Eskom has extended its solar sweetener for residential systems under 100 kilovolt-amperes (kVA), but registration costs may still keep homeowners away, even as power prices rise.
Less than 10% of affected households have registered their rooftop solar systems despite Eskom’s R10 000 assistance offer, even as electricity tariffs climb well above inflation.
Civic body, the Organisation Undoing Tax Abuse (OUTA), has warned the costs involved will push more people off the grid entirely, while First National Bank (FNB) says clarity is needed over regulatory requirements.
Previously set to expire at the end of this month, the power utility now says its support will be available until the end of the ninth month of the year.
At the same time, it is set to offer residential customers – who typically have systems of under 50kW – a new prepaid option if they want to install a rooftop solar system while remaining on prepaid metering.
“Customers may retain their existing setup or, where required, have a free smart meter installed, and still qualify for the cost waiver for systems of up to 50kW. The option is currently being tested, with the intent to proceed to immediate broader rollout once initial implementation requirements are confirmed,” Eskom says in a statement released late last night.
Solar standoff
OUTA has said, despite growing living costs, that Eskom’s move will backfire because of the cost associated with registering units. Independent energy expert Chris Yelland has also noted that less than 10% of affected households have registered.
The state-owned electricity provider’s rules affect homeowners who have installed small-scale embedded generation, which generate less than 100kW of real power – equivalent to about 125kVA in capacity.
Eskom says most residential systems are under 50kVA. A 50kVA system is typically sufficient to power a farmhouse with pumps and refrigeration, or a small office park unit, with enough capacity to run multiple appliances at the same time.
OUTA lawyer and executive director Stephanie Fick previously told ITWeb that her view “is that this attitude will force more people off the grid, which will mean even less money for Eskom and municipalities”.
Kival Singh, head of sustainability and ESG solutions at FNB, says there is “clearly” interest in renewable energy. Yet, “what continues to hold people back is affordability” when it comes to financing, he adds.
“At the same time, evolving regulations and shifting requirements add another layer of complexity for households. Until there is greater clarity, many consumers may remain cautious, and without addressing these barriers, solar adoption risks remaining uneven and inaccessible,” says Singh.
Fick says Eskom is also using the unlawful threat of cutoff, and in some cases forcing customers away from prepaid to postpaid metering with high monthly fixed charges.
Legal requirement
OUTA also argues that Eskom has no legal standing to enforce registration because these installations happen “behind the meter” – between the distribution board and plug points.
Eskom says in a statement that national regulations require all systems under 100kW and connected to the electricity network, including a rooftop solar system, to be registered with the customer’s electricity supplier, which is either Eskom or the local municipality.
“Registration helps ensure these installations are known, connected safely and integrated responsibly into the electricity network,” it says.
The National Energy Regulator of South Africa (NERSA) has also emphasised that registration is not intended to discourage solar installations but to ensure safe and compliant connections.
Eskom adds that it remains committed to helping customers connect solar systems safely.
Tough environment
FNB says the reason there is growing interest in solar is because of the backdrop of steadily rising electricity costs, which continue to place pressure on household budgets.
Eskom-supplied electricity tariffs increased by around 12.7% in the 2024/25 financial year, with further hikes in 2025. This has pushed residential electricity prices well above inflation and significantly higher than the African household average.
Inflation came in at 3% in February – exactly in line with the South African Reserve Bank’s (SARB’s) target.
Yesterday afternoon, SARB governor Lesetja Kganyago said inflation is set to reach around 4% in the second quarter, with fuel inflation over 18% because of spiking oil prices due to the ongoing Middle East war.
The bank has modelled two scenarios depending on the length of the war, with the worst-case scenario seeing the increase in the consumer price index moving up to levels last seen in November 2024, at 5%.
NERSA has also approved additional tariff increases due to previous miscalculations, resulting in average electricity prices rising by 18.36% over two years.
“The move towards energy resilience is increasingly driven by financial necessity,” says FNB.
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