The hidden cost of staying on the grid as electricity price increases continue

The savings reported by homeowners who invested in a solar energy installation products are growing year by year.

Increases in electricity prices are a guarantee, but being locked into high monthly bills is still a decision in the hands of homeowners.

As trust and understanding of solar installations become more common in South Africa, the data collected is highlighting the repeated financial benefits gained by those who acted early.

R300k saved in five years

Electricity tariffs increased by 12.74% earlier this year and an agreement between Eskom and the National Energy Regulator of South Africa (Nersa) will see 8.76% and 8.83% increases in 2026 and 2027, respectively.

Once the 2027 increase takes effect, electricity prices would have seen a compound increase of 78% in the five years since 2022.

A recent survey conducted by Standard Bank’s LookSee home efficiency platform showed that 92% of respondents were highly concerned about electricity costs, but less than half had acted on those concerns.

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LookSee’s data estimates that households that switched to solar just three years ago have saved hundreds of thousands of rands.

For households that were paying roughly R2 000 per month for their electricity in 2022, that household would have saved an estimated R120 000 by 2027.

For those who spent R5000 or more on their electricity per month, households could have accumulated just over R300 000 in savings between 2022 and 2027 if they have made the change early.

‘Money back into their home’

These savings projections are based on households who installed a solar power product which covered just 60% of their monthly electricity usage.

Caution over the cost of solar installations persist, prompting platforms like Standard Bank and LookSee to tailor solar energy and financing offerings to a wide sector of the South African market.

As well as their recently released Smart Save journey which helps households self-evaluate their home’s electricity usage, LookSee have a new solar rental offering to kickstart household electricity savings.

“The solar rental option provides an affordable alternative to purchasing a solar system – particularly for families that are planning to move within the next three to five years or don’t wish to take on additional debt,” said LookSee Executive Head, Marc du Plessis.

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Advantages to this offering include a small upfront admin fee, lower monthly costs that are often paid for in savings on the electricity bill and the inclusion of maintenance and support.

“There’s no guarantee that electricity prices are going to stabilise anytime soon, but there is a guarantee that if homeowners do act, they can reduce their bills and start using that money for the household again,” added Du Plessis.

Technological advances

Solar energy products have seen a considerable decrease in pricing and the technology has come a long way in the last decade.

Lithium-ion phosphate batteries now provide the highest number of charging cycles available, with a performance warranty of 20 years available on the solar panels.

While inverters are guaranteed for 10 years under LookSee, international data has shown their lifespans often far exceed that mark.

Flexible financing options are available and the solar rental solutions offer a low-commitment alternative via an affordable monthly subscription.

Homeowners have no choice but to spend money on electricity, but they do have the choice of where and how to spend that money.

“It is never too late. It’s a guarantee that the cost of the unit of power from the utility will go up every year and there is a way of mitigating that,” advised Du Plessis.

Brought to you by LookSee.

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