By: Lonwabo Mtyeku | Photo Credit: Supplied
Seen Here: Kival Singh, Sustainability Lead FNB Sustainability & ESG Solutions. Photo Credit: Supplied.
South Africa’s shifting energy landscape is driving a renewed surge in solar adoption, but key barriers—cost, trust, and complexity—continue to slow widespread uptake, according to insights from First National Bank (FNB).
As electricity tariffs climb well above inflation, households and businesses are increasingly turning to renewable energy solutions—not out of environmental ambition, but financial necessity.
Power Prices Push Consumers Toward Solar
Despite a relative easing in load shedding, the cost of electricity remains on a steep upward trajectory. Tariff increases approved by the National Energy Regulator of South Africa have seen Eskom-supplied electricity rise significantly, with cumulative increases exceeding 18% over two years.
Further hikes of 8.76% for direct Eskom customers and 9.01% for municipal users are set to take effect in 2026, placing additional strain on already stretched household budgets.
This pricing pressure is reshaping consumer behaviour. What was once an emergency response to blackouts is now evolving into a more structured, financially driven transition toward energy independence.
From Crisis Response to Strategic Investment
FNB reports that the solar market has matured considerably. During peak load shedding, installations surged—driven largely by urgency and supported by rental solutions and loan financing.
Today, however, the market tells a different story.
Cash purchases now dominate overall spending, while solar rental options remain a popular entry point for consumers seeking flexibility and low upfront costs. Loan-funded installations continue to play a supporting role, particularly where structured financing solutions are available.
“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.”
Seen Here: Kagiso Masela, Manager of Retail Sustainability & ESG Solutions at FNB. Photo Credit: Supplied.
Knowledge Gap Slows Adoption
A critical challenge, according to FNB, is that many households enter the solar market without a clear understanding of their own energy consumption patterns—often leading to poorly optimised or unnecessarily expensive installations.
Singh emphasises a phased approach:
“Energy decisions work best when they’re sequenced properly. Households should start with conservation and efficiency upgrades before investing in solar systems.”
These measures include switching to LED lighting, using energy-efficient appliances, and installing heat pumps—interventions that can reduce energy consumption by up to 60% before solar is even introduced.
Financing as a Game-Changer
Affordability remains the single biggest barrier to adoption. To address this, FNB has introduced innovative financing models, including solar-linked home loans that allow customers to borrow up to 15% above their property value—without requiring upfront capital.
Additional solutions are offered through WesBank, enabling asset-based financing for both residential and small business customers.
“When finance is structured properly, it turns solar from an aspiration into a practical investment,” Singh explains.
Trust: The Deciding Factor
Beyond affordability, trust in suppliers has emerged as a critical determinant in consumer decision-making.
Kagiso Masela, Manager of Retail Sustainability & ESG Solutions at FNB, highlights the importance of credibility in a rapidly expanding market:
“Affordability may start the conversation, but trust determines whether people follow through. Customers want confidence that installers are qualified, compliant and accountable.”
To mitigate risks, FNB has implemented a rigorous supplier vetting process, requiring documentation from the Companies and Intellectual Property Commission, proof of technical training, Department of Labour registration, and verified business banking credentials.
Payments to suppliers are only processed once installations are completed and verified—protecting consumers while supporting compliant local businesses.
A Broader Sustainability Ecosystem
FNB’s approach extends beyond solar installations alone. Through its nav» ecosystem, including tools like the Energy Calculator and nav Marketplace, customers can assess energy usage, compare solutions, and connect with vetted providers.
This integrated model aligns energy decisions with broader considerations such as transport, housing, and insurance—offering a systems-based approach to sustainability.
The Road to Scalable Solar Adoption
As South Africa navigates its energy transition, the path to scalable renewable adoption will depend on more than just technology availability. Affordability, transparency, and informed decision-making will be critical to ensuring that solar solutions reach beyond a narrow segment of the population.
“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.”
FNB is expected to expand on these themes at the upcoming Solar & Storage Conference, where financial institutions will play a central role in shaping the future of sustainable energy in South Africa.
