New tax for people with solar panels on their roofs in South Africa

OUTA CEO Wayne Duvenage said many towns and cities are preparing to implement fees, which are essentially a tax, on people with solar panels on their roofs.

OUTA has been challenging Eskom and municipalities over what it calls irrational, unfair, and coercive tactics targeting homeowners who installed rooftop solar. 

The organisation opposes threats of mandatory registration, exorbitant fixed levies, and discriminatory tariff structures.

It explained that residents and businesses did not install solar out of convenience. They responded to unreliable electricity supply and rising tariffs.

However, despite the government encouraging people to install solar and battery backup systems, it now wants to punish them.

Duvenage told State of the Nation that they are opposing this development. “It is irrational, and we now have to fight the solar taxes that are going to come,” he said.

“They ask you to go off-grid to reduce pressure on the grid, they incentivise you to do so, and then they start charging you fees. This is happening in various municipalities.”

He said that in one town, residents with solar installations who sell their houses are forced to disconnect the system.

“The new owner then has to first get permission and pay registration fees to reconnect it. It’s absolutely absurd,” he said.

He explained that this is what happens when you have people running towns and cities who just feel they can and have the power to do so.

“This is the executive power given to municipal mayors and municipal councils. So, we have to go and challenge that in every town and city,” he said.

City wants to charge a monthly levy to households with solar panels

The Emfuleni Local Municipality, which includes Vanderbijlpark and Vereeniging, is a good example of what Duvenage is warning about.

The municipality wants to implement an application fee and a monthly levy on households with solar panels.

During the latest council meeting, the council approved, in principle, a proposal to generate revenue from solar power installation.

It wants to charge an application fee of approximately R2,400 when a resident applies to install solar panels and connect them to the power grid.

In addition, these residents will have to pay a monthly levy of R463 to generate their own reliable electricity.

Freedom Front Plus councillor Gerda Senekal said they will oppose the new application fee and monthly levy.

“This levy and application fee are nothing but a desperate attempt by Emfuleni to generate revenue,” said Senekal.

She added that residents will have the opportunity to oppose this application fee and levy when the process is opened for public participation in the near future.

OUTA is fighting against registration and fines

OUTA slated threats by Eskom and municipalities about fining or disconnecting electricity supply to households who fail to register their solar installations.

It said that the threats linked to registering small-scale embedded generation (SSEG) systems (Solar PV) are impractical, irrational and unfair.

“This has created unnecessary uncertainty, confusion and anxiety for households, installation companies and other industry stakeholders,” it said.

“What is at stake here are the rights of citizens who have invested to protect themselves against escalating electricity prices and an unreliable power supply,” said Duvenage.

It argued that what a homeowner does behind the meter on their own property is no business of the electricity supplier.

This is provided that the installation is safe and compliant with national legislation, and that the customer continues to pay for electricity.

“If your solar installation has a valid CoC, which addresses the safety concerns cited by Eskom and Municipalities, you are doing what is required of you,” he said.

It said that the intimidating letters sent to consumers and public announcements by Eskom and some municipalities amount to coercive tactics.