Seasonal and annual electricity tariff increases and a rise in energy usage will cause homeowners to pay up to 60% more on power this winter.
South African-based solar provider and installer Alumo Energy calculated that, while municipal tariffs are set to increase by 12,72% this year, compared to 18,65% last year, municipalities typically raise prices during winter between June and August, causing an increase of almost 20% for some areas.
Additionally, the solar provider conducted a study which found that, on average, households use 23% more electricity in winter, but consumption rose by as much as 87% in some cases.
“This means that not only will homeowners be paying more for each unit of electricity following the winter increase and the annual tariff hike, but the rise in consumption will place even more pressure on budgets and could place them in a higher tariff bracket, making each unit substantially more expensive,” said Rein Snoeck Henkemans, Managing director of Alumo Energy.
As an example, Alumo Energy said that, for a household using 813kWh in May and 1000kWh in June due to the cold, the combined impact of these tariff changes would cause their power bill to surge from R1 650 a month, to R2 740.
Henkemans attributed a sharp increase in residential solar installations to steep pricing and grid instability, “Homeowners, unfortunately, no longer have the luxury of relying on grid energy, or hoping that things will turn around. Prices keep soaring with no end in sight, and we can no longer afford to keep putting our lives on hold when the lights go out. It makes sense now more than ever, especially with winter approaching, to install a solar system,” he explained.
