Rising Electricity Cost Per kWh: How to Save on Your Energy Bill

Cost of power by kWh in South Africa has been on the rise over the years, affecting everyone – whether you rent a home, own a home and or run a business.

We’ll break down the current electricity price per kWh and what factors come into play. We also share with you valid information of how to save on your annual bill.

Rising Electricity Cost Per kWh: How to Save on Your Energy Bill

Cost of power by kWh in South Africa has been on the rise over the years, affecting everyone – whether you rent a home, own a home and or run a business.

We’ll break down the current electricity price per kWh and what factors come into play. We also share with you valid information of how to save on your annual bill.

Noticeable Rising Electricity Bill?

Current Electricity Tariffs per kWh in South Africa

Electricity cost per unit kWh varies significantly depending on where you live, whether you receive electricity directly from Eskom or your municipality, the type of meter you have, and your specific usage patterns. But currently, the electricity cost for residential consumers typically ranges from R2.10 to R4.60 per kWh or more.

Later, we’ll show you of how to get clever about it and save. Here’s a simple breakdown of how the tariffs are structured:

Prepaid meters often come with slightly higher rates compared to postpaid systems. However, the advantage of prepaid meters is that they help you manage your budget better, allowing you to pay for electricity upfront and avoid surprises on your bill.

Local authority charges typically have a slight variation compared to Eskom direct charges due to municipal tariffs.

Both Eskom and municipalities apply a tiered pricing structure based on how much electricity you use. Typically, if you use more than 600 kWh per month, you’ll be moved to a higher tariff rate.

Some prepaid plans offer Time-of-Use (ToU) tariffs, which allow you to pay less for electricity if you use it during off-peak hours.

Noticeable Rising Electricity Bill?

Current Electricity Tariffs per kWh in South Africa

Electricity cost per unit kWh varies significantly depending on where you live, whether you receive electricity directly from Eskom or your municipality, the type of meter you have, and your specific usage patterns. But currently, the electricity cost for residential consumers typically ranges from R2.10 to R4.60 per kWh or more.

Later, we’ll show you of how to get clever about it and save. Here’s a simple breakdown of how the tarriffs are structured:

Prepaid meters often come with slightly higher rates compared to postpaid systems. However, the advantage of prepaid meters is that they help you manage your budget better, allowing you to pay for electricity upfront and avoid surprises on your bill.

Local authority charges typically have a slight variation compared to Eskom direct charges due to municipal tariffs.

Both Eskom and municipalities apply a tiered pricing structure based on how much electricity you use. Typically, if you use more than 600 kWh per month, you’ll be moved to a higher tariff rate.

Some prepaid plans offer Time-of-Use (ToU) tariffs, which allow you to pay less for electricity if you use it during off-peak hours.

Eskom Tariff Increases

As per the National Energy Regulator of South Africa (Nersa)

As per the National Energy Regulator of South Africa (Nersa)’s approval, the current 2024/25 electricity cost per kWh in South Africa had been raised under these changes:

Local authority tariff charges (municipal customers): +12.72% (1 July 2024 – 30 June 2025)

Eskom direct customers (non-local authority): +12.74% (1 April 2024 – 31 March 2025)

Eskom Tariff Increases

As per the National Energy Regulator of South Africa (Nersa)

As per the National Energy Regulator of South Africa (Nersa)’s approval, the current 2024/25 electricity cost per kWh in South Africa had been raised under these changes:

Local authority tariff charges (municipal customers): +12.72% (1 July 2024 – 30 June 2025)

Eskom direct customers (non-local authority): +12.74% (1 April 2024 – 31 March 2025)

Here’s a breakdown of the cost of electricity in South Africa after this increase, according to Eskom:

Homelight Tariffs (No guaranteed rates at time of research)

This applies to low-usage residential customers  who get their electricity directly from Eskom. It includes the lower Homelight 20A and the higher Homelight 60A power capacities.

Homelight Tariff Block 1 Block 2
Homelight 20A R2.19 per kWh (0 – 350 kWh) R2.48 per kWh (Above 350 kWh)
Homelight 60A R2.67 per kWh (0 – 600 kWh) R4.54 per kWh (Above 600 kWh)

Example: If you use 400 kWh in a month, you’ll pay the Block 1 rate for the first 350 kWh, and the Block 2 rate for the remaining 50 kWh.

Here’s a breakdown of the cost of electricity in South Africa after this increase, according to Eskom:

Homelight Tariffs (No guaranteed rates at time of research)

This applies to low-usage residential customers  who get their electricity directly from Eskom. It includes the lower Homelight 20A and the higher Homelight 60A power capacities.

Homelight Tariff Block 1 Block 2
Homelight 20A R2.19 per kWh (0 – 350 kWh) R2.48 per kWh (Above 350 kWh)
Homelight 60A R2.67 per kWh (0 – 600 kWh) R4.54 per kWh (Above 600 kWh)

Example: If you use 400 kWh in a month, you’ll pay the Block 1 rate for the first 350 kWh, and the Block 2 rate for the remaining 50 kWh.

Homelight Tariffs (No guaranteed rates at time of research)

These are designed for prepaid electricity customers who get their electricity directly from Eskom. Requires a smart Homeflex meter that allows them to purchase electricity in increments as needed.  Homeflex operates with time-of-use pricing:

High Demand Season (June – August): Higher rates for peak hours and lower rates for off-peak hours.

Low Demand Season (September – May): Peak and off-peak rates apply, but the charges are generally lower than the high demand season.

Homeflex Tariff Peak Standard Off-Peak
High Demand Season (Jun – Aug) R7.04 per kWh R2.14 per kWh R1.02 per kWh
Low Demand Season (Sep – May) R2.00 per kWh R2.30 per kWh R1.59 per kWh

Homelight Tariffs (No guaranteed rates at time of research)

These are designed for prepaid electricity customers who get their electricity directly from Eskom. Requires a smart Homeflex meter that allows them to purchase electricity in increments as needed.  Homeflex operates with time-of-use pricing:

High Demand Season (June – August): Higher rates for peak hours and lower rates for off-peak hours.

Low Demand Season (September – May): Peak and off-peak rates apply, but the charges are generally lower than the high demand season.

Homeflex Tariff Peak Standard Off-Peak
High Demand Season (Jun – Aug) R7.04 per kWh R2.14 per kWh R1.02 per kWh
Low Demand Season (Sep – May) R2.00 per kWh R2.30 per kWh R1.59 per kWh

Homepower Standard Tariff

No Guaranteed Rates at Time of Research

A tariff for high consuming electricity demand (e.g., larger homes, Estates or commercial properties).

Non-Local Authority Charges: Applicable if you’re directly supplied by Eskom.

Local Authority Charges: Applicable if you’re supplied by a municipality instead of directly by Eskom

Tariff is divided into Block 1 (0-600 kWh) and Block 2 (above 600 kWh), with Homepower 1, 2, 3, and 4 offering different capacity levels (1 being the lowest, 4 being the highest).

Homepower (Non-Local) Block 1 (0-600 kWh) Block 2 (above 600 kWh)
Homepower 1 R2.82 per kWh R4.46 per kWh
Homepower 2 R4.35 per kWh
Homepower 3 R435 per kWh
Homepower 4 R4.54 per kWh
Homepower (Local) Block 1 (0-600 kWh) Block 2 (above 600 kWh)
Homepower 1 R2.86 per kWh R4.51 per kWh
Homepower 2 R4.40 per kWh
Homepower 3 R4.40 per kWh
Homepower 4 R4.60 per kWh

Homepower Standard Tariff

No Guaranteed Rates at Time of Research

A tariff for high consuming electricity demand (e.g., larger homes, Estates or commercial properties).

Non-Local Authority Charges: Applicable if you’re directly supplied by Eskom.

Local Authority Charges: Applicable if you’re supplied by a municipality instead of directly by Eskom

Tariff is divided into Block 1 (0-600 kWh) and Block 2 (above 600 kWh), with Homepower 1, 2, 3, and 4 offering different capacity levels (1 being the lowest, 4 being the highest).

Homepower (Non-Local) Block 1 (0-600 kWh) Block 2 (above 600 kWh)
Homepower 1 R2.82 per kWh R4.46 per kWh
Homepower 2 R4.35 per kWh
Homepower 3 R435 per kWh
Homepower 4 R4.54 per kWh
Homepower (Local) Block 1 (0-600 kWh) Block 2 (above 600 kWh)
Homepower 1 R2.86 per kWh R4.51 per kWh
Homepower 2 R4.40 per kWh
Homepower 3 R4.40 per kWh
Homepower 4 R4.60 per kWh

Municipal Tariffs, Example: Cape Town

As mentioned before, Electricity cost per kWh also varies based on your specific municipality.

In Cape Town, the residential tariff is structured across three main tiers:

Lifeline Tariff: This subsidized rate is available to low-income households with a monthly consumption of less than 450 kWh. The first 60 kWh are free, and the rest are billed at R2.37 per kWh.
Domestic Tariff: For those consuming more than 450 kWh but less than 600 kWh per month, the rate is R3.91 per kWh.

Home User Tariff: This higher tariff applies to households with significant usage or higher property values, where the rate for consumption over 600 kWh can go up to R4.75 per kWh.

Municipal Tariffs, Example: Cape Town

As mentioned before, Electricity cost per kWh also varies based on your specific municipality.

In Cape Town, the residential tariff is structured across three main tiers:

Lifeline Tariff: This subsidized rate is available to low-income households with a monthly consumption of less than 450 kWh. The first 60 kWh are free, and the rest are billed at R2.37 per kWh.

Domestic Tariff: For those consuming more than 450 kWh but less than 600 kWh per month, the rate is R3.91 per kWh.

Home User Tariff: This higher tariff applies to households with significant usage or higher property values, where the rate for consumption over 600 kWh can go up to R4.75 per kWh.

Clarity on Municipal Tariffs

Households or businesses getting their electricity through municipalities, tariffs are often higher  and differintiate than those directly supplied by Eskom.

Municipalities tend to buy power in bulk from Eskom, marking  it up to cover distribution costs.
How Can Consumers Reduce Electricity Costs?  Here are some ways to cut down on your Monthly Bills:

1. Upgrade to Energy-Efficient Appliances. Or one of the most effective ways to reduce electricity costs is by investing in energy-efficient appliances, such as:

  • A+ Grade Inverter air conditioners and fridges
  • A+ grade washing machines and tumble dryers.
  • A+ grade Air fryers, TVs, etc…
  • LED bulbs (use up to 80% less electricity than incandescent bulbs).

In any case watch out for appliances with an  A -rating of the South African Energy Efficiency Label ( SAEEL ), or EU / EC label, which means they use less power to perform the same functions.

Clarity on Municipal Tariffs

Households or businesses getting their electricity through municipalities, tariffs are often higher  and differintiate than those directly supplied by Eskom.

Municipalities tend to buy power in bulk from Eskom, marking  it up to cover distribution costs.
How Can Consumers Reduce Electricity Costs?  Here are some ways to cut down on your Monthly Bills:

1. Upgrade to Energy-Efficient Appliances. Or one of the most effective ways to reduce electricity costs is by investing in energy-efficient appliances, such as:

  • A+ Grade Inverter air conditioners and fridges
  • A+ grade washing machines and tumble dryers.
  • A+ grade Air fryers, TVs, etc…
  • LED bulbs (use up to 80% less electricity than incandescent bulbs).

In any case watch out for appliances with an  A -rating of the South African Energy Efficiency Label ( SAEEL ), or EU / EC label, which means they use less power to perform the same functions.

Solar Power Solutions by Runhood Plug & Play

With double the amount of Sunshine compared to Europe, South Africa’s abundant sunshine makes solar power eco friendly PLUS a real cost-effective alternative.

Solar Power Solutions by Runhood Plug & Play

With double the amount of Sunshine compared to Europe, South Africa’s abundant sunshine makes solar power eco friendly PLUS a real cost-effective alternative.

Solar Power Solutions by Runhood PLUG and PLAY

With double the amount of Sunshine compared to Europe, South Africa’s abundant sunshine makes solar power eco friendly PLUS a real cost-effective alternative.

  1. Heavy duty power consuming appliances can easily be maintained with the Runhood F2400 in combination with battery storage B2400, expandable to 19.2KWH.
  2. If you attach the F2400 to 3 x 555W solar panels for example it will reload in less than 2 hours with free „sun generated electricity“.
  3. If you attach the F2400 to 3 x 555W solar panels for example it will reload in less than 2 hours with free „sun generated electricity“.
  4. The Runhood F2400 is NOT just another portable power station. It’s intelligent and a 3 in 1 Balcony Power Station for your home, designed to SAVE on your bill.
  5. Portability and flexibility out of home, when Glamping or work in remote areas is a mere add on and very nice to have. You can even take the main unit off the system whereas the B2400 batteries will keep running your via Smartplug assigned appliances whilst you enjoy outdoor power with the F2400 main unit.

Take advantage of cheaper Electricity costs at night ! – save whilst sleeping –

In some areas of South Africa, electricity can be cheaper at night. This is due to Time-of-Use (ToU) tariffs offered by certain municipalities or Eskom. With ToU tariffs, electricity costs less during off-peak hours, usually at night or on weekends, when demand is lower.

With RUNHOOD’s UNIQUE bidirectional storage technology, you can power your home with solar energy, earn money by sharing energy with the grid once available in South Africa, or charge the battery when electric prices are low (at night !) Homeowners can easily manage all of the functions with the RUNHOOD APP.

Intelligent Algorithm, BI-Directional Inverter & Smart Plug

RUNHOOD’s intelligent algorithm with the use of RUNHOOD smart plug can help homeowners achieve zero waste of power. SAVINGS of +20.000 Rand per year are possible if charged by Solar in combination with the Runhood Smartplug.

Set up the F2400 and smart plug with WIFI connection through the RUNHOOD App achieve on-demand power supply. In Self-Consumption mode, the F2400 tries to minimize the power import from the grid. Solar power generated by the balcony is first consumed by the home loads.

When excess solar power is available, it is used to charge the battery. If solar power is less than the home’ s power requirement, the F2400 battery is discharged to make up the deficit.

You can use up to 4 smart plugs per F2400 unit – driving power to up to 4 appliances at your finger tip via the Runhood App and save !

www.runhood.co.za

Solar Power Solutions by Runhood PLUG and PLAY

With double the amount of Sunshine compared to Europe, South Africa’s abundant sunshine makes solar power eco friendly PLUS a real cost-effective alternative.

  1. Heavy duty power consuming appliances can easily be maintained with the Runhood F2400 in combination with battery storage B2400, expandable to 19.2KWH.
  2. If you attach the F2400 to 3 x 555W solar panels for example it will reload in less than 2 hours with free „sun generated electricity“.
  3. If you attach the F2400 to 3 x 555W solar panels for example it will reload in less than 2 hours with free „sun generated electricity“.
  4. The Runhood F2400 is NOT just another portable power station. It’s intelligent and a 3 in 1 Balcony Power Station for your home, designed to SAVE on your bill.
  5. Portability and flexibility out of home, when Glamping or work in remote areas is a mere add on and very nice to have. You can even take the main unit off the system whereas the B2400 batteries will keep running your via Smartplug assigned appliances whilst you enjoy outdoor power with the F2400 main unit.

Take advantage of cheaper Electricity costs at night ! – save whilst sleeping –

In some areas of South Africa, electricity can be cheaper at night. This is due to Time-of-Use (ToU) tariffs offered by certain municipalities or Eskom. With ToU tariffs, electricity costs less during off-peak hours, usually at night or on weekends, when demand is lower.

With RUNHOOD’s UNIQUE bidirectional storage technology, you can power your home with solar energy, earn money by sharing energy with the grid once available in South Africa, or charge the battery when electric prices are low (at night !) Homeowners can easily manage all of the functions with the RUNHOOD APP.

Intelligent Algorithm, BI-Directional Inverter & Smart Plug

RUNHOOD’s intelligent algorithm with the use of RUNHOOD smart plug can help homeowners achieve zero waste of power. SAVINGS of +20.000 Rand per year are possible if charged by Solar in combination with the Runhood Smartplug.

Set up the F2400 and smart plug with WIFI connection through the RUNHOOD App achieve on-demand power supply. In Self-Consumption mode, the F2400 tries to minimize the power import from the grid. Solar power generated by the balcony is first consumed by the home loads.

When excess solar power is available, it is used to charge the battery. If solar power is less than the home’ s power requirement, the F2400 battery is discharged to make up the deficit.

You can use up to 4 smart plugs per F2400 unit – driving power to up to 4 appliances at your finger tip via the Runhood App and save !

www.runhood.co.za

Conclusion

Put yourself in a better position to manage your energy household. With a few smart changes to your habits and appliances, and by investing in a few solar panels to generate and store your own clean energy, you can achieve huge savings by lowering your electricity costs.
The Runhood F2400 with it’s possibilites helps keeping you on top of rising power bills and provides peace of mind with it’s 10 Year Guarantee !
FAQs

Conclusion

 

Put yourself in a better position to manage your energy household. With a few smart changes to your habits and appliances, and by investing in a few solar panels to generate and store your own clean energy, you can achieve huge savings by lowering your electricity costs.

The Runhood F2400 with it’s possibilites helps keeping you on top of rising power bills and provides peace of mind with it’s 10 Year Guarantee !

FAQs

What time of year is electricity cheapest?

Electricity is generally cheapest during the off-peak periods, outside the summer months. During winter (May to August), electricity demand is lower, and in some areas, off-peak rates may apply more frequently. If you’re on a Time-of-Use (ToU) tariff, the cheapest rates are usually during late night and early morning hours, regardless of the season. The F2400 charges then automatically on the Apps timer mode, making sure you buy cheapest power available and can use it during peak pricing periods whilst in daytime your solar panels do the rest.

What time of year is electricity cheapest?

Electricity is generally cheapest during the off-peak periods, outside the summer months. During winter (May to August), electricity demand is lower, and in some areas, off-peak rates may apply more frequently. If you’re on a Time-of-Use (ToU) tariff, the cheapest rates are usually during late night and early morning hours, regardless of the season. The F2400 charges then automatically on the Apps timer mode, making sure you buy cheapest power available and can use it during peak pricing periods whilst in daytime your solar panels do the rest.

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Empowering Africa With Innovative Energy

Company Registration Details:
Reg No.: 2024/438958/07
VAT Reg No.: 9011885317

Get In Touch:
Email: Jochen.krumm@voltofy.co.za
Contact: (+27) 83 395 9572