An opportunity for solar suppliers to power up small businesses

Rolling blackouts and high tariff increases in South Africa created an opportunity for solar suppliers to power up small businesses. There is indeed a “light at the end of the tunnel”, with many different sectors and businesses collaborating to find sustainable solutions.

One partnership that was formed to empower SMEs with sustainable, reliable power solutions, is Lulalend’s latest partnership with several renewable energy suppliers from around the country.

With load shedding already an all-too-common occurrence in South Africa and expected to ramp up over the coming years, keeping the lights on is no longer just a convenience, but a crucial survival strategy for the small businesses that are the lifeblood of the economy.

In addition to the challenges of rolling blackouts, the 18.65% electricity tariff increase set to come into play next month will prove an additional burden and are yet another reason why SMEs are looking to alternative energy sources, especially renewables.

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Finding an offering for small businesses

“Working within the SME sector, we had to create an offering that would assist this sector. We launched a campaign with an easily accessible funding option that will help power up SME businesses with solar energy, ensuring that the doors stay open and the lights on,” says Tom Stuart, chief marketing officer at SME funding provider Lulalend.

Securing these funds through Lulalend means you get access to several locally based solar installation businesses at a discounted rate as well.

Minister of Finance Enoch Godongwana’s recent budget speech included exciting news for businesses and individuals that want to invest in renewable energy. Starting this month, businesses will be able to reduce their taxable income by 125% of the cost of investing in renewables.

“That means there has never been a better time to start exploring your options for sustainable energy solutions. As the South African energy grid continues to struggle with instability and regular blackouts, many small businesses find it difficult to maintain operations and stay competitive. The loss of power not only disrupts business activities but also leads to significant financial losses.”

According to recent reports, power outages have cost businesses around R100 billion per year in lost productivity since 2019.

“That is a staggering amount and it underscores the urgency of finding reliable, affordable solutions to the energy crisis. While there are several options for SMEs to stay powered up and ensure continuity during rolling blackouts, solar power is the best choice.”

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Ensuring a consistent energy supply

Stuart says with advances in energy storage, including Li-ion batteries, solar power has become fully reliable and dispatchable, ensuring a consistent supply of electricity 24/7. With the right setup, you can also sell excess energy back to the national grid, effectively letting your system slowly pay for itself.

“While the initial investment in solar panels may seem expensive, the long-term savings can be significant. Not only will you be able to reduce your reliance on the grid (and therefore your monthly electricity bill), but you will also be able to take advantage of the tax incentives mentioned in the recent budget speech.”

Unlike other fossil-fuel-based solutions such as diesel generators, solar power is sustainable. Stuart says by investing in renewable energy, you are not just protecting your business from the impact of load shedding but also doing your part to reduce your carbon footprint and contribute to a more sustainable future.

“We at Lulalend are committed to helping small businesses thrive in South Africa and we believe that sustainable energy solutions are a critical part of that equation. With our secured funding options and partnerships with solar-preferred suppliers, we are here to help you power up and keep the lights on. Let’s work together to build a brighter, more sustainable future for all.”