Rising fuel and electricity costs, persistent inflation and geopolitical uncertainty are changing the way South Africans think about energy and transport, with solar power and electric vehicles increasingly viewed as financial tools rather than simply environmentally friendly alternatives.
Dr Patrick Narbel, Co founder and CTO at GoSolr, said ongoing geopolitical tensions were having a significant impact on the global energy system, with consumers and businesses feeling the effects through higher costs.
“The ongoing geopolitical tensions are having a seismic impact on the global energy system, with ordinary citizens feeling the effects directly. Add to this persistent inflation and rising electricity tariffs, and the average South African finds themselves buckling under financial strain,” Narbel said.
He said renewable energy and products such as solar power and electric vehicles could no longer be regarded only as sustainable choices.
“Instead, they’ve become financially and operationally necessary,” Narbel said.
The Energy Institute’s 2025 Statistical Review of World Energy reported that fossil fuels supplied roughly 86% of global energy, highlighting the continued exposure of economies to movements in oil, gas and coal prices.
For South African households, that exposure is relevant as the country remains heavily dependent on imported crude oil. Rising international oil prices quickly filter through to local fuel prices, placing further pressure on household budgets and operating costs for businesses.
EV adoption gathers momentum
The shift is already becoming visible in the vehicle market.
The most recent data from the Automotive Business Council, naamsa, showed that 16,289 New Energy Vehicles (NEV) were sold in South Africa during the first seven months of 2026. That figure is already equivalent to 97.5% of total NEV sales recorded during 2025 and exceeds the 15,596 units sold in 2024.
The year to date total comprised 8,078 hybrids, 5,851 plug in hybrids and 2,360 battery electric vehicles.
While affordability remains central to purchasing decisions, consumers are increasingly considering the total cost of vehicle ownership, including fuel, servicing, insurance and finance.
Brandon Cohen, National Chairperson of the National Automobile Dealers’ Association (NADA), said customers were becoming more focused on the costs associated with keeping a vehicle on the road.
“Customers are asking more detailed questions about fuel consumption, finance, insurance, servicing, warranties and the products available to protect their vehicles over longer ownership periods,” Cohen said.
He said interest in electrified vehicles was growing, although there was no single solution for every motorist.
“Customers are increasingly asking dealers about hybrids, plug in hybrids and battery electric vehicles, but there is no single solution for every motorist,” Cohen said.
“The right option depends on the customer’s budget, driving patterns and access to charging infrastructure.”
Value is reshaping vehicle choices
New analysis from Absa, based on 2.56 million vehicle finance applications, also showed how price and value are reshaping traditional vehicle buying patterns.
Chinese vehicle brands increased their share of SUV finance applications from 19% in 2023 to 40% in 2026. Their share of bakkie applications more than doubled from 4.4% to 11.2%.
Charl Potgieter, Managing Executive of Absa Vehicle and Asset Finance, said consumers were increasingly weighing the overall value offered by a vehicle.
“South African consumers are increasingly assessing the overall value offered by a vehicle, including price, features and suitability for their lifestyle. Greater competition in the SUV segment is giving customers more choice at accessible price points and is changing the composition of the market,” Potgieter said.
The trend extends beyond vehicle choice to how consumers manage their broader energy costs.
Solar and EVs offer greater energy control
Narbel said combining solar power with an electric vehicle could provide consumers with greater protection from both electricity and fuel price volatility.
A vehicle charged using rooftop solar is less dependent on the electricity grid and fuel market, while also reducing carbon emissions.
For households and businesses able to generate their own electricity, solar can provide a more predictable source of energy for charging an EV and reduce exposure to rising electricity tariffs.
“Solar power and EV use have transcended their function as sustainable choices to become financial hedges,” Narbel said.
He said the combination could create greater energy autonomy at a time when uncertainty had become an increasingly regular feature of global markets.
The shift is reflected in the wider vehicle market. Research from Cars.co.za found that hybrid vehicles accounted for 1.74% of listings in 2026, compared with just 0.14% in 2020.
At the same time, affordability remains the dominant influence on consumer behaviour.
For South Africans facing higher energy and transport costs, the decision to invest in solar or an electrified vehicle is therefore increasingly about more than environmental considerations. It is about reducing recurring costs, limiting exposure to global price shocks and gaining greater control over household and business expenditure.
ashley.lechman@nationalmg.co.za