Written By: Faith Jemosop
On 11 August 2025, the Organisation Undoing Tax Abuse (OUTA) urged South African homeowners and businesses not to proceed with registering their low-voltage rooftop solar PV systems and battery energy storage systems (BESSs), also known as small-scale embedded generation (SSEG), with Eskom or municipalities until the registration requirements are fully rationalized and justified. OUTA described current requirements as “irrational, unfair, anti-poor and discriminatory,” and says Eskom may be overstepping its regulatory authority
What Led to OUTA’s Recommendation
The Meeting with Eskom
On 8 August 2025, OUTA held a “constructive” meeting with Eskom Distribution management to discuss SSEG compliance and registration protocols. Discussions highlighted that Eskom is still addressing several issues that influence the conditions and necessity of current requirements for low-voltage SSEG systems (under 100 kW).
OUTA’s Concerns
OUTA raised objections to what it perceives as excessive demands, namely, requiring professional sign-offs by Engineering Council–registered individuals instead of electrical contractors with Department of Employment and Labour accreditations. They argue that existing safety standards under the Occupational Health and Safety Act and SANS 10142-1 already sufficiently cover solar PV and BESS installations.
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Why This Matters Now
The Regulatory Landscape
- Eskom and Municipal Requirements: Eskom and municipal authorities have been pushing for the registration of grid-tied SSEG systems, citing grid safety, regulatory compliance, and operational consistency. These rules apply even to systems that don’t export back to the grid.
- Fee Exemptions Exist: Eskom currently waives registration-related fees (application, connection, tariff conversion) for residential systems up to 50 kW until March 2026, another reason why many have been registering early .
- Industry Support for Registration: The South African Photovoltaic Industry Association (SAPVIA) emphasizes that SSEG registration is critical for safety and grid stability, and is mandatory under various regulatory frameworks .
Tensions Between Regulation and Practicality
While registration is meant to ensure safety, like preventing ‘islanding’ which can endanger field staff, it’s frequently criticized for being burdensome. Municipal processes are often slow and uneven, with high compliance costs and unclear standards that vary across regions
What OUTA Recommends and Why It Changes the Conversation
- Hold Registration for Now: Homeowners and small businesses with low-voltage SSEG installations (up to 100 kW) are advised to delay registration until Eskom can justify the need for its requirements.
- Avoid Unnecessary Costs and Barriers: OUTA criticizes registration hurdles, especially for prepayment or Homeflex users, not just for being costly, but also for disproportionately affecting lower-income households.
- Rely on Existing Safety Regulations: OUTA asserts that current safety and compliance frameworks (such as SANS codes and OHS frameworks) render additional Eskom-specific sign-offs superfluous.
- Further Stakeholder Engagement Ahead: Eskom has agreed to review the issues raised and get back to OUTA. Meanwhile, OUTA plans to engage with regulators like the Department of Employment and Labour, NERSA, and the relevant SABS working group.
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What to Watch
- Clarification & Revisions Expected
Eskom’s upcoming response may involve moderated compliance requirements or more streamlined pathways particularly for small-scale, behind-the-meter installs. - Potential Cost-Savings for Consumers
If successful, OUTA’s actions could spare homeowners and small businesses from paying for additional professional approvals that may be unnecessary under existing legal frameworks. - Legal & Regulatory Discourse Intensifies
OUTA’s framing of the current requirements as discriminatory raises the potential for legal challenges or demands for clearer legislative mandates. - Broader Impact on Grid Policy Reform
Clearer and more equitable regulations around SSEG registration could pave the way for improved integration of decentralized energy and more inclusive energy access.
