Wheeling
With new legislation in place, independent power producers are now able to generate power off site and wheel that power through the Eskom network. This power gets offset against one’s current bill through the prescribed wheeling framework. A wheeling power purchasing agreement allows for a larger portion of one’s energy demand to be supplied through cheaper cleaner energy.
This approach is beneficial for organizations seeking the benefits of solar without wishing to invest the upfront capital. Additionally, the operations, maintenance and performance risk of the system is covered under agreement with New Southern Energy.
How does this work?
Solar energy wheeling, also known as net metering or behind-the-meter solar, refers to the process of generating excess solar energy and sending it back to the grid for credit or storage. This is done by installing a solar system on a commercial / industrial property and connecting it to the grid.
This process is facilitated by a net metering agreement between the property owner and New Southern Energy. The net metering agreement establishes the terms and conditions of the arrangement, including the amount of energy that can be sent back to the grid and the credit rate for the excess energy. The local municipal tariffs play a role in determining some of these metrics.
Behind-the-meter solar is a cost-effective way for property owners to generate their own clean energy and reduce their reliance on the electric grid. It also helps to reduce greenhouse gas emissions and promote sustainable energy practices.
