The new hedge against global uncertainty lies in two distinct yet related technologies: EVs and solar energy

The ongoing geopolitical tensions are having a seismic impact on the global energy system, with ordinary citizens feeling the effects directly. Add to this persistent inflation and rising electricity tariffs, and the average South African finds themselves buckling under financial strain.

In this context, renewable energy and products, such as solar power and electric vehicles (EVs), can no longer be seen as merely sustainable options. Instead, they’ve become financially and operationally necessary.

The world is still highly reliant on fossil fuels, with the Energy Institute’s 2025 Statistical Review of World Energy reporting that fossil fuels supply roughly 86% of the world’s total energy. This underscores the extent to which world economies remain exposed to the volatility of oil, gas, and coal.

While the majority of large companies participate in fuel hedging, financial contracts that protect price, these contracts do not protect availability. Companies with hedge contracts will still need fuel deliveries. When supply is constrained, these companies may face shortages or be forced to source fuel elsewhere. In February, the International Energy Agency (IEA) noted that disruptions to the Strait of Hormuz and other key transport routes can remove significant volumes of fuel from the global markets, and we’ve seen this play out repeatedly over the past year, with supplies tightening and prices rising at various points.

For South Africans, this challenge exacerbates another that we have been dealing with for many years: electricity tariffs that continue to rise above inflation. For the 2025/26 financial year, effective 1 April 2025, the National Energy Regulator of South Africa (NERSA) approved a 12.74% increase for direct Eskom customers and an 11.32% increase for municipalities.

Ultimately, consumers like you and me absorb the impact.

This is exactly why energy autonomy is becoming valuable, because the less you rely on global fuel systems, the less exposed you are to price increases and fuel shortages. And current consumer behaviour reflects the direct impact of economic pressures on decision-making, with households and businesses prioritising solutions that reduce their exposure to recurring, uncontrollable costs.

This is already visible in solar adoption across South Africa. Embedded rooftop solar capacity has grown by 403.7% since 2021, according to the Council for Scientific and Industrial Research (CSIR). The CSIR further reports that private solar supported 5% of the country’s electricity demand in the first half of 2025, while embedded rooftop solar capacity reached approximately 6.8 MW by mid-2025.

Similarly, the adoption of EVs has accelerated rapidly across the globe, with the IEA’s Global EV Outlook 2025 paperreporting that EV sales accounted for more than a quarter of all vehicles sold. In South Africa, the Draft Electric Vehicles White Paper, published by the Department of Trade, Industry and Competition, provides a roadmap to position the country as an EV manufacturing hub, while simultaneously acknowledging electricity supply constraints and the need for an expanded energy system.

EV owners benefit from significantly lower operating costs compared to petrol- or diesel-powered vehicles. EVs are generally more cost-effective to run and require less maintenance. With the price and availability of fuel subject to global events, EVs present a powerful advantage by insulating EV owners from fuel price volatility.

It’s safe to say that solar power and EV use have transcended their function as sustainable choices to become financial hedges.

Even more powerful than each of these commodities on their own? Pairing solar and EV. A vehicle charged from rooftop solar is less dependent on the grid and fuel market, as well as being lower carbon and good for the environment. This combination creates genuine energy autonomy.

Transitioning from fossil fuels to renewable energy has historically been framed as a moral imperative. In today’s ever-evolving economic landscape, it’s become a practical consideration, too. EVs offer consumers an escape from fuel volatility, while a household that can generate its own electricity through solar can charge EVs at a predictable, low cost, reduce exposure to rising electricity rates, and maintain operations during disruptions to the grid. Together, they create long-term cost certainty.

Investing in EVs and solar is, therefore, a way to build resilience against the impacts of geopolitics and protect a household or business from price volatility, with the added benefit of reducing their environmental footprint. Best of all, it provides for greater control over their energy and operating environments. And in a world where uncertainty is becoming increasingly regular, that control is invaluable.