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Solar Feed-In Tariff Delays Frustrate Johannesburg and Tshwane Residents

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The much-anticipated solar feed-in tariff programmes for residential small-scale embedded generation (SSEG) in Johannesburg and Tshwane have yet to materialize, leaving solar users frustrated and disillusioned. Despite multiple announcements over the years, both cities remain silent on when residents will be compensated for feeding excess electricity into the grid.

Johannesburg’s Long-Awaited Feed-In Programme

In July 2023, the City of Johannesburg (CoJ) announced plans to implement a feed-in tariff of approximately R0.86 per kWh (excluding VAT). By November 2023, City Power called on residents to register their solar systems but provided no timeline for when the tariff would take effect.

More than a year later, there has been no clarity. While City Power updated its SSEG policy in October 2024, it failed to address feed-in tariffs. Registration for the programme now requires switching to a time-of-use (ToU) tariff with steep fixed charges—R1,094 for the monthly capacity charge and a R271 service fee—without confirmation of feed-in compensation.

Tshwane: Tariff Announced, Programme Silent

Tshwane’s situation is similarly ambiguous. In March 2024, the City of Tshwane (CoT) announced a feed-in tariff of R0.70 per kWh, later revised to R0.12 per kWh on its website. While the city confirmed plans to improve the tariff and implement it by July 2024, residents who registered have yet to receive feedback.

There is also no clarity on whether feed-in tariffs would result in cash payouts, municipal bill reductions, or energy consumption credits. This lack of communication has left Tshwane solar users in limbo.

The Western Cape Leads the Way

In contrast, the City of Cape Town has been a trailblazer in implementing solar feed-in programmes. By April 2024, over 1,000 households were selling electricity to the metro, showcasing the potential for municipal solar policies to bolster renewable energy adoption.

Lost Opportunities for Municipalities

Techsolutions CEO Eon de Koker highlighted the missed opportunities for municipalities not implementing feed-in tariffs. With Johannesburg and Tshwane collectively hosting over 400MW and 300MW of commercial solar capacity respectively, municipalities could reduce reliance on Eskom by sourcing electricity locally.

The South African Local Government Association (Salga) reported that only 26% of municipal electricity distributors had approved and implemented feed-in tariffs. Expanding these programmes could significantly benefit municipalities by providing cost-effective energy and reducing grid pressure.

Until Johannesburg and Tshwane resolve their SSEG policy uncertainties, residents remain hesitant to invest in grid-tied systems, stalling progress in renewable energy adoption in Gauteng’s largest metros.

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