30.06.2025

Solar is the answer to huge new electricity tariff hikes coming in July

The National Energy Regulator of South Africa (NERSA) has approved electricity tariff hike applications for over 130 municipal and local authorities over the past three weeks.

These increases will come into effect on 1 July 2025 and range from 10% to 14%.

Many of the authorities requested even higher increases, but were rejected by NERSA, as it claimed these authorities needed to first address issues like poor financial controls, high energy losses, and operational inefficiencies.

When contrasting these figures with the latest Consumer Price Index (CPI) of 2.8%, it is clear that the new tariff hikes represent a huge burden on South African households.

2025 Municipal Electricity Hikes
Municipality Increase Municipality Increase
Buffalo City 12,74% City Power (Johannesburg) 12,41%
City of Cape Town 12,80%* Ekurhuleni Metropolitan 13,40%
City of eThekwini 12,72% Mangaung Municipality 12,40%
City of Tswane 10,20% Nelson Mandela Bay 12,80%
* Cape Town’s increas is based on NERSA’s approved 2024/25 tariffs. The city implemented a 4,5% higher increase in 2024, which is currrently the subject of ongoining legal proceedings.

A worrying trend

These above-inflation price hikes have become a major trend over the past decade.

With electricity price increases vastly outpacing the growth of salaries, it is South African households that feel the most pain.

LookSee executive head, Marc du Plessis, explains: “Every month, these households see more of their monthly salary going towards electricity costs and that’s not even taking into account the higher consumption that happens over winter.

This means that families have less money left over for other essential expenses.”

Souring the situation further is the fact that households are not seeing any corresponding improvements in the service they receive for their additional spend.

It is for this reason that solar energy is no longer seen simply as a response to load-shedding – it is an increasingly affordable way to control spiralling electricity costs for South African households.

Taking control of your electricity bill

Electricity is not the only rising municipal cost that South African households face. Property rates, sewerage, refuse, and other municipal service fees are increasing, too.

The difference is that these costs are largely unavoidable, whereas with electricity increases, there is another way.

The more electricity prices increase, the more attractive solar energy systems are as a financial investment.

In fact, through LookSee’s range of solar-based offerings, many households can enjoy immediate benefits – as their monthly electricity savings will be larger than their monthly repayment.

“Our innovative approach to solar geysers has really been a gamechanger in this regard. Not only is this an affordable intervention, but in most cases families actually put money back in their pocket from day one,” says Du Plessis.

For larger solar installations, your monthly repayment may be slightly more expensive than your electricity savings, but the long-term savings will still be huge.

Then, once their system has been repaid, these homeowners will be able to put the full savings back into their pocket.

Access to savings data

While this sounds great in theory, LookSee understands that South Africans want an accurate projection of how their solar investment will save them money.

It has therefore built a variety of tools that answer questions like how much they will save and when they will break even on their investment.

A great example of this is the new Smart Save tool, which focuses on answering two key questions:

  1. How energy-efficient is my household?
  2. How much can I expect to save on energy per month thanks to home solar?
    The Smart Save tool answers these questions by using data like your home’s location, your roof space, and your family’s consumption levels.

You can also take advantage of LookSee’s first-to-market Savings Guarantee on hybrid solar installations, which promises you a minimum savings figure for your first six months based on its extensive data and research.

Then, if you do not reach this amount in savings, LookSee will pay you R2,000 in cash.

“We see solar as a journey, and we walk that path with our customers. From helping them understand their minimum potential upfront, to empowering them after the installation with advanced tools, practical tips and support to ensure they get the most savings from their system,” says Du Plessis.

This includes access to sophisticated battery optimisation software that automatically prioritises use of solar power and storage over the grid, while still maintaining a margin of backup for unexpected electricity outages.

“Solar power hasn’t just become more affordable because of lowering prices, it’s also become more effective at savings as a result of technology developments at both a hardware and software level,” adds Du Plessis.

Through these valuable tools, LookSee has positioned itself not just as a solar installer – it is your all-in-one solar partner.

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