Demand for solar to grow exponentially, registration and compliance

Solar is fast becoming one of the hottest selling features for properties. Given that there is no short-term solution to the Eskom energy crisis, the government too has recognised that solar and alternative energy solutions can provide a measure of relief to the national grid.

We have already seen the banks move to provide tailored solar financing products. Welcome relief has also come from Budget 2023 in the form of tax breaks for businesses and households which will take effect on the 1st of March.

Businesses can deduct 125% of the cost of wind, solar, hydropower and biomass projects in the first year with no limits on how much can be claimed, nor how big the project is. Households get a tax rebate of 25% of the cost of new solar PV panels to a maximum of R15 000. 

Cape Town's buy-back proposal for excess energy fed into the grid

The City of Cape Town is already the only metro in the country which provides one level of loadshedding relief.

Mayor Geordin Hill-Lewis has also put an extensive long-term energy security plan in place and has added a buy-back proposal for homes and businesses where excess energy can be fed back into the grid.

To enable this, it is proposed that an Advanced Metering Infrastructure (AMI) meter will need to be installed at a cost to participating households and businesses. A pilot project is currently underway and the City is looking at ways of making this more affordable for households.

Registration with the City of Cape Town

Stand-alone solar geysers and generators which are not connected to the City's electrical distribution network do not need to be registered.

All other systems, whether grid-tied or hybrid, must be registered for reasons of safety and legality, and for the City to manage electricity demand. All systems must be installed by a qualified and registered electrician who must provide a Certificate of Compliance upon completion of the installation.

Full details are available on the City of Cape Town website including how to register your system.

Certificate of Compliance when selling

In addition to the standard electrical and water clearance certificate required when selling a property, a Solar System Compliance Certificate will be required which must confirm that the system is registered on the City of Cape Town's website.

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