SA faces municipal electricity hikes 4 times above inflation: How to fight back with solar
South African households are bracing for yet another financial blow as municipalities are set to roll out electricity tariff hikes of up to 14% from 1 July 2025, an increase that is roughly 4 to 5 times more than the current inflation rate of 2.8%.
Earlier this year, the National Energy Regulator of South Africa (NERSA) approved an 11.32% increase in the wholesale electricity price that Eskom charges municipalities for more than 130 municipalities. Major metros, including Johannesburg, Cape Town, and Ekurhuleni, will implement increases exceeding 12%, continuing the decade-long trend of electricity costs outpacing inflation.
Despite many municipalities requesting higher retail increases, NERSA capped tariffs in most cases, citing the need to address several critical issues. These issues include poor financial controls, high energy losses, and inefficiencies in municipal operations that have been plaguing local authorities and contributing to the ongoing challenges within South Africa's electricity distribution network.
Finding savings through solar energy
Marc du Plessis, Executive Head of LookSee, Standard Bank's home efficiency platform, says that the increase will have serious financial implications for households and that to manage them, households need to start looking at emerging solar offerings as more of a cost-saving investment rather than a loadshedding backup.
'There are some expenses that aren't in your control, like how much Pikitup charges you or how much your municipal rates are. But you can change your energy consumption habits and look at producing your own energy. Electricity costs are one of the few elements on your municipal bill that you can actually do something about,' said Du Plessis.
Now, wrapping your head around finding the best solar system for your needs might be daunting, but LookSee is here to help you every step of the way in your journey to saving money and beating the electricity hikes.
LookSee offers homeowners cost-saving, energy-efficient solutions, including solar-powered water heating technologies, alongside tools to reduce utility bills. These services are available to all households, regardless of who they bank with.
'What we're trying to do is educate and help homes understand how to maximise their savings through solar. You don't have to spend huge amounts of money; there are ways of getting into the renewable energy space, there are ways to make changes,' he said.
LookSee recently launched its Smart Saving Journey that gives you a clear view of your home's electricity use, highlights ways to cut costs, and helps you run a more efficient home in just a few clicks.
How the Smart Saving Journey works
Step 1: Share your home information
The journey begins with you providing basic information about your home. You'll answer simple questions about your property's floor area, your typical electricity consumption patterns, and your current monthly bills. If you already have any solar installations, you'll mention these details too. This information helps the system create a personalised analysis specific to your household's unique energy situation.
Step 2: Receive your personalised energy dashboard
Once you've provided your information, LookSee generates a comprehensive dashboard that gives you a clear picture of your home's energy profile. This includes your Home Efficiency Score (rated from A to E), which shows how efficiently your home uses electricity compared to similar sized properties in your area. You'll also receive a Solar Score that indicates how suitable your home is for solar power generation based on factors like sunlight exposure. The dashboard highlights specific savings insights, pointing out areas where you could potentially reduce your electricity costs.
Step 3: Explore your savings opportunities
After reviewing your potential monthly savings on your dashboard, you can request a call from LookSee's Energy Advisors for assistance with your savings journey or explore its Knowledge Hub for a variety of expert articles aimed at helping you save money and manage and improve your home efficiently.
Step 5: Connect with experts
If you're ready to target significant savings on your electricity bill, then requesting a callback is definitely the way to go. Using sophisticated calculators that analyse your family's current electricity usage, LookSee's energy experts are not only able to identify the best solutions for your needs, but can also provide reliable insights into your expected savings from month one all the way up to 10 years.
'We have done a very deep analysis on what an average home looks like from a consumption perspective. What we do is look at the home electricity consumption in three parts: water heating costs, daytime load - so, what is happening during the day in your house, and nighttime load. If you understand those three mechanisms to start with, we can start to help with decisions based on the highest impact on savings to the lowest possible investment,' Du Plessis explained.
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