The increase in energy prices depletes our savings. Energy prices and their effect on households.
South African homeowners are facing another wave of electricity price increases, ramping up the pressure on thinning household budgets.
After much legal wrangling, the National Energy Regulator of South Africa (Nersa) approved Eskom tariff adjustments that are almost three times the consumer price index inflation.
This sizable jump will have homeowners cutting back on essentials and luxuries as basic power costs eat into every household’s disposable income.
However, savvy homeowners have already put in place measures to free themselves of this burden, with rapidly accumulating data showing a snowballing of solar-based savings.
The impact on your electricity bill
Nersa approved an average 8.76% electricity tariff increase from April, with a further 8.83% increase scheduled for April 2027.
A household paying roughly R2 500 per month on its electricity will see that figure expand to over R3 000 after the increase, translating into thousands of extra rands spent on electricity over the course of a year.
| Estimated impact on your electricity bill* | ||||
| Current electricity bill | Monthly electricity bill | Annual electricity bill | ||
| April 2026 | April 2027 | 2026/27 | 2027/28 | |
| R1 000 | R1 087.60 | R1 183.64 | R13 051.20 | R14 203.62 |
| R2 500 | R2 719.00 | R2 959.09 | R32 628.00 | R35 509.05 |
| R4 000 | R4 350.40 | R4 734.54 | R52 204.80 | R56 814.48 |
| R5 500 | R5 981.80 | R6 509.99 | R71 781.60 | R78 119.92 |
Reducing reliance on the grid has been a desire for homeowners for over a decade, but installation costs have not always met the ambitions of the market.
Advances in technology have allowed Standard Bank’s LookSee home efficiency platform to package modular, scalable smart home solar installations with customisable financing options to free homeowners of their electricity burden.
“Taking the majority of your load away from the grid is possible, as is taking the cost of your water heating off your electricity bill.
“Homeowners are not just looking at this month, or this year, as those benefits increase with every year that passes,” LookSee Executive Head Marc du Plessis told The Citizen.
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Exponential savings over time
The clients taking up the smart home solar installation has allowed LookSee to refine their savings analytics to the point where they have absolute confidence in their one of a kind Savings Guarantee.
The self-assessment tool on LookSee’s website or the home visit by an advisor will measure the home’s exact needs and provide a measurable accumulation of solar-based benefits.
“This isn’t guesswork anymore. We can tell homeowners with confidence what they can expect in terms of savings,” explained Du Plessis.
Data from early adopters of the home solar installations in their various packages showed those spending over R5 000 on electricity in 2022 put them on course to have saved roughly R300 000 by 2028.
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When combining the projected lifetime savings for homeowners currently utilising LookSee’s home efficiency solutions and home loan finance concessions in EDGE certified developments, the figure is an estimated R890 million over a 10-year period.
“Delaying the move to solar means delaying real savings. And the larger the household, the greater the savings potential,” Du Plessis added.
Solutions tailored to homes
Solar technology has become more accessible in recent years, with declining equipment prices and improved system efficiency making adoption exponentially more achievable.
Modern solar installations allow households to offset their most expensive daytime electricity usage, delivering meaningful savings from the time of installation.
Today’s solar solutions offer flexible financing options, with LookSee also offering rental model, allowing households to benefit from solar energy without large upfront investments or additional debt.
Home solar installation systems are modular, meaning homeowners don’t need to install a full solution immediately and can modify the configuration over time.
The most effective entry points is a solar geyser conversion since water heating can account for around 40% of household electricity usage.
“Savings generated are substantial enough to offset the cost quickly, making it an attractive option for homeowners seeking immediate relief.
“Price hikes are fixed and inevitable. By installing a solar system now, homeowners can immediately reduce exposure to tariff increases and start building long-term financial resilience,” Du Plessis concluded.
Try LookSee’s Smart Save Journey to see how much you could save on your electricity bill.
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