While grid electricity costs are heading for R4/kwh and more, solar comes in at under R1.00/kWh fixed for the next 15-20 years
Tired of skyrocketing electricity costs? With grid electricity costs soon to surge past R4/kWh and massive tariff hikes on the horizon, it’s time to take control of electricity costs and supply. 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 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. With solar, you shield your income from unpredictable, soaring costs and ensure energy independence amid collapsing municipal infrastructure and frequent power cuts.
Solar power isn’t just an option – it’s existential to your livelihood, security and finances in an increasingly uncertain and costly energy market.
Your grid cost trajectory if you do nothing
Over the next three years, Eskom’s approved tariff hikes combined equate to a 25% increase.
Currently, customers paying R3000 per month for electricity will pay R800 more by 2027 for the same amount of electricity. On a current bill of R5000, you will be paying R1300 more – R6300. –
This does not even factor in that municipalities are likely to add 3-5% on top of any Eskom increases.
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.
What can I expect to save with a solar PV system?
Residential case study: Current electricity bill of R3000 (around 810kWh per month / 27kWh per day, based on current tariff of R3,70/kWh).
- Invest in 5kW Fox ESS hybrid inverter, with 10kWh of battery back-up and a 4.7kW solar array at a cost of R129 000.
- Solar PV system generates on average 24kW per day (720kW per month).
- Batteries provide 9kWh of usable back-up power to essential and night-time loads.
- Solar system takes you 90% off the grid – that’s R2700/pm that you won’t be paying on your municipal electricity account. That’s R33 000 per year, in year 1 alone, without even factoring in subsequent tariff increases.
- Your solar system fully pays for itself in just under 4 years. After this, every kWh your system generates is free electricity and an incredible investment in your grid independence and financial security.
- On our solar finance option through Nedbank MFC, over 96 months, your monthly repayments will be around R2350 per month (subject to your credit rating and rates applied). That’s less than what you are saving every month with solar.
- Even after paying for the 10% you may still draw from the grid – 80kWh at R300 – you’ll still be paying less than what you would have been paying on your council electricity account. The big advantage is that you’re now investing in an asset that will radically reduce your electricity costs, and once paid off, will provide free electricity and save you a huge amount every month, putting money back in your pocket.
- With no solar intervention, you would have spent R230k on grid-electricity costs over five years, almost double the cost of your R130k solar system, with absolutely zero return on investment or ongoing financial benefit to you.
How do we get to less than R1.00/kWh fixed for 20 years?
- Using the above example, you will generate 8600 kWh in the first year.
- At a 1% efficiency decline per annum, you will generate 80% of this – 7040 kWh in year 20.
- So the average over 20 years is 7820kWh per annum x 20 = 156 000 kW over 20 years.
- The cost of the system is R129 000 so the average cost per kWh is R0,82 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 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 home needs – and it makes a significant contribution to reducing your carbon footprint and environmental impact.