How to get cash for power

10 February 2023

The City of Cape Town’s energy team is working hard on rolling out its new cash for power initiative announced by Mayor Geordin Hill-Lewis recently. The sale of excess power by approved commercial customers, and later residential customers, could be another game-changer for Cape Town.

'In the past, commercial customers who produced excess electricity could not sell it back to the City. Now, after the City received a National Treasury exemption, businesses and residents may be paid directly for excess power produced. This is in addition to a 25c p/kWh incentive that the City availed. Neither of these two incentives are offered by any other provider in South Africa.

'The City is first focusing on commercial customers. The amount of energy that they can produce is limited by the size of their system which is limited by the size of their connection to the City grid. Therefore, they may produce as much as they can equivalent to the size of their system.

'As of 1 December 2022 the City had more than 2 600 approved grid-tied installations. The registration and authorisation process is free. However, some installers may charge customers to complete the registration process,' said the City's Mayoral Committee Member for Energy, Councillor Beverley van Reenen.

How to take part in Cape Town's cash for power initiative

Commercial customers	Residential customers
✓ Available: now in addition to the existing credit offset against monthly account.	✓ Available later in 2023 in addition to the existing credit offset against monthly account.
✓ PV system and inverter required. See this guide.	✓ PV system and inverter required. See this guide.
✓ Installers must apply to the City to authorise the system for grid connection. See this guide.	✓ Installers must apply to the City to authorise the system for grid connection. See this guide.
✓ The City does not charge an authorisation fee.	✓ The City does not charge an authorisation fee.
✓ Authorised customers will be placed on the applicable Non-Residential Small Scale Embedded Generation tariff. See here: tariff ✓ Meter changes are required where applicable.	✓ Authorised customers need to install a specialised Advance Metering Infrastructure or AMI meter. Cost is approximately R12 850. *The City is looking at how to bring the cost down for households
✓ An additional Advance Metering Infrastructure (AMI) administration fee may also be applicable. The cost will be quoted as part of the authorisation process where applicable.	✓ A monthly Advance Metering Infrastructure (AMI) administration fee will be applicable.
	✓ If you are not on the Home User tariff already, you will be moved to the Home User tariff. See: tariff *There is no new cash for power levy.
✓ Credit roll out: Immediate: The City will measure the amount of energy fed into the City grid. The credit will be reflected on the monthly municipal account: Commercial customers will be credited with 73,87c p/kWh (2022/23) plus 25c p/kWh incentive for each kWh fed into the City grid. *There is also a little used commercial tariff of 60,91 c p/kWh for customers wishing to account for the green benefit.	✓ Credit roll out: later in 2023 The City will measure the amount of energy fed into the City grid. The credit will be reflected on the monthly municipal account: Residential customers will be credited with 78,98c p/kWh (2022/23) plus 25c p/kWh incentive for each kWh fed into the City grid.
✓ Credit offset against monthly electricity account. ✓ If some credit remains after the offset, the City will pay this to the customer. Payments will only be made on amounts over R5 000 and on a monthly basis. Amounts of less than R5 000 will be held back until the total exceeds R5 000, and will then be paid.	✓ Credit offset against total monthly municipal account and all accounts linked to the same business partner number. ✓ If some credit remains after the offset, the City will pay this to the customer. Payments will only be made on amounts over R1 000. Amounts of less than R1 000 will be held back until the total exceeds R1 000, and will then be paid once per year.
✓ How much can be sold by a customer? The amount of energy that they can produce is limited by the size of their system which is limited by the size of their connection to the City grid.	✓ How much can be sold by a customer? The amount of energy that they can produce is limited by the size of their system which is limited by the size of their connection to the City grid.
✓ How to apply Visit: applicationforms to get the application forms. Submit via email.	✓ How to apply Visit: applicationforms to get the application forms. Submit via email.
For more tips and guidelines for the City metro, please see: SSEG FAQs.

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Published by:
City of Cape Town, Media Office