Since loadshedding was halted from Q2 2024, South Africans have enjoyed an uninterrupted power supply for more than 10 months. Apart from a brief resumption of electricity cuts late January and February 2025, this has been a welcome respite for South African businesses.
Although there is no guarantee that unanticipated issues won’t reinstate widespread loadshedding, South Africans are actively making the most of dependable power.
What does this mean for solar?
Rhino Energy Solutions and ACES, two of our trusted development partners, responsible for designing, procuring, and installing optimal technical solutions for our clients, provide some perspective.
Rogan Davies, Rhino Energy Group CEO, explains that the end of loadshedding is positive for the industry and for consumers: ‘You might think that an end to loadshedding would spell trouble for solar-energy providers. In fact, it is a welcome driver of industry maturity. Solar comes into its own when its use is not necessarily tied to batteries, which were required to allow it to safeguard against interruptions to grid power. Solar is also a long-term investment, and as such, its maintenance and support is a crucial aspect of its value. Consolidation in the market, which became somewhat fragmented with the influx of recent entrants as loadshedding peaked, will result in more experienced, trustworthy, and expert providers once again taking the lead, which is good for the market and good for businesses.’
Anré Gous, ACES Africa MD, agrees: ‘In the past with loadshedding, energy solutions were something of a grudge purchase. With the rising cost of electricity, and the continued reduction in the cost of self-generation, that mindset is changing. Self-generation is no longer simply an insurance policy: it’s an investment opportunity with a strong business case. There’s a compelling argument for self-generation even if we never again experience another day of loadshedding, and that’s before you begin to factor in the improved energy quality and the sustainability impact. If a solution is tailored correctly, there is every chance that you will cover the cost of your investment in three to five years, and that you will have secured another 10 to 15 years of free electricity thereafter.’
Global trends
Notably, the rapid global rise of solar is taking place despite reliable grid electricity and investment in solar has outpaced all other generation technologies.
- China commissioned as much solar PV as the entire world did in 2022
- Spot prices for solar PV modules declined by almost 50% year-on-year, with manufacturing capacity triple that of 2021
- Approximately 96% of newly installed, utility-scale solar PV had lower generation costs than new coal and natural gas plants
- The world added 447GW of new solar energy capacity, 87% more than in 2022
There is huge potential for the continued growth of renewable energy in South Africa. Stats from the Centre for Renewable and Sustainable Energy Studies (CRSES) show that the majority of South Africa’s electrical energy in 2023/24 was generated from coal (82.8% of total system demand), with renewable energy providing 8.8%.
Whether or not solar makes sense for your business might depend more on the cost of energy and your specific needs than on whether loadshedding returns. The most beneficial step you can take is to speak to partners with the right knowledge and experience required to ensure that your chosen solution addresses your unique business requirements.
