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Guide to going solar in South Africa

Thinking of going solar to beat the energy crisis? Find out what your options are, how much it costs, and how to secure solar financing.

 

Everything Counts | Ep 22: Guide to Going Solar in South Africa

In this episode, 702's Motheo Khoaripe is joined by De Wet Taljaard (Technical Advisor at Investec Sustainable Solutions), Kirk Palmer (Director at Solafi), and Andrew Winstone (CEO at Energy LED) to tackle one of South Africa’s hottest topics: solar power and energy efficiency for households.

Understanding the energy crisis in South Africa

South Africa’s energy crisis, caused by Eskom’s aging coal power plants and frequent outages, has left many homes and businesses with unreliable electricity. Eskom still supplies about 75 to 80% of the country’s electricity, mostly from old coal-fired power plants that are getting harder and more expensive to maintain.

The recent creation of the National Transmission Company of South Africa (NTCSA) shows the energy sector is changing, but the system remains fragile. A key measure of Eskom’s performance is the Energy Availability Factor (EAF), which shows how much of the power station capacity is online and generating electricity.

For the system to be stable and reduce load shedding, the EAF needs to be between 65% and 70%, as set out in the government’s Energy Action Plan. However, in 2025, the EAF has been around 56.8%, just slightly better than the record low of 54% in 2023, the worst year for load shedding with over 6 800 hours of outages.

On top of Eskom’s challenges, many municipalities face their own problems like cable theft and equipment failures, causing even more outages. With power cuts still a big risk, many people are looking for better options. Solar power, especially when paired with batteries, offers a clean, affordable way to take control of your energy and stay protected from load shedding and other power interruptions.

Learn more: SA's solar awakening

 

How to save electricity at home

Here are some practical tips to help households reduce energy costs and improve efficiency:

  • Switch to LED lighting: Replace old 50-watt halogen or fluorescent bulbs with LED lights that use just 4.5 to 5 watts. LEDs can reduce lighting energy consumption by up to 90%, last four to six times longer, and save thousands of rand over their lifetime. If you use lights for more than 15 minutes a day, switching to LEDs is worth it.

  • Manage geyser usage smartly: Geysers can account for 30 to 60% of household electricity use. Using smart controls, you can shift geyser heating to off-peak times when electricity is cheaper, effectively turning your geyser into a “thermal battery”. This reduces costs by avoiding high tariffs during peak hours.

  • Use the right energy source for cooking: Cooking with gas instead of electricity can significantly cut electricity consumption. It’s a simple way to reduce your household’s energy load.

  • Choose energy-efficient appliances when replacing old ones: You don’t need to replace all your appliances at once, but when it’s time to replace old or broken equipment, opt for energy-efficient models. This will lower your energy use and save money in the long run.

  • Take advantage of replacement opportunities: For example, if a geyser bursts, don’t just replace it with the same old model. Use the opportunity to install a more energy-efficient geyser that will reduce electricity costs over time.

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Understanding energy efficiency ratings

When buying appliances, look for the energy efficiency rating labelled from A to G on the sticker. Choosing appliances rated A, B, or even A+ is much better than going for lower-rated ones like D.

Although more energy-efficient appliances may cost a bit more upfront, their lower running costs will save you significantly more money over time. It’s always worth investing a little extra to get the most energy-efficient appliance you can.

 

What are the different types of home solar systems in South Africa?

Here’s a breakdown of the main types of home solar systems, their costs, and what they offer:

Grid-tied solar systems
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• Solar panels only, no battery backup
• Cannot operate during power outages because they rely on the grid’s signal
• Ideal for offsetting daytime electricity use like washing machines or appliances running when the sun shines
• Typical cost: Around R20 000 to R25 000 for a 1.1 kW system
• Covers about 20-30% of daily household consumption

Solar with battery energy storage systems (BESS)
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• Solar panels charge batteries during the day, which then power the home at night
• Provides energy independence and backup during outages
• More suitable for residential use due to load shifting and backup capabilities
• Typical cost: Starts at about R75 000 for a 5kW system; around R150,000 for a 10kW system.

Off-grid solar systems
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• Combines solar panels, battery storage, and a generator for backup during extended low-sun periods
• Designed for homes in remote areas or where grid reliability is very poor
• Higher upfront cost due to added equipment and independence
• Typical cost: Between R350 000 and R400 000 for a two- to three-bedroom home, including a generator.

Solar finance options

Investec has a range of flexible finance options available to Private Bank Account holders, including being able to fund your solution through your existing Investec Private Home Loan or credit facility. Don’t bank with us? Take a few minutes to see if you qualify.

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FREQUENTLY ASKED QUESTIONS
How long do solar panels last?
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Most quality solar panels come with a 12-year manufacturer’s warranty and a 25-year performance warranty. You can expect a minimum effective lifespan of 10 years, with panels typically still producing at least 85% of their original output after 20 years if operated within manufacturer guidelines.

How to calculate solar ROI
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To calculate solar ROI, first assess your household’s energy use and optimise it for efficiency. Then, compare the system’s cost (including installation and maintenance) against your expected electricity savings over time. Solar financing options can affect payback, and maximising efficiency before installing solar increases your return on investment.

Can you sell power back to the grid in South Africa?
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Yes, you can sell excess power back to the grid in some South African municipalities, such as Cape Town and George, if your system meets all regulatory and registration requirements.

However, rates and processes vary by municipality, and in some areas, like Johannesburg, current rates may not be financially attractive.

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