Solar installations up to 50kW may qualify for an exemption from legislated registration-related fees until March 2026.
This is according to Eskom, after reports emerged that the power utility was clamping down and imposing penalties on residents who have not registered their installations.
This, as solar energy has emerged as a popular option for many South African households and businesses looking to secure their energy supply, reduce costs and contribute to environmental sustainability.
In a statement, Eskom says residential customers with unregistered small-scale embedded generator (SSEG) installations up to 50kW (typically 5kW to 10kW for households) could qualify for an exemption from registration-related fees (application, tariff conversion and connection fees) until March 2026.
The state-owned company (SOC) points out that after this period, standard charges will apply.
South African households have increasingly been investing in solar as a means to cope with persistent power outages, due to the country’s struggles with electricity generation, maintenance issues and outdated infrastructure.
Residents see solar energy as a reliable, independent power source to reduce their dependence on the grid and avoid the inconvenience of load-shedding.
Future-proofing measure
With energy costs continuing to rise, many homeowners are seeking alternative ways to cut their electricity bills, making solar power an attractive option in the long run.
Eskom recently received approval from the National Energy Regulator of South Africa (NERSA) to hike tariffs by 12.7% for the 2024/25 financial year.
Many South African households see solar energy as a way to protect themselves from future electricity price hikes and reduce their overall living expenses.
The South African government previously introduced tax incentives and rebates for solar installations, making it more financially viable for households to invest in solar systems.
“With more and more solar systems pushing energy onto the grid, the safety of the grid has become a critical focus for both performance and the safety of staff working on it,” says Eskom in a statement.
“Eskom remains committed to the seamless integration of small-scale embedded generators into its network, while ensuring adherence to all regulatory and safety guidelines. To facilitate this process, Eskom continues to support the registration of all grid-tied installations in accordance with NERSA’s requirements.”
According to the power utility, since 2020, it has actively engaged with customers and other stakeholders to raise awareness about the importance of registering SSEGs.
Further to this, Eskom customer bill inserts from the month of May 2021 included a “Connect” publication titled “Information on Small Scale Embedded Generation”, it adds.
Since that time, Eskom has held several provincial customer engagements with various associations, including the South African Photovoltaic Industry Association, the South African Property Owners Association and AgriSA, and has driven media campaigns.
The SOC says this initiative was launched during severe load-shedding periods, when Eskom decided to waive connection charges for residential rooftop solar installations.
It explains that this decision was in response to the Energy Action Plan and supported incentives such as the tax rebate for solar installations offered by the South African Revenue Service.
“The goal was to help customers mitigate the impact of load-shedding on their daily lives,” it says. “All SSEG installations that operate alongside Eskom’s supply, even those not exporting power back into the grid, must be registered with Eskom or NERSA.”
Safe networks
As a licensed electricity distributor, Eskom says it ensures all connections – both load and generation – comply with the required codes, standards and guidelines set by NERSA.
It stresses that adhering to these technical standards is crucial for maintaining network security, ensuring the safety of field personnel and protecting the public.
Municipal-supplied customers are required to engage with their local network providers for the applicable process and requirements, it urges.
The utility notes generators that operate entirely off-grid and are not connected to Eskom’s electricity network are not required to register. However, owners must provide proof that their systems function independently of Eskom’s supply.
“By registering their SSEGs with Eskom, customers will meet regulatory requirements, earn by selling surplus energy to Eskom via net billing, store excess power within the utility framework, and reduce their electricity costs through self-generated power.
“Eskom encourages all customers with SSEG installations to register as soon as possible to ensure compliance and gain access to available benefits,” it concludes.
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