Market Intelligence Report: Energy Efficiency

The report details a period of transition for South Africa's energy efficiency sector. While new building codes (SANS 10400) and tax incentives (Section 12L) aim to institutionalize efficiency, the market for domestic solar water heaters has seen a decline and consolidation following the cessation of various Eskom subsidies. Conversely, the LED lighting and embedded generation sectors, particularly solar PV, show signs of growth and increasing price competitiveness.

• New building regulations, specifically SANS 10400, now mandate energy efficiency in construction. Part XA1 sets maximum energy consumption per square meter, while Part XA2 requires that at least 50% of the annual average hot water heating requirement be met by non-electrical resistance heating, such as solar heating or heat pumps.
• The domestic solar water heater (DSWH) industry is undergoing consolidation. The high-pressure sector peaked in 2011 and then contracted, with the number of role players dropping from over 700 in 2011 to approximately 400 in 2013. The low-pressure market is described as 'near extinct' following a failed attempt to move to a contracting or least-cost tendering model.
• Financial incentives for energy efficiency have shifted from utility-led subsidies to tax-based mechanisms. NERSA's 2013 Multi Year Price Determination resulted in the cancellation of Eskom's Demand Side Management (DSM) funding. In contrast, Section 12L of the Income Tax Act, published on 8 November 2013, allows for tax deductions of 45 cents per kilowatt hour of energy efficiency savings until 1 January 2020.
• The energy-saving lighting sector is transitioning toward LED technology, which is viewed as a disruptive force. Eskom has replaced 56.8 million compact fluorescent lights (CFL) since 2005, and the Department of Energy reported at COP 17 that incandescent bulbs would be phased out in South Africa by 2016.
• Embedded generation, particularly solar PV, is showing promising growth as it approaches price parity with Eskom retail pricing. In the Western Cape, there are 6.75Mw of approved or recently completed installations, including projects at Blackriver Park and Ceres fruit juice.
• South African solar water heater exports are limited to approximately R4.25 million, primarily to SADEC or other African destinations. Local manufacturers are unable to enter European, US, or other BRICS markets because local testing standards are not aligned with international Solar Keymark or ISO standards.

APA

Hertzog, H. (2014). Market Intelligence Report: Energy Efficiency. GreenCape. https://greencape.co.za/assets/Uploads/GreenCape-MIR-Energy-Efficiency.pdf

Chicago

Hertzog, Helmut. Market Intelligence Report: Energy Efficiency. GreenCape, 2014. https://greencape.co.za/assets/Uploads/GreenCape-MIR-Energy-Efficiency.pdf.

Wikipedia

{{cite report |last1=Hertzog |first1=Helmut |title=Market Intelligence Report: Energy Efficiency |publisher=GreenCape |date=1 January 2014 |url=https://greencape.co.za/assets/Uploads/GreenCape-MIR-Energy-Efficiency.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hertzog2014market, author = {Hertzog, Helmut}, title = {{Market Intelligence Report: Energy Efficiency}}, institution = {GreenCape}, year = {2014}, month = jan, url = {https://greencape.co.za/assets/Uploads/GreenCape-MIR-Energy-Efficiency.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }