WATCH | Navigating rising electricity costs: How Standard Bank is powering South Africa's solar adoption
In 2024, the country saw a nearly 13% increase in electricity tariffs, while in 2023 the Consumer Price Index (CPI) recorded a 16.5% rise in the cost of electricity and other fuels when compared to the previous year.
Rising electricity tariffs continue to pose significant financial challenges for households across South Africa, leading to increased interest in solar power for its ability to deliver cost savings. In 2024, the country saw a nearly 13% increase in electricity tariffs, while in 2023 the Consumer Price Index (CPI) recorded a 16.5% in the cost of electricity and other fuels when compared to the previous year.
This situation has necessitated a shift among South Africans towards alternative power sources, not only to manage load shedding but also to mitigate the escalating electricity costs.
“In 2023, there was a significant demand for residential solar and backup solutions, primarily driven by extensive load-shedding periods. The main concern for consumers was to ensure power availability at home," explains Marc du Plessis, Standard Bank’s Executive Head of LookSee.
"This year, although load shedding has somewhat subsided, the focus has shifted towards cost-saving due to the steep rise in electricity prices, prompting customers to explore more economical options."
LookSee is a pioneering online platform by Standard Bank. It empowers homeowners to economise, manage, and enhance their properties while connecting with their communities.
Among its offerings is a comprehensive service for those interested in solar power, which includes a quick and easy online quote process followed by a free site visit and consultation with an energy advisor to determine the best solar system size for the family’s needs, high-quality solar equipment with extensive warranties, and compliant installations by fully-qualified and experienced solar installers.
The platform also offers free access to South Africa’s first Solar Score for residential properties which enables households to establish the solar generation and electricity savings potential of their particular home.
The Role of Banks in Solar
Financing the transition to solar energy, while advantageous in the long run, presents initial financial challenges. Here, the financial sector plays a pivotal role.
"The investment approach in solar systems varies. Options include subscriptions, rent-to-own, and direct financing. For those opting for financing, whether through a home loan or our Solar Loan product, the repayment period can extend beyond five years. However, the reduction in electricity bills can offset the loan repayments,” says du Plessis.
Standard Bank is at the forefront of facilitating the shift to solar through its climate strategy and diverse financing options, such as the Solar Loan, home loan re-advances, and future use allowances. These initiatives enable homeowners to finance their solar installations effectively and transition to renewable energy.
"We were the first bank to introduce a residential Solar Loan in collaboration with the government's Energy Bounce-Back Guarantee Scheme. This product has been highly successful, offering flexible payment terms and allowing customers to accelerate repayments without penalties, using savings from their utility bills to subsidise the loan," du Plessis adds.
The bank caps its interest rates at prime plus 2.5% down to prime plus 1%, making the loans highly affordable.
Finding the Right Solar Partner
Choosing the appropriate solar financing plan is crucial, but selecting a reliable provider is even more critical.
"The most important factor is finding a trusted installer who is professional and well-referenced," du Plessis advises. "At Standard Bank, through LookSee, we have invested considerable effort in establishing trusted and curated solar equipment and a trusted network of installers to ensure that our customers receive exceptional service."
To make your home a contributor to a more sustainable world through solar energy, visit Standard Bank HERE.
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