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The grass is greener: More households and businesses turning to energy alternatives
By Jessie Taylor
In the face of the recent energy crisis, more households and businesses are turning to self-funded renewable energy products, according to recent surveys. Research by the Competition Commission and the South African Renewable Energy Grid Survey (SAREGS) have highlighted the growing number of individuals and businesses investing in renewable energy, catapulting the country towards a cleaner, more sustainable energy future.
The rise of self-funded renewable energy products
A recent survey by the Competition Commission revealed a significant shift in how South Africans approach energy consumption. The survey between October and November last year shows that most households and businesses are turning to self-funded renewable energy products to combat load shedding and rising electricity costs.
One of the survey's key findings is that most South Africans, including small and medium-sized businesses, are investing in standalone renewable energy products such as solar PV panels, inverters, and storage batteries. These investments are primarily self-funded, with only a small percentage of participants using external financial support from banks or other financial institutions.
The survey also highlights the growing accessibility of renewable energy products, with many consumers purchasing these items as standalone products. The data shows a correlation between income levels and the type of renewable energy products purchased, with higher-income households more likely to invest in bundled systems than individual products.
The shift towards renewable energy is not limited to households. According to the survey, 70% of business respondents indicated that their renewable energy products are self-funded, with a significant portion of these investments going towards solar PV panels.
However, the cost remains a significant barrier, especially for smaller businesses, with 13% of respondents indicating that their solar installations cost upwards of R500 000. While credit options are available, the survey found that very few companies have taken advantage of these, preferring to self-fund their renewable energy projects.
Despite these challenges, businesses' adoption of renewable energy is gaining momentum, driven by the need to mitigate the impact of load shedding and rising electricity costs. This trend reflects the growing recognition among businesses of the importance of energy security and the long-term cost benefits of renewable energy.
A surge in grid-connected renewable energy projects
The South African Renewable Energy Grid Survey (SAREGS), conducted in 2024, found that the total capacity of renewable energy projects seeking grid connection has more than doubled, reaching 133 GW. This surge is attributed mainly to the increased investment in solar photovoltaic (PV) projects, which saw a 120% increase in capacity, and wind energy projects, which grew by over 50%.
The SAREGS survey underscores the critical role that renewable energy is playing in South Africa’s energy mix. The exponential growth in grid connection requests highlights the urgent need for grid infrastructure improvements to accommodate the influx of renewable energy. This is particularly important as the country seeks to reduce its reliance on coal-fired power plants and transition to a more sustainable energy system.
One of the most significant developments noted in the survey is the rising prominence of battery energy storage systems (BESS). With a 77% increase in BESS projects, there is a clear recognition of the need for energy storage solutions to complement renewable energy generation. This is essential for stabilising the grid and ensuring that renewable energy can be effectively utilised even during periods of low generation, such as at night or during cloudy weather.
The survey findings paint a picture of a country increasingly embracing renewable energy as a solution to its energy challenges. The surge in renewable energy projects seeking grid connection and the growing adoption of self-funded renewable energy products by households and businesses reflects a broader shift towards sustainability and energy independence.
However, to fully realise the potential of renewable energy, it is essential to address the existing barriers, particularly regarding affordability and infrastructure. Among these challenges is the reliance on imports, with billions of rands spent on renewable energy products from abroad, particularly China, which dominates the global market. By investing in grid improvements, supporting local manufacturing, and providing financial incentives, South Africa can ensure that renewable energy plays a central role in its future energy landscape.
Sources:
Engineering News | Daily Maverick | The Citizen | Solar Quarter
