Clouds on solar horizon
Why should Eskom users be penalised because they also have solar panels?
South Africa enters winter with a cautiously optimistic outlook: for the first time in years, the dreaded spectre of loadshedding may retreat - provided that unplanned outages remain below 13GW.
This fragile hope rests not only on improved Eskom performance, but significantly on the rapid adoption of rooftop solar. More than 6GW of decentralised generation has been added by households and businesses investing in energy independence, easing pressure on the national grid.
However, this vital momentum is now under threat.
The International Trade Administration Commission's proposal to impose import duties of up to 30% on a wide range of solar components could drastically inflate installation costs. At a time when South Africa should be removing barriers to alternative energy, ITAC risks making solar unattainable for many, especially the middle class and small enterprises that have driven its recent growth.
Compounding this is Eskom's new Retail Tariff Plan. From last month, solar users still connected to the grid are being billed an additional Generation Capacity Charge - currently at 20% but set to increase.
While it is reasonable that Eskom seeks to recover infrstructure costs, this approach undermines the very users who have helped stabilise the grid.
Penalising energy-conscious citizens with high fixed charges discourages investment in solar and punishes those reducing their reliance on a failing system.
South Africa's energy recovery depends on a balanced strategy. Eskom must be supported to maintain and improve its generation capacity, but not at the cost of the country's fastest-growing and most promising energy sector.
Any fixed charges should be proportionate, transparent and structured to reflect actual grid usage, not to recoup lost revenue from declining demand.
Instead of discouraging decentralised energy, policymakers should protect and accelerate it. Grid stability and solar expansion are not mutually exclusive - they are mutually reinforcing. South Africa cannot afford to get this equation wrong.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mail & Guardian
an hour ago
- Mail & Guardian
South Africa must revive its industrial ambitions
Neglecting existing infrastructure generates higher long-term costs. South Africa's industrial decline is accelerating. State-owned enterprises that once drove economic transformation now epitomise institutional failure. Eskom's power cuts cripple manufacturing. Transnet's rail network deteriorates while ports struggle with backlogs. The Industrial Development Corporation, established to finance industrialisation, limps along with a compromised balance sheet. This infrastructure was built on the vision of Jan Smuts, prime minister from 1919 to 1924 and 1939 to 1948. While his commitment to racial segregation was morally reprehensible, his approach to economic development offers lessons for today's policymakers grappling with sluggish growth and persistent inequality. Smuts understood that South Africa needed to transcend its role as a commodity supplier to Britain's industrial economy. His developmental state model, combining strategic state investment, international partnerships and technocratic competence, transformed the country from a mining enclave into Africa's most sophisticated industrial economy. The foundations he laid endured for decades. The Electricity Supply Commission (later Eskom) provided cheap power that enabled large-scale manufacturing. The Iron and Steel Corporation (Iscor) supplied essential inputs for further industrialisation. His successors built on these foundations, establishing Sasol for synthetic fuels and the Council for Scientific and Industrial Research. Today, these institutions are shadows of their former selves. More troubling, the country appears to have lost the capacity for the long-term thinking that created them. South Africa's economic performance tells a sobering story. Growth has averaged just 0.8% annually over the past five years, well below the rate needed to reduce unemployment or meaningfully tackle poverty. The Gini coefficient, measuring income The benefits of black economic empowerment (BEE) policies have accrued primarily to political and economic elites, while the rest remain excluded from meaningful economic participation. The debate over the benefits of BEE has resurfaced, particularly concerning its mechanisms for wealth distribution. This has been highlighted by the recent scepticism surrounding the potential introduction of Starlink to South Africa, with concerns about exceptions to BEE compliance. Nonetheless, it is undisputed that, as a result of transformative Moreover, the state capture scandal, where politically connected individuals systematically looted public resources, represents the nadir of this failure, which has been accounted for by the collapse of Transnet and Eskom, the consequences of which are signified by inefficiencies thereafter. Despite the Zondo state capture commission spending more than R1 billion investigating the theft, many implicated figures retain positions of influence. Why do voters continue to elect leaders who have demonstrably failed them? The answer lies in how persistent unemployment, poverty and inequality make populations vulnerable to manipulation by the very politicians who created these conditions. The contrast with Smuts's approach is stark. He prioritised competence over patronage, choosing Hendrik Johannes van der Bijl, a German-educated engineer with US business experience to integrate the country's fragmented electricity supply. Van der Bijl's technical expertise, combined with political backing, enabled the creation of a power system that underpinned decades of industrial growth. Today's leaders talk about infrastructure development but have forgotten a crucial lesson: maintenance matters more than new construction. Neglecting existing infrastructure generates higher long-term costs than building new capacity. Johannesburg's collapsing central business district exemplifies this short-sightedness. Years of deferred maintenance have created a crisis that will cost far more to resolve than it would have cost to prevent. The rot runs deeper than poor maintenance. It reflects a broader failure of vision and leadership. Where Smuts aligned South Africa with international partners to attract investment and expertise, contemporary leaders often prioritise political survival over economic transformation. South Africa does not need to resurrect Smuts's racial ideology; his vision of white supremacy was both morally bankrupt and economically counterproductive. But it needs his approach to state-led development, clear vision, international partnerships, infrastructure investment and, above all, competence in execution. The formation of a government of national unity after the 2024 elections suggests political leaders recognise the scale of the crisis. The question is whether they possess the vision and competence to address it. As Smuts understood, South Africa's prosperity depends on reliable electricity, efficient transport and industrial capacity. These foundations are crumbling. Without urgent action to rebuild them, the country risks becoming a case study in how great institutions can be destroyed by poor leadership. The blueprint for revival exists in South Africa's own history. The question is whether anyone has the courage to follow it. Ashley Nyiko Mabasa holds master's in economic and labour sociology focused on energy policies and master's in public policy and governance focused on data governance, and is co-chairperson of the Brics Youth Council.
IOL News
a day ago
- IOL News
Strengthening trade ties: South Africa must evolve beyond a market for Chinese products
South Africa and China have taken a firm step toward strengthening trade ties, with both nations agreeing to speed up efforts to make trade smoother and more efficient. Image: Sars South Africa and China have taken a firm step towards strengthening trade relations, with both countries agreeing to accelerate efforts to make trade smoother and more efficient. This follows a meeting between Chinese Ambassador to South Africa Wu Peng, SARS Commissioner Edward Kieswetter, and International Trade Administration Commission (ITAC) Commissioner Ayabonga Cawe in Pretoria on Wednesday. China is currently South Africa's largest trading partner, having overtaken the European Union in 2023. Bilateral trade between the two countries reached US$34.18 billion last year, significantly outpacing the EU's US$1.34 billion in trade with South Africa. However, despite the growth in trade, experts and economists have raised concerns about an imbalance in the structure of the relationship. In his weekly letter last year, President Cyril Ramaphosa also noted the need to boost South Africa's manufacturing capacity and increase exports of value-added goods. "There is an imbalance in the structure of our trade. South Africa exports mainly minerals and agricultural products to China and imports largely manufactured products from China." Kieswetter also expressed a vision for a partnership that goes beyond South Africa serving merely as a market for Chinese goods, advocating for increased Chinese investment in manufacturing and assembly operations within the country. 'China, as the largest trading partner to South Africa, is ideally suited to strengthen this long-standing relationship. I would like to see the relationship grow not only with South Africa as a marketplace for Chinese products, but as a destination for assembly and manufacturing by Chinese investors. South Africa is also ideally suited as a strategic partner into the rest of Africa.' Meanwhile, Peng described the relationship as an 'All-Round strategic cooperative partnership for a new era. 'China attaches great importance to developing economic and trade relations between China and South Africa, which in recent years have made great progress. Trade, investment, and personnel exchanges between the two countries have been increasingly strengthened.' ITAC Commissioner Cawe highlighted concerns about the unstable global trade environment and its impact on supply chains and key markets. He pointed to the risks of rising inventories leading to trade diversion, particularly for a small, open economy like South Africa. 'We remain open to engagement with our Chinese counterparts in securing the participation and co-operation of their exporters and other interested parties in such investigations, as a key trade-related element in our bilateral relationship.'he said. [email protected] IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
The Citizen
a day ago
- The Citizen
Eskom debt is strangling Endumeni, warns Chamber
The Endumeni Chamber of Commerce meeting last week laid bare the township's deepening woes, as members heard that Eskom debt has ballooned to R294 million despite a repayment agreement. The municipality is now paying R1.8 million a month simply to cover arrears and current costs—yet Eskom still flags Endumeni as a high risk, warning of possible load shedding. 'They do not budget properly,' said newly elected Chamber president Alan Schonken, adding that infrastructure maintenance should account for 8% of the capital budget but typically sits just above 3%. Hence, the perpetual battle with poor roads and failing streetlights. Former councillor Anthon Raubenheimer pointed out that three years ago, Endumeni had no Eskom debt, but now finds itself in turmoil. Raubenheimer also criticised the outdated municipal website and residents' inability to comment on the 2025/26 draft budget, which must be passed imminently. Paul Coetser warned of collapsing sewage systems—an Umzinyathi District responsibility—calling the leaks a 'doomsday warning' that makes living and doing business in Endumeni unpleasant. Meanwhile, Pam McFadden of Talana Museum cautioned about 17 new mining applications, describing them as the start of fracking that could jeopardise groundwater supplies. Members lamented the absence of Endumeni and Umzinyathi councillors at Chamber meetings. 'The only recourse is to petition higher authorities,' one member declared, urging collective action to pull the municipality back from the brink of total collapse.' HAVE YOUR SAY: Like our Facebook page, follow us on Twitter and Instagram or email us at Add us on WhatsApp 071 277 1394. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
