South African electricity tariffs are climbing fast. Businesses are under pressure. Nersa has approved price hikes that will push Eskom tariffs up by nearly 80% between 2022 and 2027. If you’re spending over R30,000 a month on electricity, your real exposure is much higher than you think. One proven way to take back control is solar. But for many businesses, indecision is standing in the way. This case study shows what that indecision is costing you.
A Real Case: Ekurhuleni 1 MW Solar Opportunity
A commercial site in Ekurhuleni, similar to a shopping centre, uses around 6 million kWh per year. It pays an average of R2.68/kWh. That’s over R16 million in annual electricity costs.
Sosimple Energy offered a 1 MW system under a 10 Year Power Purchase Agreement (PPA).
This system would:
- Supply 60 –70% of daytime usage
- Deliver power at R1.62/kWh (vs. R2.68 from the grid)
- Require Zero Investment
- Include all insurance and maintenance at no cost to the business
What does this mean in real money:
- Monthly savings: >R130,000
- Year 1 savings: >R1.5 million
- 5-year savings: >R9 million
- 10-year savings: R24–R32 million
- 15-year savings: R50–80 million
- Lifetime savings: R113–R186 million
This is a zero-capex project that generates immediate cash flow improvement.
Yet the customer hasn’t moved forward. And that delay has a measurable cost.
The Cost of Doing Nothing
Every month of delay means the customer pays full grid prices instead of cheaper solar. That’s money gone forever.
Here’s the real cost:
- 1-year delay: >R1.5 million lost
- 3-year delay: >R5 million lost
Every day of inaction costs around R4,300.
Why Businesses Delay
The solar market has matured.
Businesses now have:
- Access to zero-capex PPA solutions
- Bank and third-party financing
- Turnkey offerings with full O&M support
But more options create complexity. Business owners and CFOs feel stuck choosing between lease, PPA, or purchase. They compare proposals. They wait for panel prices to drop. Meanwhile, the bills keep coming.
What Waiting Really Costs
Some businesses wait because they hope solar will get cheaper. But system prices have stabilized in recent years. Delaying doesn’t lead to better pricing. It leads to lost savings.
If the Ekurhuleni customer had acted three years ago, they would be R5 million ahead. That’s not a future benefit. That’s money that would be in their bank account now.
The Bigger Picture
- A 1 MW site like these locks in:
- R1.06 saved per kWh
- Millions in future electricity cost avoidance
- Reduced exposure to tariff hikes
- Improved ESG and resilience profile
Solar isn’t about going green. It’s about paying less for the same power. And with a PPA, it doesn’t affect your capex or balance sheet.
What to Do Now
If your business pays over R30,000 a month for electricity, it’s time to act.
We can help you:
- Compare solar options side by side
- Understand financial outcomes across models
- Make a clear decision based on savings, not sales
Get a custom solar comparison for your site.
You’re already paying for solar – to the grid. Let’s stop that. Let’s redirect those funds into your bottom line.
Talk to us. We’ll show you what waiting is costing you.
By Liana Braxton
