Home Solar Power Makes a Strong Comeback in South Africa
Home Solar Power is making a strong comeback in South Africa. After a difficult 2024, marked by the collapse of several smaller providers, the residential solar market is once again on the rise. This shift is driven less by emergency load-shedding concerns and more by long-term cost savings, Eskom tariff hikes, and a growing desire for sustainability.
Solar Power Demand Beyond Load-Shedding
For years, load-shedding was the primary reason households invested in solar. Between 2021 and 2023, frequent power cuts pushed thousands of families to install rooftop systems. But in 2025, the context has changed.
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With fewer outages reported, homeowners are now motivated by financial benefits and energy independence. Solar rental firms like Stage Zero and Gosolr recorded their best sales months in July and August 2025.
Government Data Confirms Solar Expansion
According to the National Energy Regulator of South Africa (NERSA), 111 new generation facilities with a combined capacity of 1,916 MW were registered in the first quarter of the 2025/26 financial year.
Since 2018, NERSA has registered over 10.5 GW of private generation capacity, a significant portion of it solar PV. Eskom and the Council for Scientific and Industrial Research (CSIR) also confirmed that rooftop solar capacity more than doubled between 2022 and 2024, climbing from 2,264 MW to 5,440 MW.
These numbers prove that despite market turbulence, home solar installations remain a critical part of South Africa’s energy future.
Why Homeowners Are Choosing Solar Again
Solar companies report a change in buyer motivation. Homeowners in regions like Gauteng, where grid instability persists, still value backup power. But in Cape Town, where supply is steadier, buyers are focused on reducing their monthly bills.
Alumo Energy chairman Rein Snoeck Henkemans explained:
“In regions like Gauteng, there’s still significant demand for backup solutions. In Cape Town, we find homeowners investing in solar primarily for financial savings rather than necessity.”
This reflects a shift from reactionary purchases during outages to proactive financial planning.
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| Category | Government / Data Sources | Industry / Market Insights |
|---|---|---|
| Installed Capacity | – 2,264 MW in 2022 (Eskom/CSIR) – 5,440 MW in 2024 (Eskom/CSIR) – +1,916 MW registered in Q1 2025/26 (NERSA) – >10.5 GW total private capacity registered since 2018 (NERSA) | Companies like Stage Zero & Gosolr report record sales in mid-2025, showing recovery after a slump in 2024. |
| Growth Drivers | Rising electricity tariffs (Eskom tariffs up 12.74% in 2024/25 cycle). Policy support for private generation (NERSA registrations). | Households now motivated by cost savings and sustainability, not just load-shedding. |
| Regional Trends | Gauteng grid instability still fuels demand. Cape Town more stable, so adoption focuses on financial savings. | Alumo Energy confirms this split: Gauteng = backup demand, Cape Town = cost savings focus. |
| Business Models | NERSA registrations apply to both rental and outright systems. Confirms rising diversity in generation models. | Rentals (Stage Zero, Gosolr): strong growth due to affordability & compliance handling. Outright sales (Alumo, AWPower): slower, but steady in unstable grid areas. |
| Challenges | Integration with the grid must be carefully managed to avoid instability (experts warn). | Smaller suppliers collapsed in 2024. Market still faces affordability & education gaps. |
| Future Outlook | Rooftop solar capacity forecast to reach ~10 GW by 2029 (industry & CSIR projections). | Industry leaders stress a shift from “reactionary” to proactive investment mindset. |
The Rise of Solar Rental Models
High upfront costs remain a barrier to adoption. To address this, solar rental models have gained traction. Companies like Gosolr and Stage Zero offer subscription packages that cover installation, approvals, and maintenance.
Gosolr explains:
“For many, it also means peace of mind, reliability, and the pride that comes with contributing to a more sustainable future.”
This approach makes solar accessible to more households while simplifying compliance with Eskom and municipal requirements.
Outright Sales Still Finding Their Place
While rentals are growing, outright sales remain strong in certain areas. Alumo Energy and AWPower have seen steady sales in 2025, despite economic pressures.
AWPower managing director Christiaan Hattingh noted:
“The cost of living has risen sharply in recent years. Solar equipment continues to get more affordable each year. Now is actually the best time to invest in solar because it locks in real savings for the future.”
This statement reflects how solar has shifted from being a temporary backup to a long-term financial strategy.
Eskom Tariffs Drive Energy Independence
Eskom’s ongoing tariff hikes are another major driver. Rising electricity costs are pushing South Africans to take control of their energy needs. According to Gosolr, tariff restructuring should be viewed as a push towards solar independence.
This aligns with NERSA’s broader energy diversification goals, which highlight the importance of private generation in reducing pressure on the national grid.
Challenges Facing the Sector
Despite the rebound, challenges remain. Many South Africans still see solar as a “reactionary” purchase rather than a proactive investment. Financing options, insurance requirements, and compliance rules can also slow adoption.
Snoeck Henkemans emphasised:
“Ultimately, we need a shift from a knee-jerk mindset to informed decision-making. As soon as people understand the numbers, the value becomes clear.”
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Outlook: A Sustainable Future for South African Homes
Home Solar Power in South Africa is no longer just about surviving blackouts. It is increasingly about financial stability, sustainability, and independence. With government data confirming rapid growth and companies adapting to new models, the sector is well-positioned for long-term expansion.
As tariffs rise and technology becomes more affordable, more households are expected to make the switch — ensuring that home solar remains at the centre of South Africa’s just energy transition.
