If you’ve noticed your electricity bill creeping up lately, you’re not alone. The electricity cost per kWh in South Africa has been on the rise over the years, and it’s something that affects everyone—whether you’re a homeowner, a renter, or running a business.
In this guide, we’ll break down the current electricity price per kWh, how they’re determined, and what factors play into these cost increases. Plus, we’ll share some practical tips on how you can reduce your electricity costs and save a bit more every month. Ready to take control of your energy spend? Let’s dive in!
What Are the Current Electricity Tariffs per kWh in South Africa?
If you’re wondering, how much is electricity per unit in South Africa now, it varies significantly depending on where you live, whether you receive electricity directly from Eskom or your municipality, the type of meter you have, and your specific usage patterns. But currently, the electricity cost for residential consumers typically ranges from R2.00 to R4.50 per kWh or more.
Here’s a simple breakdown of how the tariffs are structured:
- Prepaid vs. Postpaid Tariffs: Prepaid meters often come with slightly higher rates compared to postpaid systems. However, the advantage of prepaid meters is that they help you manage your budget better, allowing you to pay for electricity upfront and avoid surprises on your bill.
- Eskom vs. Municipality: Local authority charges typically have a slight variation compared to Eskom direct charges due to municipal tariffs.
- Usage Tiers: Both Eskom and municipalities apply a tiered pricing structure based on how much electricity you use. Typically, if you use more than 600 kWh per month, you’ll be moved to a higher tariff rate.
- Time-of-Use (ToU) Tariffs: Some prepaid plans offer Time-of-Use (ToU) tariffs, which allow you to pay less for electricity if you use it during off-peak hours.
Recent Eskom Tariff Increases
As per the National Energy Regulator of South Africa (Nersa)’s approval, the current 2024/25 electricity cost per kWh in South Africa had been raised under these changes:
- Local authority tariff charges (municipal customers): +12.72% (1 July 2024 – 30 June 2025)
- Eskom direct customers (non-local authority): +12.74% (1 April 2024 – 31 March 2025)
Here’s a breakdown of the cost of electricity in South Africa after this increase, according to Eskom:
Homelight Tariffs
This applies to low-usage residential customers who get their electricity directly from Eskom. It includes the lower Homelight 20A and the higher Homelight 60A power capacities.
| Homelight Tariff | Block 1 | Block 2 |
| Homelight 20A | R2.19 per kWh (0 – 350 kWh) | R2.48 per kWh (Above 350 kWh) |
| Homelight 60A | R2.67 per kWh (0 – 600 kWh) | R4.54 per kWh (Above 600 kWh) |
Example: If you use 400 kWh in a month, you’ll pay the Block 1 rate for the first 350 kWh, and the Block 2 rate for the remaining 50 kWh.
Homeflex Tariff
These are designed for prepaid electricity customers who get their electricity directly from Eskom, with a smart Homeflex meter that allows them to purchase electricity in increments as needed.
Homeflex operates with time-of-use pricing:
- High Demand Season (June – August): Higher rates for peak hours and lower rates for off-peak hours.
- Low Demand Season (September – May): Peak and off-peak rates apply, but the charges are generally lower than the high demand season.
| Homeflex Tariff | Peak | Standard | Off-Peak |
| High Demand Season (Jun – Aug) | R7.04 per kWh | R2.14 per kWh | R1.02 per kWh |
| Low Demand Season (Sep – May) | R2.00 per kWh | R2.30 per kWh | R1.59 per kWh |
Homepower Standard Tariff
This tariff is for customers needing higher electricity demand (e.g., larger homes or commercial properties).
- Non-Local Authority Charges: These apply if you’re directly supplied by Eskom.
- Local Authority Charges: These apply if you’re supplied by a municipality instead of directly by Eskom.
- The tariff is divided into Block 1 (0-600 kWh) and Block 2 (above 600 kWh), with Homepower 1, 2, 3, and 4 offering different capacity levels (1 being the lowest, 4 being the highest).
| Homepower (Non-Local) | Block 1 (0-600 kWh) | Block 2 (above 600 kWh) |
| Homepower 1 | R2.82 per kWh | R4.46 per kWh |
| Homepower 2 | R4.35 per kWh | |
| Homepower 3 | R435 per kWh | |
| Homepower 4 | R4.54 per kWh | |
| Homepower (Local) | Block 1 (0-600 kWh) | Block 2 (above 600 kWh) |
| Homepower 1 | R2.86 per kWh | R4.51 per kWh |
| Homepower 2 | R4.40 per kWh | |
| Homepower 3 | R4.40 per kWh | |
| Homepower 4 | R4.60 per kWh |
Municipal Tariffs
That said, what does electricity cost per kWh also varies based on your specific municipality. For example, in the City of Cape Town, the residential tariff is structured across three main tiers:
- Lifeline Tariff: This subsidized rate is available to low-income households with a monthly consumption of less than 450 kWh. The first 60 kWh are free, and the rest are billed at R2.37 per kWh.
- Domestic Tariff: For those consuming more than 450 kWh but less than 600 kWh per month, the rate is R3.91 per kWh.
- Home User Tariff: This higher tariff applies to households with significant usage or higher property values, where the rate for consumption over 600 kWh can go up to R4.75 per kWh.
How Are Electricity Prices Determined in South Africa?
In South Africa, electricity pricing is primarily managed by the National Energy Regulator of South Africa (Nersa), which uses a detailed process to set tariffs. This process aims to balance cost recovery for Eskom while keeping electricity affordable for consumers.
Cost Reflectivity
Nersa’s main goal is to establish tariffs that reflect the actual cost of providing electricity. This includes the expenses involved in generating, transmitting, and distributing electricity, along with Eskom’s operational and maintenance costs. For instance, Eskom’s tariffs are often adjusted to ensure the utility can cover its substantial debts and the costs associated with maintaining aging infrastructure.
Multi-Year Price Determination (MYPD) Process
Every few years, Nersa scrutinizes Eskom’s revenue needs through the Multi-Year Price Determination (MYPD) process. Eskom submits a pricing application, which includes projected costs, investments, and anticipated inflation. Nersa then determines the increase (or decrease) in electricity prices for the upcoming period.
For example, the recently approved tariff hike of 12.74% (starting from April 2024) is a part of Eskom’s MYPD5 application for the 2023-24 and 2024-25 financial years.
Municipal Tariffs
For households or businesses that receive their electricity through municipalities, tariffs are often higher than those directly supplied by Eskom. Municipalities buy power in bulk from Eskom and mark it up to cover their distribution costs.
Additionally, these municipalities may adjust their pricing based on local factors, such as financial deficits or infrastructure upgrades. For example, the City of Cape Town, Johannesburg, or eThekwini will each have their own rate structure.
What Factors Influence Electricity Pricing?
Electricity pricing in South Africa is shaped by a complex web of factors, including generation costs, infrastructure needs, and economic conditions. Let’s take a closer look:
The Cost of Generation
One of the most significant factors influencing electricity pricing is the cost of generation. In South Africa, the bulk (a little more than 80%) of electricity is generated by Eskom’s coal-fired power plants. Unfortunately, coal is not only a polluting energy source but also a costly one. The cost of extracting, transporting, and burning coal has increased over the years.
The Energy Mix and Transition to Renewables
South Africa has been working to increase its reliance on renewable energy sources like wind and solar power. While these sources are cheaper to operate in the long run, the initial infrastructure investments, like solar panel prices, can be high, and it takes time for them to become more affordable. The need for diversified energy sources means that tariffs need to cover both the existing coal plants as well as the new renewable infrastructure.
Infrastructure and Maintenance Costs
The state of South Africa’s electricity grid is another important factor in determining prices. Many of Eskom’s power plants and distribution networks are aging and in need of constant maintenance or upgrades. The cost of maintaining this infrastructure, replacing old equipment, and expanding the grid to meet growing demand all plays into the final price consumers pay.
Demand and Supply Factors
Like any commodity, the price of electricity is also impacted by the fundamental principles of supply and demand. When electricity demand is higher than supply—typically during peak hours, like in the evening—Eskom may need to activate more expensive energy sources, such as gas or diesel generators, to meet demand. This causes the price per kWh to rise temporarily.
Economic and Inflationary Pressures
South Africa’s economic climate plays a role in determining electricity prices as well. Factors such as inflation, economic growth, and unemployment all influence how much people can afford to pay for electricity. If inflation is high, the cost of running power stations and maintaining the grid increases, which directly impacts tariffs.
How Can Consumers Reduce Electricity Costs?
With these rising tariffs, it’s becoming increasingly important for consumers to find ways to reduce their energy costs without sacrificing comfort. Here are some actionable tips to help you save electricity at home and cut down on your monthly bills:
Upgrade to Energy-Efficient Appliances
One of the most effective ways to reduce electricity costs is by investing in energy-efficient appliances, such as:
- LED bulbs (use up to 80% less electricity than incandescent bulbs)
- Inverter air conditioners and fridges
- Front-loading washing machines (use less water and electricity)
Look for appliances with at least an Arating of the South African Energy Efficiency Label (SAEEL), which means they use less power to perform the same functions.
Invest in Solar Power Solutions
If you’re looking for a long-term solution to save on your electricity bill and stay powered during load shedding, investing in solar energy and home backup power supply is one of the smartest decisions you can make. South Africa’s abundant sunshine makes solar power not just an eco-friendly option, but also a cost-effective alternative.
A great option is a solar generator system, which combines solar panels to convert sunlight into electricity and portable power stations to store the energy for later use. This setup provides a reliable energy source during power outages and helps reduce your dependence on Eskom’s often unreliable supply.
One of the top solar generators available today is the EcoFlow DELTA Pro portable power station paired with EcoFlow 400W solar panels. The DELTA Pro is a robust portable home battery with a 3.6kWh capacity, which can be expanded up to 25kWh. This means it can power your essential appliances for hours—or even days—during blackouts or load shedding events.
With an impressive 3,600W running AC output (expandable to 4500W using X-Boost technology), the EcoFlow DELTA Pro Portable Power Station can easily handle heavy-duty appliances like air conditioners, fridges, washing machines, and dryers. And if you need even more power, you can connect two units together, reaching a staggering 7,200W when integrated with the Smart Home Panel.
The Smart Home Panel allows the DELTA Pro to be integrated directly into your home’s electrical circuits, enabling a smooth transition to backup power when the grid goes down. When a power outage is detected, the system automatically switches over in just 20 milliseconds—so quickly that you’ll barely notice the blackout.
Using three EcoFlow 400W Solar Panels, you can fully recharge the DELTA Pro in just 4 to 8 hours, depending on the availability of sunlight. With this setup, you can generate up to 2,628kWh of solar energy per year, potentially saving you up to R5,440 annually on your electricity bills.
Use Electricity During Off-Peak Hours
Some municipalities offer time-of-use tariffs, where electricity is cheaper during non-peak hours (usually late at night or early morning). Run energy-intensive appliances such as washing machines, geysers, and dishwashers at these times.
Reduce Standby Power Usage
Many of your appliances, such as TVs, computers, microwaves, and gaming consoles, draw power even when they’re turned off, known as standby power or “phantom” energy. To reduce the standby energy consumption, use power strips to easily turn off multiple appliances at once or unplug devices when not in use.
Monitor and Manage Your Energy Usage
Sometimes, the key to saving on electricity is simply becoming more aware of your consumption habits. Fortunately, there are plenty of smart technologies and tools that can help.
- Smart meters: Some municipalities or Eskom customers have access to smart meters that provide real-time data on your energy usage. You can track your consumption and make adjustments accordingly.
- Smart home systems: Install smart thermostats, lights, and appliances that can be controlled remotely and adjusted for energy efficiency. These devices optimize energy use and can help you avoid wasting power when you’re not around.
Switch to Prepaid Electricity
Switching from a postpaid to a prepaid electricity meter can help you control your energy costs by allowing you to pay for electricity in advance. This system encourages you to monitor your usage more carefully and reduce waste, as you’ll only have access to a set amount of electricity each month.
Reduce the Use of Heating and Cooling Systems
Air conditioning and heating systems are among the most power-hungry appliances in a home. While they’re necessary for comfort, there are ways to reduce their impact on your bill:
- In summer: Use fans instead of air conditioners whenever possible. Set the thermostat or AC to a higher temperature, such as 23-24°C, and wear lighter clothing.
- In winter: Dress warmly and use blankets to stay comfortable instead of turning up the heat. You can also use space heaters to warm up only the rooms you’re using, rather than heating the entire house.
Practice Energy-Saving Habits
Small behavioural changes can have a big impact on your energy usage. Here are a few simple habits that can make a difference:
- Turn off lights when not in use: This might sound obvious, but it’s easy to forget.
- Take shorter showers: Heating water uses a significant amount of energy, so reducing shower time can save you on water and electricity.
- Run full loads: Only run the dishwasher or washing machine when it’s full, and make sure to use the most energy-efficient settings.
- Use cold water: When washing clothes, use cold water instead of hot to reduce electricity usage.
Conclusion
To wrap things up, the electricity cost per kWh in South Africa is subject to a complex mix of regulatory decisions, market conditions, and external factors like fuel prices. While the tariffs may not drop overnight, understanding how these prices are set and what impacts them puts you in a better position to manage your energy usage. With a few smart changes to your habits and appliances, and by investing in solar panels and power stations to generate and store your own clean energy, you can take steps toward lowering your electricity costs and keeping those bills in check. It’s all about being proactive and making informed choices!
FAQs
What time of year is electricity cheapest?
In South Africa, electricity is generally cheapest during the off-peak periods, which typically fall outside the summer months. During winter (May to August), electricity demand is lower, and in some areas, off-peak rates may apply more frequently. If you’re on a Time-of-Use (ToU) tariff, the cheapest rates are usually during late night and early morning hours, regardless of the season.
Is electricity cheaper at night in South Africa?
Yes, in some areas of South Africa, electricity can be cheaper at night. This is due to Time-of-Use (ToU) tariffs offered by certain municipalities or Eskom. With ToU tariffs, electricity costs less during off-peak hours, usually at night or on weekends, when demand is lower.
How to calculate electricity cost in South Africa?
Follow these steps:
- Find out the electricity rate per kWh charged by your municipality or Eskom.
- Check how many kWh of electricity you’ve used on your electricity meter or your bill.
- Multiply the two values to get the total cost.
For example: If you used 500 kWh and your rate is R2.00 per kWh, your electricity cost would be: 500 kWh x R2.00 = R1,000.