Eskom Tariff Increases: The Case for Solar Energy

It is by now reliable news that Eskom will apply for a 36,15% increase in the electricity tariff for users it directly charges and a 43,55% increase for users receiving its supply from municipalities for 2025.

Relying on past data, it’s possible to accurately determine that if not fully approved, NERSA will approve an increase for 2025 close to or very close to Eskom’s requested increases. This will substantially increase the already heavy burden on consumers across the board, proving that it is now more important than ever to consider renewable energy sources.

It is a common opinion amongst South Africans that converting to solar power is too expensive. While upfront costs may appear significant, savings on electricity bills over time far outweighs the upfront costs of purchasing and installing a solar power system.

Consider the following scenario of a typical energy consumer:

Monthly electricity bill: R3 700

Annual bill: R44 384

25 year electricity cost: R25 842 538

A 6KW solar system will be efficient enough to cover the above demands. The system will consist of 12 solar panels,1 X top-brand inverter, and a battery that can be added for energy storage if the consumer’s budget allows.

Cost of system: R177 936

Annual energy production: 9.48MWh

Energy offset: 64.92%

Electricity bill offset: 37,07%

Considering the above scenario and offsets against 100% grid power usage, the system will “pay for itself” over a period of 7.6 years, leaving all offsets thereafter as pure savings for the consumer’s account. As Eskom tariff’s increase over time, these savings will become more significant.