Money & tariffs
Is South Africa on net metering or net billing for rooftop solar?
Updated 26 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.
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