Net Metering in the Cape Town Domestic Market

Net Metering in the Cape Town Domestic Market

Net metering has made its way to Cape Town and what a wonderful change it has in store for the domestic market! Of course, the concept of net metering is not new. It was first introduced to Cape Town in 2012 and has unfortunately not been effectively utilised since. Now, however, the city has announced an official launch of the system along with guidelines and tariffs for small scale embedded energy generators with a generation capacity of less than 1MVA.


What is Net Metering and How Does it Work?

Net metering is a system that allows households that generate their own solar power to add their excess energy to the national grid. The power that solar energy consumers export to the grid is used to supply nearby customers’ loads. Net metering provides solar energy exporters with a credit or agreed upon tariff / remuneration for their “stock”. Those involved in exporting power to the grid are called embedded generators.


What are the Benefits of Net Metering in Cape Town?

  • Consumers can reduce the amount of money that they spend on their electricity bills each year.
  • There is no need to purchase an expensive battery storage system to store excess energy – consumers can be remunerated for their excess energy, therefore absolutely no wastage occurs.
  • The national energy grid can be relieved of the demand that it experiences during peak times and this means less need for load shedding, if enough energy is exported from households to the grid.
  • It encourages consumers to become more environmentally aware and to actively participate in promoting a “green” community.
  • Energy suppliers can work towards seasonal storage, where power produced in summer can help to reduce on typically higher winter energy costs.
  • Solar systems that are used for net metering require no battery and no backup generator. Only the solar panels and an inverter are required for solar systems tied to the national grid. This means that these solar systems require no maintenance.


How to Become an Embedded Generator and Actively Involved in Net Metering

Those who want to become embedded generators need to make an application to do so. Application guidance and assistance can be provided by us, at Soventix. We are a Western Cape business that specialises in the building and operating of solar farms in sub-Saharan Africa.

For more information and advice on net metering in Cape Town and to make an application, contact us at Soventix today.



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Net Metering in the Cape Town Domestic Market