Warning for South Africans with solar panels on their roofs

Below is an interview by Organisation Undoing Tax Abuse (OUTA) CEO Wayne Duvenage with Chris Yelland, managing director at EE Business Intelligence and energy advisor to OUTA.

In this interview, Duvenage poses a number of questions to Yelland to get his views and help homeowners and residential electricity customers understand their rights.

This comes amid demands by Eskom and some municipalities for customers to register their solar PV and battery energy storage (BES) systems by 31 March 2026, and migrate to more expensive post-paid and time-of-use electricity tariffs.

Q: In Eskom and municipal communications, reference is made to “SSEG” systems. What does “SSEG” mean?

SSEG stands for a small-scale embedded generation system. In the context of a residential electricity customer, an SSEG system generally comprises a rooftop solar PV/BES system, or a standby petrol or diesel generator, or both. 

The purpose of an SSEG system is to reduce dependence on and the costs of Eskom or municipal electricity, and to ensure continuity of electricity supply in the event of mains power failure caused by load-shedding or distribution network outages.

Q: In some communications, reference is made to “residential solar PV/BES systems”. What is a residential solar PV/BES system, and what are the different types of residential solar PV/BES systems?

A residential solar PV/BES system generally comprises several rooftop-mounted solar photovoltaic (PV) panels, an inverter to convert the DC voltage of the solar PV panels to 50 Hz AC mains voltage, and a DC BES system connected to the inverter. 

The solar PV/BES system forms part of the customer’s electrical installation and is connected to the customer’s distribution board on the customer’s premises.

There are various types of residential solar PV/BES systems, including parallel-connected grid-tied hybrid systems, standby systems, and systems for fully off-grid applications. 

The most common residential solar PV/BES system being installed these days is the grid-tied hybrid system.

This system may be configured to either import energy from and export excess energy into the distribution network, or to import energy only from the distribution network while blocking exported energy.

Q: In some communications, reference is made to an electrical installation “behind the meter” and a solar PV/BES system connected “behind the meter”. What does this mean, and what do “behind the meter” and “in front of the meter” mean?

The main electricity meter for a premises, whether a stand-alone residence, a block of flats, or a residential estate/complex, is the property of the electricity distributor – Eskom Distribution or the relevant municipal distributor.

It is the point of connection of the customer’s electrical installation to the public distribution network. 

The boundary between the public distribution network and the customer’s electrical installation is the customer’s side of the meter. 

The public distribution network is referred to as being “in front of the meter”, and the customer’s electrical installation is referred to a being “behind the meter”.

Q: In some communications, reference is made to the “Grid Code” or the “Distribution Network Code”, or simply the “Code”. What is this, and is the Code relevant to residential electrical installations and solar PV/BES systems connected behind the meter on a customer’s premises?

The Grid Code, or the Distribution Network Code, or simply the Code, is a set of technical rules and requirements approved by the energy regulator, NERSA.

The Code governs the performance and operation of Eskom’s transmission grid and the networks of licensed electricity distributors – Eskom Distribution and municipal electricity distributors.

It also sets rules for connecting customers’ electrical installations to public electricity networks to ensure system reliability and the safety of network operators in front of the meter. 

The Code is also to ensure that the connection of a particular customer does not create disturbances outside of specified limits that may negatively impact other customers connected to the network.

These disturbances can include electromagnetic radio-frequency interference, over- or under-voltages, dips, sags, spikes, flicker, or excessive distortion of the sinusoidal supply voltage due to current harmonics.

As such, the Distribution Code is relevant to residential electrical installations and solar PV/BES systems connected behind the meter on a customer’s premises. 

The customer’s electrical installation must be technically compliant with the Code and must not compromise the safety of network operators in front of the meter. 

Furthermore, electric motors, soft starters, variable-speed drives, appliances, and all manner of electrical equipment, including solar PV/BES systems, connected behind the meter on a customer’s premises, must not create disturbances outside specified limits that may negatively impact other customers connected to the network. 

If they do, the electricity distributor may require the customer to attend to and rectify the matter, or to disconnect the offending equipment.

Q: In some communications, reference is made to the “ERA” or the “ERAA” or the “Electricity Regulation Act”. What is this? Does the Electricity Regulation Act apply to residential electrical installations and solar PV/BES systems connected behind the meter on a customer’s premises?

The ERA, or the ERAA, or the “Electricity Regulation Act”, refers to national legislation – namely the Electricity Regulation Amendment Act 38 as amended in 2024. 

The Electricity Regulation Amendment Act 38, 2024, is not applicable to technically compliant and safe SSEG systems of less than 100 kW connected behind the meter on a customer’s premises.

In general, this exemption essentially covers the vast majority of residential SSEG systems.

In particular, it covers those incorporating solar PV/BES, which are almost invariably less than 100 kW, and which must be covered by a valid Certificate of Compliance (CoC) in terms of other national legislation.

Q: In some communications, reference is made to the “OHS Act”, “EIR”, “SANS 10142-1”, “standards referenced in SANS 10142-1” and a “CoC”. What are these, and are these relevant to residential electrical installations and solar PV/BES systems connected behind the meter on a customer’s premises?

The OHS Act refers to national legislation – namely, the Occupational Health and Safety Act 85 of 1993, as amended. 

EIR refers to the Electrical Installation Regulations of the OHS Act, which have the force of law in terms of the OHS Act. 

SANS 10142-1 is a mandatory South African national technical and safety standard for low-voltage (LV) electrical installations connected behind the meter on a customer’s premises, published by the South African Bureau of Standards (SABS). 

SANS 10142-1 has the force of law by being referenced in both the EIR of the OHS Act and in compulsory specifications issued by the National Regulator of Compulsory Specifications (NRCS).

The standards referenced in SANS 10142-1 include a long list of South African National Standards / international IEC standards referenced in SANS 10142-1, which become mandatory through being referenced in the mandatory SANS 10142-1 standard. 

A CoC is a Certificate of Compliance for an LV electrical installation connected behind the meter on a customer’s premises.

It is issued by an accredited installation electrician / electrical contractor registered with the Department of Employment and Labour (DEL) in terms of the EIR of the OHS Act.

As such, the OHS Act, EIR, SANS 10142-1, standards referenced in SANS 10142-1 and CoC are the relevant national laws, regulations, mandatory technical and safety standards, and associated proof of technical and safety compliance, relevant to LV electrical installations and solar PV/BES systems connected behind the meter on a customer’s premises.

Q: In some communications, reference is made to “NRS specifications”. What are these, and are these relevant to residential electrical installations and solar PV/BES systems connected behind the meter on a customer’s premises?

National Rationalised Specifications (NRS) are a set of voluntary electricity utility (Eskom and municipal) specifications developed by the NRS Association of South Africa.

They ensure the reliability and safety of the national electricity grid and public distribution networks.

While originally voluntary, some of these specifications have been made mandatory by NERSA for licensed electricity distributors – namely, Eskom Distribution and municipal electricity distributors. 

Other NRS specifications remain voluntary and may be adopted or adapted by electricity distributors at their discretion.

It should be noted that, in general, NRS specifications are utility specifications and not South African National Standards issued following a public participation process, nor are they Compulsory Specifications issued by the NRCS.

NRS specifications are referenced in bilateral contracts, electricity supply agreements, and standard conditions of supply with electricity customers.

However, such references to NRS specifications must be aligned with the requirements of national legislation, the OHS Act, EIR, SANS 10142-1, standards referenced in SANS 10142-1, and CoC, and may not supersede these or establish a separate/parallel safety or compliance regime.

In general, NRS specifications are applicable to the networks of electricity utilities such as Eskom Distribution and municipal electricity distributors.

They are not applicable to residential electrical installations and solar PV/BES systems connected behind the meter on a customer’s premises.

Q: What is it that constitutes a technically compliant and safe electrical installation and solar PV/BES system connected behind the meter on a customer’s premises, and what constitutes lawful proof of such technical and safety compliance?

A technically compliant and safe electrical installation and solar PV/BES system connected behind the meter on a customer’s premises is one which has a valid CoC issued by an accredited installation electrician or electrical contractor registered with the DEL in terms of the OHS Act and EIR.

The CoC constitutes the only lawful proof of technical and safety compliance of an LV electrical installation and solar PV/BES system connected behind the meter on a customer’s premises.

Be wary of a sign-off by a professional engineer, technologist or technician registered with the Engineering Council of South Africa that is not an accredited electrician or electrical contractor registered with the DEL.

This does not constitute lawful proof of technical and safety compliance of an LV electrical installation and solar PV/BES system connected behind the meter on a customer’s premises.

Q: Is NERSA, Eskom, the relevant municipality or municipal electricity distributor the safety regulator for residential electrical installations and solar PV/BES systems connected behind the meter on a customer’s premises, and if not, who is the relevant Regulator for this?

No, neither NERSA, Eskom, nor the relevant municipality or municipal electricity distributor is the safety regulator for residential electrical installations and solar PV/BES systems connected behind the meter on a customer’s premises. 

The relevant safety regulator for residential electrical installations and solar PV/BES systems connected behind the meter on a customer’s premises is the Chief Inspector of the DEL.

Q: Is Eskom entitled to fine a residential customer who does not register their solar PV/BES system with Eskom before connecting it to the customer’s distribution board installed behind the meter on a customer’s premises?

In my view, as a company registered in terms of the Companies Act, Eskom has no statutory authority to fine a residential customer that does not register its solar PV/BES system with Eskom before connecting it to the customer’s distribution board, installed behind the meter on a customer’s premises.

Q: In what circumstances is Eskom or a municipal electricity distributor or network operator entitled to cut the electricity supply to a residential customer?

In certain circumstances defined in the ERA, and after following due process, Eskom or municipal electricity distributors may indeed cut electricity supply to a residential customer.

These circumstances include – 

• Failure to pay for the electricity used
• Bypassing or tampering with the electricity meter
• Fraudulent use of counterfeit prepaid electricity tokens issued by illegal “ghost vendors”
• The customer being declared insolvent by the courts
• A material breach of a lawful electricity supply agreement, connection agreement or condition of supply with the electricity distributor

However, in my view, cutting the electricity supply to a law-abiding and paying electricity customer simply for failing to register a technically compliant and safe solar PV/BES system that has a valid CoC as proof of technical and safety compliance would be overstepping the lawful authority of the electricity distributor.

Q: Why have Eskom Distribution and some municipal electricity distributors been threatening to fine or cut off electricity supply to residential customers who do not register their solar PV/BES systems by 31 March 2026? Is this a safety issue? Or what is the agenda here?

In my view, this is clearly not a safety issue if the customer has a valid CoC for the electrical installation and solar PV/BES system connected behind the meter on the customer’s premises, which is a mandatory requirement of the OHS Act and EIR. 

Under the guise of safety concerns, I believe the real agenda of Eskom Distribution and some municipal electricity distributors is to secure their revenue, protect their market share and further their own commercial interests.

This is done in two ways –

• Firstly, by imposing unnecessary registration/compliance costs and bureaucracy on residential customers to introduce barriers to the installation of solar PV/BES systems that reduce their electrical energy sales revenue. 
• Secondly, residential customers who proceed with solar PV/BES installations are then forced to migrate away from prepayment meters with no or low fixed monthly components in the tariff toward expensive post-paid smart meters and time-of-use tariffs with higher fixed monthly costs and higher energy rates, particularly in peak and standard tariff periods.

Q: Do you think that Eskom Distribution and municipal electricity distributors have any valid reasons for requiring the registration of residential solar PV/BES systems?

Eskom Distribution and municipal electricity distributors regularly cite concerns for the safety of their network operators due to solar PV/BES systems connected behind the meter on a customer’s premises. 

I do not believe that such concerns are borne out in practice. In any event, such concerns are adequately addressed by the existing mandatory requirement of a valid CoC as proof of technical and safety compliance for the customer’s electrical installation and solar PV/BES system.

In my view, additional manual registration of a residential solar PV/BES system having a valid CoC does not provide additional safety benefits to network operators in front of the meter.

Another reason regularly cited for the registration of residential solar PV/BES systems is for the System Operator to know how much solar PV/BES capacity is out there, in order to manage network performance and stability. 

In principle, I personally do not have a problem with the registration of residential solar PV/BES systems, if this is a simple administrative and information gathering process, either through completing and submitting a manual paper form, or completing an online form and uploading it to the Regulator and/or electricity distributor together with the relevant CoC.

However, in my view, the current manual registration process is inadequate, inaccurate and inappropriate for the System Operator to manage network performance and stability. 

Indeed, there are far better, more accurate and more informed alternatives to manual registration – such as satellite surveillance down to the household and street level – that can and should be used for the needs of the System Operator in this regard.

I do, however, have a problem when registration of residential solar PV/BES systems is used as the guise under which residential customers are forced to pay significant, unnecessary additional compliance costs, and are forced to migrate to expensive post-paid electricity meters and complex time-of-use tariffs with significantly higher fixed monthly costs and higher variable energy rates.

Q: What do you make of Eskom’s strategy and communications over the last year or so, and its most recent communications and threats to customers in respect of registration of residential solar PV/BES systems connected behind the meter on a customer’s premises?

I think that the strategy, messaging and threats to customers by Eskom, the Association of Municipal Electricity Utilities and some municipal electricity distributors on this matter have been misguided, confused and ultimately doomed for failure.

This is serving to alienate a significant base of law-abiding paying residential electricity customers.

Q: What is your and OUTA’s advice in respect of the registration of residential solar PV/BES installations connected behind the meter on a customer’s premises?

Our advice to homeowners and residential customers with solar PV/BES systems on their premises, or planning to install such systems, is to ensure that you use accredited and experienced installers.

Ensure that the installed system is provided with a valid CoC issued by an accredited installation electrician or electrical contractor registered with the DEL, as lawful proof of technical and safety compliance.

It is our view that a residential homeowner or electricity customer with a solar PV/BES system and a valid CoC, that is configured to block excess energy exported into the distribution network, or does not want to be compensated for energy exported into the distribution network, may choose to forgo the registration requirements of Eskom and some municipal electricity distributors, and ignore such threats.

It is further our view that where a residential homeowner or electricity customer has a solar PV/BES system with a valid CoC that is configured to both import energy from and export excess energy into the distribution network, and/or the customer wants to be compensated for the exported energy, then the solar PV/BES system should be registered with the electricity distributor.

In the above circumstances, if a law-abiding customer with a valid CoC for their electrical installation and solar PV/BES system receives a formal notice of intention by the electricity distributor to cut electricity supply, then we recommend that the customer take legal advice and oppose this.

Q: Is OUTA being “soft on safety” by supporting or recommending that residential customers may forgo registration of residential solar PV/BES with Eskom Distribution or the relevant municipal electrical distributor?

No, OUTA is certainly not soft on safety. Safety must be top of mind, both behind the meter on a customer’s premises, as well as in front of the meter for network operators. 

That is why OUTA strongly supports the mandatory statutory requirements of a valid CoC issued in terms of the OHS Act and EIR as proof of technical and safety compliance for an LV electrical installation and solar PV/BES system connected behind the meter on a customer’s premises.