South African solar and battery backup consumers are in for yet another round of industry-wide price increases, but it’s not all bad news.
By Lance Dickerson, MD of Revov SA
But before we dig into that, no discussion about the proliferation of behind-the-meter solar power and battery backup in this country will be complete if the real cause of the rush is not acknowledged: When Eskom simply couldn’t keep the lights of the economy on, households and businesses had to rely on themselves.
Yet, here we are, approaching the middle of 2026 and the very industry that stepped up to save the real economy for thousands of households and businesses is on the verge of a double whammy of restrictive price increases.
This comes amidst the reality of households subsidising big industry, where tariffs north of 220c/kWh enable the state utility to secure electricity for large industrial users such as smelters at 62c/kWh, and the proposed solar tariffs being read by many in society as punishment for not relying entirely on Eskom.
We have been arguing that instead of continuing down the same path, South Africa needs a tariff framework that protects vulnerable households, supports industrial jobs, incentivizes renewable investment, and ensures sustainable grid recovery.
Think about it – South Africans have faced staggering energy price increases over the past two decades. Eskom electricity tariffs have increased by over 172% over the past decade, and if we look back 20 years that figure is north of 1000%. We all know Eskom is burning diesel to keep the lights on… anyone keeping an eye on the diesel price?
The point is that the very households and businesses that powered the surge in the solar and battery industry are under immense economic pressure and unless consumers and businesses think local and invest in the circular economy, the price pressure is about to increase because of two recent developments.
As of 27 March 2026, the International Trade Administration Commission (ITAC) proposed preliminary duties of 15% on fully assembled lithium-ion batteries and up to 30% on various solar and wind components to promote local manufacturing.
That’s not all. Based on policy announcements from the Chinese Ministry of Finance and the State Taxation Administration released in January 2026, China is significantly restructuring its export tax rebate system for renewable energy products, specifically targeting solar and batteries. In essence, the Chinese government is ending its 9% tax refund. This change is being implemented with 3% effective immediately and the remaining balance phased in over the next year.
What it all means for the industry
Certainly, from REVOV’s perspective, we have always argued for a robust local industry. This is because the industry is awash with incredible talent. The shift towards local manufacturing is a good, sustainable move for the country. However, it won’t happen overnight.
Until such time as the local supply chain is embedded and meeting regional demand, consumers and businesses would do well to seek out suppliers in the renewables sector that have robust local technical and support teams. Teams that not only have a reach across the length and breadth of the country, but teams that assemble the batteries on these shores. That technical expertise will become golden.
There are still large stockpiles of fully imported batteries in the market. The ITAC developments may well force a sell-off of these products, but even if it doesn’t, the dangers of long-term storage and the resulting degradation of the cells will continue to harm the industry. These batteries will find their way into installations. Potentially inferior products with no local support will do little to support the industry’s reputation or consumers’ pockets.
The circular economy
Perhaps the most exciting outcome will be a reinvigorated investment in 2nd LiFe. 2nd LiFe batteries are lithium iron phosphate batteries, which come from electric vehicle batteries. When EV batteries are replaced, a very strict testing and quality control process is implemented to assess and select individual cells and whole batteries for use in Battery Energy Storage Systems for industrial and residential use.
These batteries have a number of advantages. EV grade lithium batteries are superior to those made for storage exclusively. They are able to handle far more aggressive charge and discharge rates, higher temperatures and even penetration tests. 2nd LiFe batteries are the answer to two questions: What do we do with EV batteries when they are replaced? And, where do we find lithium batteries that are robust enough to handle the toughest conditions in Africa while performing on par with First LiFe LiFePO4 batteries?
If the premise of renewable energy is to take strain off the environment, then an industry that invests in the circular economy is surely doing the right thing? REVOV has successfully sold and supported thousands of 2nd LiFe batteries over the last decade, and the recent ITAC news provides the perfect launching pad for a reinvigorated 2nd LiFe economy locally.
We procured our first-generation cells from China, where there was an abundance of EVs. South Africa’s sector has grown, with significant numbers of EVs found in large industry, mining and the local vehicle sector.
Now is the time to ensure that when those batteries need to be changed, partnerships should be struck where experts come on board to prevent those batteries from filling our landfills, and instead be deployed to power renewable installations as reliable, robust backup batteries. This industry has weathered one shock after the next. This is a moment of immense possibility.