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South Africa’s Rooftop Solar Owners Can Now Earn Credits—But There’s a Catch
Households and businesses with rooftop solar in South Africa will soon be able to benefit from the long-awaited net-billing framework, which allows them to receive credits for exporting excess electricity to the grid. However, compliance regulations could complicate the process for some.
The National Energy Regulator of South Africa (Nersa) approved the net-billing framework in December 2024, paving the way for consumers to offset electricity costs. But with an Eskom compliance deadline looming in March 2026, there are key factors to consider before taking advantage of this new system.
How Net Billing Works
Under the net-billing system, solar and other renewable energy users can feed their surplus electricity back into the national grid. Instead of receiving cash payments, customers earn credits on their electricity bills, reducing their future electricity costs.
This means the grid acts as a “virtual battery”, storing excess energy that can later be used to offset power usage when the sun isn’t shining. The credits are determined by an export tariff approved by Nersa, ensuring a structured approach to compensation.
Who Is Eligible for Net Billing?
The net-billing system applies to a range of renewable energy sources, including:
- Solar (rooftop photovoltaic systems)
- Wind
- Hydropower
- Geothermal
- Biomass and biogas
- Biofuel and renewable fuel cells
To participate, households and businesses must apply through Eskom or their local municipality to ensure proper registration and compliance.
Why Net Billing Matters Now
The introduction of net billing comes at a critical time, as South Africans face rising electricity costs. Nersa recently approved a 12.7% electricity tariff increase for Eskom for the 2025/26 financial year, putting further pressure on household budgets.
In response, many consumers have turned to solar power. In fact, South Africa imported R17.5 billion worth of solar panels in 2023, following a record-breaking year of load shedding. The ability to earn credits for excess energy could make solar power even more attractive for those looking to cut costs.
The Catch: Eskom’s 2026 Compliance Deadline
While net billing offers a financial incentive for solar users, Eskom has issued a strict compliance warning. Households with grid-tied rooftop solar systems must register their systems by March 2026 or face possible penalties.
This applies to all small-scale embedded generation (SSEG) installations up to 50kW, including:
- Typical household solar setups (5–10kW systems)
- Commercial solar installations
Households that register before the deadline may qualify for exemptions from certain fees, including:
- Application fees
- Tariff conversion costs
- Connection charges
Eskom argues that unregistered systems pose risks to grid stability and the safety of maintenance workers. However, critics believe that not all rooftop solar installations should be classified as SSEGs, especially those that operate independently and do not export electricity to the grid.
Despite this debate, Eskom has made it clear that any system connected to its supply must be registered, regardless of whether it feeds power into the grid.
Another Solar Boom on the Horizon?
Despite concerns over compliance, South Africa is expected to see another surge in solar adoption as households look for ways to reduce their reliance on Eskom.
With ongoing load shedding and rising tariffs, solar remains one of the most effective ways to achieve energy security and lower electricity costs.
The net-billing framework is a step toward a more decentralized energy system, rewarding consumers who contribute to grid stability. However, ensuring that compliance measures don’t create unnecessary barriers will be key to encouraging more households to invest in renewable energy.
What South Africans with Solar Should Do Now
If you own a rooftop solar system or plan to install one, here’s what you should do:
- Apply for net billing – Register through Eskom or your local municipality to start earning electricity credits.
- Ensure compliance – If your system is grid-tied, register it with Eskom before the March 2026 deadline to avoid penalties.
- Monitor export tariffs – Stay informed about Nersa-approved rates to understand how much credit you’ll earn.
- Plan for long-term savings – With electricity prices rising, solar remains a smart investment, especially with the added benefit of net billing.
The Bottom Line
South Africa’s new net-billing system offers a financial incentive for households with rooftop solar, allowing them to offset electricity costs. However, Eskom’s strict compliance regulations could present challenges.
By registering early and understanding the requirements, solar users can maximize their savings while ensuring they meet the necessary legal and technical standards.
With electricity prices on the rise and load shedding still a reality, solar power remains one of the best solutions for energy security in South Africa.
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