No ‘solar levy’ for South Africa – but users will pay a higher fixed fee

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No ‘solar levy’ for South Africa – but users will pay a higher fixed fee
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South Africa’s solar installers and providers are trying to distance themselves from reports of a “solar levy” being considered by power utility Eskom, saying that no such plan exists.

change the structure of its tariffsUnder Eskom’s current fee structure, variable and fixed costs accumulated in producing electricity are paid for through a single electricity tariff — calculated per kWh of consumption. A user who consumes 0kWh of electricity currently pays a fixed fee of R218 a month, escalating as power consumption rises.

Players in the solar industry say that this calculation – and the R938 fee – has been widely misinterpreted to be a “solar levy”, which is not the case. “This would be to cover the cost of providing the connection – especially for those times when solar users switch to the grid as a backup battery system. Variable costs would then depend on the individual user’s energy consumption.”

These include residents in the City of Johannesburg, the City of Ekurhuleni, the City of Cape Town, Eskom clients, and soon eThekwini in KwaZulu-Natal. “Eskom will be applying to Nersa to allow customers who are generating their own power but are also connected to the grid, to sell the electricity to Eskom. If approved by Nersa, things will go both ways – you will get credit for the electricity you are distributing to the grid,” the group said.

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