Tariffs up, resilience down: Why scaling renewable energy is a business imperative

AS SOUTH Africans brace for yet another round of electricity tariff hikes, with Nersa announcing increases of 8.76% in 2026/27 and 8.83% the following year, the business community is facing mounting pressure.

- NIGEL SUN

Operational expenses will rise further, while persistent grid instability disrupts planning and productivity.

At the same time, unpredictable weather patterns, from heavy rains to extreme heat, are straining an already fragile grid.

Against this backdrop, the urgency for businesses to accelerate investment in renewable energy has never been greater.

The demand for renewable energy in South Africa is rising and shows no signs of slowing down.

Across the region, persistent electricity shortages have triggered a surge in alternative power generation.

While hydrogen and gas-fired plants play a role, renewables hold a clear edge thanks to shorter construction timelines and faster deployment.

Solar power, in particular, is leading this growth. Projections suggest an annual expansion of 7.38% between 2025 and 2029. By the end of 2024, more than 2.3 GW had been added through utility-scale plants, while rooftop systems reached 5.8 GW2.

Momentum is evident across every market segment, with utility-scale projects most notably advancing through government-led procurement. Businesses are increasingly investing in commercial and industrial installations, drawn by energy security, cost savings and efficiency gains.