06 Oct 2025
Rising energy costs are not just a line item – they are a strategic risk
Why South African businesses must rethink their energy future and how solar rentals offer a smarter way forward.
South African businesses in the commercial and industrial (C&I) sectors are navigating an increasingly volatile energy environment. With the latest NERSA-approved tariff hikes implemented by Eskom and mirrored by municipalities from 1 July 2025, electricity is no longer just a cost on the P&L. It has become a strategic risk demanding boardroom-level attention.
To illustrate the scale of the challenge, the table below shows the compounded effect of Eskom-approved tariff increases over time:
| Year (from April) | Annual increase X | Compounded % vs 2018 | Compounded % vs 2025 |
| 2018/19 | 5.23% | 5.23% | |
| 2019/20 | 13.87% | 19.83% | |
| 2020/21 | 8.76% | 30.32% | |
| 2021/22 | 15.06% | 49.95% | |
| 2022/23 | 18.65% | 77.91% | |
| 2023/24 | 18.65% | 111.09% | |
| 2024/25 | 12.74% | 137.99% | |
| 2025/26 | 12.74% | 168.31% | 12.74% |
| 2026/27 | 8.76% | 191.81% | 22.62% |
| 2027/28 | 8.83% | 217.58% | 33.44% |
| CAGR | 12.25% | 10.09% |
Key insights
120%
193%
33%
Electricity costs have outpaced inflation for more than a decade, eroding margins, competitiveness, and growth. Businesses that fail to act will continue to absorb these pressures. Electricity prices will continue rising, and grid stability will remain uncertain. Every month of delay compounds costs and forgoes savings.
Through flexible rental solutions, supported by Investec, businesses can take immediate action. Solar rental models allow business to achieve savings from the first month, with zero upfront capital and no operational disruption.
Solar is no longer a green dream – it is a business imperative
Renewable energy is no longer just a CSR initiative. It has become a cornerstone of operational resilience and financial discipline.
Installing grid-tied solar reduces reliance on expensive grid supply during peak hours, while battery storage (BESS) enhances savings through arbitrage, charging when electricity is cheapest and discharging when tariffs peak.
The real barrier isn’t the technology. It’s capital. That’s where ReCharge steps in, not as a financier, but as a strategic enabler of long-term energy security.
“In today’s operating climate, energy is no longer just a utility cost - it is a board-level discussion,” says Lisa Spain Fine, Chief Commercial Officer at ReCharge. “We enable businesses to act decisively: cutting costs, preserving flexibility, and accelerating sustainability goals without upfront investment.”
Solving the capex challenge with smarter financing
The biggest driver of solar adoption is cost savings, but upfront capex often makes it unattainable. ReCharge’s rental model removes this barrier, eliminating the need for upfront spend, asset ownership, or long-term lock-in, while delivering immediate savings and lasting value.
Through Investec-financed Rent-to-Own structures, clients can unlock the value of solar while maintaining liquidity and protecting core capital allocation.
We offer two structures that are flexible to suit our clients’ needs:
5-Plus-5 Year Rental: A 10-year rental in the client’s hands, with up to a 50% rent reduction from year 6. Ownership of the system transfers after 10 years, for a nominal payment of one more month’s rent.
5-Year Rent-To-Own: A 5-year rental with a purchase option at term-end. Clients can either exercise the purchase or re-rentalise the balance over a further period.
We also offer sale-and-rent-back solutions for businesses that already own solar but want to unlock capital for reinvestment or liquidity.
Energy strategy is now a core business function
Energy is no longer a line management task; it’s a core strategic discipline. Solar rental is about more than technology; it’s about smarter capital allocation. By renting instead of owning, businesses preserve liquidity for higher-return investments like growth, innovation and expansion.
Adaptability is also essential in an environment defined by tariff volatility, load-shedding risk, and rapid innovation. Rental models can scale as energy needs evolve, integrate newer technologies, and add batteries or hybrid systems over time.
Simplifying complexity in a fragmented market
For many businesses, investing in solar can seem complex. Concerns about the quality of the installation, the reliability of ongoing maintenance, and whether the system will perform as expected often hold businesses back.
ReCharge removes this complexity by working with accredited, vetted installers and EPCs to ensure every installation meets the highest technical standards. Partners manage maintenance, monitoring, and optimisation, freeing businesses to focus on core operations.
Powering a new era of business resilience
Investec and ReCharge are helping South African businesses secure affordable, predictable, and sustainable energy.
Whether you’re planning your first solar installation or unlocking value from an existing system, tailored rental solutions simplify the process, deliver measurable results, and position your business for long-term resilience.
Don’t let energy costs dictate your strategy. Let them drive innovation.
Contact ReCharge to discover how our rental solutions can help your business take control of its energy future without sacrificing cash flow or flexibility.
For further details please contact sales@rechargerental.co.za