The market for a pioneering solar-battery solution tailored to meet the needs of informal businesses such as spaza shops, salons, tailors, mechanics and restaurants operating in South Africa’s so-called ‘township economy’ is beginning to take shape.

Launched by Wetility in mid-2024, the innovation has been designed to address the specific challenges faced by township entrepreneurs, including chronic ‘load reduction’ and cable theft, as well as unstable building structures and limited access to finance.

Known as LUXE, the offering is already in use in areas such as Katlehong, Soweto and Tembisa, in Gauteng, as well as parts of the Western Cape and KwaZulu-Natal.

Wetility chief of staff Johanna Horz reports that the “plug-and-play” energy system was designed from the ground up, with the company’s engineering team having used the problems identified by entrepreneurs as design inputs.

These included the risk that systems could be stolen, that rooftops may not be able to bear the weight of the solar panels, and the reality that many potential customers were unbanked and also did not have the resources to insure and maintain their solar systems.

“Township businesses face realities that are vastly different from suburban areas.

“Traditional solar solutions often just don’t work, because either they’re unaffordable or simply incompatible with the infrastructure.

“That’s why we built something new – purposefully, boldly, and with the township economy in mind,” Horz tells Engineering News.

The upshot is a system that includes upwards of eight solar panels, alongside backup battery storage upwards of 5 kWh, and inverters upwards of 6 kW.  Solutions are modular and stackable, with entrepreneurs and businesses able to scale their LUXE system as their power demand changes. 

Offered as part of Wetility’s ‘Beast Bizness Bundle’, and starting from R149 a day, the LUXE system can be bundled with a new point of sale (POS) device and up to R10 000 in stock credit for qualifying merchants, as an additional revenue-enabling booster for entrepreneurs.

Always included are remote monitoring, theft-resistant enclosures, and a payment model based on a daily subscription that eliminates the need for upfront payments.

Wetility collaborated with A2Pay, a POS company active in over 7 000 informal retail stores, to engineer a new model of solar financing that does not involve banks, brokers, or traditional credit application mechanisms.

“Through the POS system, we are able to make LUXE available on a daily subscription, removing the need for upfront capital or formal credit.

“This includes installation, maintenance, insurance, and 24/7 remote support,” Horz adds, stressing the model is not only about powering businesses but also financial inclusion.

Wetility reports strong uptake since the product’s roll-out, with installations increasing on the back of community referrals, which has turned what was initially a pilot project into a full-scale commercial operation.

LUXE is said to be powering a widespread and rapidly expanding network of township businesses, mostly concentrated in Gauteng, and which now depend on the solution as their core source of reliable energy.

While the primary motivation is to provide small township businesses with stable and affordable electricity, Wetility believes LUXE could also play a role in relieving pressure on municipal electricity networks and reducing the financial strain on utilities such as Eskom.

“By shifting township businesses off their sole reliance on the grid, the solution supports energy resilience while promoting a culture of payment for reliable service,” says Horz.

The solution has also piqued the interest of commercial banks and development finance institutions, which view LUXE as a climate-aligned investment with measurable social impact.

“As the demand for reliable, affordable, and accessible power grows, Wetility’s LUXE is set to become a transformative force in reshaping how energy is delivered to South Africa’s informal economy,” Horz enthuses.