Rising fixed charges from Eskom are making it more attractive for South African homes with solar power to leave the grid completely, according to MyBroadband.
The publication said customers on Eskom’s Homepower 4 tariff will have seen their fixed costs rise by 242.6% over three years. It said this is much higher than the average increase the power utility often quotes.
MyBroadband calculated that the average Homepower 4 user would pay less by going off-grid with solar panels and a fuel generator. That would be cheaper than using the same system while staying connected to Eskom.
Before these changes, staying on the grid while making your own power made good financial sense. Fixed charges were fairly low at the time.
Eskom’s Inclining Block Tariff also rewarded homes that used less power. Under that system, people paid less per unit when they bought smaller amounts of electricity.
Over the last two years, Eskom sharply raised the fees households pay just for having a grid connection. It also scrapped the Inclining Block Tariff for its direct customers.
The changes form part of a three-phase move to Eskom’s retail tariff plan. The National Energy Regulator of South Africa approved the plan in early 2024.
The plan separates generation capacity charges from energy fees. Eskom said this better reflects the cost of supplying power. For Homepower customers, it added a daily generating capacity fee and daily service and administration charges.
From 1 April 2025, the fixed part of the Homepower 4 bill rose 54.6%, from R6.43 to R9.94 per day. Over a 30-day month, that took the cost from R192.90 to R298.20.
A year later, the charge rose again to R17.86 per day, or R535.80 per month. From 1 April 2027, the daily fixed charge is projected to reach R22.03. That works out to R660.90 per month.
MyBroadband said people who use little power from the grid have seen much bigger jumps in their monthly bills than heavy users.
Several municipalities have also raised fixed fees steeply. MyBroadband named the City of Johannesburg as one of the worst places in the country to have a grid-tied solar system.
The metro moves homes that register rooftop solar onto its postpaid tariff, which has much higher fixed charges. A home with a 60A connection pays R1,070 a month just for the connection. An 80A connection costs R1,360, while the prepaid fixed fee is R230.
Energy charges in Johannesburg are also far higher than Eskom’s after the first 100kWh. MyBroadband said a Johannesburg home with average use would be better off going off-grid.
According to the publication, grid-tied solar still makes the most sense in areas without high fixed tariffs, such as the City of Tshwane and eThekwini.
Source: this article is based on reporting by MyBroadband. Image: MyBroadband. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.