As South Africa grapples with escalating electricity prices, investment in solar photovoltaic (PV) and battery energy storage is gaining momentum.
Solar PV adoption has shifted from a reactive measure against load shedding to a financially motivated decision. Were transitioning from a backup market to a market driven by financial returns, said Andrew Middleton , CEO of GoSolr.
He also called for regulatory reforms to foster a more open and competitive energy market. Electricity generation should operate within an open market framework to ensure fair pricing and reflect market dynamics, he said.
Managing Director at Vantage Green X, Alistair Campbell , provided a macroeconomic overview of the market. He said that the escalating cost of electricity was as a result of long-term investments i n traditional infrastructure. Weve been paying for Medupi since 2008, which has forced up the price of electricity so sharply that putting in solar battery systems is no longer a nice-to-have, it has become essential, he said.
The Carbon Border Adjustment Mechanism (CBAM), a new European regulation, may impact countries with high carbon emissions, he added. The penalties could affect the viability of South African businesses going forward.
There is a need for long-term, affordable financing for solar projects, particularly in the commercial sector, said Jonty Sacks , Partner at Jaltech.
The traditional banking sectors short-term funding models often present obstacles for potential investors. Banks typically require end customers to contribute around 30% equity. This can be a significant barrier for solo installers or developers who may not have anticipated this requirement. He advocated for alternative funding solutions to address these challenges.
The industrial sector has specific needs, with a particular focus on grid access and the increasing importance of utility-scale battery storage, said Director of Energy Group, Tim Hill . Were seeing rapid development of renewable energy projects and battery storage is becoming more viable as prices come down, Hill explained. He also emphasised the importance of batteries in stabilising the grid, which he says is a critical factor as the countrys energy mix continues to diversify.
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