Solar energy has become a visible fixture in South Africa. But many businesses are still holding off on installing solar and storage systems. WEG Africa’s Oscar Roberto Harbs Júnior asks: Can they afford to wait, or is this a good time to invest?
Photovoltaic panels have sprouted across rooftops in towns and cities. What started as a way to offset crippling power outages caused by the country's ageing infrastructure has become an environment where businesses can generate their own energy and reduce their dependence on the grid.
While the bulk of SA's solar power output comes from large generation sites, the commercial and industrial (C&I) market has gained significant traction. This growth has notably reduced solar prices, and in some cases, a C&I solar and storage installation is half the price it was two years ago.
Solar and storage projects reached a point where the return on investment made sense to business owners in the C&I space, boosted by the rush to mitigate the high levels of loadshedding we experienced in 2023. This, along with higher energy tariffs, has increased interest. Several solar and storage companies have also substantially increased their presence in the C&I market. “All these factors together are seen as the drivers for growth for the next few years," says Oscar Roberto Harbs Júnior, Sales Supervisor at WEG Africa.
Rising grid electricity costs
The rate of rise in electricity costs in South Africa in early 2025 was around 12.74%, the latest in a series of consistent price increases that have made electricity 190% more expensive since 2014, according to South Africa’s Council for Scientific and Industrial Research.
Solar and storage have become among the most affordable and accessible options for consumers seeking to reduce their electricity bills and build a buffer against future price increases. Oscar says this is an excellent time to consider investing in solar and storage projects. However, he cautions against doing so without proper research, and businesses should seek advice from an experienced company with strong bankability and a strong reputation.
"The window of opportunity is promising, but since solar and storage are medium to long-term investments, rushing the decision may cause investments to fall short of the expected ROI or experience after-sales issues. Business decision makers should prioritise quality over the option of lower-priced products and projects."
Be smart about solar
Here are tips for people looking to buy solar systems:
- Assess the energy needs: Review monthly electricity usage (kWh/units) to understand energy needs before going to the market.
- Select a high-quality brand: opt for a reliable brand for inverters, batteries, solar panels and the balance of system components (BOS). Select a brand that can provide a complete, one-stop shop service, honour warranties, and deliver local support for the duration of the investment.
- Use approved system integrators: Use reputable and accredited system integrators who comply with local regulations and obtain necessary approvals.
- Remember maintenance and monitoring: To maximise ROI, keep track of savings after the system installation.
WEG Africa, a subsidiary of the global Brazilian OEM WEG, offers a wide range of products, including electric motors, gears, controls and automation, utility and standby power generation, transmission and distribution equipment, renewable energy solutions and EC&I construction services.