How much it costs to install solar in South Africa

Choosing the correct type of solar system can have a significant impact on the amount consumers will save on their electricity bills and how much they need to spend upfront.

Although Eskom’s energy supply has improved over the last year, the country isn’t out of the woods just yet when it comes to load-shedding.

South Africa’s Energy Availability Factor (EAF), a measure of the online capacity for operating and generating electricity, is currently at 56.63%.

However, for the power system to be stable and the risk of load shedding reduced, it needs to be between 65% and 70%.

Essentially, this means that the country could be one outage or problem away from load-shedding, making a comeback, as evidenced by the intermittent load-shedding periods that have already been implemented in 2025.

At the same time, Eskom’s prices are growing at above inflation rates, going up by 12.74% in 2025/2026, lower than the initially proposed increase of 36.15%.

As a result, many South Africans are looking to invest in solar energy for their homes and businesses to reduce their electricity bills and ensure a stable power supply.

De Wet Taljaard, Technical Advisor at Investec Sustainable Solutions, Kirk Palmer, Director at Solafi, and Andrew Winstone, CEO at Energy LED, unpacked the cost of installing solar systems on the Everything Counts podcast.

Palmer explained that the process begins with an audit of a household’s load profile, during which the appliances that consume the most energy are identified.

Heating and cooling, particularly geysers, tend to have the most significant impact on consumption. In many homes, geysers account for 30% to 60% of total energy use, which makes them a key area for optimisation.

If households treat geysers as thermal batteries – heating water during the day using solar power and using it later – they can drastically reduce reliance on the national grid.

A significant challenge with solar is that most household energy consumption occurs in the early mornings and evenings, outside of peak sunlight hours.

To address this, solar systems need to be tailored for each home, balancing both consumption and generation to avoid overspending on oversized systems.

Kandua stated that the costs associated with solar system installations in South Africa encompass several considerations, as outlined in the table below.

Item	Cost
Solar Panels	Prices per panel can range from R1,500 for smaller panels to R15,000 for high-wattage, premium panels.
Inverter	R10,000 for entry-level models to R50,000 for sophisticated ones designed for larger systems.
Panel Mounting Equipment	The mounting structures and brackets can cost between R2,000 to R6,000, depending on the system size and roof type.
Cabling and Electrical Components	Quality wiring, disconnects, and other electrical components may range from R4,000 to R12,000.
Battery Storage (Optional)	Batteries with energy storage capabilities, can add R15,000 to R60,000, depending on capacity and technology.
Labour	Installation labour costs range from R7,000 to R25,000.
Consultation and Design	Fees for professional assessment and system design might be in the region of R3,000 to R12,000.
Additional Fees	Permits and inspections might incur additional costs of up to R6,000.

Different types of solar systems

According to Palmer, there are three main types of solar power systems. The first is grid-tied systems, which consist of solar panels only and do not include battery storage.

Contrary to popular belief, they cannot function during a power outage as they require a signal from the grid. These systems typically supply power during the day and are more suitable for businesses than homes.

However, with newer technologies like microinverters, they are becoming more viable for residential use. A small 1.1-kilowatt system might cost between R20,000 and R25,000 and could cover about 20–30% of daily electricity use.

Battery Energy Storage Systems (BESS) is the second type of solar system. These combine solar panels with batteries to store excess power generated during the day for use at night.

These are ideal for homes and typically start at around R75,000 for a 5kW setup. A 10kW system for a larger home could cost around R150,000.

Finally, there are off-grid systems, which integrate solar panels, batteries, and a generator to ensure complete energy independence. For a typical 2- to 3-bedroom house, costs start at around R350,000 to R400,000.

Other important considerations for solar buyers

Palmer said that, when it comes to lifespan, reputable products generally offer a 10-year warranty on inverters and batteries, with solar panels carrying a 12-year manufacturer’s warranty and a 25-year performance guarantee.

Batteries are typically warranted to retain at least 70% of their capacity at the end of 10 years, provided they are used within specified conditions.

Taljaard added that choosing the right solar system can be daunting due to the technical jargon and complexity of options.

However, he stressed the importance of investing in high-quality components, including batteries, inverters, and panels, as these are the most expensive and critical elements of the system.

Buyers should look for components with local product support and serviceability, as well as Tier 1 ratings. This rating indicates the bankability and long-term reliability of the investment.

Consumers should also opt for NRS-type tested inverters, which comply with local regulations. A helpful resource is the City of Cape Town’s approved inverter list.

User-friendly apps or online portals that track energy usage in real-time are another consideration. This helps users identify unexpected consumption patterns, such as a pool pump running at unusual times, and adjust accordingly.

Having visibility over energy consumption empowers homeowners to manage and reduce their electricity usage more effectively.