South Africans are no strangers to challenges posed by the rising cost of living. From soaring electricity tariffs, higher food prices, increasing fuel prices, and the relentless energy crisis, households are constantly feeling the impact on their wallets.
Many have tried to survive the cost of living crisis in various ways, but it has proven difficult with the ongoing fallout of sustained load shedding. Based on the current pro-rata projection by energy analyst Pieter Jordaan, South Africa is set to experience a minimum of 2.5 blackout hours per day this year while in recent weeks we’ve seen up to 11.5 hours without power in one day.
The key takeout from Minister Enoch Godongwana’s 2024 Budget Speech was clear: The private sector and citizens now have to take matters into their own hands in finding solutions to the energy crisis, as well as ways to survive the increasing cost of living.
Investment in clean, renewable solar energy is rapidly increasing in popularity as one of the fastest ways to offset soaring costs due to the stability, sustained power, and cost-savings of solar systems.
“Given the tough economic climate that we are currently facing, the cost-saving benefits of solar are becoming more of a focus. Early adopters are already reaping the reprieve of both protection against load shedding and control over their own reliable source of power,” says Andrew Middleton, CEO and Co-founder of solar subscription service GoSolr.
“Now, as electricity prices continue to rise, we’re seeing a shift away from solar as simply a ‘load shedding solution’ and toward a holistic view of solar as an affordable and accessible means to renewable energy, which also has cost-savings benefits”.
Andrew shares a few insights into how South Africans who make the move to solar can offset the across-the-board cost of living increases:
Reduced electricity costs
One of the most significant contributors to the current cost of living pressures is the ever-increasing electricity tariffs.
“As traditional energy prices continue to rise, transitioning to solar power can provide a stable and predictable source of electricity that can be managed and monitored by the owner,” he explains.
Subscription removes barriers
While historically the initial capital outlay to install solar created a huge barrier to adoption, accessibility through rent-to-own and subscription-based models has democratised access to this renewable source of energy.
“Owning a large solar system outright could cost as much as R200 000 or more, and while it may yield long-term benefits, the immediate investment needed is high. Solar subscriptions provide an accessible path to more affordable energy without the financial hurdles of ownership. It’s a game-changer for individuals and businesses looking to reduce their carbon footprint and save on energy costs. While solar was historically seen as a luxury service, we have turned it into a service that is reliable, affordable, and puts the power – so to speak – back into the hands of South Africans,” adds Andrew.
Location, location, location
South Africa is the ideal location for harnessing solar energy. Most areas in South Africa average more than 2,500 hours of sunshine per year.
“While the country remains heavily dependent on fossil fuels, we have the potential to leverage this natural battery charger. By investing in solar panels for residential use, individuals can tap into this free and renewable resource to generate electricity. Solar power systems have become more affordable and efficient over the years, making them a viable option for those looking to reduce their dependence on the national grid,” Andrew explains.
Load shedding cuts more than just the lights
Regardless of what stage of load shedding the country is on, the reality is that these blackouts are more than just about having no electricity. For many, weathering load shedding includes increased usage of data, purchasing diesel for generators, and investment in backup power solutions like inverters and UPS’s.
“A switch to solar both removes the frustration of load shedding while also mitigating against the added costs that South Africans need to account for,” he says.
Government incentives and rebates
National and provincial governments have opened up various initiatives that have or continue to benefit those who have adopted solar power in the home and for businesses. Incentives and rebates have rewarded some, as well as newly announced initiatives like the City of Cape Town’s ‘Cash for Power’ programme that pays residents for surplus power that they will be feeding back into the city’s grid.
“Embracing solar power isn’t just about capturing sunlight; it’s about capturing a better way of living. Solar power allows citizens to take control of their energy usage and empowers South Africans to thrive when facing rising living costs,” he concludes.
Also see: How the 2024 budget speech impacts your rand’s reach
