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South Africa’s National Solar Water Heater Programme, which aimed to install 5 million solar water heaters in households by 2030, has been deemed a total failure by Thabo Kekana, the Deputy Director-General at the Department of Mineral Resources and Energy (“DMRE”) for programmes and projects, due to mismanagement and waste.
The programme has incurred R325 million in fruitless and wasteful expenditure over six years, with solar geysers meant for low-income households sitting unused in storage and the cost per unit skyrocketing to about R25,000 per unit.
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The National Solar Water Heater Programme was first introduced in 2008 under Eskom, the state-owned energy utility company, and relaunched in 2010 under former president Jacob Zuma. The programme was meant to be a flagship renewable energy initiative. However, its execution faltered due to procurement and logistical failures, leading to massive financial losses.
A forensic investigation led by KPMG flagged 11 officials for alleged wrongdoing, but despite this, no disciplinary action has been taken against them, with six of the officials still employed by the department and the others having moved to other government departments or left public service.
Plans to Reboot the Programme and Outrage from MPs
DMRE has announced plans to reboot the programme, known as National Solar Water Heater Programme 2.0, set to begin in the 2027/28 financial year. This has sparked outrage among Members of Parliament (“MPs”) who criticised the department for trying to “spin a tale” and failing to hold officials accountable for the loss of hundreds of millions of rands.
The total cost of the programme has been reported to be over R1 billion, with 65% of the cost related to manufacturing and the second-biggest cost driver being storage. “What was meant to be a temporary storage solution turned into a six-year crisis, costing taxpayers hundreds of millions of rands without delivering the intended benefits to households,” Daily Maverick reported. The programme has squandered R325 million in paying for the storage of unused solar geysers.
Several MPs, including MP Nazier Paulsen, Kevin Mileham, Wayne Thring, Vusi Nkosi and Adil Nchabeleng, have expressed their outrage and disappointment over the handling of the programme, stating that nobody has been held responsible for the mess, despite hundreds of millions of rands being wasted.
The MPs have criticised the department for the lack of a proper plan for rollout, poor implementation and failure to provide a list of where the solar water heaters are being installed, with some MPs suggesting that the department is not being transparent and is covering up the truth.
The programme was intended to benefit low-income households by providing them with solar water heaters, but it has failed to deliver, with many MPs expressing concern that the failure of the programme will have a significant impact on the households that were supposed to benefit from it.
The MPs have also highlighted the importance of holding someone accountable for the failure of the programme, with some suggesting that the department’s lack of accountability is unacceptable and that due process, supply chain management and procurement processes were not followed.
The failure of the programme has also been linked to the fact that heating water for domestic use is a significant portion of household expenditure, with the household geyser taking up about 12% of the grid’s operational capacity and accounting for up to 40% of a household’s electricity bill, making the failure of the programme even more disappointing.
Acknowledgement of Failure and Calls for Accountability
On Friday, DMRE acknowledged that the National Solar Water Heater Programme is a “total failure” after squandering R325 million, with the department’s team leader, Kekana, stating that they want to start on a “clean slate.”
The programme, which was intended to benefit almost half of South Africa’s low-indigent households (those who have no means), has been plagued by corruption, with Nchabeleng describing it as a “major level of covered-up corruption” that needs to be thoroughly investigated.
The Chairperson of Parliament’s Portfolio Committee on Electricity and Energy, Nonkosi Queenie Mvana, and other members, including Moses Sipho Mbatha, have expressed frustration and disappointment with the programme, calling for an urgent oversight and site visits to investigate the project’s failures and alleged corruption.
Deputy Minister of Electricity and Energy Samantha Graham-Maré has concurred with the Committee’s sentiments, stating that the programme will not be swept under the carpet and that she will undertake site visits to understand why the programme has failed in certain areas and to ensure that the information received is accurate.
The department has not spent any money on the programme in the current financial year and plans to close off the project by the end of April, with Graham-Maré emphasising that there can be no “clean slate” until the issues surrounding the programme have been fully investigated and resolved.
The Committee has requested a detailed report on the programme, including a forensic report, and has expressed its intention to hold those responsible for the programme’s failures accountable, with Nchabeleng stating that the project has been “milked” over the years and that the Special Investigating Unit (“SIU”) should be brought in to investigate.
Read the full article published by Daily Maverick HERE.
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