Most South Africans own unbundled, self-funded renewable energy products – survey

Most South Africans, including businesses, use some form of renewable energy, according to a survey conducted by the Competition Commission.

The survey, titled Renewable energy products used by households and businesses, collected data between October and November 2023 to determine the use of renewable energy products in South Africa.

Businesses spend high amounts on renewable energy

Engetelani Ndobela, analyst at the Commission while delivering the findings of the survey at Pretoria on Wednesday said it is worrying that 13% of businesses indicated the cost of Solar PV panels was above R500,000, especially because most of the businesses that participated in the survey were small businesses.

70% of the business respondents indicated that the renewable energy products they make use of are self-funded. While 93% of the business respondents do have insurance for their renewable energy products.

The Commission received responses from 300 businesses across Johannesburg, Ekurhuleni, Pretoria, Durban and Cape Town.

The breakdown of the businesses that participated in the survey ranges from micro-enterprises and small businesses at 70%, followed by medium-sized businesses at 21% and large-sized businesses at 7%.

21% of businesses that participated in the survey are in the professional services sector, followed by the engineering, ICT, and digital markets as well as the manufacturing sectors each at 13%, the retail/commercial sector at 9% and the financial services and banking sector at 8%.

ALSO READ: How to escape electricity costs with solar

Households opt for self-funded renewable energy products

The survey revealed that renewable energy products such as solar PV panels, inverters and batteries are more accessible to households. The findings show that a lot of consumers decide to buy the products as standalone items.

Sithabiso Buthelezi, a policy analyst said there is a correlation between the usage of the products and income levels. “There is a notable trend of bundling, particularly with solar panels, among higher-income households. A bundle consisting of inverters and storage batteries was the most popular among people who earn less than R10 000.”

Most of the households indicated their renewable energy products are self-funded, and only 14 participants had to purchase the products through financial institutions. With most products purchased for less than R20,000. The Commission believes there could be more done by the funding institutions and government can promote funding options available to enable access.

The Commission collected answers from 979 households with a Living Standards Measure (LSM) of 5 to 10 in the metropolitan areas of Johannesburg, Durban, and Cape Town.

Participants in the household sample were within the ages of 25 to 34 years range. 67% of the respondents identified as Black, 14% identified as White while 44% indicated that their highest level of education was a university undergraduate degree.

ALSO READ: High cost of electricity results in a rise of alternative energy supply

An increase in demand for products

Based on the Commission’s findings, there was an increase in demand for renewable energy products increased over the years 2021 to 2023. The increase in demand can be attributed to load shedding and more products becoming accessible.

“72% of consumers surveyed purchased inverters between 2022 and 2023, while 64% of consumers surveyed purchased solar PV panels in 2022 and 2023, with 64% purchasing storage batteries.”

Renewable energy remains ‘expensive and unaffordable’

The survey also questioned whether renewable energy products are purchased in the country, or imported. 13% of consumers indicated they imported their solar panels from an original equipment manufacturer abroad.

However, 68% of consumers said they purchased their solar panels from a local, South African manufacturer. With 19% indicating they purchased their products from a local retailer who imported the products.

“Despite prices decreasing globally, most consumers consider prices to be expensive and unaffordable.” 50% of the households indicated they use social media platforms or word of mouth, while 50% of businesses use word of mouth and about 20% use websites as service providers.

“There is a need to promote reliable sources of information on renewable energy products such as Green Cape and CSIR channels.”

NOW READ: Debunking renewable energy myths for SMEs