In a bold move to address South Africa’s persistent power challenges, GoSolr, a company backed by billionaire Patrice Motsepe and Standard Bank Group, has announced plans to invest R10 billion in rolling out a revolutionary model of renting solar panels and batteries to homes across the nation. The initiative comes as South Africa grapples with chronic blackouts and escalating electricity prices, issues that have plagued the country for over a decade.
Founded just two and a half years ago, GoSolr is on a mission to install approximately 500 megawatts of solar-generation capacity within the next four years, a significant increase from its current 70 megawatts, according to Andrew Middleton, GoSolr’s CEO. The company has secured substantial investment and financing from Motsepe’s African Rainbow Capital Investments and Standard Bank Group, positioning itself as a key player in the renewable energy sector in South Africa.
The timing of GoSolr’s ambitious expansion couldn’t be more opportune, with South Africa experiencing a surge in rooftop solar installations. Data compiled by the Johannesburg-based company reveals that rooftop solar capacity more than doubled to 5,440 megawatts in March, a substantial portion of which was installed on residential properties. Against this backdrop, GoSolr aims to leverage its expertise and resources to capitalize on the growing demand for renewable energy solutions in the country.
Middleton emphasized the critical role that GoSolr and similar companies play in addressing the ongoing power crisis in South Africa. “Together with all the other companies combined, we can end this crisis,” Middleton asserted during an interview at GoSolr’s headquarters. With a focus on expanding access to solar energy, GoSolr targets approximately 2.2 million households earning more than R360,000 per year, offering a subscription service that promises substantial savings on electricity costs.
While South Africa boasts abundant solar potential, the adoption of solar technology remains relatively low compared to other countries. Only 0.7% of the country’s 17.8 million households utilize solar energy for electricity, a stark contrast to nations like Australia, where solar penetration stands at 31%. GoSolr aims to bridge this gap by making solar energy more accessible and affordable to a broader segment of the population, particularly in regions with high electricity costs such as Cape Town.
The subscription service offered by GoSolr presents a viable alternative to traditional rent-to-buy models and self-installed solar systems, which can be prohibitively expensive for many households. By charging between approximately R1,400 and R2,900 per month for its products, GoSolr aims to democratize access to solar energy, enabling more South Africans to enjoy the benefits of clean, renewable power while reducing their reliance on the national grid.
Despite the promising prospects of solar energy, challenges remain in making it accessible to all South Africans. Middleton acknowledged the need to develop cheaper systems to target less affluent households effectively. “We started at the core where we could get scale,” Middleton explained, highlighting the company’s strategy to prioritize scalability and understanding consumer behavior before expanding into broader market segments.
Looking ahead, GoSolr remains committed to its mission of driving widespread adoption of solar energy in South Africa. As the national power utility, Eskom Holdings Ltd., continues to raise tariffs amid ongoing power outages, the economic incentive for households to embrace solar power is expected to grow. With its substantial investment and backing from key stakeholders, including Patrice Motsepe and Standard Bank Group, GoSolr is poised to play a pivotal role in reshaping South Africa’s energy landscape and addressing its pressing power challenges.
As the nation grapples with the urgent need for sustainable energy solutions, GoSolr’s ambitious investment signifies a significant step towards a cleaner, more resilient energy future for South Africa.