South Africans are increasingly turning to solar power as rising Eskom electricity tariffs continue to place pressure on household and business budgets.
The latest electricity increase, which took effect on 1 April 2026, saw Eskom Direct customers face an average tariff hike of 8.76%, while municipalities purchasing bulk power are expected to implement increases of around 9% in the coming months.
Rising costs push consumers toward self-generation
Solar installers across South Africa say electricity price increases have become one of the strongest drivers of customer demand.
For many households, the shift initially began during years of load-shedding, when affluent homeowners and small businesses invested in backup systems to maintain operations.
Now, the financial argument is becoming even stronger.
With solar panel, inverter, and battery prices having fallen significantly over the past five years, the average payback period for a household solar installation has dropped from nearly nine years to roughly four to five years.
Industry players say consumers are now placing greater emphasis on cost predictability and long-term savings.
Eskom faces growing competition
Large-scale businesses have also accelerated private generation projects.
Regulatory data shows thousands of megawatts of private generation capacity were registered in 2025 alone, much of it from solar installations.
This comes as Eskom’s own electricity sales volumes continue to decline despite higher revenues driven by tariff increases.
The utility’s latest operational data shows residual demand in the first quarter of 2026 was nearly 10% lower year-on-year, suggesting customers are increasingly sourcing electricity elsewhere.
With South Africa’s wholesale electricity market expected to launch later in 2026, energy providers are preparing products aimed at attracting both commercial and residential customers away from Eskom and municipal grids.
Analysts say unless Eskom can offer more competitive pricing and improved reliability, the migration to solar and private energy systems is likely to accelerate further.
Source: MyBroadband / Nersa / Eskom operational data
