The South African solar water heater (SWH) programme is part of national policy to improve the country's electricity security, an innovative strategy to provide indigent households with free solar water heaters. The study assesses the effects of the government programme for poor townships on reduction of household electricity consumption, decline in energy poverty, and reduction in CO2 emissions; and estimates the impact of SWH on reducing electricity demand nationwide. It reports results from fieldwork carried out in the City of Tshwane to measure both quantitatively and qualitatively the success of the project's deployment in townships. Although households register average savings of 27% on their monthly electricity bills and off-peak electricity demand has reduced significantly in the area, a variety of problems prevented the project from attaining the desired level of impact. Difficulties encountered include technical faults with the heaters combined with nonavailability of maintenance; a rise in water consumption; lack of community engagement leading to apathy; and dearth of owner training leading to underuse. The gap between inflated estimates and real savings is discussed. Expanding the programme could generate jobs but significant challenges remain.