In a country where bureaucratic delays and regulatory hurdles often stifle innovation, one solar startup has managed to defy the odds — not just by surviving, but by thriving. Wetility, a Johannesburg-based solar fintech startup, has not only scaled rapidly in the South African beleaguered energy market but has also repaid its early-stage debt funding well ahead of schedule, a rare feat in the country’s startup ecosystem.
Founded in 2019 by Ikenna Oguguo and Vincent Maposa, Wetility has emerged as a standout success story in renewable energy, navigating a maze of red tape while expanding access to solar power for households and businesses. Backed initially by the MultiChoice Innovation Fund (MIF), the solar startup has demonstrated how strategic support can help South African black-owned startups overcome systemic barriers — even as new regulations threaten to slow the sector’s momentum.
From Proof of Concept to R930 Million Series A
Wetility operates on a subscription-based model, offering bundled solar solutions that allow customers to transition partially or fully off-grid. Its early-stage venture debt funding from MIF helped transform its vision into a viable business.
“That initial proof of concept laid the foundation for Wetility’s R930-million ($50 million) Series A raise in 2023,” says Oguguo, the company’s co-founder and chief product officer. The funding round, led by investors including Metier Sustainable Capital II, Sanlam, and the Industrial Development Corporation (IDC), signaled strong confidence in Wetility’s model — one that blends fintech flexibility with renewable energy solutions.
The company now serves multiple market segments:
- Pace: Residential solar (launched 2021)
- Lift: Commercial businesses
- Rise: Multi-unit complexes
- Luxe: Informal retail (spaza shops)
- Flare: Large-scale projects (up to 500kW)
Its AI-powered optimization tool, AI Mode, boosts energy savings from 65% to as much as 90% by automating battery usage based on real-time data.
The Regulatory Quagmire
Yet Wetility’s growth has unfolded against a backdrop of increasing regulatory friction. South Africa’s government, grappling with the rapid rise of small-scale solar, has introduced Small-Scale Embedded Generation (SSEG) registration requirements — ostensibly for grid stability and safety, but often criticized for being slow, inconsistent, and costly.
Municipalities, which rely on electricity sales for up to 40% of their revenue, have been accused of dragging their feet on approvals or imposing hidden fees. Eskom, the state power utility, insists the rules are necessary to prevent unregistered systems from endangering technicians. But the rollout has been chaotic.
“Some municipalities take weeks to process registrations; others don’t have the systems to handle them at all,” says Johanna Horz, Wetility’s Chief of Staff. The delays have led some customers to postpone or cancel installations, threatening the industry’s growth.
Compounding the problem is a proposed tariff hike on imported solar components — part of a broader push by the International Trade Administration Commission (ITAC) to boost local manufacturing. The plan, outlined in General Notice 3142 of 2025, could increase costs for solar panels, inverters, and even basic hardware like nuts and bolts.
While the policy aims to foster domestic industry, critics argue it could stifle adoption by making solar systems more expensive — just as South Africa faces renewed load-shedding in 2025.
“The conversation has changed from ‘solar is freedom’ to ‘solar is a headache,’” says an industry insider who requested anonymity.
A Blueprint for Beating Bureaucracy
Despite these challenges, Wetility has managed to stay ahead. Key to its success has been integrating SSEG compliance into its subscription packages, shielding customers from bureaucratic hassles. The company has also leveraged flexible payment models, including daily subscriptions for informal traders, to broaden access.
“We are in full support of compliant electricity,” Horz emphasizes. “Our customers don’t need to worry — we take care of it.”
The MultiChoice Innovation Fund, which has backed Wetility since its early days, sees the company as a model for how strategic funding can drive transformation.
“Wetility’s success is exactly what the fund was built for,” says Litlhare Moteetee-Murendo, MultiChoice’s Head of Corporate Affairs.
The South African solar sector remains at a crossroads. While startups like Wetility prove that innovation can flourish even under regulatory strain, broader policy uncertainty risks slowing the energy transition.
For now, Wetility’s story offers a rare bright spot — a case study in how tenacity, smart financing, and customer-centric solutions can cut through red tape. But whether the rest of the industry can follow suit remains an open question.
As Horz puts it: “The intent behind regulation isn’t unreasonable. But without execution, even the best policies can backfire.”
In a nation hungry for reliable power, the sun isn’t the problem. It’s the shadow of bureaucracy that may yet keep South Africans in the dark.