South Africa’s commercial solar market is seeing strong growth, driven by shifting regulations, rising energy demand, and a growing need for supply stability. For businesses looking to cut electricity costs and improve energy resilience, 2025 brings some notable developments.
Policy Shifts Driving Uptake
The regulatory environment continues to evolve in favour of commercial solar. The Integrated Resource Plan (IRP) and the South African Renewable Energy Masterplan (SAREM) remain central to the country’s energy transition, with SAREM now aiming to deploy 5GW of renewables annually by 2030—up from the previous 3GW target.
What’s happening:
- The 100MW licensing exemption for embedded generation stays in place and has already enabled 6.8GW of renewable projects since 2023.
- A wheeling and net-billing framework now lets commercial players sell excess power into Eskom’s grid at market-reflective prices.
- Under the South Africa Income Tax Act, the renewable energy sector enjoys various fiscal incentives, including allowances for energy efficiency savings, capital allowance for machinery used in renewable energy production, exemption of certified emission reductions, allowance for industrial policy projects, and tax incentives for proposed special economic zones (SEZs).
Read more here about the licensing exemption
More about the wheeling and net-billing framework
Details on South Africa Income Tax Act here
Real-World Example: G3 Citrus Estates
G3 Citrus Estates in Limpopo recently upscaled their solar capacity with Eversolar where they will operate and maintain the now 1.6MWp solar system with 2.28MWh of battery storage.
Outcomes:
- The system supplies around 90% of the estate’s energy needs
- Zero upfront capital needed thanks to a 10-year Power Purchase Agreement (PPA)
- A big drop in both grid reliance and carbon footprint
More here
Commercial Registrations Hit New Highs
In Q3 2024/25, 142 commercial solar facilities were registered, totalling 1.1GW. This shows just how serious the private sector is about renewables.
Notably:
- Limpopo saw the highest investment value, totaling ZAR 13.5 billion for 627 MW of capacity.
- NERSA’s streamlined processes are making it easier to get projects registered
- By the end of 2024, more than 10.5GW of commercial capacity had been approved nationally
Details here
Tech Trends Changing the Game
New tech continues to shape commercial solar across South Africa:
- Battery storage: Lower lithium-ion costs are making backup and load-shifting viable for more businesses
- Smart energy management: AI tools are helping businesses optimise energy usage and forecast demand
- Microgrids: Industrial parks and commercial zones are exploring standalone microgrids powered by on-site renewables
What Business Owners Should Know
If you’re considering solar for your operations, now’s a good time to act:
- Power Purchase Agreements (PPAs) are allowing businesses to go solar without upfront costs
- The 100MW licensing exemption is still valid until March 2026
- Financial perks include Section 12B tax breaks and accelerated asset depreciation
Looking Ahead
For South African businesses, the shift to solar isn’t just about sustainability—it’s about smart strategy. Reducing energy costs, boosting resilience, and locking in long-term value are all part of the package. The opportunities in 2025 make this a strong time to make the switch.
With these trends shaping the market, there’s never been a better time to explore commercial solar. Whether you’re looking to cut costs, reduce downtime, or improve sustainability, Eversolar can help you navigate your options and find the right solution for your site.
Get in touch with our team to see how we can support your solar transition: Contact us