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<\/p>\nData from BrandMapp’s latest Blackout Survey shows that most households can’t afford to spend much on load shedding mitigation solutions like rooftop solar.<\/p>\n
BrandMapp’s survey analysed over 1,400 responses from middle-class households in South Africa earning more than R10,000 per month. The survey gauged these households on how they have been impacted by load shedding and what they can do to counter its effects.<\/p>\n
According to the survey report, almost two-thirds of middle-class households in South Africa spend less than R2,000 a month on electricity.<\/p>\n
The group said a direct correlation exists between income level and the amount of electricity a household purchases: the more households earned, the more likely they were to have higher electricity bills each month.<\/p>\n
While electricity costs were largely under R2,000, the survey showed that mitigation costs were already outstripping this, with most households spending up to R5,000 to prevent load shedding.<\/p>\n
To mitigate the effects of load shedding, South Africans often have to fork out extra cash to sidestep the power crisis, whether it be through purchasing candles, USB lights or installing rooftop solar.<\/p>\n
Notably, while most households spend up to R5,000 to escape load shedding, a 1000Wh portable inverter is about R8,000 – which indicates that households are turning to quick-fix solutions rather than looking for a long-term move away from load shedding.<\/p>\n
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“The vast majority of lower-income households have not been able to spend more than R5,000 solving the problem, unlike 20% of wealthy households who have been able to throw more than R30,000 at the problem,” the group said.<\/p>\n
It\u2019s all too easy for those living in higher income areas to think that \u2018everyone\u2019s got an inverter\u2019, but the reality is clearly quite different for the average taxpaying citizen.<\/p>\n
“It isn\u2019t too far a logical leap to say that if 73% of the midmarket+ population lose their internet\/Wi-Fi access during load-shedding, it\u2019s fair to say that is the total percentage of adults who have no practical power back-up solution. What they have is a drawer full of band-aids rather than any form of meaningful cure,” it said.<\/p>\n
The group said that its data shows that for the average taxpayer in South Africa, it’s evident that there are no significant or long-term mitigation solutions in place. In fact, candles and batteries are far more prominent than inverters or solar.<\/p>\n
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Despite this, respondents to the survey still believe that solar is the clear solution to move away from Eskom.<\/p>\n
When looking ahead at future plans to mitigate load shedding, around 39% opted for an inverter with solar power generation as their next plan for the household over the coming year.<\/p>\n
26% were looking into portable inverters, and another 22% were considering installing inverters and batteries.<\/p>\n
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Solar is proving to be a popular choice among all households in the middle market – even those with a lower income.<\/p>\n
Nearly 80% of all respondents are determined to spend money on fighting blackouts, and roughly half are willing to spend more than R15,000 doing so.<\/p>\n
40% of lower-income homes are planning on spending in excess of R15,000 to get through blackouts, while 43% of the higher earner are looking at spending upwards of R30,000, BrandMapp said.<\/p>\n
Solar tax incentive<\/strong><\/p>\n While households are willing to spend money to avoid load shedding, the numbers they’re willing to spend put the effectiveness of the recently-announced tax rebate for solar into question.<\/p>\n Starting from 1 March 2023, individuals who install rooftop solar panels can receive a rebate of 25% of the panel’s cost, up to a maximum of R15,000. This rebate can be used to decrease a tax liability in the 2023\/24 tax year and will be available for one year.<\/p>\n The solar industry has noted that the cheapest solar solutions typically start at R90,000, while the rebate is only effective up to R60,000 due to the R15,000 cap. Most households cannot afford to reach even the effective cap, BrandMapp’s data shows.<\/p>\n The area of mitigation that most middle-class households can afford – such as inverter trolleys or battery backups – are not covered by the incentive.<\/p>\n According to National Treasury, the reason for this is simple: these mitigation solutions do not generate electricity, and the purpose of the tax incentive is to incentivise generation to ultimately add more power to the grid.<\/p>\n As solar and other mitigation solutions remain unaffordable and out of reach for many, South African households are also in for higher electricity tariffs, starting in April.<\/p>\n Energy regulator Nersa approved an 18.65% electricity price hike for 2023 and a 12.74% for 2024 on 12 January, which comes into effect at the start of the new financial year.<\/p>\n Despite being lower than the 32% that Eskom applied for, it is still sizeable enough to have a knock-on effect on already cash-strapped South Africans.<\/p>\n
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