The uptake was not as anticipated… the whole scheme was not targeted at minimum households like ordinary poor households, like your poor households,” says Nchabeleng. “Treasury could have done a better job…. It was an elitist programme.”

Gray explains the core renewable energy tax benefits remaining intact provides continued support for solar investments. “With Eskom’s ongoing tariff increases and unplanned outages and rolling blackouts persisting, more South Africans are recognising that solar isn’t just an alternative; it’s becoming a necessity,” he says.

As solar adoption increases, Eskom’s infrastructure must still be maintained despite reduced individual reliance on the grid," he added.

This included the state-owned entity charging higher connection fees for those who use less units, such as solar.

Gray notes that, while Eskom’s revised tariffs introduce additional fixed charges, solar energy remains an attractive option from both a financial and environmental perspective. “Analysis suggests that, on a net basis, most solar users will continue to see financial benefits when combining solar with grid access – though the extent of these savings depends on how the system is financed.”

Buying a solar system outright involves a significant initial investment, along with ongoing operational and maintenance costs, which may be offset by energy savings over time, Gray says.

Financing solar through loans spreads the cost over time but adds interest expenses, potentially diminishing overall savings, he adds.

As more cost-effective alternative, solar subscription models allow homeowners to access solar power with minimal upfront costs as a service provider takes care of installation, maintenance and compliance, while the consumer pays a predictable monthly fee that often results in immediate savings compared to full grid reliance, Gray says.

“Our research indicates that, over a seven-to-eight-year period, subscription-based solar models tend to be more economical than financing or outright ownership, making them an attractive option for households looking to mitigate rising electricity costs,” he adds.

“Solar is no longer only for high-income households – new financing models are making it viable for middle-income South Africans who were previously excluded,” Gray adds.

Despite the changes in tariff structures, Gray says that solar energy remains “a compelling choice for South African households” as the result of several aspects such as lowering monthly bills when there are future tariff increases. He adds it also increases property value.

Nchabeleng adds that an upfront investment is exorbitantly expensive as a two-bedroom home would require at least R100 000 in investment. This does not benefit the indigent, he notes.

IOL