Is South Africa's solar energy growth hindered by outdated regulations?
Image: Pexels
South Africa's solar energy sector is growing steadily, but not nearly fast enough to keep up with demand or the worsening national energy crisis.
This is according to a 14-page GoSolr Light Paper – June 2025, that highlighted findings on solar energy in the country.
The paper reported that 137,000 homes in South Africa have already installed solar systems, with 1,000 new installations per month.
But instead of being supported and encouraged, solar users are being penalised through high fixed fees, forced time-of-use tariffs, and inconsistent municipal regulations.
'We're still facing an energy crisis — Eskom can't produce all we need. Yet instead of encouraging solar, the system is actively placing hurdles in people's way,' the report warns.
One of the key issues raised is the tariff structures imposed by certain municipalities. This is most notable in Johannesburg. While prepaid customers in Joburg pay a fixed monthly fee of R423, solar users on postpaid systems are being forced onto time-of-use billing with fixed fees as high as R1,615 per month, and no real ability to feed power back into the grid.
Cape Town allows prepaid solar users to remain on simpler billing plans and offers a feed-in tariff of R1.16/kWh, plus an incentive of R0.29/kWh.
The paper outlined how solar installation rules vary across municipalities. It noted that national requirements demand certified electricians and engineer sign-offs, but many municipalities go further, requiring extra application fees, tariff changes, and meter upgrades.
'The result is a complex, fragmented, and expensive process that deters many households and small businesses from going solar,' says GoSolr.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad Loading
Even with Eskom waiving solar application fees until March 2026, the paper argues this must become permanent, and be backed by a single national policy framework to simplify compliance.
South Africa's Energy Availability Factor (EAF) from Eskom remains low at 57.3%, far below the 70% target — raising fears of worsening load shedding during winter. Yet instead of scaling solar as a relief valve, the country is bogged down by policy gridlock.
'We are over-regulated and underperforming,' the paper states. 'It's time to stop faffing around with regulations and start doing.'
GoSolr proposes five urgent actions:
Free consumer tariff choice – no forced billing models.
Review and reduce import tariffs for solar components.
Implement a national solar framework that streamlines installation rules.
Scrap excessive registration/compliance costs.
Allow all producers — large and small — to feed energy into the grid.
The findings were publicised after Eskom strongly rejected false claims circulating online about imminent stage 4 and stage 6 loadshedding from July 6 until July 20.
The power utility stated the country's power system remains stable with loadshedding suspended since 10pm on 15 May 2025.
"The Winter Outlook, published on 5 May 2025, covering the period ending 31 August 2025, remains valid. It indicates that loadshedding will not be necessary if unplanned outages stay below 13 000MW. If outages rise to 15 000MW, loadshedding would be limited to a maximum of 21 days out of 153 days and restricted to Stage 2. There are no planned outages of this scale. Misinformation causes unnecessary alarm. Stay informed—trust only official Eskom updates on our official platforms," the power utility said.
IOL NEWS
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Maverick
an hour ago
- Daily Maverick
City Power-Eskom dispute ends, but deeper cracks in SA's electricity distribution sector have been exposed
Though the deal between City Power and Eskom may have kept the lights on in Johannesburg, the real work of modernising Eskom and municipal electricity metering and billing systems has only just begun. A high-stakes power play between Johannesburg's electricity distributor, City Power, and Eskom Distribution has reached a fragile settlement, ending a four-year, R4.9-billion dispute that has laid bare critical failings in South Africa's electricity distribution industry. At the centre of the dispute was City Power's claim that Eskom had significantly overbilled it for bulk electricity supplied between July 2020 and September 2024. The dispute, which escalated into a protracted financial and technical standoff, led to an independent investigation and report by the South African National Energy Development Institute (Sanedi) ordered by Minister of Electricity Kgosientsho Ramokgopa. City Power accused Eskom of overbilling amounting to R4.47-billion for electricity supplied at multiple intake points. Further claims included R323-million in alleged overcharges where Eskom estimations were said to have failed to factor in the effects of loadshedding, and another R91-million as a result of incorrect estimations for electricity supplied at intake points that lacked operational metering infrastructure. Eskom rejected the allegations and insisted that 42 of the 49 intake points in Johannesburg were billed based on actual meter readings. Eskom further maintained that estimates were used only where vandalism or theft had compromised metering systems, and accused City Power of relying on incorrectly configured or missing check metering systems, and City Power's seriously flawed 'mock billing' practices. The Sanedi report, finalised in January 2025 and now in the public domain courtesy of the Organisation Undoing Tax Abuse (Outa) following an application in terms of the Promotion of Access to Information Act, has delivered a damning analysis, particularly in respect of City Power's main claim, but also in respect of Eskom's estimating practices. The findings The Sanedi report supported Eskom's assertions that City Power's own check metering and mock billing practices were marred by inconsistent meter configurations, incorrect meter placements and gaps in data management – thus undermining the credibility and validity of the major portion of City Power's claims. While Eskom's meters and associated billing were found to be generally accurate, Sanedi concluded that where estimations were unavoidable, Eskom relied upon its own internal estimating practices, rather than those of National Rationalised Specification (NRS) standards, which are jointly prepared and agreed to by both Eskom and municipal electricity distributors. Importantly, when applying NRS 047-compliant estimation methods, Sanedi found that City Power had, in fact, been underbilled by Eskom by about 412GWh across the six largest metered intake sites. This finding completely undermined and refuted a major portion of City Power's claim against Eskom. But the investigation also found that Eskom's internal processes of metering estimates fell short of the requirements of NRS standards and the distribution metering code, which require consultation by Eskom with the customer (City Power) during the estimation processes. The impact of load shedding was found to be another blind spot in Eskom's estimating model. The recommendations The Sanedi report has called for significant reforms. City Power was advised to upgrade its check metering infrastructure and ensure alignment with the distribution metering code. Eskom, in turn, was urged to revise its estimation protocols in line with electricity distribution industry standards, and to improve the transparency and timelines of its processes for notified maximum demand applications. Sanedi further required that adjustments be made by Eskom to account for average load reductions of 2.74% in 2022 and 10.85% in 2023 during the hours of load shedding, based on analysis across affected substations. These adjustments, the report argued, should be standardised and factored into estimating methodologies during future load shedding periods. Perhaps most significantly, Sanedi called on the National Energy Regulator of South Africa (Nersa) to update metering standards and estimating procedures to reflect the realities of load shedding, and to ensure transparency, consultation and firm timelines by electricity distributors when estimating metering data at large supply points, and in applications for increases in notified maximum demand. The settlement After the finalisation of the Sanedi report, the parties reached a financial settlement of the dispute. City Power agreed to keep its current account up to date and to settle its R3.2-billion bulk supply arrears with Eskom over the next four years. For its part, Eskom agreed to waive R830-million in claims for surpassing notified maximum demand, interest and penalties. Eskom has also indicated its willingness to assist City Power with extended payment terms for the months of June, July and August when high winter electricity prices are in effect. Sources also suggest that the settlement included rectification of metering infrastructure at key substations and a new protocol for data sharing and dispute resolution. Though the deal has been publicly framed as a success, the underlying issues remain far from resolved. Many municipalities have reached settlement agreements with Eskom Distribution, and several have promptly defaulted again within months. It remains to be seen whether City Power and City of Johannesburg are able to meet their settlement commitments while keeping their current account with Eskom up to date. The implications The implications of this saga stretch well beyond Johannesburg and City Power. Across South Africa, municipalities owe Eskom more than R100-billion – much of it clouded in similar disputes over metering integrity, billing transparency and infrastructure decay. This dispute has exposed a critical need for independent oversight of Eskom and municipal billing processes, and has prompted calls for a nationwide audit of distribution and metering systems. Perhaps the most important lesson is the urgent need for a functional, standardised and enforceable framework governing the relationship between Eskom and its municipal distributors. Without this, South Africa risks deepening the cycle of financial instability, technical dysfunction and public distrust that has long plagued its electricity distribution network. Conclusion While this metering and billing dispute is now resolved, the technical and institutional weaknesses remain. The settlement may have kept the lights in Johannesburg on – but the real work of modernising Eskom and municipal electricity metering and billing systems has only just begun. For now, the City Power – Eskom saga has ended with somewhat frosty handshakes and gritted teeth behind forced smiles. But unless systemic reforms are enacted, similar disputes may soon flare up in Tshwane, Ekurhuleni, eThekwini, Mangaung, Nelson Mandela Bay and beyond – each one delivering another blow to an already fragile electricity distribution industry. DM Chris Yelland is managing director of EE Business Intelligence.
IOL News
11 hours ago
- IOL News
Durban Chamber of Commerce raises alarm over eThekwini Municipality's R1 billion in unspent infrastructure grants
The Durban Chamber of Commerce and Industry NPC has expressed deep concern about the unspent grants earmarked for infrastructure upgrades, amounting to over R1 billion. It stated that with eThekwini Municipality's ongoing service delivery challenges, this not only reflects poor governance within the municipality but also represents significant missed opportunities to create a more enabling environment for businesses to thrive. The Mercury recently reported that there have been concerns that close to a billion rand in grants have not been spent. While the mayor's office expressed general concerns about under-expenditure, it stated that it intends to spend 95% of the grants. The chamber said Durban's water and sanitation system is under severe strain, with much of its infrastructure, such as pipelines and treatment facilities, ageing and deteriorating. 'The growing water demand continues to place additional pressure on the system. Furthermore, poor management of the City's stormwater networks is increasing the City's vulnerability to flooding. These challenges have become a serious concern for businesses, many of which are experiencing operational downtime and have been forced to explore alternative options to sustain their operations,' said the chamber in a statement. It noted that despite these challenges and the urgent need to upgrade deteriorating infrastructure, the capital budget is on a declining trajectory. 'According to the Durban EDGE (2025), National Treasury guidelines indicate that 20% of the total budget should be allocated to capital infrastructure expenditure. However, in our current budget, only 9.95% has been allocated for capital expenditure, which is far below the recommended threshold. 'As organised business, we recognise that infrastructure plays a critical role in sustaining business confidence, fostering rapid economic growth, and investment in Durban,' it said. The statement outlined that the Durban Chamber of Commerce and Industry NPC believes efforts should be focused on: Improving the regulatory framework Regular maintenance, refurbishment, and replacement of critical infrastructure Increasing infrastructure investment through public-private partnerships Reducing non-revenue water 'The Durban Chamber of Commerce and Industry NPC, together with the private sector, is committed to working with the City to address the infrastructure challenges. We have submitted a proposal to the City to address these challenges through a PPP model but have not received any commitment to date,' it said. 'There needs to be accountability and transparency. Failing to spend allocated grants efficiently has the potential to lead to further deterioration of infrastructure, which will have far-reaching implications for our economy. Therefore, we urge eThekwini Municipality to review its bureaucratic systems, fast-track priority infrastructure projects urgently, and actively involve the business sector to ensure that available funding is utilised efficiently and effectively for the benefit of the City and businesses,' it concluded THE MERCURY
The Citizen
13 hours ago
- The Citizen
Eskom spends over R5bn on diesel to keep the lights on
Eskom said while load shedding remains suspended, electricity demand is rising. Eskom says it has spent R5.26 billion on fuel for its fleet of open-cycle gas turbines (OCGT), generating 892.42GWh to keep the lights on so far this financial year. This is higher than the 485.39GWh generated during the same period last year. The utility stated that the power system remains stable and continues to demonstrate resilience in meeting winter demand. System constraints Eskom added that while occasional system constraints do arise, they are effectively managed, with sufficient emergency reserves being deployed during morning and evening peak periods. Eskom spokesperson Daphne Mokwena said the year-to-date load factor for OGCT has marginally increased to 10.78%, reflecting a 0.08% increase compared to the previous week. 'This figure remains higher than the 5.87% recorded during the same period last year. Although diesel usage is within budget, it is expected to decline as more units return to service, increasing available generation capacity.' ALSO READ: Eskom gets boost as Kusile's final unit adds 800MW to grid Load shedding Mokwena stated that Eskom's winter outlook, covering the period from 5 May to 31 August, has not changed. 'It indicates that load shedding will not be necessary if unplanned outages stay below 13 000MW. If outages rise to 15 000MW, load shedding would be limited to a maximum of 21 days out of 153 days and restricted to stage 2.' According to Eskom, for the week of 4 to 10 July 2025, unplanned outages averaged 13 628MW – a decrease from the previous week, but 1 525MW higher than the same period last year and 628MW above the base case estimate of 13 000MW. Electricity demand Mokwena said that while load shedding remains suspended, electricity demand is rising during the winter period. 'Eskom urges the public to avoid illegal connections and energy theft. These activities often lead to transformer overloads, equipment failures, and in some cases, explosions and extended outages, prompting the need for load reduction to protect the network.' Last week, Eskom hammered another nail in the load shedding coffin, announcing that Unit 4 of the Medupi Power Station was successfully returned to service eight months ahead of its original schedule. This has added 800MW to the national grid. ALSO READ: Eskom takes action after breach of online vending system
