Knowledge base

Step-by-step guide on how to sell excess energy back to the City of Cape Town

Are you a Cape Town resident with a grid-tied solar PV system, and wondering what to do with the surplus electricity it generates? Well the City of Cape Town has launched an initiative allowing residents like you to sell excess electricity back to the grid and earn credits or cash payouts through the Cash for Power program. Continue reading to see if you qualify and how to apply.

How to apply for the programme?

Are you a resident with surplus electricity generated by your grid-tied solar PV system?
Wondering how to sell it back to the City and benefit from it? Here’s a step-by-step guide on how to apply:

  1. Install a City-approved grid-tied solar PV system: Ensure that your solar PV system includes a City-approved inverter. Installers must seek authorization from the City before installing the system to ensure compliance with grid connection requirements.
  2. Installation of an AMI meter: Once your solar PV system is installed, the City will install an Advanced Metering Infrastructure (AMI) meter at the relevant SSEG Feed-in Tariff rate. This meter will accurately measure the excess electricity fed into the grid.
  3. Transition to Home User tariff: As a participant in the program, you’ll transition to or remain on the Home User tariff. Any surplus electricity fed into the grid will be credited at the SSEG Feed-in tariff rate, reducing your monthly municipal account.
  4. Monthly crediting of excess electricity: The electricity you feed into the grid will be measured and credited to your monthly municipal account at the SSEG Feed-in tariff rate, currently at 87c/kWh plus a 25c/kWh incentive. This credit will offset your monthly municipal account charges.
  5. Cash for Power program: If you have remaining credit after offsetting your municipal account charges, you’ll be eligible for cash payouts once the accumulated credit exceeds R1000. Payments are held until the credit reaches this threshold and are made annually. To apply for the Cash for Power program, submit a written expression of interest via email by March 8, 2024. Submissions received after this date will be considered for the next round.

By following these steps, you can effectively sell surplus SSEG electricity back to the City and benefit from it while contributing to sustainable energy practices. Don’t miss out on this opportunity to make a positive impact and potentially earn additional income from your solar investment.

To start the process visit the City of Cape Town to apply.

What is the compensation offered by the City?

Consumers who participate in the Cash for Power Programme can receive compensation for their contribution. Initially, their municipal bill will be credited, and once it reaches zero, the City will proceed to provide cash payments to residents.

The approved feed-in tariff stands at 87c/kWh, as approved by the National Energy Regulator of South Africa. Additionally, the City provides customers with an extra incentive of 25c/kWh.

Till when can you register?

Cape Town residents interested in selling excess power back to the City can currently sign up for the first round of this programme until March 8th.

Although the first round of registrations closes on 8 March, there will be other rounds later in the year, as announced by the mayor of Cape Town Geordin Hill-Lewis.

Click the button below for more information and to register for the Cash for Power Programme:

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