Does your home solar panel system need registration? Nersa clarifies off-grid vs grid-tied rules

The National Energy Regulator of South Africa has clarified which residential solar and other small-scale embedded generation (SSEG) installations need to be registered with local municipalities or Eskom.

In a statement, Nersa said it is providing clarity after comments made by civil action group Organisation Undoing Tax Abuse (Outa).

In a recent statement, Outa had suggested that residential solar panel users should not rush to register their solar panel systems, citing concerns with unclear registration requirements. 

Nersa said that according to the Electricity Regulation Act of 2006 (as amended), read with the Exemption and Registration Notice, the requirement to register an embedded generation facility is determined by whether the installation has a point of connection to the electricity grid and its installed capacity, and not by whether electricity is exported to the grid or consumed on site.

It therefore said  that:

• Small-scale embedded generation facilities with an installed capacity of 100kW or lessand with a point of connection to the electricity grid are required to register with therelevant distributor, being Eskom or the applicable licensed municipality; and
• Embedded generation facilities with an installed capacity of more than 100 kW and apoint of connection to the grid are required to register directly with Nersa.

It added that embedded generation facilities without a point of connection to the electricity grid are exempt from registration requirements.

“These regulatory requirements exist to support the safe, reliable and efficient operation of the electricity system, including compliance with applicable technical standards, system planning and network protection.”

Nersa added that having a Certificate of Compliance does not exempt a system from being registered with the relevant authority.

“Registration serves a distinct regulatory purpose and does not duplicate safety certification processes. Nersa emphasises that registration is not intended to discourage the uptake of renewable energy technologies, but rather to ensure that the integration of embedded generation occurs in a manner that protects the integrity of the electricity network and the interests of all electricity users.”

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