The National Energy Regulator of South Africa (Nersa) has affirmed that all small-scale embedded generation (SSEG) systems connected to the electricity grid, regardless of whether they export power, must be registered with the relevant distributor, a stance that clashes with recent guidance from the Organisation Undoing Tax Abuse (Outa).
The dispute centers on the registration requirements for rooftop solar installations, particularly those that do not feed electricity back into the grid. Outa last week urged residents to delay registering their systems, arguing that threats of fines or disconnections from Eskom and municipalities were “impractical, irrational, and unfair.”
Nersa responded on February 2, 2026, stating that Outa’s recommendations were “misguided.” According to Nersa, the requirement to register is determined by the presence of a grid connection and the installed capacity of the system, not by whether electricity is exported. Systems under 100kW with a grid connection must register with the distributor, while those 100kW or higher register directly with Nersa. Systems entirely off-grid are exempt.
Eskom has been actively campaigning to simplify compliance with registration requirements, particularly for residential customers. As of January 14, 2026, the utility is waiving registration and connection fees of up to R10,000, including the cost of a smart meter, for household systems up to 50kVA until March 31, 2026. Since October 1, 2025, Eskom has allowed residential customers to have their systems signed off by a Department of Employment and Labour (DoEL) registered person, removing the previous requirement for an Engineering Council of South Africa (ECSA) registered professional.
The move to simplify compliance follows a review of safety requirements and anticipates changes to wiring standards from the South African Bureau of Standards (SABS). Eskom is collaborating with organizations including the SABS, DoEL, Association of Municipal Electricity Utilities – Southern Africa (AMEU), South African Photovoltaic Industry Association (SAPVIA), Electrical Conformance Board (ECB), and Electrical Contractors Association of South Africa (ECA) to harmonize SSEG rules nationwide.
Despite Eskom’s efforts to ease the process, Outa maintains that the registration demands are premature and create unnecessary anxiety for homeowners. The organization has reported a surge in inquiries from concerned citizens following communications from Eskom and municipalities demanding registration or prior approval.
Nersa’s position underscores the importance of registration for maintaining the safety, reliability, and efficiency of the national electricity system. The regulator has not responded to specific concerns raised by Outa regarding the practicality of enforcement or the clarity of the requirements.
