Eskom coming after South Africans with solar panels on their roofs

While Eskom is looking to make the process of registering a household solar system less expensive, the utility’s efforts may not even be necessary.

This is because, according to energy expert Chris Yelland, Eskom is not empowered by the Electricity Regulation Act to push households to register their systems.

He explained in a recent interview with SABC News that the registration process, while necessary, should be overseen by a different government department and legislation.

This comes as Eskom is running a campaign encouraging households and businesses with grid-tied solar installations to register these systems and install smart meters.

This includes all solar installations that operate alongside Eskom’s supply, even those not exporting back into the grid.

According to the power utility, this is to safeguard solar users and the national grid by ensuring that all connections comply with the NERSA-set codes, standards, and guidelines.

The utility has also warned South Africans that if their installations are not registered with the utility, they risk being deemed illegal, and customers will face penalties or potential disconnection.

Eskom’s campaign has faced some backlash and has not resulted in high compliance, with only around 10% of households and small businesses having registered.

Much of the backlash stems from the costs associated with registering a solar installation, with some estimates placing the associated costs as high as R20,000 to R50,000.

To address this and increase uptake, Eskom is now also running a concessionary campaign, whereby the utility has waived all charges relating to the registration and regulation of smart meter installation.

This campaign will run until the end of March 2026, with Eskom urging the public to take advantage of this time to register their systems and install smart meters.

However, Yelland, speaking in his capacity as an adviser to the Organisation Undoing Tax Abuse (OUTA), said the organisation has registered its objection to Eskom’s demand.

Eskom’s push for registration

Yelland said his main concerns are regarding the reasoning and even the legality of this process.

“This is not a question of safety, because Eskom is not the safety regulator behind the meter on the customer’s premises,” Yelland explained.

“That is the role of the Department of Labour through the Occupational Health and Safety Act and the Electrical Installation Regulations of the Occupational Health and Safety Act, which do require that you have a safe installation behind the meter.”

Yelland explained that it is true that solar users need a certificate of compliance for their household electrical system.

Eskom previously cited the Electricity Regulation Act’s requirements for its solar registration push. However, Yelland explained that this legislation specifically excludes residential households.

“Therefore, any suggestion by Eskom that what it is doing is in compliance with the Electricity Regulation Act is simply not correct because the Act does not cover residential installations,” he said.

Yelland also pushed back against Eskom’s claims that its push is due to safety concerns, claiming that the real reason for the drive is revenue.

He explained that Eskom’s push for registering solar systems comes as alternative energy is denting the utility’s revenue streams.

Professor and energy expert Vally Padayachee has previously said that it is possible that Eskom may institute a surcharge on South African households with solar.

“There will be a payment, and it will be for the upkeep of the grid and maintenance of distribution infrastructure by Eskom and municipalities,” he said.

However, Eskom has refuted the claim that its registration drive is motivated by revenue, saying that it is a safety concern, particularly considering the rapid expansion of alternative energy in South Africa.

While more alternative systems have been installed, many users still rely on the national grid from time to time.

“Traditionally, we recovered those costs through volumetric tariffs. If your neighbour is there and they don’t have an embedded generator and they use energy from the grid, they pay their fair

share towards all of these embedded costs,” Eskom’s Kevin Pillay told SABC News.

“The question at hand is that, for those that have an embedded generation facility, do they get a free ride from those that don’t have, and that would not be fair.”

“So, we need to ensure that there is an equitable distribution of costs. What that means is that, when you do have embedded generation, you will need to contribute a small payment towards ensuring that the installation point is safe for you, and those are the grid connection charges, etc.”