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.
