By Bronwyn Timm, Business Development Manager, SOLA Group

The Eskom tariff increase is changing the way industrial and commercial sectors perceive dependency. While the 8.76% is substantial and comes at a time of relatively weak growth and tight margins, it creates an opportunity for companies to change their structural approaches to energy.

Energy economists and industry analysts have warned that the hikes will raise operating costs with manufacturers likely passing these costs into final prices due to the added weight of fuel inflation. The conflict in the Middle East has also impacted South Africa’s GDP growth, which was downgraded to 1.5% in March compared with 1.6% in February. Yet, this growth dip isn’t as severe as expected and South Africa's growth is proving resilient when compared with the 1.0% predicted by the International Monetary Fund (IMF). 

Yet within this complexity there is typical South African resilience and smarter ways for companies to approach the energy dependency story. Tariffs can be addressed through demand management, intelligent metering and billing accuracy. And potentially reducing reliance on a single electricity source at a time when companies are facing structurally rising costs and a changing pricing architecture. 

First on the win list is battery storage. Battery costs are falling, and large-scale private battery and solar combinations, like SOLA Group’s Naos-1 project comprising 435MWp of solar PV capacity and 855MWh of battery energy storage, are financially viable today in ways they were not 18 months ago. The financial case improves materially every six months. South Africa is entering this battery storage and renewable energy integration phase at an unusual advantage because more developed markets that deployed renewables 20 years ago without affordable battery storage are now managing ongoing grid instability. South African companies can deploy both renewables and BESS simultaneously and at a lower price point. 

Second is the value introduced by wheeling contracts. They have become more flexible, with products available on terms over two to five years at smaller volumes as opposed to the 20-year terms of the past. This is opening access to companies that couldn’t commit to long-term agreements.  

Then, the arrival of the South African Wholesale Electricity Market (SAWEM), expected late 2026, is anticipated to add another layer of support to the business. Companies that engage now while building the internal capability to operate in a commodity trading environment will be well positioned to benefit from this new competitive landscape.

While the Eskom tariff increase is real and the impact broader than the percentage suggests, it is also opening a conversation that can have a long-term, transformative impact on the business. It can be the trigger needed to change energy provision and reliance at a structural level and put companies in a materially stronger position. 

These steps don’t change the fact that there are going to be financial consequences, for now, but they will empower companies to take more control over their energy reliance and how they approach it. The current market is having an impact on organisations globally, but South Africa has the resilience, ingenuity, and infrastructure to make the most of the complexity. 

Ultimately, the shift from energy dependence to energy resilience is becoming a defining factor of competitiveness in South Africa’s industrial and commercial sectors. Businesses that proactively invest in diversified energy strategies, leverage emerging competitive market mechanisms, and build internal capability will not only mitigate rising costs but build long-term stability and growth. It’s all about resilience, and the South African organisation has had plenty of practice.