HERFS/AUTUMN BONUS TYDSKRIF 2026

On a crisp morning in early summer, the engine of a diesel generator on a farm in Limpopo sputtered into life. The Eskom grid was down again. Across South Africa, farms are confronting a stark new reality: Energy stability no longer comes for free, and relying on the grid or diesel could cost more than the generators themselves. Electricity tariffs now sit far above inflation, with recent increases of around 12,7% in the 2025/26 cycle and a further 10,5% hike expected in April 2026 as Nersa and Eskom balance affordability with sustainability. Diesel, too, remains a hefty line item: while South African forecasts suggest some relief in early 2026 with predictions of around R23,10 per litre for diesel – the unpredictability of global oil markets keeps farmers and processors on edge. For many farms, energy is no longer a background cost – it’s a key driver of operational resilience, profit margin, and competitive positioning. The added frustration of receiving nonsensical electricity bills from Eskom due to estimated readings is driving farmers to seek alternative electricity supply. When the grid isn’t enough In the past decade, grid unreliability – from loadshedding to network faults – has eroded confidence in traditional power supply. Yet switching to solar wasn’t always simple for farms and processing plants. The technology made sense; the upfront capital cost did not. This is where innovative financing – especially Power Purchase Agreements (PPAs) – enters the agribusiness conversation. Instead of buying the infrastructure outright, farms can access solar-plus-storage systems like Ordiphase’s GreenTower ESS by purchasing energy as a service — paying a monthly service fee for power generated and stored on site. Imagine a packhouse that used to burn through thousands of rands in diesel every week during peak packing season. Now, with a GreenTower ESS installed under a PPA, it draws clean energy at below the equivalent grid price, all without straining capital budgets. Energy as a predictable input For farmers and processors accustomed to input price volatility – from fertiliser to feed – energy unpredictability strikes a particularly sensitive nerve. “I used to dread seeing the fuel bill,” says a citrus grower in the Eastern Cape. “One week diesel was R23 a litre, the next it was R25. Then the grid bill jumps again. You never knew what your best energy choice was.” That uncertainty makes planning – whether hiring seasonal workers, buying packaging supplies, or contracting transport – much harder. By contrast, a solar + battery systemunder a PPA gives businesses a reliable monthly energy cost – fixed or predictably escalated – and removes exposure to sudden grid or fuel price shocks. For larger operations, some use PPAs to fix their energy cost base for 10 to 20 years, turning an unpredictable overhead into a budgetable line item. The hidden cost of staying with the old ways Many South African farmers still rely on diesel generators. For those facing grid shortfalls, diesel seems like an easy fallback. But the numbers add up quickly: Diesel at ±R23,10 per litre (official predicted 2026 figures) translates to hundreds of litres consumed during harvest surges or irrigation peaks. • Generators burn thousands of rands in fuel weekly when called into action. • Maintenance, filters, and unexpected repairs add further costs. Meanwhile, Eskom’s grid tariff structure – seeing hikes far above inflation – has shifted cost curves for industrial and commercial users sharply upward. Powerwithout the price tag: How a farmer canfind certainty amid SouthAfrica’s rising energy costs Herfs/Autumn 2026 BONUS www.agribonus.co.za 54