Greencape Market Intelligence Report 2014: Energy Efficiency

The Greencape Market Intelligence Report 2014: Energy Efficiency analyzes the state of energy efficiency in South Africa, focusing on legislative standards, financial incentives, and specific technology markets including solar water heaters (SWH), energy-saving lighting, and embedded generation.

• New building codes promulgated in September 2012 under SANS 10400 mandate energy efficiency in design. Specifically, Part XA1 sets maximum energy consumption per square metre, while Part XA2 requires that at least 50% of annual average hot water heating be provided by non-electrical resistance heating methods, such as solar heating or heat pumps.
• The South African government has introduced new energy efficiency standards and mandatory testing. SANS 941, published in 2013 and implemented in 2014, introduces energy efficiency labelling for various electrical apparatuses and will become a compulsory specification through the National Regulator for Compulsory Standards (NRCS). Additionally, domestic solar water heaters (DSWH) and storage tanks will face mandatory quality testing by the SABS under NRCS VC9004 and NRCS VC9006.
• Financial incentives for energy efficiency are shifting from utility-led subsidies to tax-based concessions. Eskom's Energy Efficiency Demand-Side Management (EEDSM) and Integrated Demand Management (IDM) funding has been cancelled or stopped following the 2013 multi-year price determination by NERSA. Conversely, 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 domestic solar water heater (DSWH) industry is in a consolidation phase. The low-pressure (LP SWH) sector is described as 'virtually extinct' following a failed tender process in 2013 where submissions failed to meet a 70% local content requirement. The high-pressure (HP SWH) sector peaked in 2011 and contracted through 2012 and 2013, with the number of players dropping from over 700 in 2011 to approximately 400 in 2013.
• High-pressure solar water heater installations on the Eskom rebate programme show significant regional variation. Gauteng leads with approximately 18,790 installations (37% share), followed by the Western Cape with 14,889 (29% share). Market data indicates a shift from affluent users (300L systems) toward middle-class users (150L systems), with the latter showing continuous growth.
• South Africa's solar water heater trade is heavily reliant on imports, primarily from China (55.6% of imports from 2007-2013). Exports are low, valued at R4.2 million, and are limited to SADC and other African nations (such as Zambia at 19% and Malawi at 15%) because local manufacturers lack the international test certificates (Solar Keymark or ISO) required for European, US, or BRICS markets.
• The energy-saving lighting sector is transitioning toward LED technology. While Eskom replaced 56.8 million CFLs since 2005, the Department of Energy reported at COP 17 that incandescent bulbs will be phased out starting in 2016. The Western Cape is noted as having a diverse LED manufacturing sector with over eight entities, including SixtLED, LED Lighting SA, LedZshine, Caelus, Ledwise, and MarulaLED.
• Embedded generation, particularly solar photovoltaics (PV), is showing growth as it approaches price parity with Eskom retail pricing. The Western Cape accounts for 51% of private installations, with notable projects including a 600 Kw installation at Black River Park in Cape Town (planned for upgrade to 1.2 Mw) and a project at the Ceres Fruit Growers facility with a capacity over 1 Mw.

APA

GreenCape (2014). Greencape Market Intelligence Report 2014: Energy Efficiency. https://greencape.co.za/wp-content/uploads/2022/10/MIR2014-Energy-Efficiency2-3.pdf

Chicago

GreenCape. Greencape Market Intelligence Report 2014: Energy Efficiency. 2014. https://greencape.co.za/wp-content/uploads/2022/10/MIR2014-Energy-Efficiency2-3.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Greencape Market Intelligence Report 2014: Energy Efficiency |date=2014 |url=https://greencape.co.za/wp-content/uploads/2022/10/MIR2014-Energy-Efficiency2-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencape2014greencape, author = {{GreenCape}}, title = {{Greencape Market Intelligence Report 2014: Energy Efficiency}}, institution = {GreenCape}, year = {2014}, url = {https://greencape.co.za/wp-content/uploads/2022/10/MIR2014-Energy-Efficiency2-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }