The latest electricity tariff hikes are a devastating blow to South African households already grappling with financial hardship. Just months after enduring a brutal 12.74% increase in April, South Africans are now faced with a staggering 36.1% rise in 2025. And it doesn’t end there following that, there will be additional increases of 11.81% in 2026 and 9.1% in 2027.
In total, between 2024 and 2027, electricity costs will have soared by an appalling 70%. This relentless wave of increases will cripple families and businesses alike, pushing them to the brink of survival. Many will have no choice but to make heartbreaking sacrifices: food, healthcare, or even education for their children, just to keep the lights on.
The relentless pressure will force people to endure unimaginable choices, further deepening the divide between the wealthy and the struggling majority. As energy prices continue to skyrocket, the question is not if to switch to solar, but when?
Electricity is quickly becoming a luxury item, making solar a necessity rather than an optional extra for most homeowners and businesses. This is according to solar industry expert Rein Snoeck Henkemans, CEO of Alumo Energy, who says that as Eskom pushes for record breaking tariff increases, many households are concerned that they won’t be able to afford their monthly utility bills.
Not long after South Africans acclimated to a shocking 12.74% tariff hike in April, the utilities provider announced an additional 36.1% increase for next year, followed by 11.81% and 9.1% respective increases for the next two years after. That means that in the four years from 2024 to 2027, customers will experience a 70% increase in electricity tariffs.
In context, an average household paying R3,000 per month prior to the proposed 36.1% tariff increase will see their charges jump to nearly R4,000 in 2025. That figure will rise to nearly R5,000 by 2027.
But Snoeck Henkemans warns that this is part of a much larger issue, as additional moves by Eskom and certain municipalities will see prices increase even further.
Eskom has also proposed eliminating the Inclining Block Tariff (IBT) system. Currently, low-usage households benefit from discounted rates under IBT – a lifeline for families using minimal electricity. Without this system, these households will pay the same rate per unit as high-usage customers, significantly increasing their financial burden. This figure will unquestionably be much higher to compensate for the loss of revenue from higher usage customers.
“These are by no means incremental increases,” says Snoeck Henkemans.
“Converting from the IBT system to a standard rate will already mark a substantial shift for most households. Add in a switch to TOU following the installation of a smart meter or moving to a new home, and new electricity costs may deliver a bigger shock to the system than many families will be able to manage.”
Finally, average fixed cost rates will also increase by 36.1%% for post-paid users next year.
“That means consumers will be coughing up R1 253.38 per month before they’ve even switched on a light in their homes. For the average household, these adjustments could mean paying several thousand rand more every year for the same level of consumption,” said Snoeck Henkemans
For areas like Ekurhuleni, City of Joburg, and City of Cape Town, where winter peak-hour tariffs can top R9 per kilowatt-hour under the TOU system, the best approach is to charge solar batteries during the day or from the grid at night, and programme the system to automatically switch to battery power during peak hours.
“As things stand, Eskom is inadvertently helping drive the global sustainable energy movement by rapidly pricing South Africans out of the grid energy market, and convincing more households to make the switch to solar sooner than they otherwise might have. As things stand, 2025 could be one of the biggest years for solar adoption ever in South Africa,” concluded Snoeck Henkemans.