Cape Town Powers Ahead: Affordable Solar Meters and Cash for Clean Energy

Cape Town is poised to become a beacon of urban sustainability with its latest advances in solar energy practices. The City of Cape Town (CoCT) has been working diligently to make solar power more accessible and financially enticing for its residents. In a recent development, CoCT has made "great" progress by testing more affordable bidirectional meters crucial for households intending to sell surplus electricity back to the grid. This paves the way for a greener city with enhanced energy independence.

Beverley van Reenen, CoCT MMC for energy, announced the significant cost reductions the city is striving towards, with the aim to lower the price of these crucial meters. Details on the reduced costs are expected to be made available shortly, which promises to stir more interest among residents considering solar power.

Back in May 2023, Cape Town Mayor Geordin Hill-Lewis indicated the city's intent to procure and assess new bidirectional meters that would be almost 50% cheaper than the existing units. At that time, a meter's price, alongside installation expenses, stood at R12,850. The anticipated cost reduction could bring down the price to nearly R6,425. The current financial year has seen a charge of R11,326 for the same, signaling a potentially steep price slash.

Moreover, Cape Town residents can rejoice at a significant decrease in the advanced metering infrastructure (AMI) reading fee - from R96.20 to a mere R5.66 monthly. This fee is mandatory for any household that wishes to supply excess electricity back to the municipal grid, thus further incentivizing participation in the city's energy initiative.

Cape Town stands at the forefront of South Africa with some of the most forward-thinking electricity feed-in mechanisms, especially for small-scale embedded generation (SSEG). Unlike Eskom and other municipalities that have feed-in tariffs, CoCT uniquely rewards its citizens with cash if the electricity they supply surpasses their consumption – a move that not only encourages solar panel installation but also financially benefits contributors.

Automatic billing credits are the norm, with residents having the opportunity to apply for actual cash returns if their account balances exceed zero. Since June 2023, businesses, too, can receive cash for the energy they contribute. The first application window for residents closes on 8 March 2024, but the process for claiming these incentives is straightforward.

Van Reenen clarified that offsetting electricity and rates through automatically compensated credits does not require application if one's grid-tied SSEG system is authorized. For those aiming to garner financial rewards, registering for the cash-back service where credits accumulate to a payout threshold is essential.

Today, over 5,000 installations are actively generating power at both homes and businesses within Cape Town, amounting to roughly 96MW of potential energy – akin to the output of a modest-sized solar power station. However, only a fraction of these customers are taking advantage of the AMI meters to export their surplus power. Still, in the years between July 2022 and February 2024, the city paid over R25.8 million for 25 million kilowatt-hours of SSEG electricity, affirming its dedication to supporting renewable energy.

One satisfied customer shared with MyBroadband their personal triumph, having earned over R10,000 by selling excess electricity to the metro since October 2023 – a testament to the scheme's success and appeal.