Page 25 - EngineerIT Nov-Dec 2025

ENERGY

South African businesses can target energy

price crisis with “solar plus storage”

hile grid instability remains a “Eskom has structured price increases to maximise revenue
concern, the immediate and during peak demand periods, making the financial case for solar
Wmost critical driver of South and storage undeniable. Businesses are waking up to bills that
African commercial and industrial (C&I) have jumped 30%, and that’s the real prompt for action,” he adds.
investment in renewable energy is the
escalating cost of electricity, according IMPOWER Solar’s analysis highlights how a combined solar and storage
to Matthew Cruise, Business Development solution directly addresses the financial and operational pressures
Executive at IMPOWER Solar. facing C&I clients:
• Immediate savings via power purchase agreements: For businesses
Businesses are moving decisively to implement without upfront capital, IMPOWER offers PPAs to install solar systems
solar and battery storage solutions to achieve at no cost. The electricity generated is sold back to the client
significant, immediate financial savings and at approximately half the price of the current Eskom peak tariff,
long-term operational continuity. providing instant savings from day one.
• Accelerated return on investment (ROI): For businesses with capital,
The focus has shifted from managing load standalone solar offers a typical two-year ROI. By integrating a
shedding to mitigating the “price crisis,” battery energy storage system (BESS), the ROI for the entire system
which sees many businesses experiencing extends to approximately four years, well within the standard 10-year
electricity bill increases of 20% to 30%, despite warranty period for batteries and inverters, securing a guaranteed
the average tariff adjustment being lower. This return multiple times the initial investment. The BESS is crucial for
disparity is primarily due to disproportionately eliminating the high peak tariff consumption.
steep hikes in peak hour tariffs (mornings and • Addressing the peak price problem: Battery storage allows
evenings) across certain tariff structures, such businesses to shift consumption, drawing stored solar power during
as the Mini Flex and Rural Flex. the expensive morning and evening peak hours, effectively locking
out the costliest elements of the current tariff structure.
“We are seeing a clear inflection
point: for C&I operations, solar is no Beyond financial savings, investing in solar + storage is the most
longer a luxury for grid resilience, but impactful step a South African company can take to meet its
a mandatory financial intervention,” Environmental, Social, and Governance (ESG) objectives and prepare for
says Cruise. upcoming regulations.

South Africa’s grid-supplied electricity is among the world’s most
carbon-intensive, resulting in an emission of approximately one
kilogram of CO2 per kilowatt-hour consumed. By replacing up to 50%
of daytime energy use with zero-emission solar power, businesses can
immediately halve their Scope 2 emissions.

By Matthew Cruise Additionally, this proactive investment positions companies ahead of
Business Development Phase Two of the Carbon Tax Act, where businesses will become liable
Executive at IMPOWER Solar for taxes on emissions resulting from Eskom electricity consumption.

25 | EngineerIT November/December 2025