- OUTA says household solar systems that do not export power should not be subject to coercive registration demands.
- Unclear and shifting SSEG rules are creating uncertainty for homeowners, installers, financiers and insurers.
- Organisation warns against administrative overreach that could undermine South Africa’s rooftop solar rollout.
The Organisation Undoing Tax Abuse (OUTA) has criticised recent threats by Eskom and several municipalities to fine or disconnect households that fail to register small scale embedded generation solar systems, describing the approach as impractical, irrational and unfair.
According to OUTA, changing requirements and shifting deadlines around SSEG registration have created growing confusion and anxiety among homeowners and solar industry stakeholders. The organisation says this uncertainty is already delaying residential solar projects and discouraging investment at a time when distributed generation is critical to easing pressure on the national grid.
OUTA reports a sharp increase in public queries following communications from Eskom and municipalities such as the City of Johannesburg, which demand registration or prior approval for solar installations below 100 kilowatts that do not feed electricity back into the grid.
OUTA CEO Wayne Duvenage says the situation undermines the rights of consumers who have invested heavily in alternative energy solutions to protect themselves from rising tariffs and unreliable supply.
“People responded directly to calls from Eskom and government to reduce electricity demand,” Duvenage says. “They installed solar systems, inverters, generators and gas appliances at significant personal cost. Now they are being threatened for taking responsible steps to secure their own energy supply.”
The uncertainty is also affecting the broader solar value chain. Some financiers, insurers and installers are delaying or declining projects due to uncertainty over compliance requirements.
OUTA has cautioned financial institutions and insurers against refusing to fund or insure residential solar installations based on what it describes as unclear and frequently amended demands from Eskom and municipalities. The organisation argues that such decisions unfairly penalise compliant consumers and risk slowing the growth of the residential solar market.
Homeowners are encouraged to seek alternative finance and insurance providers where necessary, provided installations meet national safety standards and are supported by a valid Certificate of Compliance issued by a registered electrician.
Duvenage compares the situation to the administrative failures seen during the e toll rollout, warning that enforcement through threats and complex regulation often fails without public acceptance and practical implementation.
OUTA maintains that activities behind the meter on private property should not be subject to intrusive oversight, as long as installations are safe, legally compliant and customers continue to meet their contractual obligations with electricity distributors.
Under the Occupational Health and Safety Act, Electrical Installation Regulations and the national standard SANS 10142 1, residential solar installations must be certified by a qualified and accredited electrical contractor before commissioning.
OUTA believes recent letters and public statements from Eskom and some municipalities amount to coercive tactics aimed at forcing unnecessary compliance. However, the organisation notes that Eskom has recently softened its stance on disconnections and fines, suggesting growing recognition of legal and practical constraints.
OUTA says it will continue engaging with stakeholders and legal advisers to challenge what it views as unlawful and unreasonable administrative overreach, while advocating for a regulatory environment that supports safe and responsible adoption of rooftop solar across South Africa.
Author: Bryan Groenendaal
