Consumers contemplating solar energy

SOUTH African consumers are taking another serious look at solar energy after Eskom and the National Energy Regulator of South Africa recently announced an 18.65% tariff hike scheduled for April.

Although President Cyril Ramaphosa asked them to put it on hold following massive public outcry and criticism, there was already another 12.47% increase on the horizon for 2024.

This has been observed by Alumo Energy managing director, Snoeck Henkemans, who said a price increase of this magnitude amid ongoing stage 6 load shedding had considerably buckled consumers’ confidence in the national energy provider.

He said as grid deterioration outpaced repairs consumers looked cautiously to their shrinking wallets. The question became: can we afford to not make the change to solar?

Henkemans noted that the price of electricity had risen by 653% since the start of the energy crisis in 2007, nearly three times greater than tariff hikes experienced in the two decades that preceded it. This comes even as increases in income per capita stagnated in recent years.

Given these meteoric price hikes, consumers may soon find themselves choosing between paying their electricity bill or buying food if they do not take substantial steps or preventive measures, warns Henkemans.

“Crucially, homeowners and small businesses do not have to be forever beholden to Eskom, as alternative power generation solutions such as solar are becoming increasingly more accessible and affordable.”

He said solar had become less expensive than on-grid energy.

Currently, the average household consumes about 30kWh of electricity a day, or roughly R3 000 a month. Under the new tariff, the same household could pay around R3 560 a month.

Under the 18.65% tariff increase, solar would be less expensive than grid energy, and will help free households from ongoing load shedding issues.

“Solar energy is South Africa’s most abundant natural resource. We have the opportunity to get most households to 80% to 90% off the grid, with the option to use grid energy on days with exceptionally low sunlight availability.”

Rent-to-own options also make solar considerably more affordable, Henkemans said.