Tired of skyrocketing electricity costs? With grid electricity costs soon to surge past R4/kWh and massive tariff hikes announced by Nersa from 1 April 2025, it’s time to take control of electricity costs and supply for your business. Switch to solar power and lock in electricity rates at under R0.70/kWh for the next 20 years!
Eskom’s relentless push for tariff increases – 36.15% in 2025, 11.8% in 2026, and 9.1% in 2027 – seriously threatens your bottom line. Even with NERSA’s moderated hikes of 12.7% from 1 April 2025, followed by 5.36% and 6.19% for Eskom’s 2026/27 and 2027/28 financial years, this cumulative 25% increase over the next three years is financially devastating for businesses and households. With solar, you shield your business from unpredictable, soaring costs and ensure energy independence amid collapsing municipal infrastructure and frequent power cuts.
Act now and secure a sustainable future for your business. Solar power isn’t just an option – it’s existential to your business, giving you a competitive edge in an increasingly uncertain and costly energy market.
Your grid cost trajectory if you do nothing
Based on the confirmed increases effective 1 April 2025, your electricity cost trajectory is summarised below – this also does not factor in any increases that councils may levy over and above this. In three years, your bill will increase by a cumulative 25%. Households and businesses have faced steeply rising electricity tariffs since 2010. While inflation saw prices increase by 196% over the period, electricity tariffs rocketed by 408%. This is an average of about 15% a year.
| Current bill | 2025/26 | 2026/27 | 2027/28 | 2028/29 | 2029/30 | Total spend over 5 years |
|---|---|---|---|---|---|---|
| R 3 000,00 | R 3 381,00 | R 3 562,22 | R 3 782,72 | R 4 016,87 | R 4 265,52 | R 228 100,04 |
| R 5 000,00 | R 5 635,00 | R 5 937,04 | R 6 304,54 | R 6 694,79 | R 7 109,20 | R 380 166,73 |
| R 8 000,00 | R 9 016,00 | R 9 499,26 | R 10 087,26 | R 10 711,66 | R 11 374,72 | R 608 266,77 |
| R 10 000,00 | R 11 270,00 | R 11 874,07 | R 12 609,08 | R 13 389,58 | R 14 218,39 | R 760 333,46 |
| R 15 000,00 | R 16 905,00 | R 17 811,11 | R 12 609,08 | R 20 084,37 | R 21 327,59 | R 1 140 500,19 |
| R 18 500,00 | R 20 849,50 | R 21 967,03 | R 23 326,79 | R 25 218,15 | R 28 436,79 | R 1 406 616,90 |
| R 20 000,00 | R 22 540,00 | R 23 748,14 | R 25 218,15 | R 26 779,16 | R 28 436,79 | R 1 520 666,92 |
| R 30 000,00 | R 33 810,00 | R 35 622,22 | R 37 827,23 | R 40 168,74 | R 642 655,18 | R 2 281 000,39 |
| R 40 000,00 | R 45 080,00 | R 47 496,29 | R 50 436,61 | R 53 558,32 | R 56 873,58 | R 3 041 333,85 |
| R 50 000,00 | R 56 350,00 | R 59 370,36 | R 63 045,39 | R 66 947,89 | R 71 091,97 | R 3 801 667,31 |
What can your business save with solar?
Case Study: Transform Your Business Energy Costs with Solar!
Business Overview:
- Current Electricity Bill: R18,500/month (5000kWh @ R3.70/kWh, average 170kWh/day)
- Solar Investment: 30kW Fox ESS hybrid inverter, 40kWh battery backup & 32kW solar array – R483,000 (including VAT and installation).
The Solar Solution:
- Average Solar Generation: 160kWh/day and 4800kWh/month.
- Battery Backup: 32kWh usable for essential and nighttime loads.
- Grid Independence: 95% off the grid, saving R15,000/month based on a 25-day work month.
Financial Impact:
- System Payback Period: 2.5 years.
- Long-Term Savings: Lock in electricity costs at under R0.70/kWh for 20 years, versus spending R1.4 million on grid electricity over five years with no return.
- Monthly Rent-to-Own for Business Option: Finance over 84 months with repayments around R9,600/month with no annual escalation and fully own the system.
- Save R5,400/month even after finance repayments in year 1, with savings increasing each year in line with Eskom tariff increases.
- Tax Incentive: Leverage the Section 12B tax deduction that allows for a 125% tax deduction in respect of your solar assets, to reduce the taxable income of the business. These qualifying assets must be used for purposes of trade in the generation of electricity from renewable sources for the period from 1 March 2023 to 28 February 2025. Plus you get the input/output VAT benefit if your business is VAT-registered.
Long-Term Benefits:
- Lifetime Generation: 1,020,000 kWh over 20 years, keeping your costs at R0.67/kWh even after allowing for 2% maintenance cost per year. Your entire system and maintenance cost is R683 000 which pays for itself in just 2.2 years – versus R1.4 million that you would spend on grid electricity in just 5 years without solar.
- Sustainable Advantage: After 20 years, your solar panels still operate at 80% efficiency, ensuring continued savings.
- Environmental Impact: Reduce your carbon footprint and contribute to a greener future while securing your business’s energy independence.
How do we get to less than R0.70/kWh fixed for 20 years?
- Using the above case study, your system will generate 57 000 kWh in year 1. At a 1% efficiency decline per annum, you will generate 80% of this – 45 600kWh – in year 20.
- The average generation over 20 years is 51 000kWh per annum x 20 years = 1 020 000 kW over 20 years.
- The cost of the system is R483 000. Adding in the annual maintenance cost of 2% of the capital cost of the system is R10 000 pa x 20 years = R200 000. Total system cost including maintenance = R683 000.
- Average cost per kWh equates to R683 000 / 1 010 000 kWh = R0.67 per kWh fixed for 20 years.
- And even after 20 years, your panels will still generate at 80% of the initial efficiency.
The key benefit is that you are redirecting your grid electricity spend – a pure consumption cost – to acquiring a solar asset that will continue to generate savings and energy independence for your business many years after the finance term is settled, and you get to hedge your electricity costs for the lifespan of your system.
It’s the kind of financial and energy security that every business needs – and it makes a significant contribution to reducing your carbon footprint and environmental impact. It’s a win-win.