Energy Wheeling: A Strategic Approach for Business Cost Savings
As energy costs rise in South Africa, energy Wheeling is a cost-effective solution for businesses looking to combat volatile electricity tariff hikes. As part of SolarAfrica’s Electricity 2.0 Virtual Power Ecosystem, Wheeling allows companies to replace Eskom power with greener, cheaper electricity generated from SolarAfrica’s solar farms and delivered through the national grid. This electricity is 100% and comes at a kWh tariff that is up to 50% cheaper than Eskom’s. This approach provides substantial savings and enhances sustainability.
What is Energy Wheeling?
Energy Wheeling lets businesses buy renewable power from Independent Power Producers (IPPs) like SolarAfrica through the existing grid. It requires zero installation on the business’s side and offers renewable energy at scale unlike anything they could usually produce on site. This setup brings cleaner, affordable energy directly to companies.
- Savings: Up to 50% cheaper than Eskom power.
- Sustainability: Access to renewable energy without infrastructure investments.
- Reliability: Wheeling enhances energy flexibility and efficiency.
The Layered Approach to Business Cost Savings
To understand what how Wheeling can offer a strategic approach to cost savings we need to take a step back and see how businesses have typically approached renewable energy. As loadshedding and energy instability grew over the years, they started turning towards on-site solar and on-site batteries to combat these issues. With the energy landscape evolving even further (and loadshedding subsiding) businesses now face a new electricity crisis: prices. On-site systems alone can’t offer the amount of power needed to offset expensive Eskom power, which is why taking a layered, strategic approach to creating your own energy mix can future-proof your business.
That’s why we follow a green energy journey that combines various power solutions to meet specific business needs. This could include:
- On-site Solar – Reduces daytime electricity costs.
- Battery Storage – Used for Time of Use Arbitrage to optimise energy costs.
- Electricity 2.0 – Wheeling – Adds substantial savings by supplying green power through the grid.
- Eskom Integration – Off-peak Eskom power can complement the energy mix.
This strategic approach ensures businesses access the cheapest, most reliable power for their unique needs – whatever the source may be.
Benefits of Energy Wheeling
- Lower Costs: Replace expensive Eskom power with more affordable renewable energy.
- Sustainability Compliance: Helps industries like mining and manufacturing meet green mandates.
- Flexible Energy Supply: Blends on-site solar, BESS, and wheeling for a tailored, reliable energy solution.
How Energy Wheeling Works in South Africa
In South Africa, businesses sign a wheeling agreement, known as a Virtual Power Purchase Agreement (VPPA) with an IPP to buy wheeling. These agreements can range from 5 to 25 years, giving businesses the flexibility they need to buy enough power to scale with their growth.
Did you know? SolarAfrica will begin wheeling power in 2026. Our first phase is available on a first-come-first served basis. You can check out how to secure your VPPA with us here.
SolarAfrica’s Expertise
SolarAfrica combines decades of renewable energy expertise with a customer-first approach, helping businesses cut costs and achieve sustainability goals through tailored energy solutions.
On the Wheeling side of things we are already in construction phase for our first 342 MW of our 1 GW solar farm, SunCentral, that will wheel power as early as 2026. We have several other utility-scale projects in the pipeline across the country, so watch this space for more!
Start Saving with SolarAfrica
Wheeling is a smart, strategic step towards affordable, sustainable energy. With us, businesses can access clean energy that lowers costs and enhances efficiency.
Begin your green energy journey with SolarAfrica.
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