South Africa’s energy landscape is shifting. While power cuts have eased, rising electricity costs are driving increased demand for alternative energy solutions. FNB reports growing interest in solar installations, as households and businesses seek to manage escalating power bills and improve long-term energy resilience.
Customer behaviour in the solar and energy storage market has shifted from emergency-driven installations to more structured, accessible solutions as load shedding intensity eased and the market matured. During peak load shedding in South Africa, demand for solar surged, with strong growth in rental solutions and loan-funded purchases. Today, cash purchases dominate overall spend, while loans play a supporting role. Solar rental remains a preferred entry point for many customers, offering low upfront costs, flexibility, and rapid deployment, evidenced by strong adoption between mid‑2022 and late‑2023 and cyclical renewal-driven activity thereafter.
This shift in customer behaviour is occurring against the backdrop of steadily above inflationary rising electricity costs, which continue to place pressure on household budgets.
Eskom‑supplied electricity tariffs increased by approximately 12.7% in the 2024/25 financial year, with further hikes in 2025. This has pushed residential electricity prices well above inflation and significantly higher than the African household average. The National Energy Regulator of South Africa (NERSA) has also approved additional tariff increases due to previous miscalculations, resulting in average electricity prices rising by 18.36% over two years. This year will see hikes of 8.76% for Eskom direct customers and 9.01% for municipal customers taking effect in April & July respectively.
As a result, the move towards energy resilience is increasingly driven by financial necessity rather than climate ambition. However, energy experts caution that technology access alone will not guarantee a successful renewable energy transition in South Africa, nor should we negate the possible return of loadshedding. According to FNB, scaling solar sustainably will depend on credible suppliers, informed decision-making and financing structures that reflect real South African conditions.
“Interest in renewable energy is clearly there,” says Kival Singh, Head of Sustainability & ESG Solutions at FNB. “What continues to hold people back is affordability, uncertainty about who to trust, and a lack of guidance on how to invest wisely. Tools like our Energy Calculator on nav>>Earth , which provides insights into returns on customer investments and even a downloadable detailed report, are designed to bridge that gap. At the same time, evolving regulations and shifting requirements add another layer of complexity for households. Until there is greater clarity, many consumers may remain cautious, and without addressing these barriers, solar adoption risks remaining uneven and inaccessible.”
Singh notes that many households enter the renewable energy market driven by rising electricity costs, but without a clear understanding of their own consumption patterns.
“Energy decisions work best when they’re sequenced properly,” he says. “Households should start with conservation and behavioural changes, followed by efficiency upgrades such as LED lighting, energy efficient appliances and heat pumps for geysers, which can reduce energy bills by up to 60%. With a clearer understanding of their energy consumption, customers are then better positioned to invest in a solar PV system that is appropriately sized, cost-effective and financially viable.”
This emphasis on informed adoption underpins FNB’s nav>>Earth, a sustainability platform designed to help customers better understand their energy usage, explore relevant energy solutions and financing options, and connect with installers through nav Marketplace.
Affordability as the tipping point
To address these barriers, FNB enables customers to finance solar installations through its solar-linked home loan, allowing funding of up to 15% above a property’s value without the need for upfront capital. This gives customers access to solar financing at home loan interest rates rather than higher unsecured lending costs. Standalone solar finance is also available through WesBank’s asset-based finance, extending access to renewable energy solutions across residential and SME segments.
“When finance is structured properly, it turns solar from an aspiration into a practical investment,” says Singh. “That’s essential if renewable energy is to scale beyond a narrow segment of the market.”
Trust in suppliers remains critical
Kagiso Masela, Manager of Retail Sustainability & ESG Solutions at FNB, says trust is often the deciding factor in whether customers proceed. “Affordability may start the conversation, but trust determines whether people follow through,” Masela says. “Customers want confidence that installers are qualified, compliant and accountable.”
Masela adds that supplier credibility continues to be a major concern for consumers navigating the solar market. To address this, FNB applies a supplier vetting process requiring Companies and Intellectual Property Commission documentation, proof of training, Department of Labour registration for electricians, and business account verification. Suppliers are paid directly once installations are completed and verified, helping protect customers while supporting compliant local solar businesses.
“This not only gives customers peace of mind,” Masela adds, “but also helps credible SMEs build reputational capital and participate more sustainably in the renewable energy economy.”
A systems view of sustainability
Singh and Masela emphasise that renewable energy adoption cannot be viewed in isolation. Through the nav» ecosystem, energy solutions are considered alongside transport, housing and insurance, supporting long-term resilience rather than short-term fixes.
“Scaling solar successfully isn’t just about installing panels,” Singh concludes. “It’s about creating systems that are affordable, trusted and capable of delivering real financial returns. That’s when sustainability becomes inclusive, durable and economically meaningful.”
FNB speakers will take the stage at the Solar & Storage Conference (25–27 March 2026) where discussions will focus on the role of financial institutions in accelerating sustainable energy adoption.
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