With electricity prices soaring, here’s why solar makes more sense than ever

Electricity tariffs are about to climb nearly 9% this year – almost three times the rate of consumer inflation – making the case for installing a solar system more compelling than ever.

The table below shows the impact of these increases on household budgets. Even modest monthly bills of around R1 500 will experience noticeable jumps, while higher-usage households will face increases of hundreds of rands per month.

“On an annual basis, this translates into thousands of rands in additional spend, even if the household’s usage does not change at all,” says Marc du Plessis, executive head of LookSee, Standard Bank’s home efficiency and solar platform.

“For many families, this adds real stress to household budgets already stretched by food inflation, interest rates and transport costs.”

Impact of electricity tariff increases on household budgets

Estimated impact on your electricity bill *

Current electricity bill
Monthly bill
Annual bill

April 2026
April 2027
2026/27
2027/28

R1 000
R1 087.60
R1 183.64
R13 051.20
R14 203.62

R2 500
R2 719.00
R2 959.09
R32 628.00
R35 509.05

R4 000
R4 350.40
R4 734.54
R52 204.80
R56 814.48

R5 500
R5 981.80
R6 509.99
R71 781.60
R78 119.92

* These estimates are based on Eskom’s average tariff increase and assume your electricity usage remains consistent.

Source: LookSee

These increases come on top of rises in previous years – meaning households are experiencing compound annual increases, not one-off adjustments.

Eskom’s approved tariff hikes are locked in.

The National Energy Regulator of South Africa (Nersa) has approved an average 8.76% increase for direct Eskom customers from 1 April 2026, followed by another 8.83% in April 2027. These adjustments stem from a court-ordered recalculation of Eskom’s revenue requirements, pushing prices higher than first anticipated.

Municipal customers will feel the ripple from 1 July 2026, with bulk wholesale prices rising 9.01%. Regardless of usage, these increases affect every home and sit well above the 3% consumer inflation rate reported by Statistics SA.

The cost of powering a home is rising far faster than the average inflation rate.

“This is why we say the case for acquiring a solar solution makes good financial sense. You lock in savings immediately, and these savings compound into the future,” adds Du Plessis.

Those who have delayed their decision to install a solar system may wish to reconsider.

The move by early solar adopters was driven by necessity: load shedding was disrupting business and living conditions across the country. Now the motivation has shifted to insulating households from future electricity tariff hikes, such as those recently authorised by Nersa.

The falling cost of solar equipment

Another compelling reason to consider going solar is the falling cost of equipment. Panels, inverters and system components have become far more affordable in recent years, thanks to improvements in global supply and stronger local competition.

High-quality setups are now within reach at prices that would have seemed out of bounds just a few cycles ago.

“Each year that you delay installing solar locks you into higher and higher electricity costs,” says Du Plessis.

“Conversely, installing a solar system now means you get immediate monthly savings, which are then locked in and compound over time.”

The appeal of today’s solar options lies in their flexibility. You don’t need to commit to a massive upfront overhaul. Homeowners can rent or subscribe to systems without significant capital outlay or taking on new debt, enjoying savings straight away through predictable monthly fees.

Full or geyser-only conversion options

Modern solar PV panel solutions (distinct from evacuated tube designs) can transform an existing electric geyser into a solar-assisted one.

Says Du Plessis: “Water heating costs account for about 40% of the average family’s electricity bill, so converting your geyser to solar would see an immediate and substantial saving.

“This conversion offers the biggest opportunity for significant savings in a household, with the additional benefit of those savings improving over time by insulating the family from future electricity tariff increases.”

Such upgrades can deliver savings of up to R720 a month on electricity bills, depending on household size and usage.

For those opting for a full solar conversion, the savings can reach 60-70% of monthly electricity bills – and that percentage grows each year.

With prices having come down and the savings calculations growing ever more attractive, the timing feels right.

First step

Du Plessis encourages homeowners to take that first step: “Go to our website and get a quote. There are many ways to start your solar journey – even if you don’t have the upfront capital. You can rent or finance equipment, and you can start small – with a solar geyser conversion.”

LookSee’s Smart Save Journey offers a clear path forward, helping families assess their home’s unique solar potential.

Speaking to a LookSee consultant allows you to size the right system for your needs and budget, weigh purchase against rental models, explore the advantages of geyser conversion, and map out realistic long-term gains.

Even if a full solar installation isn’t on the immediate horizon, exploring the options today can help shield your household from the next wave of tariff shocks, putting real money back in your pocket month after month.

To try LookSee’s Smart Save journey, click here.

Brought to you by LookSee.

Moneyweb does not endorse any product or service being advertised in sponsored articles on our platform.

#electricity #prices #soaring #heres #solar #sense