solar radiation as South Africa, have high numbers of reliable solar water heaters in use. Countries such as Germany, Israel, Canada, the USA and even Namibia are striding ahead.

2. ESKOM SOLAR WATER HEATING PROGRAM There are three reasons for the solar water heating program: • According to energy experts, water heating in the home accounts for 30% - 50% of a household's electricity consumption. So it is easy to understand the savings potential of warming water with solar energy, and the sun's energy is free. • South Africa is by far one of the sunniest countries in the world. The annual short wave radiation is extremely high as can be seen in the illustration below. • The South African Government has set a target for renewable energy to contribute 10 000 gigawatt hours (GWh) of final energy consumption by 2013. Research completed by the Department of Minerals and Energy estimates that solar water heating could contribute up to 23% of this target. Non-renewable energy resources will play a lesser role in the future and renewable resources such as solar energy will gradually play an ever-increasing role.

3. South AfricanSolar Radiation

4. CAPACITY REQUIREMENTS • A comparison of the cumulative planned capacity additions in the short-term, according to the new building program of Eskom of 22 February 2008, and the annual capacity requirements is illustrated in the Figure below. The graph indicate that the capacity gap between the required build for a 19% reserve margin and Eskom’s latest assessment of achievable commissioning dates will continue to beyond 2016 should the demand continue to grow at 4% per annum. • It must be noted that the required capacity is not achievable due to the commissioning lead times and slip that has already occurred. The current capacity does not provide the required reserve margin and due to the long lead time to build new capacity, the reserve margin is only restored to an acceptable level by 2013. However, the Eskom build plan remains about 3000MW below the required capacity. This plan appears to be aligned with Eskom’s strategy of permanently removing 3000MW from the demand using a power conservation program.

5. CAPACITY REQUIREMENTS CONTINUE …..

6. SAFRELEC SOLAR HEATING PRODUCTS • ALL SAFRELEC PRODUCTS ARE SABS TESTED AND APPROVED • SAFRELEC Basic System • This system is ideal for converting a current hot water system into a solar heating system. This system is a split pumped system consisting of: • SAFRELEC Flat Plate Collector • 12V DC circulating pump with photovoltaic panel or; • 230V circulating pump with digital control panel • SAFRELEC Premium System • The Safrelec Premium System provides the customer with the latest Solar Water Heating technology. This Indirect Solar Heating system is filled with a Glycol solution to prevent freezing in very cold conditions. The system consists of: • SAFRELEC Flat Plate Collector • 12V DC circulating pump with photovoltaic panel or; • 230V circulating pump with digital control panel • SAFRELEC Solar Geyser

7. Safrelec Solar Heating Products • Advantages of SAFRELEC Solar Water Heating Systems: • Your existing geyser can be converted into a solar heating system • Hail and Frost resistant • High Performance Efficiency • Aesthetically pleasing and unobtrusive • 5 Year Warranty on Solar Collectors • Increase the value of your property • Save of up to 95% of your water heating costs • Easy to install and maintain • All Safrelec Products are SABS Tested and Approved