South Africa: How a Basic Solar Grant Brought Cheaper Electricity to One Shack Settlement in South Africa

In South Africa, nearly half the population is energy poor, a problem exacerbated by growing informal settlements like Qandu Qandu in Cape Town, where residents lack grid access and rely on unsafe power sources. Researchers from the University of Exeter, Zonke Energy, the iShack Project and Futures Advisory studied the settlement from 2020 to 2023, installing solar mini-grids and home solar systems while providing entrepreneurship training. In late 2024 they launched the Basic Solar Grant, funded by InnovateUK’s Energy Catalyst programme, which offers a subsidy that allows off-grid households to receive the free basic electricity otherwise only available via the national grid. The model uses existing municipal subsidies to make solar power affordable without replacing the grid, and has become the largest alternative energy provision in Cape Town, funded mainly by overseas sources and set to run until 2027. Success depends on the City of Cape Town adopting the approach in its 2050 Energy Strategy, working with private solar companies to administer the grant and expand the model to other shack settlements.

(Source：Allafrica Tanzania)