Understanding Tariffs & Rebates: Making the Most of Wheeling with SOLA Group

When it comes to electricity in South Africa, the price you pay – or tariff – isn’t just a flat rate. Eskom, South Africa’s main electricity provider, along with various municipalities, offers different tariffs that vary based on factors like usage patterns, time of day, and even whether or not the energy is renewable. This variety gives businesses options, especially for those interested in sustainable energy solutions like wheeling renewable energy from one location to another.

In this post, we’ll break down some key tariffs, discuss the rebates available for renewable energy users, and explain how SOLA Group makes it easier for companies to use wheeled energy to save money and support sustainability.

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What Are Electricity Tariffs?

A tariff is simply the rate you pay per unit of electricity used, but how that rate is determined can vary. Here’s a look at the two main types of tariffs offered by Eskom and municipalities:

 

1. 1. Flat-Rate Tariffs: With these, the rate per unit of electricity stays constant, regardless of when or how much you use. This is straightforward but may not be as cost-effective for companies that can shift usage to off-peak times.

1. 1. Time-of-Use Tariffs: These tariffs vary based on the time of day and season, with lower rates during off-peak hours (like late nights) and higher rates during peak demand times (often mornings and evenings). Businesses that can plan their operations around these times often benefit from these tariffs.

In addition to these, there are tailored tariffs for specific sectors like agriculture, commerce, and industry, each designed to reflect unique usage patterns.

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Understanding Rebates on Wheeling Tariffs

To promote renewable energy, Eskom and some municipalities offer rebates for users on wheeling tariffs. Rebates are a kind of discount applied to the fees that users would normally pay for using the grid. Here’s how they work in simple terms:

 

1. 1. Energy Generation & Delivery: SOLA Group generates renewable energy at a solar plant and injects it into the grid.

1. 1. Using the Grid for Wheeling: Renewable energy is then added to the national grid using existing transmission networks.

1. 1. Rebate Application: Eskom applies a rebate to some of the transmission fees, reducing the cost of using the grid infrastructure for renewable energy users.

1. 1. Lowered Energy Cost for the User: The final cost is lower than it would be without the rebate, making wheeled energy more competitive compared to traditional energy sources.

These rebates are designed to make renewable energy an attractive option for companies, encouraging them to choose clean power and supporting South Africa’s shift towards a greener grid.

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How SOLA Group Supports Wheeling for Your Business

SOLA Group specialises in helping businesses access affordable, wheeled renewable energy. By managing the entire process – from generating solar power to arranging wheeling agreements with Eskom – we make it easy for our clients to switch to green energy, save on costs, and achieve sustainability targets.

To see how wheeling can benefit your business, check out our case study below. This example shows how a manufacturing company saved on energy costs and reduced its carbon footprint with SOLA Group’s wheeling solution.

Ready to receive cleaner, greener energy? Click here to see how SOLA can help your business save on costs and minimise carbon emissions today!