2025 Energy Trends: Key Renewable Innovations in South Africa

Energy trends shaping SA in 2025

Power – or the lack thereof – has been a hot-button issue in South Africa for the past few years. Cut to 2025 and after months of no loadshedding, the country’s favourite bugbear seems to be once again making an appearance. As a result, reliable electricity remains a hot topic – and the recently-announced tariff hikes will only compound this frustration.

However, there is still a greater sense of cautious optimism surrounding the future, driven by the rapid expansion of the renewable energy sector.

Here are four renewable energy trends that we expect to see in 2025.

SolarAfrica Renewable Energy Solar For Business

Flexibility Switches on

Pantry looking a little bare? A few taps on your phone and a load of groceries will be delivered to your door within the hour. Need something good to watch? Surf Netflix or Showmax to your heart’s content. Looking for a weekend playlist? Type ‘Sunday vibes’ into Spotify and you’ll be served countless options.

Just like every other facet of modern life, electricity too has entered its on-demand era.

We’re seeing a growing appetite for energy trading, where NERSA-licensed traders buy renewable energy from different providers to sell to off-takers. Businesses are also looking for higher levels of renewables and layered solutions that they can toggle between as needed. Having greater access to sources such as wind and solar (through wheeling) paired with on-site solar and battery storage, facilitates increased cost savings, greater choice and more power security.

Electricity 2.0 offers businesses ultimate flexibility and control over their power. Check it out here.

Alongside this is a growing desire for more flexibility in agreements with IPPs. Until recent years, being locked into a 20-year power purchase agreement was the norm but many businesses are starting to shy away from long-term commitments, especially given South Africa’s generally turbulent economic environment.

At SolarAfrica, we recognise that there is also a growing demand for shorter-term, more flexible contracts as the sector moves towards a merchant market – and we cater for this growing appetite.

SolarAfrica Renewable Energy Solar For Business

Rising tariffs a turn-off

Rising electricity tariffs remain a key driver in the mass shift towards renewables. In South Africa, tariffs have surged by over 450% since the onset of the power crisis, and this upward trend shows no signs of slowing. While Eskom’s requested tariff increase of 36.15% for 2025/2026 was denied, a double-digit tariff increase of 12.7% was still granted by NERSA. This is to be followed by a 5.36% increase in 2026/2027, and a 6.19% increase in 2027/2028.

These rising tariffs will remain a trend for some time and are set to place even greater financial strain on industries – specifically the mining, manufacturing, production and automotive sectors, which are massive energy consumers. This will accelerate the move to a more diversified energy mix.

Multiple energy options exist, with even more solutions expected in future. The challenge for companies will shift to discerning between the various solutions and deciding which makes the most sense to their business.

Chat to us if you would like to discuss solutions best suited to your needs.

SolarAfrica Renewable Energy Solar For Business

Green grows bigger and brighter than before

Businesses in South Africa are facing mounting pressure to transition to greener energy solutions, driven by global trends and regulatory frameworks like the EU’s Carbon Border Adjustment Mechanism (CBAM). CBAM imposes carbon tariffs on imported goods based on their carbon footprint, putting South African exporters – particularly in industries like fruit exports, automotive and manufacturing – at risk of losing competitiveness if they don’t decarbonise. Domestically, our Carbon Tax Act has amplified the urgency for companies to shift their energy mix towards renewables.

Putting a solid sustainability framework in place isn’t a simple tick-box reporting exercise. It offers tangible financial, environmental and business benefits to organisations that want to differentiate themselves in the eyes of their communities and those of potential investors and employees.

It just makes good business sense.

Want to know more about this topic? Read our blog “Sustainability in Action: The financial, environmental and business benefits of sustainability”.

Wheeling moves into the spotlight

Electricity wheeling sees IPPs generate power that can be purchased from them directly. With no need for on-site installation, customers benefit immediately from affordable, green energy. At our utilityscale solar farms, for example,  power is generated and can be purchased by businesses at a far lower tariff than through Eskom. 

Find out more about Wheeling here

Electricity wheeling has slowly been gaining traction. This changes in 2025 as South Africa’s electricity tariff crisis, regulatory shifts and ongoing power generation concerns are quickly pushing businesses to find cheaper, greener and more reliable electricity alternatives. Several municipalities, including the City of Cape Town, are actively supporting wheeling frameworks to attract investment in distributed energy solutions. These frameworks allow private power to flow through municipal grids, increasing access to alternative energy sources.

Get the necessary frameworks in place so that when it’s time to switch on, your business benefits immediately from cheap, green energy. Chat to us to determine what solutions are available to you.

Thanks to the rise of renewables, the energy landscape is seeing an exciting renaissance. Now is the time for companies to explore their options and secure a more sustainable, cost-effective energy future.

Whether through wheeling, on-site solar or hybrid solutions, we can help you diversify your renewables mix and future-proof your business in the changing energy landscape.

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