Why South African businesses are turning to renewable energy
South African businesses are facing relentless increases in electricity costs. Since 2008, Eskom tariffs have surged by over 450%, with proposed hikes adding another layer of uncertainty for companies reliant on traditional power sources. For businesses in sectors like manufacturing, mining, and production – where monthly electricity bills can exceed R400 000 – these spikes significantly impact operating costs.
Renewable energy is quickly becoming the go-to alternative for reducing these expenses while contributing to sustainability. By adopting renewable solutions, businesses can cut their energy bills, reduce their reliance on Eskom as their sole source of electricity, and improve their environmental credentials.
Cost-effective renewable energy solutions for businesses
For businesses looking to save costs, renewable energy presents several options:
On-site solutions
- Solar: Solar energy remains one of the most accessible and effective renewable energy options. With SolarAfrica’s Power Purchase Agreements (PPAs), businesses can install solar systems without any upfront costs and pay only for the electricity they use, which is often 50% cheaper than Eskom’s rates.
- Battery Energy Storage Systems (BESS): While batteries don’t necessarily save costs directly, they provide backup during peak demand periods and outages, optimising energy use when paired with solar. They allow businesses to tap into Time of Use Arbitrage, reducing costs by storing energy when it’s cheaper and using it during high-demand periods.
Virtual solutions
- Wheeling: Virtual power solutions like Wheeling enable businesses to buy green energy from SolarAfrica’s utility-scale solar farms. Delivered via the national grid, Wheeling offers significant cost savings without the need for on-site installations. Wheeling is the ultimate money saver, giving businesses access to renewable energy at a much lower tariff than Eskom’s grid power.
Did you know?
Wheeling is part of SolarAfrica’s Virtual Power Ecosystem, Electricity 2.0. Explore it here.
Cost-effective renewable energy solutions for businesses
While government incentives like the 12B tax allowance are phasing out, businesses can still benefit from Renewable Energy Certificates (RECs). These certificates allow companies to prove their use of renewable energy, an essential credential for industries such as mining and manufacturing. Failing to meet sustainability goals can put businesses at risk of losing contracts and income, especially for those with international mandates.
In today’s economy, meeting net zero targets is crucial. By investing in renewable energy and proving their green credentials, businesses can secure their future in an increasingly eco-conscious world.
Finding the best renewable energy deals for your business
When choosing a renewable energy supplier, several factors are crucial:
- Proven track record: Work with established suppliers like SolarAfrica, who have deployed over 204 projects and saved clients more than 295 000 tonnes of CO2.
- Long-term savings: PPAs and Wheeling agreements lock in predictable tariffs for 5 to 25 years, providing long-term protection from Eskom’s volatile prices.
- Layered approach: Businesses now have more options than ever. You can mix and match solar, BESS, and Wheeling with Eskom’s power to get the best, most cost-effective energy solution for your needs.
For more insights on finding the right solution, explore SolarAfrica’s Electricity 2.0 page.
Revealing the benefits of renewable energy for businesses
The benefits of renewable energy extend beyond cost savings:
- Lower operating costs: Solutions like on-site solar and Wheeling help businesses significantly lower electricity expenses by replacing expensive grid power with cheaper green energy.
- Energy security: Renewable energy solutions provide stability and reduce dependence on Eskom, though businesses should integrate their solutions to balance usage.
- Sustainability and reputation: Renewable energy supports businesses in achieving sustainability targets and enhances corporate responsibility, boosting brand reputation.
Start your green energy journey today
Switching to renewable energy is not just a way to cut costs – it’s a step towards sustainability and energy independence. With solutions like solar, battery storage, and Wheeling, businesses can tailor their energy strategy to meet their needs and future-proof themselves against rising energy costs.
Take the first step with SolarAfrica
If you’re ready to cut energy costs and lower your carbon footprint, SolarAfrica’s expert team is here to help. From on-site solar PPAs to Wheeling and Virtual Power Purchase Agreements, we offer tailored solutions for your business.
Contact SolarAfrica today for personalised advice on the most cost-effective and sustainable energy solutions.
Frequently Asked Questions (FAQs)
Solar PPAs and Wheeling (Electricity 2.0) are highly cost-effective, with no upfront costs and significant savings on tariffs compared to Eskom.
Yes. Wheeling provides consistent power for businesses with large energy demands, while on-site solar and BESS solutions offer additional support during peak times.
Look for suppliers with a proven track record, customisable solutions, and long-term contracts, like SolarAfrica.
Yes, maintenance can be costly, but with a PPA, all maintenance, insurance, and repairs are covered, reducing the financial burden on your business.
RELATED STORIES
