In 2023, South Africans experienced more loadshedding than the last five years combined. While this has abated in 2024, businesses still experience unplanned outages due to theft, lack of maintenance and inadequate planning and systems for urban growth. Unstable power supply, escalating power costs and sustainability goals have resulted in a growing demand for new generation capacity – driving the use of alternative energy and battery storage solutions. ​ 

Frank Rovelli, CEO of Probe Group, a diversified company which has been powering the automotive, mining, alternative energy and industrial sectors in Southern Africa for over 60 years, highlights key factors that are reshaping the local energy landscape as another year of unreliable power supply unfolds. 

South African solar photovoltaic (PV) market remains a top priority

A recent study published by Mordor Intelligence indicates that the need for greater power independence sets the South Africa Solar PV Market up for substantial growth. The market size is expected to grow and reach 6.05 gigawatts in 2024 and 10.27 gigawatts by 2029, exhibiting a robust Compound Annual Growth Rate (CAGR) of 11.17% during the forecast period*. 

Rovelli explains, “We have seen a steady shift to solar and watched it accelerate. Our solar solutions and inverter sales were once 2% of our overall group turnover. In July 2022, this had grown to 15%. Sales continued to increase exponentially in 2023. The business is growing at pace.”

Technological advancements drive surge in solar-battery integration

From 2021 to 2023, the solar energy sector witnessed a significant increase in the incorporation of battery storage for new solar installations as well as on existing grid-tied systems, with an estimated growth rate of 26% year on year.

“The integration of solar systems with innovative battery storage solutions is reshaping the way we effectively harness, store and use power, contributing to a more sustainable future for generations to come,” says Rovelli. 

“This upward trend is driven by multiple factors: the need for consistent, reliable power in the face of disruptions; the quest for grid independence; and technological advancements driving cost reductions and performance improvements in battery storage.” 

From solid-state batteries to long-duration storage solutions, the realm of battery storage is teeming with breakthroughs that promise greater efficiency, safety, scalability and unprecedented run-time efficiencies coupled with a return on investment when engineered appropriately.

According to a report published by Clean Technica, a staggering 4.4GWh of lithium-ion cells – a high energy density, long cycle life and low self-discharge rate battery – were imported into South Africa within the first half of 2023. This is five times greater than what was brought into the country during 2021. 

Rovelli also indicated that in 2023, Probe’s sales data showcased a shift in the commercial applications of high voltage graphene-based battery storage, signifying a continued evolution within the industry.

Residential segment growth

The residential segment is expected to witness substantial growth, with considerable investments in the housing sector. According to the US Energy Information Administration (US EIA), the residential sector in South Africa is projected to consume approximately 8.4 million tonnes of oil equivalent (mtoe) or 98,000 kWh of electricity by 2040*. 

Government’s plans to bolster renewable energy capacity and to add another 6 gigawatts of solar power to the grid by 2023, including solar and wind solutions, further contribute to the segment’s long-term growth. 

Energy-savvy consumers

Innovation in the industry has flooded the market with choices in recent months. The general public are now wiser to their requirements and are better educated on how to use solar backup power as a reliable alternative to an unstable grid.

According to Probe, a consumer’s average time from consideration to installation of residential solar solutions has increased over the last couple years, from a week to nearly 8 weeks. 

Rovelli explains, “Consumers now demand not only competitive pricing but also detailed information on their energy consumption. Energy audits and monitoring have now become prerequisites for alternative energy investments.” 

Rovelli points out that there is also a trend toward sustainability, with requests for pricing on emerging technologies like solid-state batteries increasing annually by 6%. Consumers are now not only requesting information and pricing for solutions, but asking for intelligent consultations on their ROI and investment overall. This impacts technology chosen, sizing and payment terms. 

The rise of financial solutions

Funded solutions have been gaining market share across commercial and industrial sectors within 2023, with businesses looking to invest in premium graphene and solid-state technologies that provide fast-charging, temperature resistant solutions with longer life spans than conventional lithium-ion technology. 

Financial institutions have also begun to offer funded solar solutions and finance on existing or new bonded properties. The security offered in that the funding will be approved seamlessly as well as all workmanship guaranteed is an immense selling point that is capturing market share.

For Probe, residential Rent to Own finance enquiries began ranking as the number one residential consumer lead generated in 2021. The company continues to have a steady influx of requests. 

Rent to Own, subscription agreements, Power Purchase Agreements (PPA) and operational leases all continue to be requested by businesses. 

Future outlook: harnessing solar-battery synergy

“Looking ahead, technological advancements in reliable battery storage will shape the future of energy infrastructure in South Africa. As these advances continue and costs reduce, solar-battery systems will become more accessible and widespread in our market,” concludes Rovelli.

To learn more about Probe Group go to www.probegroup.co.za. 

For more information about switching to renewable energy and how it can save costs for your business, visit https://probenergy.co.za/