Bronwyn Timm, Business Development Manager at SOLA Group highlights that the latest Eskom tariff increase is changing the way industrial and commercial sectors look at their energy costs – and consider their options. The 8.76% increase effective from 1 April 2026 is substantial and comes at a time of relatively weak growth and tight margins for many companies – yet Timm notes it also creates an opportunity for them to change their approach to energy.
It is clear that the tariff hikes will raise operating costs, with manufacturers likely passing these costs into final prices due to the added weight of fuel inflation. The conflict in the Middle East has also impacted South Africa’s GDP growth, which was downgraded to 1.5% in March from 1.6% in February. However, this growth dip isn’t as severe as expected and growth is proving resilient if compared with the 1.0% predicted by the International Monetary Fund (IMF).
Within this context, Timm says, we see typical South African resilience – and smarter ways for companies to approach the energy they depend on and how they use it. Higher tariffs can be addressed through demand management, intelligent metering and ensuring billing accuracy – and they open the potential to reduce reliance on a single electricity source as companies face rising costs and changing pricing structures.
First on the win list is battery storage. Battery costs are falling, and large-scale private battery and solar combinations, like SOLA Group’s Naos-1 project comprising 435 MWp of solar PV capacity and 855 MWh of battery energy storage, are financially viable today in ways they were not 18 months ago. The financial case improves materially every six months. South Africa is entering this battery storage and renewable energy integration phase with a particular advantage in that more developed markets that deployed renewables 20 years ago without affordable battery storage are still managing ongoing grid instability. South African companies can deploy renewables and BESS simultaneously and at a lower price point.
Second is the value introduced by wheeling contracts. These have become more flexible, with products available on terms over two to five years and at smaller volumes than the typical 20-year terms initially available. These newer wheeling options open access to companies that could not commit to long-term agreements.
Further, the South African Wholesale Electricity Market (SAWEM), now expected to be formalised by late 2026, will likely offer another layer of support to businesses. Companies that engage now while building the internal capability to operate in a commodity trading environment will be well positioned to benefit from this new competitive landscape.
Although the Eskom tariff increase is real and the impact broader than the percentage suggests, Timm says it is opening conversations that can have a long-term, transformative impact for business. It can be seen as the pointer to change energy sources, switch from the traditional reliance on a single electricity provider and put companies in a materially stronger position.
These steps don’t change the reality of the tariff increases and their financial consequences, for now, but they will enable companies to take more control over their energy reliance and how they approach it. Current market shifts are impacting on organisations globally, but South Africa has the resilience, ingenuity, and infrastructure to move forward within the complexity.
The shift from energy dependence to energy resilience is becoming a defining factor of competitiveness in South Africa’s industrial and commercial sectors. Businesses that invest proactively in diversified energy strategies, leverage emerging competitive market mechanisms, and build internal capability will be able to mitigate rising costs and build long-term stability and growth. It’s all about resilience, and South African organisations have had plenty of practice.
For more information visit: www.solagroup.co.za
