Market Intelligence Report: Energy Efficiency

This 2014 Market Intelligence Report by GreenCape analyzes the energy efficiency sector in South Africa, focusing on standards, legislation, financial incentives, and specific markets including solar water heaters, energy-saving lighting, and embedded generation.

• New building codes promulgated in September 2012 (SANS 10400) mandate energy efficiency in construction. Part XA1 sets maximum energy consumption per square meter for buildings, while Part XA2 requires that at least 50% of the annual average hot water heating requirement be met by means other than 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 declined in 2012, 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 the cancellation of a subsidy in early 2013 and a failed contracting tender in November 2013 due to a lack of products meeting the 70% local content requirement.
• Eskom's Demand Side Management (DSM) funding, including subsidies for heat pumps and the ESCO model, has been cancelled or stopped until further notice because the 2013 Multi Year Price Determination (MYPD) by NERSA did not provide funding for these activities.
• New financial incentives include Section 12L of the Income Tax Act, published on 8 November 2013, which allows a tax deduction of 45 cents per kilowatt hour of energy efficiency savings for trades ending before 1 January 2020. Additionally, an accelerated depreciation program allows qualifying assets to be depreciated over three years at a rate of 50:30:20.
• The energy-saving lighting sector is shifting toward LED technology, which is described as disruptive to traditional luminaire manufacturing. The Western Cape is noted as having a diverse LED manufacturing sector with over eight entities producing components and fittings.
• Embedded generation, particularly solar PV, is showing growth as it approaches price parity with Eskom retail pricing. In the Western Cape, 6.75Mw of installations were approved, in progress, or completed, including a 600Kw installation at Blackriver Park and a project at Ceres fruit juice with an intended capacity over 1Mw.
• South African solar water heater exports are limited to approximately R4.25 million, primarily to SADEC and African destinations. Local manufacturers are largely blocked from European, US, and other BRICS markets because they lack international test certificates (such as Solar Keymark or ISO), and local testing standards are not internationally acceptable.

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} }