The increase will take effect on April 1, 2023, with another 12.74% increase set to take place on April 1, 2024.

Despite the amendment, Eskom’s total revenue remains roughly the same, but they needed the increase due to factors such as depreciation, increased primary energy costs, and increased cost to procure electricity from independent power producers.

Nersa raised concerns over Eskom’s high usage of emergency generating capacity and declining energy availability factor at its coal power stations, which has a direct relation with the load shedding happening across the country. The decision was made after balancing all these factors.

This increase in electricity tariffs makes alternative forms of energy such as solar power even more attractive to consumers and businesses as a way to offset the rising costs of electricity from Eskom.

Solar power systems now have the dual benefit of reducing costs and also serving as a backup or uninterrupted power supply (UPS) during load shedding. They are normally configured to power the lights, plugs, WiFi, TV, fridge and alarm.

A 5kW solar PV system for an average sized household costs about R135 000 and has a lifespan of 20 to 30 years. See does solar save you money for more details. Financing for these systems is also becoming more readily available. One can choose to get a personal loan from a bank or have the system financed by the solar service provider directly.

The solar industry in South Africa has been growing by about 8% per annum (Rooftop Solar Market Growth Trends) and with this extra pressure on consumers it is likely that it will grow even faster in the near future. There are already an estimated 346 000 households with solar energy systems installed (1734.4 MW). However this is just 1.93% of the 17.95 million households in the country.

If the trajectory of other countries such as Australia is anything to go by, SA could be looking at a 230% increase in households with solar installed over the next 4 years. South Africa would however still be far behind Australia, which has solar on 32% of its households.

In any case, the outlook for solar in SA is very bright. The approval of an 18.65% electricity tariff increase is likely to have a significant impact on the economy and daily lives of people. With an additional 12.74% increase set to take place in the future, the cost of electricity is expected to be even more expensive for consumers and businesses.

The government, private sector and consumers should explore ways to increase the adoption of solar energy to help mitigate the impact of rising electricity prices. With a concerted effort, solar energy can play a vital role in providing a sustainable energy future for South Africa.

1. Avoid Loadshedding

As South Africans, we all know what it is like to deal with loadshedding, the rolling blackouts that our country experiences. By switching to solar with batteries, you are lowering the impact that loadshedding has on yourself, anyone else on your solar property and even the whole country as your demand on the grid will be reduced. Having this additional energy source means less frustration and less mental energy spent on planning your life around loadshedding. 

2. Save Money 

Eskom charges between R1.82 and R3.10 per unit (kWh) of electricity. The average cost per unit from a solar rooftop system in South Africa is now R1.36. This is calculated over the whole 20+ year lifetime of the system and does not include battery storage. A system with a battery will cost more but the price will be locked in while Eskom’s prices will continue to rise every year. Here’s a solar savings example. 

 3. Eliminate Financial Losses of Loadshedding 

Whether you work from home or at an office, having a steady supply of electricity allows you to stay productive all day long. This is also very important to businesses that have machinery that needs to run continuously. 

4. Reduce your Carbon Emissions 

Solar systems have a net positive impact on the environment because they don’t release carbon or any other greenhouse gasses when producing electricity. While the manufacturing process is not entirely clean the carbon footprint per kWh of electricity produced is still much better than the average. About 0.93kg of carbon emissions are avoided per kWh of electricity produced by solar panels in South Africa. 

5. Increase the Value of your Property 

Installing solar can increase the value of your home. The average increase in house prices after installing a solar system is 3% to 4%, however there are some factors to consider as each property is unique. This increase is normally about the same as the cost of installing the solar system. 

6. Simple and Flexible Installation 

Solar panel installation is simple, with the solar installer of your choice the solar panels can be installed anywhere on your property that gets enough sun. This is normally a north facing roof without any tall buildings or trees nearby. Solar systems are also quite flexible as they have the potential to be expanded at any given time by simply adding more panels. 

7. Electricity in Remote Areas 

Solar systems can also be used for electricity in remote areas or places that are difficult to connect to the electricity grid. These are called off-grid systems and are actually a bit cheaper than grid-tied systems because they don’t require an inverter capable of handling the connection to the grid. 

8. Low Maintenance 

Although solar systems have a large initial cost, there is little, or no maintenance needed on the system once installed. Although in dusty areas they may need to be cleaned from time to time. It is very important to get a well-designed system with high quality parts and have it installed by someone who knows what they are doing. If the system is not built out of high-quality compatible parts there is a risk that some parts might be underutilized or overloaded and therefore produce less electricity or not last as long as they should. 

9. Sense of Abundance 

This one is somewhat unexpected but some people report that they feel a sense of abundance after getting a solar system. Saying things like “I’ve stopped worrying about electricity use, both economically and ethically. In essence, I went from a feeling of scarcity to a sense of abundance.” 

While there is tentativeness towards going solar because of the previous misconceptions, going solar has many benefits and in our country and economy today it could really be the next best investment for you. Solar is now available and affordable to everyone and should be encouraged in today’s society.