Significant Slowdown in Solar Installations in South Africa

Solar Installations Slowdown: South African solar installers have noticed a decline in demand for inverters, batteries, and solar panels in recent months.

Possible causes for the drop-off in demand include lower-than-expected load-shedding, high interest rates, rand depreciation, and general affordability issues.

Solar installations slowdown in South Africa

Until March, Eskom had imposed power cuts for as many as 12 hours a day due to unreliable units prone to breakdowns. The outages have crumpled the economy and inconvenienced residents who are in need of electricity. It has pushed most South Africans to purchase solar panels. 

However, the power is back, and it is potentially here to stay. After 77 days and counting of stable light supply from Eskom, demand for solar installations from the suburbs to small businesses has drastically reduced.

Factors Influencing Solar Installations Slowdown

The plummeting pricing, which started in SA last year, is predicted to continue in the coming months. 

Matthew Cruise, head of business intelligence and public relations at Hohm Energy, highlighted that demand for solar equipment and installation has declined.

Also Read: Top 10 Biggest Solar Farms in South Africa to Explore

He said, “We agree regarding the commentary that demand for solar installations has dropped off recently during the winter months,” 

He added that this could be attributed to several factors,which include:

• Lower-than-expected load-shedding due to reduced demand from certain industries closing during winter;
• Low customer confidence due to interest rate hikes, rand depreciation, and concerns over South Africa’s diplomatic relations with the rest of the world; and,
• Upper-affluent households have already invested in solar, with demand slowing as price and affordability are key issues for the upper-middle and middle-market demographic of homeowners.

Solar Installations Prediction In South Africa 

SolarAdvice, a South African solar company, also implied that less load-shedding likely results in a decreased demand.

According to MyBroadband, the company said, “The demand for solar products and services has always moved to the beat of load-shedding.”

“Consumers often return to their usual routine when there is a lull in rolling blackouts. However, as soon as the inevitable happens and load-shedding strikes with a vengeance, consumers scramble to buy and install solar and battery backup solutions.”

However, solar power would continue to be an attainable option in South Africa. It is a great choice for those who can afford to install solar to do so while it is still available. Presently, they can get it at a better price and more installation dates are available.