Eskom is keeping the lights on - what are the implications?

To put it mildly, Eskom has surprised South Africans in 2024. With more than 100 loadshedding-free days behind us, many people have packed away their power banks, USB lamps and torches. On the corporate front, businesses seem less likely to be investing in solar power and other loadshedding workarounds. 3Cube Property Solutions takes a closer look at our energy needs and the state of the solar industry in South Africa.­

First things first: why has there been no loadshedding for several months?

In April 2024, BusinessTech interviewed energy analyst Chris Yelland, who provided some insights into why there has been a decline in demand for electricity in South Africa - which has in turn contributed to the lights staying on. Starting with the proverbial bad news, he pointed out that South Africa's economy is weak, which leads to lower electrical demand. He also points that Eskom rates, which are rising above the inflation rate, have lowered demand for the state utility's power. Yelland also reminded readers that, at the time, electricity users were increasingly moving to self-generation and alternative power sources.

Lower volumes of solar installations

When interviewed by TechCentral in June, De Wet Taljaard, a technical specialist in solar energy at the South African Photovoltaic Industry Association (SAPVIA), confirmed suspicions that solar installations were declining. Citing Eskom data, Taljaard points out that between February and April 2023, 97MW of monthly capacity additions were being recorded. Fast forward to the same period in 2024 and this figure is down to 26MW.

The primary downturn is coming from the luxury residential market

In an article penned by Myles Illidge, a senior journalist from My Broadband, Illidge makes the point that information provided by SAPVIA shows that demand for solar solutions in the commercial segment has not declined as severely as in the luxury residential market segment. Households, it seems, are more willing to be cautiously optimistic about Eskom than businesses are.

The future prognosis - and why businesses are still taking solar seriously

In a country like South Africa, where progress and productivity have been intermittently hampered by power cuts since 2007, it will take a lot more than 100+ days of loadshedding to persuade companies that our electricity grid is truly stable and reliable. Over and above this, companies have recognised the economic and environmental advantages of solar power. Solar power not only reduces a business's carbon footprint, but it can also significantly reduce its electricity costs. Over the 25-30 year lifespan of solar panels, the initial cost is typically recouped through savings.

An article published by ITweb in April 2024 points out that according to solar industry pundits, the continued lowering in solar panel and battery prices is poised to trigger a massive escalation in South African solar energy adoption. With equipment typically being the highest cost of any solar system, this global downturn in prices bodes well for the local industry.

"Cautious optimism" is a phrase used to aptly describe South Africans' feelings towards the cessation of loadshedding. The first step towards ongoing stability for any business is finding the right premises. For help in finding the ideal commercial, industrial or retail space in Gauteng or the Western Cape, get in touch with 3Cube Property Solutions.