Eskom warning for homeowners with rooftop solar in South Africa

 ·21 Jan 2025

Despite the positives of South Africa’s alternative energy boom for households and Eskom’s strained infrastructure, those who have installed solar systems are still being punished by the power utility.

According to a MyBroadband report, Eskom has warned South African homeowners with rooftop solar systems that all grid-tied solar setups not registered with the utility are now considered “illegal”.

This is true even for systems that don’t send electricity back to the grid.

Many people have turned to solar energy to lower their electricity bills and reduce their dependence on Eskom, but this new stance has caused frustration and confusion.

At the same time, Eskom is pushing for big tariff increases, which could raise electricity costs by as much as 321% for some users.

South Africa’s solar power capacity has grown rapidly, reaching 8.97 gigawatts in 2024, up nearly 12% from 2023. This includes contributions from public projects and private companies.

By October 2024, private-sector solar installations had added 961 megawatts to the grid.

Industry experts, like the South African Photovoltaic Industry Association (SAPVIA), have noted that the future looks bright for solar energy.

However, Eskom’s electricity sales dropped by 3% in the past financial year, adding to its financial strain despite operational improvements.

Although Eskom ended load-shedding in March 2024, it faces challenges due to fewer sales and rising costs.

Chris Yelland, an energy analyst, explained that Eskom’s electricity production has decreased significantly, even though overall demand has stayed the same.

To address this, Eskom is tightening control over solar systems tied to its grid. The utility claims these measures are necessary for safety and compliance but has faced backlash for the high costs involved.

Solar users report being told to meet strict new standards, even if their systems already have a compliance certificate from a qualified electrician.

Homeowners have been asked to install new equipment, such as isolators and smart meters, and to submit extra paperwork, including engineering assessments of their roof structures.

Massive cost to solar users

Some have been quoted between R27,000 and R50,000 to make their systems compliant. These costs are leaving many solar users frustrated and uncertain about their energy choices.

The Democratic Alliance (DA) has strongly criticised Eskom’s actions, including its proposal to increase fixed charges for network connections.

According to an analysis by MyBroadband, even households using very little electricity could see their bills skyrocket up to 321%.

The DA argues that these policies unfairly punish people who have invested in solar to reduce reliance on Eskom.

The party is urging the National Energy Regulator of South Africa (NERSA) to reject these proposals and push Eskom toward a more fair and transparent pricing model.

Experts like Patrick Narbel, co-founder of the solar company GoSolr, warn that Eskom’s focus on raising fixed charges could harm the renewable energy sector.

High fixed costs might discourage energy efficiency and make solar investments less attractive, which goes against South Africa’s sustainability goals.

Narbel suggests a better approach would be a balanced tariff structure that encourages smart energy use while fairly sharing costs.

He also questions Eskom’s claim that most of its costs are fixed, pointing out that international standards often treat generation costs as flexible.

Eskom’s new requirements for solar users include migrating to the Homeflex time-of-use tariff and installing bidirectional smart meters.

While these measures aim to improve grid safety, many see them as a way for Eskom to keep control over revenue and limit competition from alternative energy sources.

This could discourage future solar investments and widen the gap between wealthy and lower-income households. Wealthier families may choose to leave the grid entirely, while others face rising costs with fewer options.

Despite the challenges, there is hope for positive change. Experts like Narbel believe Eskom could revise its policies to support a fairer energy transition.

By linking fixed charges to peak energy use and distributing costs across all users, Eskom could encourage energy efficiency and innovation.

For now, solar users must deal with uncertainty and rising costs. Eskom’s push for stricter rules and higher charges has sparked debate about the country’s energy future.

It’s clear that South Africa needs policies that balance financial stability, environmental goals, and fairness for all energy users.

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