Presented by Hohm Energy

New electricity tariffs make it clear that solar is now an absolute no-brainer

 ·5 Jul 2023

Whilst loadshedding across the country may have surprisingly paused for now, South Africa is currently grappling with escalating electricity costs, and together with high interest rates and low consumer confidence, this has left many consumers facing financial strain.

In the wake of drastic increases in electricity tariffs across various Metros since 1st July 2023, it is clear that alternatives to our traditional power supply should be seriously considered.

With this in mind, it is important to understand that there are now several ways to finance your solar journey to suit your financial means.

Understanding your particular needs, Hohm Energy, the leading solar fintech marketplace in South Africa, offers the broadest variety of solar financing solutions available.

A Storm of Increases

The National Energy Regulator of South Africa (NERSA) has been responsible for implementing a significant surge in electricity tariffs. The 2023/24 financial year has seen an average hike in the electricity tariff of 18.65%, with a 12.74% increase planned for the following year.

These increases come despite pleas from President Cyril Ramaphosa for a suspension of tariff hikes due to heightened costs of living and increased load-shedding severity.

The impact of these tariff increases varies across the country, with eThekwini facing the highest increase. Below are the increases implemented from this month for each of the major metros from highest to lowest:

  • eThekwini: 18.49%
  • City of Cape Town: 17.6%
  • Tshwane: 15.1%
  • Buffalo City: 15.1%
  • Ekurhuleni: 14.98%
  • City of Joburg: 14.97%

This escalation in costs reflects a challenging reality for South African households and businesses alike.

The Cost of Solar vs. Electricity Costs

With these tariff increases, the cost of financing a solar solution with Hohm Energy now almost equals the amount saved from your electricity bill. This marks a game-changing shift in the cost-effectiveness of solar power for South African households and businesses.

The previous barriers of high upfront costs associated with solar installations have been significantly mitigated, making solar energy a more attractive and viable alternative to traditional electricity.

Hohm Energy’s solar finance options

Hohm Energy is revolutionising the solar energy market in South Africa with its comprehensive range of solar financing options. Recognizing that one-size-doesn’t-fit-all, Hohm Energy offers a variety of solar financing solutions tailored to the unique needs and financial capacities of its customers.

For homeowners with existing bonds, there’s the option of a home loan, further advance or a re-advance. This integrates the investment into the existing loan structure, providing a convenient and streamlined solution for solar financing.

For those seeking asset-backed financing, Hohm Energy has partnered with Nedbank MFC to offer bespoke solutions exclusively for solar projects. This financing is very similar to vehicle financing, where the solar system is “paid off” over 6 years, and then ownership is transferred from the bank to you.

And, soon to be launched, is Hohm Energy’s innovative partnership with GLINT, which introduces an innovative solar subscription model. For a fixed monthly fee, customers gain access to the immense power of solar energy from a system tailored to their needs without any of the encumbrances of owning a solar solution outright.

The GLINT solar subscription includes all installation costs, maintenance, and monitoring, simplifying the switch to solar.

Harnessing the Power of the Sun

Despite the pause in loadshedding, the rapid increase in electricity tariffs across South Africa has clearly thrust solar energy into the spotlight as a more affordable and sustainable power source.

Hohm Energy’s range of flexible solar financing options makes solar power more accessible and affordable for South African households and businesses.

By accessing Hohm Energy’s solar solutions, customers can take control of their energy costs, gain energy independence, and contribute to a cleaner, more sustainable future.

Visit Hohm Energy’s website today and generate a free proposal whilst discovering the wide range of solar financing options to suit your needs.

Generate a free proposal and discover the wide range of solar financing options to suit your needs.

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