South African startups are rising to the occasion.
Electricity prices in South Africa are set to rise by 26% over the next three years, starting with a 12.7% increase this April, along with upcoming value added tax (VAT) increase, and revisions to municipal electricity prices.
While the country’s energy supplier, Eskom, says its price adjustments aim to cover production costs and encourage renewable energy adoption, these increases are pushing energy costs higher for households and businesses.
In response, the country’s growing energy startup ecosystem is rising up to the occasion to provide innovative solutions such as smart energy management tools, off-grid systems to renewable energy services. These startups are both helping South Africans reduce electricity bills and also pave the way for a more sustainable and affordable energy future.
Companies like Sensor Networks, founded in 2007, offer smart home energy management tools like geyser sensors to reduce energy costs by up to 40%. Partnering with Ariston, Sensor Networks aims to scale its impact amid growing demand for energy-efficient appliances. Similarly, Versofy provides “Solar as a Service” to make solar installations accessible through subscription-based models, enabling customers to save up to 70% on electricity. Switch Energy focuses on energy trading, smart metering, and fair billing systems, particularly in low-income areas. Their technology improves energy use and supports localised renewable projects.
While startups face challenges such as high capital requirements and regulatory hurdles, the potential for scalable solutions and greater private sector participation in the energy market is huge.
Looking ahead, trends like “time of use” prices may increase demand for load-shifting technologies. With over 300 energy startups launched since 2016, this ecosystem is crucial in addressing rising costs and promoting a mixed, sustainable energy market, less reliant on coal and Eskom.
