Founded by Jacques De Villiers, Vivasol has developed a groundbreaking, affordable solar water heating system specifically designed for the African market, based on extensive market research all the way north to Tunisia and his 15 years of experience in the market, including R 75 000 000 revenue from supplying the South African government with solar water heaters.
With a vision to revolutionise hot water access, Vivasol offers a product that is robust, easy to install and transport, thus making it a game-changer for households across the continent. “Our goal is to provide a hot water solution that not only meets the needs of our customers but also empowers them economically,” asserts De Villiers.
Elodie Delagneau, Investment Projects Lead at VUKA Group sat with Jacques as he delved into Vivasol’s unique approach to solving energy issues in South Africa, its market positioning, growth strategies, and the exciting future ahead.
To effectively address energy challenges facing Africa, businesses must recognise the continent’s diversity. De Villiers emphasises the importance of localisation, stating,
in South Africa, recent spikes in electricity prices have created urgency for alternative cost saving energy solutions. “Electricity pricing in the Western Cape has increased by 67% from 2019 to 2023,” he explains. Consumers, now feeling the pinch of rising bills, seek reliable, cost-effective alternatives.
Vivasol is targeting the significant market of approximately 5.4 million households with properties valued at under R1.2 million. De Villiers highlights, “Our research indicates that if we can provide a solution that is under R10,000 and reduces monthly electricity bills, we will see significant uptake.” He envisions a future where solar water heating systems alleviate the financial burden many South Africans face on a daily basis regarding energy costs.
Vivasol distinguishes itself from competitors through its innovative design, integrating the solar panel and water tank into a single, efficient unit. This unique feature drastically reduces installation costs and complexity. “The traditional systems can inflate installation costs by up to 50%, while Vivasol’s approach simplifies this process significantly,” De Villiers articulates.
This simple yet effective design is central to Vivasol’s value proposition. By eliminating the need for extensive plumbing and accessories, customers are presented with a comprehensive solution that is manageable and affordable. Furthermore, Vivasol’s system addresses the pressing issue of load shedding in South Africa. De Villiers asserts, “Many consumers are looking for reliable solutions to keep their lights on, and Vivasol provides a straightforward way to access hot water without the fear of continually rising electricity bills.”
Strategic partnerships play a pivotal role in Vivasol’s ability to penetrate and expand within the market. The company has garnered interest from major retailers such as Build it, The Building Company (PepKor) and the Timbuild group securing letters of interest that place them in a strong position within the supply chain. “Having a solid route to market is crucial for our expansion plans,” says De Villiers. “We want to make our product accessible to consumers across South Africa.”
Additionally, Vivasol is engaging with Capitec Bank (distribution via Build-it and Cashbuild) to provide financing options that allow eligible customers to pay for the solar water heating system over time. “This aligns perfectly with how we aim to interact with the customer base,” notes De Villiers. The company’s approach ensures that there are no high upfront costs that could dissuade potential buyers, leading to better uptake in the market.
Looking forward, Vivasol has ambitious plans to expand beyond the South African borders and into other African markets, each with its unique energy demands and economic landscapes. De Villiers acknowledges that the potential for success lies in aligning with regional energy needs and pricing structures. “We need to fit into the spending patterns of our customers to ensure uptake,” he explains.
Moreover, Vivasol is attempting to create a perception shift around solar water heating solutions, resembling the early days of mobile phones in the continent. “People didn’t see the need for mobile phones until they had access to them. We are working to make solar heating not just a product but a recognised solution for energy access and affordability,” De Villiers states confidently.
As Vivasol prepares to launch its product, understanding market adoption is paramount. The company is proactively gauging interest from potential customers and industry stakeholders, emphasising education as a crucial part of the engagement process. “Our approach involves not just selling a product, but educating customers on the benefits of solar water heating and how it can financially benefit them in the long run,” De Villiers states.
The early feedback from focus groups and interest from retailers indicates a positive reception to Vivasol’s integrated system. “We have seen increasing interest not just from individual households but also from businesses seeking ways to reduce their utility expenses,” he notes. With energy costs becoming a significant part of operational expenses, commercial buyers are keen on exploring sustainable solutions.
In a rapidly evolving energy landscape, government policies and regulations will play a critical role in Vivasol’s success. De Villiers views the South African government’s commitment to expanding solar water heating as both an opportunity and a challenge. “The government aims to roll out five million solar water heaters by 2030, but a lot depends on the execution of this plan and the support for local manufacturers like us,” he explains.
Certainty in government policies will be pivotal as Vivasol seeks to expand operations. “While we are excited about the government’s initiatives, we are also cautious,” he adds. “We want to ensure that we are part of a sustainable energy ecosystem that supports local businesses rather than relying solely on government contracts.”
Vivasol is poised to make a significant impact on the South African energy landscape and beyond through its innovative solar water heating solutions. With a commitment to local empowerment and partnerships, cutting-edge technology, and a focus on making sustainability accessible and affordable, the company is addressing key energy challenges faced by African households and businesses alike.
As Jacques De Villiers shepherds Vivasol into its next phase of growth, his vision remains clear: “We are not just selling solar water heaters; we are providing a means for families to enjoy hot water sustainably while alleviating the financial burden of electricity costs.” With the groundwork laid for a promising future, Vivasol stands as a beacon of hope in the quest for a sustainable energy revolution across Africa.
The journey may be challenging, but with the right partnerships and financial backing, Vivasol is set to become an integral player in the solar energy sector, ultimately transforming the way energy is perceived and consumed in Southern Africa.
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