What you need to know about 2025 electricity tariff hikes
In a move that has sent shockwaves across South African households, the National Energy Regulator of South Africa (NERSA) has approved another significant hike in electricity tariffs. These increases, which outpace inflation, will once again place additional pressure on families already grappling with rising costs.
While the immediate effects are worrying, the long-term financial implications make it essential for households to explore sustainable solutions to ease this burden. One of the most promising solutions is solar power, complemented by other energy-efficient practices.
Understanding the 2025 tariff Increases
For the 2025/26 financial year, NERSA announced a substantial 12.7% tariff increase for Eskom’s direct customers, followed by 5.36% in 2026 and 6.19% in 2027. This follows Eskom’s original request for even steeper hikes of 36% and 44%, respectively.
Although the approved rates are significantly lower, the double-digit increases mean that South Africans will see their electricity bills go up by an effective 24% over the next 3 years.
“These significant increases erode the positive effects of cooling inflation and recent interest rate cuts, as well as any near-term economic improvements, as they could once again drive-up consumer inflation,” says Marc du Plessis, Executive Head of Standard Bank’s LookSee home efficiency platform.
How much your Eskom electricity bill could go up by*:
| Current electricity bill | New Eskom bill | Monthly increase | Annual increase |
|---|---|---|---|
| R500.00 | R563.50 | R63.50 | R762.00 |
| R1 000.00 | R1 127.00 | R127.00 | R1 524.00 |
| R2 000.00 | R2 254.00 | R254.00 | R3 048.00 |
| R3 000.00 | R3 381.00 | R381.00 | R4 572.00 |
| R4 500.00 | R5 071.50 | R571.50 | R6 858.00 |
* The increase on your electricity bill will be determined by your tariff plan and structure. Please consult Eskom’s website for more accurate information.
Solar Power: A smart investment with guaranteed savings
Given this context, the question is: how can South African families shield themselves from skyrocketing electricity costs?
Solar power has emerged as a game-changing solution for households looking to reduce their reliance on expensive grid electricity. In fact, investing in solar panels can significantly cut your electricity bill today while also protecting your family from future tariff hikes.
Here’s why it’s worth considering:
- Immediate savings: Solar panels generate electricity directly from sunlight, allowing you to power your home without drawing as much electricity from the grid.
- Long-term cost stability: Once installed, solar systems provide predictable electricity costs, unlike grid electricity, which is subject to continuous price increases.
- Increased property value: Homes with solar installations often command higher resale values, as buyers are increasingly seeking energy-efficient properties
Marc du Plessis, Executive Head of LookSee, adds: “Saving money on grid electricity is actually one of the biggest drivers of solar adoption in other parts of the world. What remained unclear, however, is exactly how much these savings would be for each household.”
To address this, LookSee is offering its customers South Africa’s first Savings Guarantee on all new hybrid solar solutions installations. This has been made possible through the development of sophisticated calculators that consider the solar generation ability of the roof along with the electricity consumption patterns of the household to establish the minimum savings the family will see over a 6-month period. And if the savings fall short of this promise, LookSee will pay you a once-off R2 000 cashback.
LookSee also assists customers to find the right finance offering from Standard Bank for their needs and budget, ensuring the family benefits from flexible repayment terms and competitive interest rates.
Solar water heating: A budget-friendly alternative
Water heating is one of the most electricity-intensive activities in any household, accounting for up to 40% of electricity consumption. Converting your existing electric geyser to run on solar power can dramatically reduce your monthly bills, says Du Plessis.
LookSee’s innovative conversion solution enables homeowners to power electric geysers using normal solar panels without the need for costly plumbing modifications. This practical and cost-effective option can slash water heating costs and make a significant dent in overall electricity usage.
“The reality of rising electricity tariffs underscores the urgent need for households to take control of their energy consumption. Solar power and solar water heating offer viable, long-term solutions that not only reduce monthly costs but also provide a buffer against future increases. With Eskom saying further hikes are going to be necessary in order to remain financially sustainable, there has never been a better time to act,” says Du Plessis.
Start by evaluating your household’s electricity needs and exploring the solar options that best fit your budget and lifestyle. Combining solar power with simple energy-efficient habits can go a long way in easing the financial strain and giving you greater control over your energy future.
LookSee offers a Savings Guarantee based on your minimum saving expectations and a once-off R2 000 cashback if savings are not met.
