After 151 days without load shedding, South Africa’s national grid stability is a welcome development for households, but it has posed a challenge for renewable energy startups that thrived during the country’s frequent power outages.Businesses that built their value proposition around providing alternatives to load shedding are now rethinking their strategies. One investor, speaking anonymously, noted, “Startups focused solely on addressing load shedding are quickly revising their business models.”This shift in demand is evident in the resale market, where backup solar power systems are now being sold at steep discounts. For example, a Growatt 5kW solar system priced at R35,000 ($2,000) was recently listed for R6,000 ($337) on Facebook Marketplace. Additionally, rooftop solar installations, which grew by 31% between January and May 2023, saw only a modest 2.7% increase over the same period in 2024.
While Eskom’s grid electricity costs around R3.30 ($0.19) per kilowatt-hour (kWh), solar energy costs approximately R2 ($0.11) per kWh. Though solar remains the cheaper alternative, a projected 44% hike in Eskom tariffs this year could renew interest in solar installations, even as solar system prices are expected to drop by 10% annually.However, the transition has not been easy for all players in the sector. Hohm Energy, a startup that rapidly expanded during peak load shedding, recently entered administration due to mounting debt. Its struggles highlight the risks of scaling too quickly in response to short-term market conditions.
Despite these challenges, other startups are finding ways to remain competitive. Vincent Maposa, founder of Wetility, noted, “Our growth has accelerated even after load shedding decreased because rising tariffs are prompting customers to seek savings.” Wetility’s software allows users to monitor and manage their power systems remotely, offering cost-effective solutions for households navigating inflation and economic pressures.Similarly, Plentify, a load management platform, continues to see demand for its offerings. Founder Jon Kornik said, “While fewer people are installing solar systems, they are still focused on maximizing their value, and that’s where we come in.”Eskom’s improved power supply does not come without costs. High debt and operating expenses are being passed on to consumers in the form of increased tariffs. While reliable electricity is a relief, the financial burden on households ensures that alternative energy solutions remain a viable and attractive option.
For South Africa’s renewable energy startups, the journey is shifting from crisis-driven growth to sustainable, long-term innovation. Their ability to adapt to evolving consumer needs and market dynamics will determine their place in the country’s energy future.
