1 
 

The Relationship between Renewable Energy 

Products and Cost-Effective Electricity among 

Middle-class consumers in Gauteng 
 

Sheldon Ludick 

Student number: 2512119 

 

 

A Business venture proposal submitted to the Faculty of Commerce, 

Law and Management, University of the Witwatersrand, in Partial 

Fulfillment of the requirements for the degree of Master of 

Business Administration 

 

 

 

 

 

 

 

Johannesburg, 2024 
 

 protocol number: WBS/BA2512119/893 

February 2024 



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Declaration 

 

 
I, Sheldon Ludick, declare that this business venture proposal is my work 

except as indicated in the references and acknowledgments. It is submitted in 

partial fulfillment of the requirements for the degree of Master of Business 

Administration in the Graduate School of Business Administration, University 

of the Witwatersrand, Johannesburg. It has been submitted before for any 

degree or examination in this or any other University. 

 

 

 

_____________________________________________________________________________________________ 

 

 

Sheldon Ludick 

 

 

 

Signed at Johannesburg 

 

On the 29th of February 2024 

 



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Dedication 

 

I dedicate this paper to my spiritual fathers and mentors, the Apostle Edgar Hill 

Roscoe, Pastor Jonathan Roscoe and Pastor Jude Roscoe, thank you Pastor Jonathan 

for asking me “what next?” after I graduated as a CA(SA). It is based on this 

prompting that I began my MBA journey. Thank you, Men of God. Your words 

prayers, words of encouragement, and sermons kept me going. 

 

To my wife and children, Jolene Ludick, Aviel Ludick, and Eliel Ludick, thank you 

for standing by and supporting me and for always understanding and encouraging me 

to complete the task at hand. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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ACKNOWLEDGEMENTS 
 

I want to thank my supervisor, Dr. Robert Venter. Thank you for your patience while writing this 

paper and always willingness to guide me. I am truly blessed to have you as my supervisor. 

 

To my family, you guys are the best; thank you for your support concerns and for looking after the 

children while on the Wits business trip. We could never thank you enough! 

 

My classmates and cohort appreciate the support and time spent growing together in this MBA after 

completing assignments together. I wish you all the best in your future endeavours. 

 

Thank you to Wits Business School. The experience and learnings I gained from the course were 

genuinely life-changing and irreplaceable.  

 

 

 

 

 

 

 

 

 

 

Supplementary Information 

 

Supervisor:            Dr Robert Venter 

 



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Word Count † :        14449 

 

Supplementary Files: 

 

 Research Instruments (Questionnaires) 

 

 

 

 

 

 

 

 

 

†    Including Executive Summary, References 

 

 

 

 

 

 
 
 
 
 
 
 
 



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Executive summary 
  

This executive summary presents a business venture proposal to address the need for stable 

electricity in South Africa, by offering renewable energy solutions to middle to upper-income 

households. The proposal focuses on charging customers per kilowatt basis, thereby eliminating the 

initial capital outlay typically required for setting up renewable energy systems in homes by 

providing renewable energy infrastructure at no upfront cost to the consumer. A pay-as-you-use 

model stands as the unique selling proposition of Renew Able Technologies, giving it a distinct 

competitive advantage. 

 

By partnering with residents in the target living standards measure LSM bracket, the business aims 

to provide long-term electricity supply through renewable energy technologies at a competitive per-

unit or kilowatt cost, creating a monthly income stream, while creating a long-term partnership with 

consumers. Additionally, renewable energy is environmentally friendly, and contributes to a 

greener, cleaner, and sustainable future.  

 

As a consequence, this proposal is not purely based on the current supply issues of electricity in 

South Africa, but instead, it aims to create a profitable business, at once contributing to the planet's 

sustainability. 

 

The business venture proposal will calculate the average daily usage of kilowatt hours to determine 

the appropriate solution for each household. Implementation costs will vary based on individual 

household needs; correspondingly, larger households will incur higher charges based on their 

monthly usage.  

 

Estimates suggest that by 2030, there will be over 100 million homes globally equipped with solar 

energy or other renewable energy sources, a significant increase from 25 million homes in 2020. 

This proposal aims to support this growth, by enabling households with limited upfront resources 

to access renewable energy through a per-unit supply model. 

 

 



7 
 

The proposal suggests offering an affordable monthly electricity bill to attract customers who desire 

to switch to renewable energy but are put off by the upfront expenses. This proposal presents a 

solution to the current lack of renewable energy accessibility for households. 

 

The pricing strategy will adopt a competition-oriented approach, ensuring that the shift to renewable 

energy minimizes household monthly spending for electricity while promoting long-term self-

sufficiency. 

 

Our marketing efforts will be geared towards middle- to upper-income homeowners through 

promotions at various events, roadshows, and advertising agencies. We will ensure that product and 

pricing information is easily accessible to everyone through radio and television channels. By doing 

so, we aim to reach as many potential customers as possible and provide them with the best possible 

service. 

 

To finance the venture, we plan to seek equity and loan funding. Specifically, we are proposing a 

split of 60% equity and 40% loan. 

 

In summary, this business venture proposal aims to capitalise on the growing demand for renewable 

energy, by offering households an affordable alternative to traditional electricity. In eliminating the 

initial capital outlay, the proposal seeks to tap into a market segment that desires renewable energy 

solutions but is hindered by cost constraints. 

 

 

 

 

 

 

 

 

 



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Contents 

Chapter 1 Introduction and scope of the business venture proposal .............................................. 11 

1.1 Overview ....................................................................................................................................... 11  

1.2 Purpose of the study .................................................................................................................... 12 

1.3 Background of Renewable Energy Technologies in households. ............................................. 13 

1.4 Scope of the proposed business venture .................................................................................... 14 

1.5 Objective of the proposed business venture .............................................................................. 14 

Chapter 2: Literature Review .............................................................................................................. 15 

2.1 Introduction .................................................................................................................................... 15  

2.2 Renewable energy technologies adoption and mitigating load shedding. .............................. 16 

2.3 The price of electricity in South Africa: a comparison ofEskom and renewable energy 
technologies. ................................................................................................................................. 16  

2.4 Pay as you use Model ................................................................................................................... 18 

2.5 LSM – Middle income consumers ................................................................................................ 19 

2.6 Loading shedding impact on society. .......................................................................................... 20 

2.7 Business Model ............................................................................................................................. 21 

2.8 Conclusion ..................................................................................................................................... 22  

Chapter 3: Methodology ...................................................................................................................... 24 

3.1 Introduction .................................................................................................................................. 24  

3.2 Research design ............................................................................................................................ 24 



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3.3 Population and Sampling ............................................................................................................. 25 

3.3.1 Population .............................................................................................................................. 25 

3.3.2 Sample .................................................................................................................................... 25  

3.4 Data collection .............................................................................................................................. 26 

3.5 Data Analysis ................................................................................................................................ 26  

Chapter 4: Key findings ........................................................................................................................ 28 

4.1 Interviewee analysis ...................................................................................................................... 28 

Chapter 5: Business venture proposal – Renew Able technologies Pty Ltd .................................... 38 

5.1 Strategic review and plan ............................................................................................................ 38 

5.1.1 Vision, mission, and objectives ............................................................................................. 38 

5.1.1.2 Mission ............................................................................................................................ 38 

5.1.1.3 Organizational objectives .............................................................................................. 38 

5.1.2 Situational analysis (environmental, industry and competitor analysis) ......................... 39 

5.1.2.2 industry analysis (Porter’s 5 forces) ............................................................................ 46 

5.2 SWOT analysis .............................................................................................................................. 48 

5.3 Ansoff Matrix................................................................................................................................... 51  

5.4.2  Competitor .................................................................................................................................. 52  

5.4.3 Company ................................................................................................................................. 53  

5.5 Product ............................................................................................................................................ 53  



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5.6  Promotion ...................................................................................................................................... 54  

5.7 Price ................................................................................................................................................. 55  

5.8 Place ................................................................................................................................................ 55  

5.9  Market Segmentation .................................................................................................................... 56 

Chapter 6 Operational Plan ................................................................................................................. 59 

6.1 Business Implementation Plan ..................................................................................................... 59 

Chapter 7 Conclusion:............................................................................................................................ 61  

8 References ..................................................................................................................................... 62  

9 Interview Guide ............................................................................................................................ 66 

10 Participant Information Sheet (PIS) .................................................................................................. 69  

11 LIST OF ACRONYMS .................................................................................................................... 72  
 



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Chapter 1 Introduction and scope of the business venture proposal 

 

1.1 Overview 

 

Renewable energy technologies (RET) have become a part of our daily lives, leading to social and 

environmental changes that we must confront (Kupers & Batel, 2022). Studies have shown that 

residents' acceptance of RET and their understanding of the resulting social change are essential 

research (Kupers & Batel, 2022). However, there needs to be more examination of how 

individuals think, act, and feel about these technologies (Sardianou & Genoudi, 2013). 

 

 

Adopting RET in South Africa is an essential consideration for addressing persistent problems 

with the electricity grid. However, caution must be taken in approaching society's transition to 

RET. The rolling blackouts that first occurred in 2007/2008 (Masike & Vermeulen, 2021) 

highlight the importance of understanding the attitudes and perceptions of residents towards 

RET and effectively communicating the benefits while addressing any concerns or barriers. 

 

During the period spanning from 1994 to 2010, the South African economy sustained itself by 

relying on pre-existing energy infrastructure established prior to 1994 (Seymore, Akanbi, & 

Abedian, 2012) without allocating resources towards expanding its capacity to accommodate the 

burgeoning demands of the economy. However, more recently, South Africa has been plagued by 

constant power outages and load-shedding for several years and is currently experiencing power 

outages daily for several hours a day.  

Thus, consumers have had to deal with higher prices and less electricity in the form of load 

shedding. According to the Cape Business News, in 10 years, electricity increased by 173%. If one 

paid R1000 10 years ago for the writing of this report, one would have to pay R2736. (CBN, 2021). 

 

The cost of load shedding for retail businesses for the first six months of 2015 amounted to a loss

in revenue of 13.72 billion rand. (Goldberg, 2015). This amount is now much more in real terms

10 years on. This is only one part of the economy, and more than seven years ago,



12 
 

load-shedding hours already surpassed those hours of 2018 – 2020, and therefore, the loss of 

revenues increased. 

 

1.2 Purpose of the study 

 

The primary objective of this business venture study is to investigate the existence of a viable 

market segment among middle to middle-upper -income class South African residents who 

would be interested in a service provider rate per watt payment model similar to the billing 

structure employed by municipalities or Eskom but tailored explicitly for renewable energy. The 

study explores the feasibility of a business model that facilitates the provision of capital 

infrastructure for households while generating revenue through a favorable rate of return based 

on a kilowatt-hour pricing system. 

 

One potential solution to these challenges is adopting sustainable energy sources, specifically 

wind and solar power. The advantages of sustainable energy sources are abounding in a global 

scale (Maradin, 2021). The implementation of Renewable Energy Technologies (RET) should 

serve as a sustainable and environmentally friendly option for South African households and as 

a crucial measure to ensure a consistent and reliable electricity supply for individual households. 

Moreover, it is imperative to establish a fixed pricing structure for a specified duration. 

 

 

 

 

 

 

 

 

 

 

 

 

 



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This could be illustrated as follows: 

 
      
 
     

 

 
      
      
      
      
      
      
Eskom charges rate 

average R 3.3 

To the consumers 

 

 

  Renew Able Technologies  (Pty) 

Ltd charges less than R3.3 for the 

RET on a Pay as you use model. 
   
      
      
      
      
 
       

      
      
      
      

 

1.3 Background of Renewable Energy Technologies in households. 

 

The technology and capabilities exist and are ready to meet supply. There are several advantages 

of installing solar PV for households. (Maradin, 2021) For instance, land acquisition is not required 

as most solar panels are on rooftops; residential buildings are already connected to the grid, and 

it is easy to connect the system to the household. And households may experience satisfaction 

from consuming clean energy generated from their own homes (Shimada & Honda, 2022) 

 

Another advantage to having solar PV to supply electricity to homes is that you can still have 

electricity in times of emergency or disaster (Shimada & Honda, 2022). South Africans face a 

disaster with electricity supply and constant load shedding Figure 1. This would be the most 

advantageous for South Africans now based on the current condition; however, the other 

advantages mentioned should be considered. 

 

The adoption of residual solar PV is expected to proliferate (Spillias, 2020) However, the factors 

that affect households' decisions to install solar PV are Revenue and costs generated by 

installations, Peer adoption behavior, and household environmental concerns (Shimada & Honda, 



14 
 

2022). This business proposal will address these factors, such as a detailed analysis of upfront 

costs and mitigating these huge layouts by charging monthly rates plus small rentals. 

 

 

 

 

 

1.4 Scope of the proposed business venture 

 

 

The proposed business venture, Renewable Technologies Pty Ltd, explores opportunities for the 

application of RET, such as solar PV on household rooftops and in gardens for middle-class income 

households and where households would not go into debt by installing RET infrastructure but 

rather a partnership where households will pay business rate per watt Pay per use and business 

covers the cost of infrastructure. Customers will not pay any upfront costs for solar system instead 

they will sign a 10 year contract and pay for each KHW produced and used in their homes, with a 

minimum charge base on what they currently using.  The unique selling proposition would be 

clean, constant energy at a similar cost to what households are currently paying without capital 

outlay. The assessment will look mainly at middle to high-income bracket homeowners based on 

socio-economic measure (SEM) 

 

1.5 Objective of the proposed business venture 

 

The proposed business venture seeks to identify the opportunities within renewable 

energy technologies for individual households by supplying the RET infrastructure 

and charging a rate per watt for electricity consumed. Through qualitative interviews 

and business case with valuation to ascertain if this is a viable business case. 

 

 

 

 



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Chapter 2: Literature Review 

 

2.1 Introduction 

 

Renewable energy technologies such as solar photovoltaic (PV) have contributed to the 

sustainability of countries adopting these technologies with added environmental and 

socioeconomic benefits (Aliyu, Modu, & Tan, 2018).   From a South African perspective, this is 

particularly true, given the need to adopt RET because of high levels of air pollution (Olufemi, Bello, 

& Mji, 2018) due to coal mining areas and socio-economic unrest for households without electricity. 

 

Decarbonizing the energy sector means replacing fossil fuels with renewable energy, and solar 

photovoltaics will play a pivotal role in this transition (Shimada & Honda, 2022). As the world 

moves towards a more sustainable energy approach, more and more companies are focused on 

research and development (RD) of such technologies, and more suppliers have entered the market, 

pushing down prices and giving more options to the local market. 

 

At the center of lowered carbon emissions are renewable energy technologies, and these are 

tangible and concrete infrastructures entering people's lives. Therefore, people are confronted with 

social and environmental change. (Batel & Devine - Wright, 2015). 

 

Solar panels have the potential to both reduce electricity expenditure and reduce insecurity (Best, 

Marrone, & Linnenluecke, 2023). In South Africa's current environment, individuals are living in a 

crisis with current blackouts, and having a household RET system will reduce insecurity and 

expenditure. 

 

There is, however, a potential inequality in society as most solar PV adoption is taken up by higher 

income brackets (Best, Marrone, & Linnenluecke, 2023). however, this will have to be mitigated by 

policymakers and should be considered not to divide the rift even more. In normal circumstances 

where there is no load shedding and energy crisis, this will be minimal, but in South Africa's context, 

this will be amplified. 

 

Some obstacles hinder the adoption of renewable energy initiatives, including the need for more 



16 
 

appreciation of the technology, willingness to change, lack of policies or regulatory frameworks, 

subsidies, and, of course, initial capital cost. (Aliyu, Modu, & Tan, 2018). Looking at the problem or 

hindrance, this business venture proposal will look at both assisting with initial cost layout, as well 

as marketing and advertising in such a way as to educate the target market to RET with a view for 

them to accept the technology as a sustainable method. 

 

 

2.2 Renewable energy technologies adoption and mitigating load shedding. 

 

Many studies have researched grid-connected systems; however, only a few have studied these 

systems during load shedding (Bakht, et al., 2021). The impact of planned outages and weather 

conditions in a particular area impacts the effectiveness of renewable energy systems (RES) 

compared to countries where there are no planned outages. In countries where there is no load 

shedding, batteries are charged during the day and used at night, where there are planned and 

constant outages. Batteries will be depleted in the evening should there be load shedding during 

the day. Thus, proper systems should be implemented so the consumer does not feel the impact of 

load shedding while using RET. 

 

Among RET, Solar PV is viewed from a global standpoint as the most favorable technology for 

several reasons: it is simple to have installed, once installed, maintenance is considered low , it 

operates in silence, quietly generating electricity to homes compared to diesel generators, and it is 

environmental friendly (Bakht, et al., 2021). This business venture proposal will seek to install units 

with the lowest possible maintenance to keep the customer as happy as possible. This is not a once-

off sale but more of a lifetime partnership selling electricity to customers. 

 

There is a downside to PV, which is the weather; on days when the sun does not shine, the PV system 

will not generate as much electricity; however, batteries are essential to a RES. Thus, off-grid 

systems need sufficient batteries to handle electricity variations. (Bakht, et al., 2021). 

 

 

2.3 The price of electricity in South Africa: a comparison ofEskom and renewable energy 

technologies. 



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South Africa's price of electricity decreased from 1983 to 2005 from 50c/KWH to 31c/KWH and 

started increasing in real terms from 2006 (Masike & Vermeulen, 2021). This increase has escalated 

to 83c/KWH by 2018, a 168% increase in 13 years. (Masike & Vermeulen, 2021). 

This price increase was necessitated by the fact that Eskom required generation capacity expansion, 

however the price increase has other consequences mainly consumers moving away from Eskom 

to RET (Masike & Vermeulen, 2021). This business venture proposal consider the price point at 

which middle to upper income consumers will consider moving to other energy sources based on 

the price per kilowatt hour. 

The more Eskom increases tariffs for capacity expansion and servicing debt the more this price will 

move consumers away from Eskom to other energy sources, this will affect Eskom revenues and 

cash thus more increase tariffs to cover costs (Masike & Vermeulen, 2021). Will people with low 

incomes or those who cannot afford electricity bear the brunt of higher electricity while those who 

can afford the switch to other sources does so? This business venture proposal will meet clients' 

price and supply needs and help them switch to other resources - mainly solar PV. 

 

 

Figure 1 – price increase, real and nominal. (Masike & Vermeulen, 2021)

 

 

Masike and Vermeulen (2021) (Masike & Vermeulen, 2021) further concluded that consumers are 

price-sensitive when it comes to electricity, and such policymakers should take this into account 

when increasing tariffs; previously, it was suggested that in South Africa, the price increase would 

not affect demand; however, this is not the case. 



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As price is a sensitive point, this business venture proposal will focus on price and ensure we meet 

at a point feasible to customers. While still having the added benefits of constant electricity from a 

greener environmental energy generation. 

 

2.4 Pay as you use Model 

 

Renew Able Technologies Pty Ltd will adopt a pay-as-you-use (PAYU) Model to charge consumers 

for our solar products.  Using PAYU model constitutes a new source of competitor advantage in 

product-oriented businesses. (Gebauer, Saul, Haldimann, & Gustafsson, 2017).  Therefore, Renew 

Able Technologies Pty Ltd will use this model as part of its selling proposition and will also have a 

competitor advantage. 

Three organizational capabilities identified in the PAYU is as follows: “Financing pay per use 

services, aligning costs to product usage and collaboration with customers. (Gebauer, Saul, 

Haldimann, & Gustafsson, 2017) PAYU is a alternative to renting, leasing and outright sale. 

(Gebauer, Saul, Haldimann, & Gustafsson, 2017) Renew Able Technologies will therefore use its 

model as a unique selling proposition. 

 

In order to succeed with PAYU the actual cost of the product such as solar panels and batteries 

ect.. must be linked to actual usage costs. (Gebauer, Saul, Haldimann, & Gustafsson, 2017) Our 

company will assess the useful live of the RET and thus make the contract match this time frame 

which is 10 years. 

 

When using PAYU model usage patterns is front of mind by the consumers (Bocken, Mugge, Bom, 

& Lemstra, 2018). Thus, based on past utility bills, a system of the average KHW of the household 

will be used to set up the home system. Therefore, through digital application, homeowners can 

monitor how much electricity is being produced and manage usage. 

 

The Pay as you Go (PAYG) is herald in solar off grid industry as a solution making renewable 

energy affordable. (Riedke & Adelmann, 2022). From literature review it is noted that most people 

have not adopted renewable because of cost we as a business will address this by intruding PAYU 

model in our offering. The PAYG is a prepaid system with technologies to block or switch the solar 



19 
 

home system (SHS) remotely if nonpayment. (Riedke & Adelmann, 2022). Renew Able 

Technologies will charge after the month end using similar technologies to track usage and also 

bill customers, while having the power to switch the SHS off in case of nonpayment.  

 

 

2.5  LSM – Middle income consumers 

         

Renew Able Technologies will target Middle- or upper-income consumers, looking at those who 

can afford to pay monthly electricity utility bill but cannot afford RET systems and not willing to 

go into debt. 

 

There has been a constant increase in different LSM groups in South Africa, especially amongst 

the black African middle class. (Wesso & Robertson, 2015). With a growing target market in South 

Africa , Renew Able Technologies Pty Ltd will focus on the Middle to upper LSM Market. 

 

 

 

 



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Figure 2 : Relation of LSM segments to the rest of Suth African population regarding

Schwartz’s Values (Wesso & Robertson, 2015).

 

Focusing on the correct market segment is important, and time will be taken to assess areas and 

to market more than others. 

 

2.6 Loading shedding impact on society. 

 

Any country's energy supply is critical to social and economic development (Ayamolowo, 

Manditereza, & Kusakana, 2021).  In the current state of the globe, with technology and the 4th 

industrial revolution, energy is critical to competing in the global environment. However, at a more 

micro level, households on a social level depend on energy like no other time or era. Electricity 

supply started in South Africa in 1882 the first power supply in Kimberly was coal-fired generator, 

and few homes had power supply (Ayamolowo, Manditereza, & Kusakana, 2021). Almost 150 years 

have passed since then, and South Africa has grown into an energy-dependent country with almost 

all residents connected to the grid. 

 

From a social perspective, living without power can be challenging for the local population.  

Most recently, there has been a protest of prolonged power outages, as written in the SRM article 

(Hunt, 2023) . Anger is increasing, and unfortunately, no solution or quick fix is in sight from a 

government perspective. 

 

This business venture proposal will look at alleviating some of that pressure by having energy 

supplied to households uninterrupted and constantly for households to carry on as if no load 

shedding existed. 

From a South African perspective, we also have our security we pay for, our own medical aid and 

private schools, etc. There is a supply of services from the government that is not to the standard of 

South Africa's many. The business venture proposal will look at the benefit to consumers in the 

instance of energy at a minimum financial impact while still having the same benefit of 

uninterrupted energy through a pricing model of per watt charge of electricity. 



21 
 

Figure 3

(Ayamolowo, Manditereza, & Kusakana, 2021) 

 

Based on the graph above, there is a huge opportunity to grow the business in South Africa as so 

many depend on coal. 

 

This proposal will focus on a business that is customer-centric and quality is driven to drive sales 

while focusing on customer needs. 

 

 

 

2.7 Business Model 

 

This business venture seeks to charge customers per kilowatt charge for electricity used and 

focus on the maintenance and life cycle of the renewable energy technology infrastructure. Pay-

per-use as a business model is often associated with an increase in environmental performance 

(Bocken, Mugge, Bom, & Lemstra, 2018) 

 

This is because consumers worry and focus on consumption while the business looks after the 

product (Bocken, Mugge, Bom, & Lemstra, 2018). This business venture start-up will do precisely 

that, with consumers focusing on their electricity consumption while the business installs and 

maintains the product. 

 

Eskom is already using this model as consumers pay for every unit of KWH used, so the concept is 

familiar. However, the benefit to the consumer is electricity at a lower cost, constant electricity, 

and sustainability. 



22 
 

 

A company that adopted this business model is Homie – which allows consumers to order 

washing machines; dishwashers have them installed and set for free, and charge a price per use. 

(Wauters, 2021) 

 

The benefits of such a model are product evolution, increased market share, and customer loyalty. 

(Wauters, 2021). Product evolution because, as a business venture start-up, we will be able to 

understand and gain data from consumers' month-on-month usage and build future products 

based on this data. The increased market share directly results from lowering the entry barrier 

(Wauters, 2021). In this case, the barrier will be lowered per this business model for renewable 

energy technologies infrastructure to allow consumers to participate in RET. Customer loyalty is 

not a once-off business or once of sale but a partnership with consumers for the long run. 

 

 The distribution would be contracted for this business proposal, and a commission would be paid 

to electricians for each house where renewable energy products are installed.  This will lower 

fixed costs while the business is in the start-up to growth phase. 

 

Products will be sourced from around the world at the best quality and price and after-service 

compliments. There are many providers of such products, thus reducing the barrier to entry in 

supplying such products to consumers. 

 

2.8 Conclusion 

 

There is both demand and opportunity for this business venture proposal to succeed. South Africa 

is in a challenging environment regarding energy supply, and social unrest is on the rise. Price tariffs 

have also increased again in 2023 by 18%, per the literature review, pushing those who can afford 

electricity to go greener while leaving those who cannot pay the burden of higher electricity prices. 

Based on the literature review, the number one determinant of RET is the initial cost; the business 

venture proposal seeks to eliminate this hurdle by providing solar panels and systems to customers 

at a per KHW price without the consumer paying for infrastructure. Therefore, without initial cost, 

more households should adopt RET. Secondly, per the literature review, peer adoption is essential 

for residential household acceptance – therefore, an increase in households based on price will lead 



23 
 

to more peers adopting and, again, increased sales. 

 

Therefore, as a proposition residential households will adopt more frequently solar panels should 

there be no upfront cost layout. Furthermore, the price per KHW, though novice, should also lead 

to a unique selling proposition for middle to higher-income residential households. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



24 
 

Chapter 3: Methodology 

 

3.1 Introduction 

 

We will discuss in this chapter the research design, population and sampling, data collection 

method, and data analysis method for this business venture proposal. The proposal used formal 

interviews, literature review, site visits, and ethnography. 

 

 

 

3.2 Research design 

 

The research approach of this business venture proposal focused on the viability of selling 

electricity per kilowatt hour rate to individual households instead of initial capital outlay. It 

further assess why individuals have yet to move to a RET model as outlined in the literature 

review. This investigation  is people oriented and seek to unravel perceptions and behaviours of 

the research subjects (Page & Meyer, 2000).  Hence the focus on why South Africans in Gauteng 

have yet to adopt RET and what will motivate them towards this move. This research approach 

will be qualitative research, as good qualitative research is practical, interesting, rigorous, and 

aesthetic. (Tracy, 2013) Qualitative research gathers the words, feelings and experiences of the 

research participants, these insights produces qualitative knowledge about RET adoption (Tracy, 

2013). 

 

This business venture research will focus on semi-structured interviews based on open-ended 

questions.  The use of open-ended question addresses key concepts that go further than specific 

instruction defining content (Husain, Bais, Hussain, & Samad, 2012). Furthermore, open ended 

questions assist to build confidence as it is viewed as a natural way to solve problems around 

renewable energy (Husain, Bais, Hussain, & Samad, 2012). Through qualitative research one 

could study context of personal interest and never had valid reason for entering (Tracy, 2013). 

 

Further observations from news outlets and website will inform the inductive approach offering 



25 
 

further insights based  from objective evidence derived the recorded experiences of South 

African residences. 

 

Through the interviews of semi structured question theory can be built and conceptual thinking 

leading to thematic analysis. Thematic analysis allows for freedom and flexibility as a research 

tool (Creswell & Poth, 2018) (Garbers, 1996) and therefore can account for the data as detailed, 

rich, and complex (Braun & Clarke, 2006). Qualitative analysis often use thematic analyses for 

various data such as healthcare, social research and beyond. (Fugard & Potts, 2015)  

 

By understanding and familiarizing oneself with the data and transcribing audio files into a 

transcript, identifying patterns and consistent themes in the data sets. For this business venture 

proposal research will assess if households change to renewable energy based on price compared 

to Eskom and not paying for the initial capital outlay, are they willing to partner with a company 

for the long term as they do with Eskom. What do customers feel about the adoption of RET and 

why have they yet to move further than price and peer adoption. Understanding themes in data 

sets, we will first code the data and then assign the codes to different themes.  By capturing 

something important from the data relating to research question and finding meaning a theme is 

then captured (Braun & Clarke, 2006) 

 

 

3.3 Population and Sampling 

3.3.1 Population 

 

 The research population comprises of households in South Africa 

 

3.3.2 Sample 

 

Qualitative research looks at depth of understanding rather than breadth (Creswell & Poth, 2018) 

Based on the esxposition from Boddy, a single participant can be important and provide significant 

insight to the researcher (Boddy, 2016). 

 



26 
 

In a single country or market, a qualitative sample size with more than 30 interviews is considered 

too large and would require the researcher to provide justification (Boddy, 2016). 

 

A sample of 13 participants was selected from Gauteng residences who were  willing to answer semi 

structured questions. Even though saturation could be reached before all interviews were 

conducted, a total of 13 participants proved sufficient. (Kaiser, 2021) 

 

  

 

3.4 Data collection 

 

Data was collected  using semi structured interviews. An interview guide was beneficial in providing 

structure to the interview while simultaneously assisting the researcher in analysing data (Bowen, 

2005; Saunders, 2019; Morse, 1995). 

 

Interviews were recorded on devices such as cellphone to tablets, as well as notes taken during the 

interview. Interviews will be conducted at the closest convenient meeting place. 

I will note and watch out for any body language cues while taking the interviews. Interviews should 

take at most 1 hour. It is essential to build trust therefore a short write up will be sent to them 

before hand to build trust (McGrath, Palmgren, & Liljedahl, 2019). 

 

Other data collection will include observations from South African communities and relevant 

documents related to this business venture proposal. 

 

3.5 Data Analysis 

 

The data for this business venture startup was collected through semi-structured interviews as 

guided by the literature review. This will be the main source of data for this proposal.  This semi 

structured interviewers' answers will be used as to understand the adoption of residential 

household on RET to be applied to their homes, using a pay for use model and understand the 

correct price point and long-term contract understanding. The interviews will be recorded on a 

recordable device such as tablet or cellphone and transcribed. Data will be analyzed through Atlas 



27 
 

ti software. 

 

A read through of the whole transcript, notes and other sources documents or recordings will be 

listened to in its entirety first to be reminded of the depth of the content (Bazeley, 2013). 

This research data analysis will be inductive, thus analyzing sets of empirical data sets, then. 

looking for specific patterns and theorizing from those same patterns. (Graue, 2015). 

Patterns will be identified during data analyses based on inductive approach using thematic codes. 

Inductive is a matter of coding the data so that it is not put in a pre-existing coded frame (Braun & 

Clarke, 2006). 

Thematic analyses are widely used in qualitative analytic methods (Braun & Clarke, 2006). 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



28 
 

 

 

 

 

 

 

Chapter 4: Key findings 

4.1 Interviewee analysis 

 

The Interviews were held with participants, recorded on cellphone and transcribed to capture the 

participants responses and create code and themes. The transcription was uploaded in Atlas Ti and 

code and themes identified which was rich and detailed. 

 

The participants were a good mix of ages (Fig 5) and almost equal in gender( Figure 6 ). Therefore, 

a good mix of participants in the Gauteng area. 

 

 

Figure 4 – Interview Age

 

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29 
 

 

 

Figure 5 Interviewee  gender split

 

The key finds from study found that many participants were frustrated with the currently rolling 

black outs in South Africa, furthermore most participants found that the most inconvenient time is 

in the morning when preparing breakfast and getting ready for school runs and work and in the 

evening around supper time. Those working from home was also frustrated during the daytime, as 

it meant they had to go into the office or travel to places with power and Wi-Fi to continue working.  

Furthermore, many participants also did not see a reduction in cost from Eskom in their utility bill 

even though in periods of high load shedding, this could be attributed to the increase in price 

matching the percentage of electricity which is load shed. For instance, 20% increase in electricity 

and 20% less electricity would hypothetically mean same or relatively same monthly cost – but 

further studies on this topic should be analyzed. 

 

Participants also acknowledged the main reason for not adopting renewable energy technologies 

was almost always relating to affordability and cost. They would want to refrain from taking out 

loans to have full renewable energy at their homes. The business venture proposal sorts to address 

this problem by setting up the renewable energy system at no upfront cost to consumers but instead 

charge a pay as use cost. Below are participants responses to why they have not adopted renewable 

energy products.  

 

 

0

1

2

3

4

5

6

7

8

Male Female

Gender



30 
 

 

Participant 1 I learned some hard lessons… after buying the system. 'cause 

mine has a, a power, an output, power restriction on the battery. 

So even though I've got … an inverter, which is five kilowatts 

rated at like five kilowatts, the, the battery itself has, uh, an 

output power of 2.5 kilowatts. So effectively, because I've only 

got one battery . Now, my output power for the system is 2.5 

kilowatts. So I'm restricted to 2.5 kilowatts at a time. Which, you 

know, was, was a, a bit of a disappointing thing for me.  

Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 

Participant 2 because of the cost of it. Okay. Um, that's, that's simple, simple 

answer.   

Energy 

Sustainability 

/ Technology 

Acceptance 

Cost-

benefit 

Analysis 

Participant 3 Expensive. Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 

Participant 4 Yes. Yes. In my homelands, yes. We're using solar there. Okay. 

And also the water supply bore hole using the solar then to the 

village. Okay, okay. It also comes out very handy for the 

government because sometimes supplying water is sort of 

costly. Yeah. And it with power also outages. It sometimes gets 

affected. Now, alternative sources like solar bore holes to your 

house. 

Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 

Participant 5 I'm, I'm not totally off the grid, but I, the size is good enough. Um, 

Inver five kilo kilowatt. Okay. So it can power most of my 

appliances, uh, I, I run, uh, what you call a pool pump.Of course, 

the, the Geyers a, um, currently is not solar, so I'm looking at 

options of going other, going gas. Okay. Um, as a, as a backup 

option for the geyers the geyers can be totally off grid 

Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 



31 
 

Participant 6 The main reason we, I have not adopted a full, um, renewable 

energy system is the cost that that comes with it. Um, and like I 

said, you know what, uh, um, to lay out 200 k and that, that 

would just be your at least 10 15 panels and five ki per lithium, 

two lithium batteries, um, you would have to have, I don't have 

200 0000 so I would have to make a loan.  

Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 

Participant 7 . So there's, there, there really wasn't a need to change, uh, or 

maybe go, go off the <inaudible> and get renewal power. Uh, 

only when Covid stuck and we were all forced to work from 

home did the problem really start hitting home. So, I mean, 

looking at the, in the last, since 2020, since the hard lockdown, 

a lot of people were not worried about putting in, uh, solar and 

installing solar  

Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 

Participant 8 Well, with me, it's because I've only been in my house for four 

months. Okay. It's a new house. Okay. So it's a plan that I'm 

working on to now budget and do it, but I definitely know that's 

the route I'm going. So for me it's just that.But it's something 

that I know I've always wanted to do, even when I had moved 

from where I come from, which is home.   

Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 

Participant 9 It's purely because of the cost. Okay. So, I know that there are 

quite a few financial institutions, including the one that I'm 

working for . That do now offer solar credit, um, offerings. Um, 

but like, you also think, do I want to take a loan?   

Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 

Participant 

10 

Currently definitely be because of affordability.Affordability. 

But if, if there was that affordability, be having a backup solar in 

my house, a backup power and generators and stuff. Okay. So 

it's only because of affordability.   

Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 



32 
 

Participant 

11 

Okay. So, um, okay. I do have a solar geyers, so those, those are 

one of my adaptations. Um, the only reason why I probably 

haven't, um, adopted having an inverted because I said, um, 

look, load shedding is not that bad for me. I can manage without 

it. And I, you know, you look at the cost versus the benefit. Um, 

right now it's not a priority for me. 

Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 

Participant 

12 

Number one is cost. Um, so, so far I haven't seen, I haven't seen 

it being, you know, um, affordable. Mm-Hmm. I haven't seen, it's 

not, it's not in the public space. So it's not promoted that, okay, 

this is what you can get. So the communication of, of, you know, 

the, the, the messaging around it is not, is not out in the public 

to say, Hey, this is how cheap it is, this is how much you can get. 

And then, um, also apart from the cost of it is also the, I, I don't 

know much about it.   

Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 

Participant 

13 

personally have a, uh, uh, let me say a, uh, a backup storage 

system together with a solar PV system at home. So that created 

a bit of an issue. But I've put a solar and a backup system since, 

uh, uh, let me say January of last year.  

Energy 

Sustainability 

/ Technology 

Acceptance / 

Affordability 

Cost-

benefit 

Analysis 

 

 

 

 

 

 

 

 

 

The study also showed that participants in Gauteng had limited knowledge about renewable energy 

technologies. One participant even suggested that renewable energy companies advert more and 

explain to consumers the benefits to the environment in conjunction with the constant supply of 

electricity in South Africa. At the same time many participants felt that they and, in their opinion, 



33 
 

South Africans in general do not regard going green and sustainability as a main reason to move 

towards renewable energy technologies. Therefore, when asked if there was no load shedding 

would they have adopted renewable energy technologies many replied not and that if they 

government sort out Eskom they will not move to renewable energy. They believe there is so many 

problems in the country that going green not a priority. However, the caveat in this proposal was 

that the energy price lower in proposal then Eskom which was accepted and willing to accepted on 

price not withstanding that we are at load shedding currently. 

 

Below table shows the participants responses to the question in the interview asking the proposed 

question of the business model. 

 

 
 

Quotation Code Sub-theme 

Participant 1 So, so for me personally, that's an important 

consideration because whenever I look at like, 

investing in something that's gonna save me energy, 

I consider the fact that the rates at which energy, uh, 

uh, prices go up is, is beyond inflation. So it 

compounds quite nicely if you, if you, if you, uh, can 

save, right? So if this solution doesn't go up at the 

same rates, then yes, that, that does sound attractive. 

Financial 

Concern 

Acceptance of 

Business 

Proposal 

Participant 2 Yes, if you're telling me I'm gonna save money and 

I'm gonna put money back into my pocket, um,Um, 

and in the days of load shading is in the past basically 

.. 

Financial 

Concern 

Acceptance of 

Business 

Proposal 

Participant 3 definitely. On What Um, well obviously if it's cheaper 

and it's going to work, we would definitely do it. We 

actually, as a, as I said to you as a community, we're 

all investigating at the moment, what can we do? 

Financial 

Concern 

Acceptance of 

Business 

Proposal 

Participant 4 attractive. Oh, yes. Yeah. For me it'll be attractive. I 

tell what Yes. Yeah. Because it's reliable. Yeah. That's, 

Financial 

Concern 

Acceptance of 

Business 



34 
 

that's a reliability side of it. Okay. Yes, I will 

definitely. 

Proposal 

Participant 5 Yes, I believe so. Um, I believe it's, it, it, it will be 

attractive. Um, uh, and, and, and this is attractive 

from to say, uh, what's in for me as a, as a customer. 

Yeah. Yeah. So the customer would be always be 

willing to say, if I'm paying, if I'm, I'm putting, let's 

say my, my bill is one point thousand 200 today. 

Yeah. Right? And if I allow someone to come in and 

put some form of a system in my house, Yeah. And, 

and they, they say I must pay, let's say 800 in a 

discussion as a argument's sake, but then I end up 

now my bill, my cost will then increase to say 800, 

uh, to 200 because I still need to buy it from, from, 

from, from, uh, the miss pallet or esco. Yeah. So 

overall it doesn't feel like a saving because now my 

course has increased. Yes. Yeah. So I think people, my 

view, or I believe if I were to be paying someone else 

to provide me with the infrastructure, it should, it 

should equate to what I'm just using. Um, you know, 

in terms of the power, it should not exceed what I'm 

currently using. Yeah.   

Financial 

Concern 

 Meduim 

Acceptance of 

business 

proposal 

Participant 6 Yeah, it would definitely be, it would definitely be, 

um, something that I will, will adopt, you know. Okay. 

I won't even say I, look, I will adopt it because I think 

that's the main problem is that right now we're 

paying almost one rand 60 Yeah. Kilowatt hour 

depending on the, on your, on your power usage, on 

the, on the up upside scale. Yeah. So if we are, if I can 

get supplied, or I can hire a system that will generate 

electricity lower per kilowatt than what I'm 

Financial 

Concern 

Acceptance of 

Business 

Proposal 



35 
 

currently paying for in South Africa, then I will 

definitely grab with both hands  

Participant 7 definitely makes sense to, to actually avoid upfront, 

you know, costing and only pay per usage. Okay. That 

actually makes very, very good sense. And, and that 

will actually be a very good model  for majority of the 

population as well. It could be a very good model for 

that.   

Financial 

Concern 

Acceptance of 

Business 

Proposal 

Participant 8 I think it would be, I think it could work. I mean, if it's 

less than what we are paying with the electricity, you 

wouldn't mind it because then still it, it will still 

alleviate from your budget costs. . And then, at the 

same time, you'll know that you're already officially 

on a system that works long term. 

Financial 

Concern 

Acceptance of 

Business 

Proposal 

Participant 9 Yes, if you're telling me I'm gonna save money and 

I'm gonna put money back into my pocket, um,Um, 

and in the days of load shading is in the past basically 

.. 

Financial 

Concern 

Acceptance of 

Business 

Proposal 

Participant 

10 

Well, uh, I feel like, isn't it that the main issue of not 

us not, um, being able to acquire this, it's 

affordability and not having the option. . But now, 

when we have the option, it'll definitely give us a 

chance to consider whether we can adopt it or not. 

And I mean, renewable energy is good. Uh, there's 

nothing wrong with renewable energy and if it, it 

helps the, the bio, uh, diversity of the, of the country, 

then most definitely.   

Financial 

Concern 

Acceptance of 

Business 

Proposal 



36 
 

Participant 

11 

Look, I think it would definitely be an attractive 

solution for me. Number one, I know I would, I would 

know that, you know what, I don't have to bear the 

cost of maintaining the system or whatever the case 

is. And, um, basically I would substitute, um, my, my 

what the electricity, uh, fee that I pay. Yeah. Um, you 

know, towards them paying whatever per usage per 

kilowatt or whatever the case is. Yeah. So for me, it 

will definitely be useful and also the whole schlep of 

having to get that installed. Yeah. Finding somebody 

reputable, the admin of it, you know. 

Financial 

Concern 

Acceptance of 

Business 

Proposal 

Participant 

12 

absolutely. I mean, I, I think, I think it would be 

attractive because now you're only paying for usage. 

Financial 

Concern 

Acceptance of 

Business 

Proposal 

Participant 

13 

Okay. I mean, that sounds like a really good system. I 

mean, you, uh, let me say arbitraging from one 

supplier to another supplier who's kind of guarantee 

your supply,  

Financial 

Concern 

Acceptance of 

Business 

Proposal 

 

12 out of the 13 positively accepted the proposed business model, looking at affordability as the 

main reason for adopting the Proposed PAYU model to adopt the RET. This was a positive outcome 

and key finding while conducting research. The business case will therefore be further assessed to 

confirm viability and sustainability of such a model. 

 

 

 

 

 

The study further found that participants were willing to accept the business proposal to install 

renewable energy at their homes where they do not pay for the upfront costs but rather partner 

with a company who charges per a kilo watt rate lower than Eskom. 

However, the term proposed in the interview of 10 to 15 years was accepted with mixed emotions 



37 
 

and responses, some felt they were in a bond while other were happy if they had constant supply of 

electricity and price lower than Eskom.  

 

The benefits in the view of participants were price lower than Eskom and contributing to going 

green, even though going green was not a priority. While the challenges foreseen from most 

participants was on the maintenance of the product and after service. 

 

All participants were willing to share in profit sharing agreement should the government allow 

selling back electricity back to the grid, the median in responses was around 50 -50 share in any 

benefit. 

 

The perception of renewable energy providers was not bad, but neither was it great, many viewed 

them as small players on a big market and some as very expensive - but with limited knowledge of 

what it all entails, furthermore everyone’s perception of RET providers would not stop them from 

adopting this proposed business venture proposal. 

 

All participants viewed themselves as middle to higher income individuals in South Africa and were 

working earning good salaries. Participants mostly all regarded themselves as tech savvy and 

embracing new technological innovations. 

 

Thus, through the research the business venture proposal would be a good business and will focus 

on price PAYU, maintenance and building long term relationships given the end customer a 

experience beyond the product only. 

 

 

 

 



38 
 

Chapter 5: Business venture proposal – Renew Able technologies Pty Ltd 

 

5.1 Strategic review and plan 

 

5.1.1 Vision, mission, and objectives 

 

5.1.1.1 Vision 

 

To supply cleaner energy in South Africa by providing accessible and sustainable renewable 

energy solutions to individuals, fostering a greener and more resilient future for in South Africa 

 

 

5.1.1.2 Mission 

 

To empower individuals across South Africa with affordable access to clean and renewable 

energy through a pay-as-you-use model, enabling economic and environmental sustainability 

while enhancing energy security and independence. 

  

 

5.1.1.3 Organizational objectives 

 

To establish Renew Able Technologies as a comprehensive solar power supplier ensuring reliable 

and affordable electricity access for households and businesses throughout South Africa, while 

promoting energy efficiency and reducing reliance on non-renewable resources. 

 

 

 

 

 

 

 



39 
 

5.1.2 Situational analysis (environmental, industry and competitor analysis) 

5.1.2.1 Macro environmental analysis 

 

 

        Pestel Analysis Action 

Political South Africa's government has committed to 

renewable energy through various policies and 

initiatives.  

Renew Able Technologies 

(Pty) Ltd will comply with 

existing regulations to 

mitigate regulatory risks - 

Opportunity. 
 

Assessment of policies supporting renewable 

energy and their stability 

Renew Able Technologies 

will also Advocate for 

favorable policies through 

industry associations and 

lobbying efforts – 

Opportunity. 

Analysis of political environment and its impact 

on long-term business planning  

The business will have to 

diversify investments and 

partnerships to mitigate 

political instability risks – 

Threat. 

Evaluation of legal frameworks governing 

energy sector contracts and agreements 

Our business will ensure 

compliance with all 

applicable laws and 

regulations to mitigate 

legal risks – Threat as 

noncompliance could be 

have possible penalties and 

close the business until 

compliant.  Such as having 

Certificate of Compliance 



40 
 

(COC) signed of on all jobs. 

Stable governance is crucial for long term 

investment in interest rate percentage and 

renewable energy products 

Invest in legal expertise to 

navigate regulatory 

requirements effectively - 

Threat 

Economical The availability of financing and investment 

opportunities significantly impacts the growth 

of renewable energy in South Africa 

The business will seek 

investment opportunities 

from local and 

international sources 

including banks, crowd 

funding , including 

government grants, 

venture capital and private 

equity  - Opportunity. 

The cost of renewable energy technologies 

compared to traditional fossil fuels is a crucial 

economic consideration 

The business is focused on 

delivering renewable 

electricity as a affordable 

price to the end customer – 

Opportunity. 

Examination of economic trends and growth 

rates affecting consumer spending power 

Renew Able Technologies 

will conduct market 

research to understand 

consumer purchasing 

behavior and affordability. 

Trough the Pay as you use 

model give access to RET to 

consumers wanting to 

contribute to the 

environment and also have 



41 
 

constant supply of 

electricity especially during 

high periods of load 

shedding – Opportunity. 

Exchange Rates: Evaluation of currency 

fluctuations and their effect on imported 

component costs 

The company would have 

to hedge against currency 

risks especially when 

importing solar products 

from other regions in the 

world - Threat  

Consumer Confidence: Analysis of consumer 

confidence levels and their impact on 

discretionary spending 

Renew Able Technologies 

would have to Invest in 

marketing and branding to 

build trust and credibility 

with potential customers. – 

Opportunity.  
 

Through the offering of 

PAYU our company will 

demonstrate the long-term 

cost-effectiveness of solar 

energy compared to fossil 

fuels – Opportunity.  

Social Public awareness and acceptance: Social 

attitudes towards renewable energy, including 

public perception and acceptance, influence the 

pace of adoption 

Through different 

marketing campaigns and 

platforms help educate the 

public about the benefits of 

solar energy, including job 

creation, energy 

independence, and 

environmental 

sustainability. – 



42 
 

Opportunity. This is a 

definite requirement as per 

the interviews there was a 

certain lack of knowledge 

on RET. 

Analysis of technological proficiency among 

target demographics. 

Our Company will offer 

user-friendly interfaces 

and intuitive designs for 

renewable energy systems. 

These IT applications are 

already in place – Which 

will help the customer 

manage energy supply and 

make them more 

conscience on their energy 

usage. Opportunity 

Consideration of demographic shifts and their 

influence on consumer preferences. 

Our study of LSM and also 

understanding the increase 

in black middle class per 

the literature review will 

help the company 

Customize marketing and 

product offerings to appeal 

to specific demographic 

segments. - Anticipate 

future demographic trends 

to proactively adjust 

business strategies and 

product development. -

Opportunity. 



43 
 

Assessment of societal attitudes towards 

sustainability and green initiatives. 

Our company will 

Collaborate with 

environmental 

organizations to amplify 

messaging and reach wider 

audience. attend events 

and expos held in the 

country on greener energy. 

- Opportunity 

The renewable energy sector has the potential 

to create employment opportunities, 

particularly in rural areas 

The company will 

definitely look at job 

creation in the installation 

and maintenance of 

provide, up skilling 

workers and cross skilling 

them between different 

functions. – Opportunity.  

The company will look at 

partnering  with local 

vocational training 

institutions in the skills 

and developmental areas 

to develop workforce in the 

renewable space. – 

Opportunity. 

Technological Power generation improvements, impact the 

efficiency of renewable energy projects. 

Keep abreast as a company 

in the increase’s changes in 

technology to better the 

offerings to customers. – 

Opportunity.  



44 
 

Consideration of intellectual property rights 

and their impact on innovation protection 

The company through legal 

advise will also consider IP 

of other companies  - 

Threat 

Evaluation of latest developments in solar 

technology and their accessibility. 

Keep abreast as a company 

in the increase’s changes in 

technology to better the 

offerings to customers. – 

Opportunity. 
  

  

Environmental Review of climate change concerns and their 

influence on regulatory frameworks., 

Our company will engage 

in industry collaborations 

and partnerships to 

advocate for stronger 

climate policies. - 

Opportunity 

Analysis of local resource availability, such as 

sunlight and land for installations 

Renew Abale Technologies 

will assess the current 

power generated by the 

sun in all seasons, and tie 

this in to capacity system 

to customers. - 

Opportunity 

Legal Evaluation of laws governing renewable energy 

adoption and compliance 

Renew Able Technologies 

will Establish compliance 

management systems to 

ensure adherence to all 



45 
 

regulatory requirements 

and strive to stay informed 

about changes in 

regulations and proactively 

adjust business practices 

and strategies - Threat 

Assessment of taxation policies impacting 

renewable energy investments and operations 

Through tax or Legal 

advisor Renew Able 

technologies will seek tax 

incentives and exemptions 

for renewable energy 

projects to reduce 

operational costs. - 

Develop tax optimization 

strategies in collaboration - 

Opportunity 

 

  



46 
 

5.1.2.2 industry analysis (Porter’s 5 forces) 

 

Threat of New Entrants: 

• The threat of new entrants into the renewable energy market in South Africa is relatively 

moderate. While the sector offers attractive growth opportunities due to increasing demand for 

clean energy solutions, significant barriers to entry exist, including high initial capital 

requirements, regulatory complexities, and the need for specialized technical expertise. There 

are no big players in the individual home consumer space in South Africa. 

• Renew Able Technologies startups leveraging pay-as-you-use model this will also lower the 

barrier to entry in this market. 

 

Bargaining Power of Suppliers: 

• The bargaining power of suppliers in the renewable energy sector would be moderate again as 

there are multiple suppliers of solar panels, inverters, and other equipment, specific specialized 

components or materials may be controlled by a limited number of supplies. Many countries 

globally have many suppliers such as the Chinese etc... 

• Additionally, fluctuations in global supply chains and commodity prices can impact supplier 

costs such as the war in the middle east and Ukraine. The blocking of routes through the main 

shipping straits will also influence price, but this does not change the number of suppliers to RET 

products. 

To leverage the moderate position of suppliers, Renew Able Technologies will bargain hard to 

reduce cost with the many suppliers. 

Bargaining Power of Buyers: 

• The bargaining power of buyers, particularly individual households and businesses in South 

Africa is in our opinion a business lower. However, this can change by influencing factors such as 

the availability of alternative energy sources, government incentives, and consumer preferences. 

While the prevalence of load shedding and rising electricity costs may increase demand for 

renewable energy product. Households in the category LSM our business targets have already 

identified cost of RET product as an issue, leveraging the PAYU model we will have target buyers 

who will adopt our proposal with little power of bargaining the rate per Kilowatt. 

 

 



47 
 

Threat of Substitutes: 

• The threat of substitutes in the renewable energy market in South Africa is relatively moderate 

to high. From our research many participants would not adopt green energy because of 

environment and sustainability in South but purely to have constant electricity so substitute 

would be traditional fossil fuel-based energy sources remain dominant, diesel generators, or off-

grid solutions powered by alternative fuels and of flooded market of RET products. 

 

Renew Able Technologies however unique selling proportion should give it the competitor 

advantage while not having the consumer look at product only but affordability. 

  

Competitive Rivalry: 

• Competitive rivalry within the renewable energy sector in South Africa is intensifying as more 

players enter the market and vie for market share. Established companies, startups, and 

international players compete on price, technology, service quality, and brand reputation. 

• Renew Able Technologies will differentiation through price innovation, customer-centric 

business models, and strategic. 



48 
 

5.2  SWOT analysis 

Swot Analysis Description 

Strength Business Model Renew Abal Technologies offering a pay-as-you-use solar 

power service differentiates it form other business and 

appeal to consumers seeking affordable renewable energy 

solutions 

Strong Market 

Potential 

With increase in electricity cost per KHW from Eskom and 

municipalities and power outages, there is a strong market 

in the middle-income to upper consumers in South Africa 

and later smaller units to lower income individuals. 

Weakness Initial Funding 

Needs 

Lack of sufficient capital for products and operation set up 

may pose challenges in scaling up the business and meeting 

market demand. 

Regulatory 

Compliance: 

Navigating complex regulatory requirements and making 

sure we comply with all laws and regulations such as 

signing of the COC when done with installing RET products 

on households. 

Limited Brand 

Recognition 

As a new entrant in the market, building brand awareness 

and establishing credibility among consumers and 

stakeholders may take time and investment. 

Opportunities Access to 

Funding 

Renew Able Technologies will explore financing options 

such as government grants, venture capital, and 

partnerships. Relationships with suppliers to receive 

favorable terms. 

Rising Energy 

Costs 

Increasing electricity prices and concerns about energy 

security create a favorable environment for the adoption of 

alternative energy solutions like solar power and matching 

the PAYU like current grid providers. 

Strategic 

Partnerships: 

This is important for growth of our new business and 

collaborating with local communities, businesses, and 

government agencies can expand market reach, enhance 



49 
 

brand visibility, and access additional resources and 

support 

Technological 

Advancements: 

Leveraging advancements in solar technology and energy 

storage solutions can drive efficiency improvements and 

cost reductions. Using of Application to monitor household 

usage etc... 

Threats Economic 

Uncertainty 

Fluctuations in the economy, exchange rates, and interest 

rates can impact consumer spending and investment 

decisions, affecting demand for renewable energy services 

and also negatively affecting the cost of products. 

Regulatory 

Changes: 

Changes in government policies, tariffs, and regulations 

governing the renewable energy sector can create 

uncertainties and disrupt business operations and 

profitability. Eskom Decides to reduce rates, or government 

passing law to tax those with full renewable product. 

Competition: Intense competition from established players and new 

entrants in the renewable energy market may pose 

challenges in acquiring and retaining customers and market 

share 

 

Strategic Implementations to address threats and weaknesses while leveraging on strengths and 

opportunities.  

 

Strategic Implementation for Funding: 

• Our Company will explore diverse funding sources such as government grants and venture 

capital and investors to secure the necessary capital for business expansion and infrastructure 

development. Possible source will be crowd funding. While products are expensive boot 

strapping to a certain level will also happen to fund initial stage of the business 

 Regulatory Compliance Strategy: 

• Invest in legal expertise and regulatory consultants to navigate complex compliance 

requirements efficiently, ensuring timely acquisition of permits and licenses for business 



50 
 

operations. Renew Able Technologies will source a good reputable law firm at initial stage and 

look to hire internal once the business is established. 

 

 Brand Building Initiative: 

•The Company will develop a marketing and branding strategy to increase brand visibility and 

credibility among target customers through digital marketing, social media, and Radio. When 

looking at digital platforms marketing on Ad’s on Facebook marketplace and YouTube ad’s. 

Companies like Ad reach  

 

Cost Reduction Tactics: 

• Our Company will implement cost-saving measures such as bulk purchasing, supply chain 

optimization, and operational efficiency improvements to reduce overheads and enhance 

profitability amidst economic uncertainties and rising energy costs. 

 

Customer Satisfaction Initiative: 

• Our Company believes customer satisfaction is a huge part of growing a successful as the added 

benefits of up selling and referrals is priceless. Therefore, Renew Able Technologies will 

prioritize customer satisfaction and service quality through personalized customer experiences, 

prompt issue resolution, and ongoing support and maintenance services to build long-term 

customer loyalty and retention. 

 

Training and Development Program: 

• As the business grows Renew Able Technologies will Invest in employee training and 

development programs partnering with local accredited training institution linked to SETA to 

enhance technical expertise, customer service skills, and regulatory compliance knowledge, This 

will entail empower employees of Renew able Technologies to deliver exceptional customer 

service and value. 

 

 

 

 



51 
 

5.3 Ansoff Matrix 
 

 
 
 
   

  Existing Products New Products 

 

 

  

Existing 
Markets 

Market Penetration: Increase 
market share by implementing 
targeted marketing campaigns 
to promote the pay-as-you-use 
solar energy program to 
existing customers 

Product Development: Enhance 
the existing solar energy systems 
with advanced monitoring features 
and remote access capabilities to 
give customers greater control and 
visibility over their energy usage. 

 

 

New Markets 

Market Development: 
Expand into new geographic 
markets by targeting regions 
with high solar potential and 
limited access to reliable 
electricity, such as rural and 
off-grid communities 

Diversification: Explore 
opportunities to diversify into 
complementary areas, such as 
energy-efficient appliances 

 
   

 

 
 

 

5.4  Market and strategic analysis 

Assessing the 3 C’s in marketing customer, company and the competitor to get a better 

understanding of the different facets which make up the business and through assessing these 

different components we understand the environment the company is operating in, which helps 

in decision making such as advertising, focused marketing and enhancing product and service 

offerings. 

5.4.1  Customer  

 

• Our company acknowledges the mixed sentiments among South African consumers regarding 

renewable energy adoption. While there may be some reluctance or lack of enthusiasm towards 

renewables, our research indicates a growing awareness and interest-driven primarily by the 

prevalent issue of load shedding in South Africa. 

 

M
A
R
K
E
T
S 

   
   

   
P R O D U C T S 



52 
 

• Understanding this nuanced customer perspective, our company is poised to capitalize on the 

opportunity presented by the necessity-driven adoption of renewable energy solutions to 

mitigate the ongoing rolling black outs. By addressing customers' immediate needs and concerns 

related to energy reliability and affordability, we aim to gradually shift perceptions and foster 

greater acceptance of renewable energy as a viable and sustainable alternative. 

 

As most participants in the survey regard themselves as tech savvy – The company solution will 

include power monitoring services with notifications when usage high or when battery reach a 

certain level. This tool will make the customer feel in control while also connecting with the 

customer as they already embrace applications and technologies on a daily basis. 

 

 

• Through targeted marketing campaigns and educational initiatives, we seek to raise awareness 

about the benefits of renewable energy, emphasizing its role in addressing energy challenges and 

enhancing energy security and independence for households and businesses in South Africa. 

 

5.4.2  Competitor 

 

 

• Considering the research findings our company recognizes the need to adapt and differentiate 

our approach in a competitive market environment. While competitors may also be vying for 

market share, the prevailing issue of load shedding presents a unique opportunity for innovation 

and market leadership. 

 

There are no real big players in the individual household environment. Mostly small players with 

limited advertisements on radio and billboards. 

 

•. Through continuous innovation, customer-centricity, and agility, we aim to differentiate 

ourselves from competitors and capture a significant share of the growing renewable energy 

market. 



53 
 

• Additionally, we recognize the potential for collaboration and partnerships with competitors 

who share similar goals and values. By leveraging collective expertise and resources, we can drive 

industry-wide initiatives to accelerate renewable energy adoption and address common 

challenges, ultimately benefiting customers. 

 

 

 

5.4.3 Company 

 

• As a nascent player in the South African renewable energy market, our startup is driven by a 

vision to revolutionize energy access and sustainability in South Africa. While we acknowledge 

this is a startup business we plan to scale swiftly as both the product and  technical expertise is 

present in the country.  With a focus on affordability, innovation, and environmental stewardship, 

we aim to democratize access to clean energy solutions for households and businesses across 

South Africa. 

 

• We strive to deliver superior solar power solutions that empower customers to embrace 

renewable energy and reduce their carbon footprint 

 

• Committed to transparency, integrity, and social responsibility, we are dedicated to forging 

meaningful partnerships with local communities, businesses, and government agencies to drive 

positive change and foster sustainable development in South Africa.  

 

5.5 Product 

 

Our solar renewable energy solution for individual households in South Africa is designed to 

provide reliable, affordable, and sustainable electricity access while offering flexibility and 

convenience to customers. The product comprises solar panels, inverters, and energy storage 

systems tailored to meet the specific energy needs of households. 

 

Key features of our solar product include: 

 



54 
 

1. Scalable System Design: Our modular system design allows customers to scale their solar 

installations according to their energy requirements, providing flexibility to accommodate 

varying household sizes and electricity consumption patterns. 

2. Battery Storage Options: Besides grid-tied solar systems, we offer battery storage options for 

customers seeking energy independence and resilience against power outages, allowing them to 

store excess solar energy for use during periods of low sunlight or grid instability. 

4. Pay-as-You-Use Pricing Model: Our innovative pricing model enables customers to pay for 

electricity usage per kilowatt-hour, eliminating the need for large upfront investments and 

providing cost transparency and control to customers. This pay-as-you-use approach aligns with 

households' evolving energy consumption patterns and promotes affordability and accessibility 

of renewable energy. 

 

 

 

5.6  Promotion 

 

Our promotional strategy focuses on raising awareness, educating consumers, and driving 

demand for our solar renewable energy solution through targeted marketing campaigns and 

outreach initiatives. Key promotion tactics include: 

 

• Digital Marketing: Leveraging online channels such as social media, search engine optimization, 

and targeted advertising to reach and engage with our target audience effectively. 

• Content Marketing: Developing informative and educational content, such as blog posts, articles, 

and videos, to showcase the benefits of solar energy, address common misconceptions, and 

empower consumers to make informed decisions. 

• Community Engagement: Participating in local events, workshops, and community outreach 

programs to connect with potential customers, build trust, and foster positive relationships 

within the community. 

• Referral Programs: To incentivize existing customers to refer friends and family, expand our 

customer base, and drive word-of-mouth marketing. 

 

 



55 
 

5.7 Price  

 

Our pricing strategy is centered around affordability, transparency, and value for money, aiming 

to make solar energy accessible to households. Key pricing elements include: 

 

• Competitive Rates: Offering competitive per kilowatt-hour solar electricity consumption rates 

comparable to or lower than traditional grid electricity tariffs to attract and retain customers. 

• Transparent Pricing: Ensuring transparency in pricing and billing processes, with clear 

breakdowns of usage charges, fees, and savings, to build trust and confidence among customers. 

• Promotional Discounts: Offering promotional discounts, rebates, or incentives to encourage 

early adoption and reward customer loyalty, thereby driving uptake of our solar renewable 

energy solution. 

 

 

 

By integrating these elements into our marketing mix, we aim to effectively communicate the 

value proposition of our solar product, generate customer interest and inquiries, and ultimately 

drive conversions and sales in the competitive South African renewable energy market  

 

5.8 Place 

 

• Distribution Channels: We leverage a multi-channel distribution strategy to ensure broad 

accessibility and availability of our solar products across South Africa. This includes partnering 

with local distributors, retailers, and contractors. 

 

• Online Platform: we offer an online platform where customers can explore our product 

offerings, receive personalized recommendations, and schedule consultations or installations 

conveniently from the comfort of their homes. This online presence enables us to reach customers 

nationwide and facilitate seamless transactions. 

 

 

 



56 
 

5.9  Market Segmentation 

 

Market 

Segment 
Demographic Physiographic Behavioural 

Primary 

High - Income 

Individuals and 

Households 

Urban and Suburban 

areas with high solar 

exposure 

Environmentally 

conscious consumers 

seeking sustainable 

and innovative 

solutions to reduce 

their carbon footprint 

and contribute to 

renewable energy 

adoption. 

Secondary 

Middle - Income 

households 

Urban and suburban 

areas with moderate 

solar exposure 

Cost-conscious 

consumers looking for 

practical and 

affordable ways to 

reduce their energy 

bills and achieve long-

term savings 

Tertiary 

Low - Income 

households 

Rural or remote areas 

with limited 

infrastructure  

Energy-insecure 

consumers facing 

challenges accessing 

reliable electricity, 

seeking affordable and 

accessible energy 

solutions to meet their 

basic needs and 

improve their quality 

of life. 

 

 



57 
 

5.10 Valuation 

The Companies valuation will be based on the following key assumptions.  

1.  Cash inflows from customers will be received at the same time cash out flows to 

repayment of loan on capital goods i.e. the renewable energy products.  

2.  The weighted average cost of capital (WACC) used will be based on the below article 

(Erdogan & Sarazola, 2023)which is a  WACC of 11 % and this rate will be used to discount 

the cashflow for the different periods. Renew Abale Technologies agrees that this rate of 

return is fair for the business. 

 

 

Figure 6 Cost of Capital by project in selected countries. 

(Erdogan & Sarazola, 2023) 

 

3. The cashflow period will be for a period of 10 years based on two factors, firstly the 

batteries useful live is roughly 10 years and secondly based in interview held most 

participants were willing to sign an agreement between 7 – 10 years. 

4. There will be a 50% Share CAP raised by equity investors and 50% loan to fund the 

business. 

5. In the first year of operations 50 units will be sold and installed on households, this figure 

will grow by 100 the next year and remain constant at 100 households for a year for the 



58 
 

next 6 years then in the final 3 years grow to 200 units sold and installed for this period. 

6. Any fluctuating risk will be neutralized based on cashflow hedges which cost if included in 

other expenses. 

7. Bank will match the repayment term to the agreement with individual households. 

8.  Inflationary increase in revenues year on year of 8%  

9. Costs to increase in this same period by 7 % mainly based on goods being repaid at a fixed 

percentage over the period. 

10. The cost of the full installation system will be 160 000 rand per unit averaging 30KHW a 

day per home. 

11. The full KHW per a day will be utilized. 

 

Valuation 

 

 

This is a positive valuation based on the WACC and therefore this business model is 

profitable and should be pursued. For each year the Net present value is positive and 

business will be in the money during the next 10 year period. 

 



59 
 

Chapter 6 Operational Plan 

 

6.1 Business Implementation Plan 

 

1. Market Research and Analysis (Months 1-2) 

 

During the first two months, we will conduct extensive market research and analysis to 

gather insights into the renewable energy market in South Africa, customer preferences, 

competitor landscape, regulatory environment, and technological trends. We will analyze 

demographic data, assess competitor offerings, review regulatory requirements, and gather 

customer feedback to inform our strategy. 

 

2. Business Model Development (Months 3-4) 

 

Based on the findings from our market research, we will refine and finalize our business 

model for the pay-as-you-use solar energy program. We will define our value proposition, 

pricing structure, and revenue streams, and establish partnerships with solar panel 

manufacturers, installation contractors, and financing institutions. Additionally, we will 

develop a comprehensive financial model to forecast revenue projections and operating 

expenses. 

 

3. Product Development and Testing (Months 5-6) 

 

We will focus on product development and testing to ensure the viability and scalability of 

our pay-as-you-use solar energy program. This includes collaborating with technology 

partners to design and customize solar energy systems, conducting pilot installations to test 

system performance and user experience, and implementing billing and monitoring systems 

to track energy usage. 

 

4. Marketing and Branding (Months 7-8) 

 

As we near the launch phase, we will focus on marketing and branding efforts to generate 



60 
 

awareness and interest in our program. We will develop a strong brand identity and 

messaging, create marketing materials and collateral, launch targeted advertising campaigns, 

and host informational events to educate consumers about the benefits of renewable energy 

and our pay-as-you-use model. 

 

5. Launch and Rollout (Months 9-10) 

 

With the groundwork laid, it is time to officially launch our pay-as-you-use solar energy 

program and begin customer acquisition. We will execute a coordinated launch campaign, 

deploy field sales teams, implement referral programs, and provide comprehensive 

onboarding and support services to new customers. 

 

6. Expansion and Scaling (Months 11-12) 

 

As our program gains traction, we will focus on expanding and scaling operations to meet 

increasing demand. This includes evaluating program performance, exploring opportunities 

for geographic expansion, scaling up production and distribution capabilities, and investing 

in technology infrastructure to support growth. 

 

 

 

We will prioritize continuous improvement and optimization throughout the implementation 

process and beyond to enhance customer satisfaction and drive revenue growth. We will 

monitor key performance indicators, analyze data and feedback from customers, and iterate 

on our product offering, pricing strategy, and marketing tactics to stay ahead in the market. 

 

Following this detailed implementation plan, we can effectively launch and scale our 

renewable energy business with a pay-as-you-use model, driving sustainable growth and 

impact in the South African market. 

 

 

 



61 
 

 

Chapter 7 Conclusion:  
 

Based on the valuation, interviews, and current energy crisis in South Africa this business 

proposal is set to succeed  

 

The data collected through interviews supports this case as many participants only reason for 

non-adoption was mainly the up-front cost. 

 

By eliminating this hurdle and generating income for the long term after initial investment the 

business will certainly flourish and be sustainable. 

 

In conclusion this business venture should be perused as a detailed and sufficient business case 

has been made to support actioning of this business. 

 

 

 

 

 



62 
 

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9 Interview Guide 

 

 

Interview Guide – Qualitative research (Sheldon Ludick 2512119) 

 

Introduction: 

- Introduce myself, who I am, my qualifications, and the purpose of the interview (Name, 

qualification, what I am studying where I work, and what I am doing). 

 

- Explain the format and what will be done during interview to the interviewee. Let the 

Interviewee know that this is interview will be recorded and transcribed to find codes and themes 

between participants. The primary objective of this study is to ascertain the underlying factors 

contributing to participants' reluctance in transitioning towards renewable energy technologies. 

Furthermore, it aims to determine their inclination towards adopting a monthly kilowatt-based 

billing system, instead of upfront capital expenditure. 

 

- There is confidentiality regarding this interview – we will not use your name or personal 

identifying information about the interviewee. Everything that is answered regarding the questions 

will be used for research purposes. 

 

 

 

 

Interview Guide: 

 

Understanding how interviewee feels and copes during the rolling blackouts: 

 

- How does the power outages effect you and your schedule? 

- Can you explain your level of frustration during load shedding? 

- Are there certain times which are particularly wors