South African homeowners' interest in investing in alternative power solutions has declined in the second quarter of 2024, according to a study by Absa bank. The Homeowner Sentiment Index for the second quarter of 2024 revealed that reducing electricity costs remains a significant factor in alternative power solution investment, but slightly lower than in the first quarter. Homeowners surveyed in the index cited affordability as the main reason why they're not considering installing alternative power solutions, while others were confident that power supply would improve.
The state-owned power utility Eskom reached 100 consecutive days without implementing rolling power cuts, citing a decrease in the usage of open-cycle gas turbines to supplement generation capacity. The debt-laden utility is struggling to keep the lights on in Africa's most industrialised country, resulting in significant economic damage and social disruption. Banks have seen this opportunity and are now offering loans linked to alternative power solutions. Overall consumer confidence in the South African property market increased to 84% in the second quarter, driven by the perception of property being a secure asset.
