Grid-tied solar system key to energy needs

Kenyans are very creative. Memes are their newfound coping mechanism from the effects of inflation and the Covid-19 pandemic. A meme doing the rounds pokes fun at high power bills. It lists the cost of a cup of tea at a roadside cafe as Sh20, but there’s license fee, fuel levy, VAT, wages, sugar, water, etc, which brings the total amount to Sh132.

Few of us care about the Central Bank of Kenya’s publication of inflation figures. We only feel its effect when shopping or when your power token receipt is sent to you. Of key concern is the knowledge that housing, water, electricity, gas and fuel constitute the second-highest component in Kenya’s calculation of Consumer Price Index (CPI), after food. Simply put, an increase in the cost of any component in CPI will have an adverse effect on the welfare of Kenyans. 

I have on various occasions campaigned for net metering within the policy set up of (FiT) Feed-in-Tariff. The lacuna that lies between policy and implementation is wider and deeper than the Bermuda triangle. Countries with working FiT have encouraged the growth of renewable energy, but what’s surprising is that they are mostly in Europe.

The utility provider suffered Sh15.99 billion losses, mostly borne by consumers (up to 15 per cent). Net metering would be a panacea for the utility provider, as it means bottling energy needs at source. Households will be incentivised to acquire solar energy systems that can produce power over and above their energy requirement and feed the excess to the grid. 

These offsets would in an ideal situation mean that power supply would be greater than demand, an economic dynamic that pushes power cost lower. As we await a 15-member task force to assess all power purchase deals between the utility provider and other generators, with aim of lowering costs, I anticipate serious consultation with renewable energy groups.

Renewable energy

My take on the future of power generation is grid-tied solar PV solution. You may ask what is the difference between on-grid and off-grid solar power? On-grid or grid-tied means your solar is tied to your local utility’s grid. This means households will be covered if your solar system under or overproduces.

If you are producing more energy with your solar panels, the excess is sent to your grid’s power company, this allows you to build a credit that can be cashed out (off-Set) periodically, and this is not entirely news.

Strathmore University, for instance, has a net-metering arrangement that has drastically reduced its power costs. The grid-tied solution is attractive because you are 100 per cent sustaining your energy use, its cheap and climate-friendly. 

For the new economy created by the Covid-19 pandemic, work-from-home employees require 24/7 power reliability. It is evident that energy costs have shifted from office complex to homes. This is exacerbated by schools’ closure as daytime has become peak consumption period.

Grid-tied solutions can be financed by corporates through scheme and asset financing loans for employed and unemployed individuals through saccos, banks and micro-finance institutions who have line of credit suited for solar system acquisition.