Solar power success suggests tax incentives can ease water crisis
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South Africa faces a R400 billion shortfall in funding for water and sanitation infrastructure, while the annual budget allocates only R26 billion.
The author draws a parallel between the energy crisis and the water crisis, suggesting that financial incentives can stimulate private sector involvement. In 2023, tax deductions encouraged companies to invest in renewable energy, resulting in 2,600MW of new power, more than the capacity of the Koeberg nuclear power station.
Currently, privately installed rooftop solar power generates 9,400MW of electricity, almost matching the combined 9,600MW output of the Kusile and Medupi power stations, which took 17 years and over R400 billion to construct. The author proposes that similar tax incentives for private investment in water recycling, wastewater treatment, leak repair, and rainwater collection could address water shortages. They believe a shift in thinking is necessary to unlock solutions and encourage private capital to help solve the water crisis.
