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Solar users face hefty power bills

Eskom has launched a new drive for people generating their own power to register their systems — and it’s not cheap

Eskom is pushing homeowners who get their power directly from the utility to comply with registration requirements for their solar systems.
Eskom is pushing homeowners who get their power directly from the utility to comply with registration requirements for their solar systems. (Thapelo Morebudi)

Thousands of Eskom customers who have installed solar systems may have to dig deep into their pockets to be fully compliant with the utility’s requirements.

During years of load-shedding, South Africans installed solar systems en masse to mitigate the impact of power cuts.

Relatively few have been registered, either with Eskom or a municipality.

Eskom said in a statement this week that with an increasing number of solar systems pushing energy onto the grid, the safety of the grid had become a critical focus for both performance and the safety of staff working on it.

The utility estimates that about 48,000 of the residential properties that it supplies directly have installed solar systems. The number for those who get their electricity from municipalities is unknown.

The registration of small scale embedded generation (SSEG) systems is a requirement imposed by the National Energy Regulator of South Africa (Nersa).

This exemption initiative was launched at the height of load-shedding. But now that the threat of load shedding has faded, a drive has been launched to get every solar user registered.

Eskom said residential customers with unregistered SSEG installations of up to 50KW "could qualify for an exemption" from the registration until March next year. The fees associated with complying range between R5,000 and R10,000. 

The requirements stipulate that those who are entirely off-grid must provide proof that their systems function independently of Eskom’s supply.

Users must obtain compliance certificates from registered structural engineers and electricians, at their own cost.

Eskom said that by registering their SSEG systems, “customers will meet regulatory requirements”, meaning they could legally “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”. 

Those who want to feed excess power back into the grid will have to install a two-way meter at their own expense.

The Eskom statement indicated that no-one should be surprised about the registration requirements, and warned that failure to comply could lead to penalties

While all solar users must comply, the awareness campaign is focused on the SSEG sector because most large-scale installations complied with regulations from the start.

The Eskom statement indicated that no-one should be surprised about the registration requirements, and warned that failure to comply could lead to penalties.

“Since 2020, Eskom has actively engaged with customers and other stakeholders to raise awareness about the importance of registering SSEGs,” the utility said.

“Further to this, Eskom customer bill inserts from the month of May 2021 included a ‘Connect’ publication titled ‘Information on SSEG’.”

Eskom said it had held engagements with various groups including the South African Photovoltaic Industry Association, the South African Property Owners Association and AgriSA, and had driven media campaigns on this issue.

According to the utility’s data, the number of rooftop photovoltaic systems more than doubled between December 2022 and May 2023, adding additional capacity of about 2,590MW.

Eskom estimates that total installed rooftop solar systems are generating more than 4,000MW — equivalent to four stages of load-shedding.

The Association for Renewable Energy Practitioners (Arep) said it had a meeting with Eskom on Wednesday to get a fuller understanding of the registration requirements and the penalties for noncompliance.

Arep president Carel Ballack said the issue was that Eskom requirements and those of some municipalities were not 100% the same.

He said Arep had sought the meeting with Eskom because it was fielding queries from concerned customers about registration.

“Eskom indicated that they are unlikely to impose penalties at least within the next year,” Ballack said.

He said most SSEG users were not registered and Eskom’s communication on the matter had been uncoordinated, leading to frustrations among customers.

“We know that there’s a compulsory R2,500 registration fee that will be paid by anyone with the SSEG system installed,” Ballack said.

Del-Mari Roberts, marketing manager at solar installers AWPower, said all solar systems that were grid-tied “whether or not they export excess energy, need to be registered”.

She said there would be less frustration if the registration process was simplified and clearly communicated. “Currently, there are more questions than answers regarding Eskom’s SSEG registration process.”

Roberts said  only systems in places without an electricity service or power connections were exempt. “But you are required to fill in a declaration form to notify them of the system’s details for Nersa’s records.”

In Johannesburg, City Power — which, as a municipality, has a separate SSEG registration process to Eskom’s — said users had registered a total of about 137MW. 

Spokesperson Isaac Mangena said: “It is not clear how many more have installed alternative energy sources without our knowledge. We believe there’s still a long way to go in making sure all customers with solar are registered.”

Mangena said compliance was mandatory. “By adhering to these guidelines, customers not only contribute to a greener future but also ensure the safety and reliability of our energy infrastructure.”


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