South African demand for alternative energy solutions on the decline

Absa's report reveals a decline in South African homeowners' interest in alternative energy solutions, despite increased confidence in the property market.

Share:

diminution investissements solutions énergétiques alternatives Afrique

South African homeowners’ appetite for investment in alternative energy solutions showed a decline in the second quarter of 2024.
According to a study conducted by Absa Group Ltd, interest in off-grid energy systems has dropped significantly in South Africa.
Kamini Ramsamy, Head of Credit Risk for Home Loans at Absa, explains that this trend is probably due to a recent improvement in energy supply.
Absa’s homeowner sentiment index for the second quarter of 2024 indicates that lower electricity costs remain an important factor, albeit slightly lower than in the first quarter.
Owners cite affordability as the main reason for not installing alternative energy solutions.
Others are confident that energy supplies will improve in the future, thanks in particular to the development of renewable energies.

Eskom’s impact on the energy sector

Two weeks ago, Eskom, the troubled state-owned electricity company, achieved 100 consecutive days without implementing power cuts.
This feat, unprecedented in years of crippling blackouts, was made possible by a significant reduction in the use of open-cycle gas turbines to supplement generation capacity.
However, Eskom continues to struggle to maintain power supplies in Africa’s most industrialized country, causing significant economic damage and social disruption.
Many South Africans, impatient with government inaction, have contributed to an increase in small-scale solar installations, although their high costs reserve them mainly for wealthier households.

Banking Perspectives and Consumer Confidence

Banks have recognized this opportunity and are now offering loans linked to alternative energy solutions.
Absa’s report shows that overall consumer confidence in the South African property market has risen from 82% in Q1 to 84% in Q2 2024, mainly due to the perception of property as a secure asset.
This increase in confidence comes against a backdrop of growing financing options for alternative energy solutions, offering attractive prospects for homeowners looking to reduce their energy costs without resorting to off-grid solutions.
Current trends and bank strategies to promote access to alternative energies are likely to influence homeowners’ decisions in the short to medium term.
It remains to be seen whether Eskom’s improvement in energy supply will be sustainable and sufficient to permanently reverse the current trend.

Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.
The European Commission unveils an ambitious plan to modernize electricity grids and introduces the Clean Industrial Deal, mobilizing hundreds of billions of euros to strengthen the continent's industrial and energy autonomy.
In the United States, regulated electric grid operators hold a decisive advantage in connecting new data centres to the grid, now representing 134 GW of projects, according to a Wood Mackenzie report published on June 19.
The French National Assembly approves a specific target of 200 TWh renewable electricity production by 2030 within a legislative text extensively debated about the future national energy mix.
In 2024, US CO₂ emissions remain stable at 5.1bn tonnes, as the Trump administration prepares hydrocarbon-friendly energy policies, raising questions about the future evolution of the American market.
The early publication of France's energy decree triggers strong parliamentary reactions, as the government aims to rapidly secure investments in nuclear and other energy sectors.