Solar power: The smart investment

SA's energy landscape is becoming increasingly unpredictable, and businesses are grappling with rising costs and concerns about the reliability of energy supply.

Eskom and municipalities are at serious crossroads concerning the future of electricity generation and supply. On the one hand, the national supplier barely has enough generation capacity to supply the current national load, not taking into consideration economic growth nor the steady transition from vehicles powered by traditional fossil fuels to electric ones.

On top of that, reticulation infrastructure needs to be upgraded for increased capacity distribution. 

Because of Eskom and some municipalities' dire financial position, the only way to increase revenue for this critical infrastructure investment is to charge more for services rendered. This leaves industry in a difficult position to plan for future output versus energy cost across all business sectors.

In contrast, solar energy solutions present not just an opportunity but a necessary step towards financial resilience and operational efficiency.

Solar solutions: A financial game-changer

This situation is compounded by the rising cost of electricity.

Between 2008 and 2022, SA’s electricity tariffs quadrupled, forcing businesses to absorb unsustainable cost increases. Indications suggest that this trend is likely continue, especially with Eskom applying for a 44% increase in tariffs for 2025, making energy affordability a serious concern.

Installing a solar power and energy storage solution is probably the best financial investment with guaranteed returns one can make. 

To boost the financial return on solar solutions, businesses that act quickly can still take advantage of the substantial 125% income tax incentive for solar energy projects completed and operational by February 28 2025 — if you sign up with a reputable solar developer as soon as possible. If you are considering solar, don’t miss this opportunity. A typical payback of a grid-tied solution can be less than two years. 

Simply relying on the national grid is no longer viable if you want to maintain your business’ operational stability and reduce financial risk.

Batteries are not merely for load-shedding

Batteries are certainly not merely useful to manage power interruptions such as load-shedding. While solar energy alone is a powerful solution, integrating it with battery energy storage enhances its impact dramatically. Energy storage systems are essential for ensuring the continuous and efficient use of renewable energy.

Battery energy storage systems (BESS) allow businesses to store excess solar energy generated during the day and use it during peak demand or in the event of disruptions. This ensures that the benefits of solar energy extend beyond daylight hours, maximising the return on investment for solar systems.

Even in the absence of solar energy, time-of-use arbitrage can be applied. By storing grid electricity when prices are low (typically during off-peak hours) and using it during high-demand periods, BESS enables more predictable and manageable energy costs. 

When the grid is already operating at or near full capacity, it often cannot accommodate the additional power generation from new solar systems, and then clients may face difficulty in connecting new solar installations to the grid.

Capacity issues need not pose a serious barrier to your business growth. With intelligently engineered solutions, you can have a reliable and independent power supply, even when the grid cannot accept new generation capacity. With the dramatic price reduction in equipment, these intelligent solutions will generate and store electricity at about 25% of the average grid supplied electricity cost.

Building a sustainable future

Beyond the financial benefits, investing in solar energy solutions also aligns businesses with the global shift towards sustainability. Consumers and stakeholders increasingly favour companies that are environmentally responsible.

By adopting renewable energy, businesses can reduce their carbon footprint, meet their industry’s export requirements where relevant and enhance their brand image, gaining a competitive edge.

Thinking ahead: The importance of proactive energy planning

Businesses that take control of their energy needs today will be better positioned to succeed in future. The key to navigating the energy landscape is proactive planning and investment in sustainable energy solutions. For this, you need an experienced energy partner. There are several factors to consider including experience, expertise and longevity of the business.

RenEnergy Africa has 12 years of proven experience in engineering commercial energy solutions, with more than 200 successfully implemented projects. 

RenEnergy: International intellectual property (IP), local application 

RenEnergy’s primary trading territories are the UK (founded in 2006) and SA (founded in 2012), from where it consults, designs and delivers innovative renewable energy solutions to various clients about the world. 

Understanding international energy markets and trends gives the company relevance and longevity in what is still a young industry. It's IP in technology and the application thereof is a substantial differentiator from new market entrants, especially in the energy storage space. 

In 2023, RenEnergy became part of the international energy group Aggreko — an important milestone in its growth journey and testimony to quality engineering and solutions. While that company retains the agility and entrepreneurial spirit that’s made it successful, it also now has backing of a global business. RenEnergy is thriving and growing. 

Power partner 

RenEnergy believes in fostering long-term partnerships with its clients. This dedication is evident: 58% of its business in 2023 resulted from returning clients, a testament to the partnerships, reputation and trust it has built within the industry.

RenEnergy provides more than just a product — it offers a partnership in building a sustainable, energy-independent future.

For more information, email consultants@renenergy.co.za, call 021-85100685 or visit Renenergy.co.za

This article was sponsored by RenEnergy.