Big shift for complexes and sectional titles in South Africa

More South Africans living in sectional titles are shifting to solar products to protect themselves against higher electricity costs, despite the challenges of getting this approved.

South Africans feel an incredible squeeze from South Africa’s rising electricity costs. Since 2008, electricity prices have jumped by over 500%.

Eskom introduced a further 12.74% tariff increase today, 1 April 2025. Although this is far lower than the 36.7% increase that Eskom wanted, it still comes at a significant cost for South Africans.

On top of electricity in the new month, additional fixed services charges are slapped onto bills. Moreover, higher electricity prices flow into other parts of the economy and will be inflationary.

South Africans are paying nearly double the amount they did just five years ago for electricity, despite the heightened levels of load shedding over the period.

Although many homeowners in South Africa can install their solar panels and batteries, many sectional title residents feel that they have to endure Eskom’s rising prices and unpredictable supply.

However, Michael Faber, director of energy at Bright Light, said more sectional title complexes are switching to renewable energy, which is leading to energy cost savings and improved supply.

“People often assume that going solar means a hefty upfront cost or special levies. But that’s not how it works,” said Faber.

Via Power Purchase Agreement (PPA), sectional title schemes can install solar and battery systems without residents having to pay upfront.

Instead, they pay a set electricity rate, often far lower than Eskom’s costs. In addition to the lower costs, there are the supply benefits, he said.

2025 has seen load shedding rear its ugly head several times, following close to a year with no rolling power outages.

Faber added that there are three good reasons for sectional title residents and owners to install solar and a battery: 

Cost savings from day one

With Eskom continually pushing for higher tariff hikes, community scheme residents can lock in stable, lower electricity rates over the long term by switching to renewable energy.

Faber said a well-structured solar PPA will eliminate the shock of Eskom’s rising bills. In addition to the 12.7% increase today, there will be 5.36% and 6.19% increases from 2026/27 and 2027/28.

Protection from load shedding and grid failures

Outages are extremely disruptive, creating issues for work, security systems, travelling, home activities and the broader economy.

Despite the reduced load-shedding, poor infrastructure across South Africa means that unplanned outages are common.

Sectional title schemes can use an integrated solar and battery setup to keep essential power running and reduce dependence on the struggling national grid.

Higher property values

Energy security is also becoming a major selling point in the property market, making solar a significant investment.

Buyers and tenants increasingly want homes with alternative power solutions, making solar-equipped complexes more valuable and attractive.

Although the benefits are clear, Faber warned against installing solar without proper due diligence.

“There are plenty of installers offering cheap, subpar systems that can end up being inefficient or even unsafe.”

“It’s crucial to work with a reputable provider who ensures the system meets all technical, safety, and municipal compliance requirements.”

Several law firms have highlighted the many considerations that sectional title residents must keep in mind when considering solar.

When looking at the Sectional Titles Schemes Management Act, Wright Innes Rose said that a unanimous resolution of the body corporate is required for non-reasonably necessary improvements.

That said, a reasonably necessary improvement to the common property will only need a special resolution from the body corporate.

The Act states that a unanimous resolution needs a meeting where 80% of the votes cast by the present or represented body corporate members favour the resolution.

A special resolution will only need at least 75% of the votes of members represented at a general meeting.