SolarPowerGuide
Solar panels on roof

Net Metering and Feed-in Tariffs in South Africa

Guide to understanding how net metering and feed-in tariffs work for solar PV system owners in South Africa.

Solar installation
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1 MW
Max Size
R1.80
Avg Credit/kWh
12 mo
Credit Rollover
R0
Upfront Cost

Introduction

Net metering allows homeowners to feed surplus solar electricity into the grid and receive bill credits, while feed-in tariffs (FiT) provide cash payments for every kWh generated. Both are regulated by NERSA and implemented via municipalities or Eskom.

Eligibility

Residential and small commercial solar PV systems under 1 MW usually qualify. Registration with NERSA and municipality is required.

Qualifying Systems

  • Grid-tied (not off-grid)
  • ≤1 MW (residential/commercial)
  • NRS 097-2-1 compliant inverter
  • CoC from registered electrician

Municipal Variations

  • Cape Town: Up to 350 kVA
  • Johannesburg: Up to 1 MW
  • eThekwini: Up to 500 kW
  • Eskom: SSEG program

Application Process

Simple 3-step process — takes 4–8 weeks with a certified installer.

1

Submit System Details

Send to local utility (City Power, CoCT, etc.)

  • Single-line diagram
  • Inverter NRCS LoA
  • Panel data sheets
  • Roof plan + CoC
2

Install Bi-Directional Meter

Municipality replaces your meter (free or ~R3,500)

  • Landis+Gyr E460 or equivalent
  • Tracks import & export
  • Remote reading (smart meter)
3

Sign Agreement

Net Metering or FiT contract

  • Credit rate: R1.50–R2.50/kWh
  • Rollover: 12 months
  • Annual true-up (April)

Pro Tip:

Your SAPVIA installer handles 90% of the paperwork — you just sign.

Benefits

Offset electricity bills, improve ROI, and promote sustainable energy use.

R8,500

Avg annual credit (5 kW system)

6.5 yrs

Payback with net metering

+18%

Property value increase

Real-World Example: 8 kW System in Cape Town

Monthly Production

  • Summer: 1,200 kWh
  • Winter: 600 kWh
  • Annual: 10,500 kWh

Credits Earned

  • Export: 4,200 kWh/year
  • Credit: R1.95/kWh
  • Total: R8,190/year

2025 Municipal Credit Rates

Municipality Credit Rate (R/kWh) Rollover Meter Cost
City of Cape Town R1.95 12 months Free
City of Johannesburg R1.72 6 months R3,200
eThekwini R1.80 12 months Free
Eskom (SSEG) R1.55 No rollover R4,500

Conclusion

Understanding net metering and feed-in tariffs maximizes financial and environmental benefits of solar PV installations. With average credits of R1.80/kWh and 12-month rollover, your excess power becomes real savings.