Greencape Market Intelligence Report 2014: Energy Efficiency

The report details a transition in South Africa's energy efficiency landscape, marked by the introduction of new building codes (SANS 10400) and mandatory quality testing for solar water heaters. While the high-pressure solar water heater market is consolidating after a peak in 2011 and the low-pressure sector is described as 'virtually extinct', the embedded generation sector, particularly solar PV, is showing growth as it approaches price parity with Eskom retail pricing. Financial incentives are shifting from Eskom-funded rebates, which have been largely cancelled, toward tax deductions under Section 12L.

• New building regulations, specifically SANS 10400 promulgated in September 2012, mandate energy efficiency in construction. 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 methods, such as solar heating or heat pumps.
• The domestic solar water heater (DSWH) industry is consolidating. The high-pressure (HP SWH) sector peaked in 2011 and declined in 2012, with the number of players dropping from over 700 in 2011 to approximately 400 in 2013. The low-pressure (LP SWH) market is considered 'virtually extinct' following the cancellation of subsidies in early 2013 and a failed tender process due to non-compliance with 70% local content requirements.
• Financial support for energy efficiency is shifting from utility-led rebates to tax-based incentives. NERSA has stopped funding for Eskom's Demand-Side Management (DSM) activities, including heat pump subsidies and the ESCO model. 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 embedded generation sector is growing, with solar photovoltaics (PV) nearing price parity with Eskom retail rates. The Western Cape holds a dominant 51% share of private installations, with 6.75 Mw of installations approved, in progress, or completed in the province as of 2013.
• South African solar water heater exports are limited primarily to the SADC region and other African nations (such as Zambia, Malawi, and Kenya) because local manufacturers lack the international test certificates (Solar Keymark or ISO standards) required to enter markets in Europe, the USA, or BRICS partners.
• The energy-saving lighting market is transitioning toward LED technology, which is described as a 'disruptive technology'. While Eskom has replaced 56.8 million CFLs since 2005, the Western Cape has developed a diverse LED manufacturing sector with over eight entities producing components and complete fittings.

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} }