Latest news with #tariffincrease
Zawya
02-07-2025
- Business
- Zawya
How to gain energy independence amid Eskom price hikes?
Eskom's 2025/26 tariff increases are set to have a huge impact on operational expenses, forcing businesses to re-evaluate their energy strategies. The National Energy Regulator of South Africa (Nersa) recently approved average tariff increases of 12.74% for Eskom direct customers (effective April 1, 2025) and 11.32% for municipalities (effective July 1, 2025). "The current energy climate in South Africa presents both challenges and opportunities for businesses," says Matthew Cruise, business development executive at Impower Solar & Storage. The reality of persistent tariff increases and the ongoing need for energy security means that relying solely on Eskom is no longer a viable long-term strategy for many industrial and commercial operations. Businesses are also facing a threat of tariffs being added to goods they export to the EU and US, should those goods be produced through 'dirty' energy sources, such as Eskom's coal station dominated generation portfolio. Clean energy The Carbon Border Adjustment Mechanism (CBAM) tariff will increasingly drive businesses to switch to clean, renewable energy in their production process. 'Internal competition between the manufacturers of solar panels in China is good news for local businesses, as this keeps driving down the cost of the panels. 'It makes going solar an entirely affordable option, but we recommend making this move only after careful consideration and planning,' says Cruise. Energy independence Cruise says the decision to move off-grid through solar PV is a strategic one, driven by several key factors: - Cost certainty and savings: While the initial investment in a solar PV system is a significant consideration, it offers long-term cost predictability and substantial savings. Unlike volatile Eskom tariffs, solar energy provides a hedge against future price hikes. The upfront costs are increasingly offset by rapidly decreasing solar panel prices and various financing options, including power purchase agreements, green energy loans, and attractive tax incentives. Going the financing route enables businesses to receive immediate net-monthly savings with solar and lock in stable electricity price increases, without spending any money. - Energy security and resilience: A well-designed solar PV system, particularly a hybrid or off-grid solution with battery storage, provides a reliable and continuous power supply, mitigating the impact of outages, 'load reduction' and ensuring business continuity. - Environmental responsibility and brand reputation: Adopting solar demonstrates a commitment to sustainability and reduces a company's carbon footprint. This not only aligns with global environmental goals but also enhances brand reputation. - Increased property value and tax benefits: Investing in solar energy systems can significantly increase property value. The South African Revenue Service (Sars) offers the 12B Solar Tax incentive for businesses investing in renewable energy, which enables a 27% rebate from Sars of the total cost of their solar system. Large carbon dioxide emitters also benefit by reducing their carbon tax, which will become increasingly more expensive from 2026 onwards, as phase two of the Carbon Tax Act comes into effect. What to consider Cruise advises businesses considering the transition to solar to assess the following: - Energy consumption profile: A detailed analysis of current electricity usage patterns is crucial to determine the optimal size and type of solar PV system. - System type: - Financial investment and ROI: Businesses must evaluate the initial capital outlay against the projected energy savings and potential return on investment (ROI), which can be recovered over a relatively short period given the long lifespan of solar panels. - Tax incentives: Sars offered several incentives to encourage solar installation, but the structure has changed, and there is a real chance that they will fall away from 1 April 2026. This puts a time pressure on installations to happen this year, still, before incentives fall away potentially. - Financing options: Explore various financing models, including outright purchase, power purchase agreements for zero upfront cost, lease-to-own options, and green energy loans from financial institutions. - Professional assessment and installation: Engaging reputable solar providers ensures accurate system design, high-quality equipment, and professional installation, maximising efficiency and longevity. - Grid-tied systems: Connected to the Eskom grid, these systems reduce reliance on Eskom and can feed excess power back into the grid, potentially earning credits. They are generally the most cost-effective entry point. - Hybrid systems: Combining solar panels with battery storage, these offer greater energy independence and backup during outages while still leveraging grid connection. - Off-grid systems: These systems provide complete energy independence, eliminating reliance on Eskom. They typically involve solar panels, significant battery storage, and often a generator as a backup. "The conversations around Eskom tariffs are louder than ever, and businesses are actively seeking solutions that offer stability and long-term economic sense," adds Cruise. "The next nine months will be a very interesting period for solar installations in South Africa, as companies move to make use of available tax incentives before they potentially fall away.'
News24
09-06-2025
- Business
- News24
Smart tech tricks to beat winter electricity bills
The numbers are enough to send shivers down your spine—and not just from the cold. With Eskom's freshly implemented 12.74% tariff increase, South Africans face unprecedented electricity costs just as winter temperatures plummet. For households using Eskom's Homeflex tariff, peak winter rates now exceed R7 per kilowatt-hour, turning even basic comfort into a luxury. 'Running a single 2,000W oil heater for eight hours nightly could cost over R3,000 this winter season—and that's just for one room,' warns Dr. Andrew Dickson, Engineering Executive at CBI-electric: low voltage. 'The average family could see their monthly electricity bill jump by R300 or more.' But according to Dr. Dickson, South Africans don't need to choose between warmth and financial stability. The solution lies in combining smart technology with strategic energy habits. 10 Smart Ways to Stay Warm While Cutting Costs 1. Know Your Energy Enemies Most households waste electricity without realizing it. 'If you don't understand how much power your appliances consume, you can't make informed decisions about cutting back,' says Dr. Dickson. Smart monitoring devices reveal which appliances are the true budget-killers, allowing targeted energy savings where they matter most. 2. Prevent Power Pile-Ups Modern smart home systems offer load management capabilities that prevent multiple energy-hungry devices from running simultaneously. 'Rather than having your geyser, heater, and oven competing for power at the same time, smart automation staggers their operation, reducing peak demand and preventing system overload,' explains Dr. Dickson. 3. Set Smart Time Boundaries Why heat water all day when you only need it for morning and evening? Smart controllers let you specify precise operating durations for appliances. 'Running your geyser for just two hours instead of continuously can dramatically reduce consumption while still ensuring hot water when needed,' notes Dr. Dickson. 4. Embrace Off-Peak Power Timing is everything. The difference between peak and off-peak rates can be staggering—as much as R6 per kilowatt-hour. 'Programming your washing machine to run between 10pm and 5am could cost as little as R1.01/kWh, compared to over R7/kWh during peak times,' Dr. Dickson points out. Even flat-rate customers benefit from reducing overall grid strain. 5. Outsmart the Winter Spike Household energy consumption typically jumps by at least 20% in winter as heating systems work overtime. Smart scheduling ensures appliances run only when needed. 'Program your heater to switch on 30 minutes before you wake up,' suggests Dr. Dickson. 'You'll enjoy a warm room without wasting electricity all night.' 6. Let Weather Dictate Energy Use Advanced smart systems can respond to environmental conditions automatically. 'When temperatures drop below a certain threshold or daylight fades early on cloudy winter days, your lights and heating can adjust accordingly,' says Dr. Dickson. This means no more paying to heat an empty house when the weather unexpectedly warms up. 7. Control Your Home from Anywhere Left in a rush and can't remember if you turned off the heater? 'Smart home technologies allow remote control of connected appliances from your smartphone, wherever you are,' Dr. Dickson explains. This flexibility prevents wasted energy when plans change. 8. Defeat the Stealth Energy Thieves That innocent-looking 'sleep mode' on your TV, computer, and kitchen appliances might be silently draining your wallet. 'Electronics in standby mode can collectively consume more electricity than when actively used,' warns Dr. Dickson. Smart plugs can automatically cut power to these devices when not needed. 9. Maximize Your Solar Investment As more South Africans invest in solar systems to buffer against rising electricity costs, protecting that investment becomes crucial. 'Smart power indicators help solar users manage energy more effectively when grid power is unavailable,' says Dr. Dickson. 'They can disconnect non-essential appliances automatically, preserving battery life until systems recharge.' 10. Shield Your Appliances Even with reduced load shedding, voltage fluctuations and power surges remain common, especially in areas with aging infrastructure. 'Smart technology can detect unsafe voltage levels and automatically cut electricity flow until it stabilizes,' explains Dr. Dickson. 'This protects expensive appliances like refrigerators and entertainment systems from costly damage.' Contrary to popular belief, adopting smart home technology doesn't mean rewiring your entire house. 'Devices like smart plugs, isolators, and controllers can be easily installed by an electrician without additional wiring or hubs,' Dr. Dickson emphasizes. 'Even renters can benefit from the latest smart adaptors, which can be taken along when relocating.' As winter tightens its grip and electricity costs soar, these smart strategies offer South Africans a way to maintain comfort without financial strain. 'Even small changes can make a big difference,' concludes Dr. Dickson. 'By using smart technology to manage energy use, South Africans can stay warm, save money, and feel more in control of their electricity bills.
Bloomberg
12-05-2025
- Business
- Bloomberg
South African Suppliers Truck Fuel as Pipeline Fees Spike
South African fuel suppliers are looking to utilize trucks to transport the commodity inland as the cost of using the nation's main pipeline operated by Transnet SOC Ltd. surges. The National Energy Regulator of South Africa granted state-owned Transnet an 8.7% tariff increase effective April 1 on the line that runs from the coastal city of Durban to the Gauteng province, where the commercial hub of Johannesburg is located. Prices will increase another 5.7% in the next financial year.
