South Africa’s Electricity Consumption Declines Amid Rising Solar Use
Electricity consumption in South Africa declined by 6.2% year on year in January, according to the latest data from Statistics South Africa. The drop follows four consecutive months during which electricity demand fell by more than 7% compared with the same period in the previous year.
Despite the overall decline, seasonally adjusted figures showed a slight improvement. Electricity consumption increased by 1.5% month on month in January after five months of consecutive declines.
Statistics South Africa measures electricity that is distributed across the country through the national grid. However, the data does not include electricity generated from rooftop solar photovoltaic systems installed at homes and businesses. Because this electricity is produced and consumed behind the meter, it is not reported in official statistics.
Analysts often estimate the impact of rooftop solar by comparing electricity demand on cloudy days with demand on sunny days, as solar generation reduces reliance on grid supplied power.
The decline in electricity consumption has also been linked to the pressures facing energy intensive industries. Rising electricity prices and unreliable power supply have forced some sectors, including steel and ferroalloy smelting operations, to shut down electric arc furnaces as they struggle to compete with international producers that have access to cheaper and more reliable energy.
As a result, South Africa’s total electricity consumption in 2025 was 4.2% lower than in 2024, marking the lowest annual consumption level recorded since 2001.
At the same time, the role of Independent Power Producers (IPPs) in the country’s energy mix has continued to grow. Non Eskom power accounted for 17.1% of total electricity generation in January 2026, up from 10.8% recorded in March 2025.
This share is expected to exceed 20% during 2026 as more solar and wind energy projects developed by independent producers are connected to the national grid.
The increase in electricity generated by IPPs has also affected Eskom’s operations. With additional capacity available, the utility has reduced output from some of its coal fired power stations. On 20 February 2026, Eskom reported that 9 897 megawatts of capacity were placed in cold reserve due to excess supply.
While Eskom’s generation rose by 6.6% year on year in January 2025, output dropped by 10.1% year on year in January 2026.
The decline in electricity sales could place additional financial pressure on the power utility. Analysts warn that lower demand may lead Eskom to increase tariffs for its remaining customers, a move that could encourage more households and businesses to generate their own electricity or purchase power from independent producers offering lower prices.