Money & tariffs
Is South Africa on net metering or net billing for rooftop solar?
Updated 27 October 2026
Answer first: South Africa’s big metros generally do not offer classic residential 1:1 net metering. Where export is allowed after SSEG registration you get net billing / an export credit at a published c/kWh that is well below what you pay to import — or you run zero-export. Design for self-use, battery shift and daytime EV charging; treat feed-in as a bonus line.
Tariffs below are the 2026/27 municipal year (from 1 July 2026) unless stated.
Plain-English definitions
| Idea | What it means | SA metro reality |
|---|---|---|
| Net metering (classic) | Export 1 kWh cancels 1 kWh of import on the bill | Rare as a pure consumer product in major metros |
| Net billing / export credit | Exports earn a published c/kWh credit; imports still billed at retail | Common where bi-directional export is allowed |
| Zero export | Inverter capped so you do not push energy out | Frequent while metering/tariff catches up — you may still must register |
Why the distinction empties your spreadsheet
If retail energy is ~R3.50–R4.70/kWh and export credit is ~R1.08–R1.85/kWh, exporting “extra” panels is a weak business case. A kWh used by the geyser heat pump, the fridge, or an EV wallbox at noon is worth the full retail rate you avoided. Full credit table and caveats: Do municipalities pay for feed-in?
2026/27 residential export credits (approx. incl. 15% VAT)
| Distributor | ≈ Export credit incl. VAT | Pattern |
|---|---|---|
| City of Cape Town (Home User SSEG) | ~152.93 c/kWh (107.98 + 25.00 incentive excl. → incl.) | Export credit + Home User charges / AMI where applicable |
| City Power (Johannesburg) | ~143.29 c/kWh (124.60 excl.) | TOU conventional required; prepaid SSEG must migrate; net-consumer rules |
| eThekwini | ~184.60 c/kWh | Plus network access charges (kVA of inverter) — model the whole bill |
| City of Tshwane | ~108.25 c/kWh | Plus Domestic SSEG fixed ~R372.60/mo incl. (NERSA RfD) |
Primary schedules: CoCT Budget 2026/27 Annexure 6; City Power Annexure A1 + NERSA RfD; Tshwane & eThekwini NERSA Reasons for Decision 2026/27. Confirm the figure on your account — July resets happen every year.
Worked credit vs self-use (illustrative)
Export 200 kWh/month at Cape Town’s ~152.93 c/kWh incl. → about R306 of credit. Use those same 200 kWh in the house (or EV) instead of buying at ~R4/kWh retail energy → about R800 avoided. The gap is why “oversizing for feed-in income” is usually the wrong brief in SA metros. Batteries shift evening imports; they do not turn thin export credits into a gold mine — do I need a battery?.
Prepaid, TOU and “am I still a net consumer?”
City Power’s embedded-generator rules require residential exporters on a TOU conventional path — prepaid customers who want to export must plan a tariff migration. Some metros insist you remain a net consumer over the billing period. Details: TOU, prepaid and EV · prepaid + solar · SSEG steps.
How to read your bill after SSEG
Once the municipality flips you onto an SSEG-capable meter and tariff, the bill usually shows at least three energy lines: kWh imported (what you still buy), kWh exported (what left the property), and a credit for those exports. Fixed or network charges still apply. Net billing means the credit rate is not the same number as the import rate — so a month with 400 kWh in and 150 kWh out is not “250 kWh net” at the retail price.
Ask your installer for a one-page bill walkthrough using your last 12 months of kWh, not a generic brochure. If the quote assumes every surplus kWh is worth the same as a peak retail block, send it back.
Self-use checklist that beats chasing credits
- Move geyser / heat-pump timers into sunny hours.
- Schedule EV wallbox “solar only” or midday windows when the car is home.
- Size battery for evening cooking and ICT, not for selling energy overnight.
- Keep export as a residual — after the loads and the battery are fed.
On 2026/27 metro credits (Cape Town ~152.93 c, City Power ~143.29 c, Tshwane ~108.25 c plus fixed, eThekwini ~184.60 c/kWh incl. VAT), each kWh you use yourself is typically worth two to three times an exported kWh. That ratio is why “oversized for feed-in” quotes are usually the wrong consumer brief in SA metros.
Edge cases people miss
- Prepaid exporters. City Power generally wants residential exporters on a conventional TOU path — plan the meter change before you assume credits will appear. See TOU / prepaid + EV.
- Net-consumer rules. Some metros expect you to remain a net importer over a billing period. Designing for 90%+ self-use keeps you inside that spirit without gaming the tariff.
- Zero-export meanwhile. You may still need SSEG registration even while the inverter is capped — registration FAQ.
Worked month (illustrative)
Home imports 550 kWh and exports 120 kWh in Cape Town after solar. Export credit ≈ 120 × R1.529 ≈ R184. If those 120 kWh had instead covered daytime laundry, pool and a few hours of EV charging at ~R4/kWh avoided, the same energy is worth about R480. The R296 gap is the real “net metering vs net billing” lesson for SA homeowners — not the dictionary definitions.
What to write on the installer brief
Paste three lines into every RFQ: (1) “Model self-use first; use my metro’s 2026/27 export credit only as residual.” (2) Your twelve-month kWh and tariff name. (3) “Show import kWh, export kWh and bill credit separately — do not net them at the retail rate.” Installers who refuse that format are selling a story you cannot audit against the municipal schedule.
Prepaid, TOU and why “net” still confuses the bill
Prepaid tokens and time-of-use plans do not magically turn export into classic net metering. On prepaid you still buy tokens at the retail inclining block or TOU rate, and any export credit (where the metro allows it) lands as a separate line or as a reduction against energy only. Fixed charges, capacity charges and token vendor mark-ups stay. A quote that “nets” export against import at the retail rate in one cell is inventing a product your tariff book does not sell.
Homeflex / Gen-offset Eskom Direct customers face a stricter rule: credits are matched period-by-period (peak, standard, off-peak) and capped at imports in that same period in the same month. Midday surplus in standard time cannot cancel winter peak imports. That is why a battery that shifts evening loads, or an EV wallbox on solar mode at noon, usually beats chasing more export kWh. Work the same logic on Cape Town, City Power, Tshwane and eThekwini credits — self-use first, residual feed-in second. See also Homeflex Gen-offset and TOU / prepaid EV charging.
When you compare quotes, demand a one-page table with: annual import kWh, export kWh, export credit at the published c/kWh, avoided retail kWh, and fixed charges unchanged. If the installer cannot separate those columns, you cannot audit the savings story against the 2026/27 schedule.
Related
Sources
- CoCT Budget 2026/27 Annexure 6 — Home User SSEG feed-in + incentive
- City Power Embedded Generator Tariff Annexure A1 2026/27
- NERSA Reasons for Decision — City of Tshwane & eThekwini FY2026/27