New Electricity Scheme – In a bold step towards a greener and more energy-efficient future, Cape Town has launched a landmark electricity rebate scheme that promises significant savings for solar-powered households. Starting 20 July 2025, eligible residents with rooftop solar systems will see their monthly electricity bills drop dramatically, thanks to new incentives announced by the City of Cape Town. This initiative arrives amid mounting pressure to reduce dependence on Eskom’s national grid and follows a surge in solar panel installations across South Africa. As load-shedding continues to frustrate households and businesses alike, Cape Town’s proactive energy policy is being hailed as a potential game-changer. The scheme forms part of the broader Energy Strategy 2025, which aims to make Cape Town more self-reliant through decentralised and renewable energy systems. With the cost of electricity from Eskom increasing by 12.7% in July, households with solar energy systems stand to save up to 30% on their utility bills under this new rebate structure. This article explains the scheme in full detail—who qualifies, how much rebate you can expect, how to apply, and what it means for the future of power consumption in Cape Town.
Who Qualifies for Cape Town’s New Electricity Scheme?
From 20 July, the new rebate system will automatically apply to approved solar-connected homes. Here’s who qualifies:
- Residential homes with approved grid-tied rooftop solar installations
- Homes with a valid Small-Scale Embedded Generation (SSEG) registration
- Households using prepaid or post-paid municipal electricity meters
- Properties located within Cape Town metro boundaries
- Properties not in arrears on municipal accounts
- Solar systems with a generation capacity under 1 MW
- Participants who agree to feed excess electricity back to the grid
Additional Criteria for Eligibility of New Electricity Scheme
While general requirements are simple, a few technical and administrative conditions must be met:
- A Certificate of Compliance (CoC) for the solar system must be submitted
- The solar PV system must include an inverter that meets city specifications
- Residents must use a bi-directional meter capable of measuring feed-in units
- The system must be registered with the city under NRS 097-2-1 guidelines
How Much Will You Save with the New Electricity Scheme?
The city has introduced a detailed rate structure that outlines the exact rebate depending on usage and feed-in levels. Here’s what you need to know:
| Category | Old Rate per kWh | New Rebate Rate | Net Savings per Month | Conditions |
|---|---|---|---|---|
| Feed-in (Net Surplus) | R0.00 | R1.35/kWh | Up to R550 | Max rebate of 600 kWh/month |
| Grid-Usage (Solar Homes) | R2.21/kWh | R1.55/kWh | Approx. 30% lower bill | For approved SSEG homes |
| Fixed Service Charge | R215 | Waived | Full waiver | For solar users only |
| Prepaid User Discount | NA | 10% credit | Varies per unit | Automatically applied |
| Installation Subsidy | NA | Up to R4,500 | One-time grant | For new installations |
| Bulk Usage Homes (5kW+) | R2.60/kWh | R1.90/kWh | Substantial savings | Must export minimum 100 kWh |
| Battery Storage Add-on | NA | R0.50/kWh extra | Battery owners get more | Only with certified batteries |
Monthly Example Calculations for New Electricity Scheme
If a typical home consumes 500 kWh/month and feeds 300 kWh to the grid:
- Grid consumption cost (200 kWh @ R1.55) = R310
- Feed-in credit (300 kWh @ R1.35) = R405
- Net payable = R0 + R95 credit to carry forward
How to Apply for the Cape Town Solar Rebate?
To benefit from this rebate, residents need to complete a few simple steps. Most existing users will be auto-enrolled, but here’s the full application flow:
- Submit SSEG registration form online via the City of Cape Town portal
- Attach your system’s Certificate of Compliance (CoC)
- Install a bi-directional prepaid or smart meter via city-authorised vendors
- Sign the “Feed-in Agreement” with the City’s Energy Department
- Submit bank details for rebate deposits if applicable
- Await inspection and system approval within 10 working days
Timeline and Processing
| Step | Processing Time |
|---|---|
| Application Submission | Instant (Online) |
| Document Verification | 3–5 Working Days |
| Meter Installation | 7–14 Days |
| Final Approval & Activation | 2–3 Days |
| Rebate Reflected on Next Bill | Within 1 Month |
Why the City Is Pushing This Electricity Scheme Now
The city is determined to reduce dependency on Eskom and combat load-shedding through decentralised power sources. Here’s why this move matters:
- Encourages rooftop solar adoption across all income groups
- Reduces grid pressure during peak hours
- Lowers energy cost burden on middle-class and lower-income households
- Promotes energy self-reliance in the face of Eskom instability
- Improves city-wide sustainability and carbon emissions goals
Strategic Goals of Cape Town Energy 2025 Plan
- Add 500MW of renewable capacity by 2027
- Move 40% of residential homes to SSEG systems by 2030
- Achieve 60% reduction in blackout frequency by 2026
- Develop incentives for battery storage systems
- Reduce municipal electricity purchase from Eskom by 30% by 2028
Challenges, Limitations & Cautions for Homeowners
While the scheme is revolutionary, not every household can immediately benefit. Be aware of the following:
- Installation costs remain high despite rebates
- Some areas still lack infrastructure for bi-directional metering
- Theft and tampering of meters remain a challenge
- Feed-in tariffs may change in future based on regulatory updates
- Only certified technicians must install your solar system to qualify
Departmental Warnings & Consumer Protection Notes
- Rebates will not apply if documentation is missing or falsified
- DIY or uncertified installations are strictly disqualified
- Changes to system capacity must be reported within 14 days
- Rebate rates are valid until June 2026 and subject to revision
- Any misuse or net metering fraud will lead to disconnection
Government & Departmental Contacts for Support
For any queries or application support, contact the following departments:
| Department | Contact Person | Phone Number | Email Address |
|---|---|---|---|
| City of Cape Town – Energy Dept | Ms. N. Plaatjies | 0860 103 089 | [email protected] |
| SSEG Registration Support | Mr. A. Daniels | 021 400 3861 | [email protected] |
| Metering and Tariff Enquiries | Ms. T. Jacobs | 021 444 2345 | [email protected] |
| Consumer Protection Unit | Mr. K. Mthimunye | 021 596 1200 | [email protected] |
| Solar Inspection Scheduling | Mr. B. Ramgobin | 021 444 8912 | [email protected] |
Scheme Outlook: What to Expect in the Coming Months
The solar rebate scheme is just the beginning of Cape Town’s long-term plan to become South Africa’s green capital. Future incentives may include:
- Rebates on battery storage and inverter upgrades
- Zero-interest municipal loans for low-income home solar setups
- Dedicated “solar zones” in outer suburbs
- Community-owned microgrids to power informal settlements
- Rebate extensions for small businesses and schools
This rollout marks one of South Africa’s most aggressive steps toward municipal-level energy reform. Residents are encouraged to act quickly and take advantage of the current scheme while it lasts.
FAQs of New Electricity Scheme
1. When does the Cape Town solar rebate scheme begin?
It starts from 20 July 2025 for all qualifying solar-connected households.
2. Do I need to reapply if I already have a registered solar system?
No. If your system is SSEG-approved and metered, the rebate will be applied automatically.
3. How much rebate can I get per month?
You can earn up to R550 per month by feeding surplus electricity back to the grid.
4. What type of meter do I need?
A bi-directional or smart meter installed by an authorised vendor is required.
5. Can tenants or renters also apply?
Only if the property owner has approved solar registration and submits consent.