Eskom, South Africa's state-run electricity company, is struggling to generate and supply a steady flow of electricity to meet demand. By 2023, homes and businesses could be without power for up to 11 hours a day. Eskom has warned that load shedding will worsen further in 2024.
As a result, many South Africans are choosing to stop or reduce their dependence on the national electricity grid.
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Read: SA power outages: off-grid trend accelerates
The approaches people are taking are still evolving. Some choose to break their dependence on local governments responsible for local electricity distribution and grids. Some companies choose to add solar and battery power while maintaining municipal power for backup.
Moving away from dependence on the electricity grid presents an urgent need for clarity and support in the legal and regulatory environment. This change poses complex legal and regulatory challenges, which we discussed in a recent paper.
We investigated whether South African law allows households to generate their own electricity and disconnect their property from the grid. and, if so, whether the regulatory framework is tailored to enable and empower them to do so.
Our paper also sought to address whether advances in off-grid technologies can coexist with or are hindered by existing regulations.
It turns out that there is no national law dealing with disconnection from the national grid. Instead, local ordinances and zoning regulations indirectly address and facilitate the transition to off-grid.
Read: Standard Bank's solar loan book grows by 26%
In South Africa, local governments, or municipalities, play a key role in the provision of basic services, including electricity. The financial stability of these municipalities is highly dependent on the income they receive from selling electricity to consumers. Without it, most would fall apart.
This means that while moving to off-grid solutions may be beneficial for individuals who can afford it, abandoning dependence on the grid completely would be disastrous for society as a whole.
This would impede the ability of municipalities to provide basic services such as water and trash removal.
We also found that homeowners face uncertainty about the legal and financial implications of going off-grid. This includes questions about your obligation to pay council fees for services you no longer use.
Our research is essential to understanding and potentially reshaping the legal landscape to better accept and promote off-grid electricity solutions in South Africa.
changing landscape
South Africa is making significant progress in its transition to solar energy. This reflects the growing trend among businesses and the public to seek alternative energy solutions.
Many factories, mines, farms, businesses and individuals are now actively reducing their dependence on power company Eskom's network by integrating solar energy. This trend is driven by the desire to reduce electricity bills and the need for reliable backup during power outages.
Listen/Read: Big plans to accelerate investment in SA's solar and wind power
Companies that currently invest in their own solar power capacity often maintain a connection to the main power grid to cover periods when solar power is insufficient or unavailable.
South African energy expert Anton Eberhardt used Eskom data to highlight this important change. According to his analysis, the installed capacity of rooftop solar photovoltaic (PV) systems in South Africa more than quadrupled between March and June 2023. [from 983MW in March 2023 to 4 412MW in June 2023].
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Due to the high levels of sunlight in this country, rooftop solar energy is a popular alternative. Enjoy an average of 2,500 hours of sunshine per year.
Role of local government
The law requires Eskom to generate electricity and sell it in bulk to local authorities. Then explain it to the consumer in detail. This means that local governments are key stakeholders in consumers' transition to off-grid electricity.
Local governments have a duty to provide basic services, including electricity. But as more customers reduce their electricity usage or disconnect from the grid, they will lose a vital source of revenue.
read:
Thank goodness for private solar power, not Eskom and no daytime load shedding
Eskom believes SA has 4,400MW of rooftop solar installed.
Tax incentives for rooftop solar power generation
That is why local governments need to amend their ordinances to create regulatory mechanisms to manage such transitions. By enforcing ordinances regulating consumers' ability to generate electricity and feed it into the grid, local governments can create an environment where people who want to go off-grid can do so.
If you are considering implementing an off-grid solution, local authority consent is essential. Over the past three years, various municipalities have introduced regulations and ordinances that require the public to adhere to safety and quality guidelines. These ordinances also ensure that off-grid equipment, such as solar panels, is safe and effective.
Built-in generation
In addition, local governments require consumers who choose dual systems to comply with certain ordinances. This means you want to maintain a connection to the power grid while installing small-scale embedded power generation systems, such as solar panels. Registration of these systems is often required for regulatory compliance and safety.
This will encourage local government regulators as well as the transition to sustainable and self-sufficient power generation. Setting up these regulatory frameworks provides a structured pathway for consumers to pursue their off-grid solutions. This also aligns with broader national goals of energy security and sustainability.
Many local governments also understand the need to create an environment where households can generate their own electricity and sell surplus electricity to the national grid.
For example, in January 2023, the City of Cape Town announced incentives for consumers to sell their excess green energy to the national grid. These households can receive credits against other municipal accounts.
However, I found that the approach was inconsistent. Many councils still do not see their role as helping households transition to cleaner energy options.
Associate Professor, Northwest University School of Law, and Senior Lecturer in the Department of Public Law, Faculty of Law, University of Pretoria.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
