How To Sell Electricity Back To The Grid With Net Metering & Cash for Power Program

Cape Town’s innovative “Cash for Power” program empowers residents and businesses to apply and sell surplus solar energy back to the city’s grid, promoting sustainable energy practices and offering financial benefits. This initiative is a form of net metering, where individuals with grid-tied solar photovoltaic (PV) / Grid tied solar systems can feed excess electricity into the municipal grid and receive compensation.

Understanding Net Metering and the “Cash for Power” Program

Net metering allows solar energy producers to send unused electricity back to the grid, effectively reducing their energy costs. In Cape Town, the “Cash for Power” program facilitates this process by enabling participants to earn credits on their municipal bills for the excess energy they supply. Once the bill reaches zero, any additional credits accumulate until they surpass a specified threshold, at which point the city issues a cash payout.

Step-by-Step Guide to Selling Power Back to the Grid

1. Install a Grid-Tied Solar PV System:
   Ensure your solar installation includes a City-approved inverter. Before installation, your service provider must obtain authorization from the City of Cape Town to connect your system to the grid.
2. Meter Installation: After system installation, the city will fit an Advanced Metering Infrastructure (AMI) meter at your premises. Also known as a cash power meter. This meter accurately records the amount of excess energy your system feeds into the grid.
3. Transition to Appropriate Tariff: Participants are required to switch to or remain on the applicable Small-Scale Embedded Generation (SSEG) tariff. This ensures proper accounting for the energy you supply to the grid.
4. Receive Credits and Payments: The electricity you feed into the grid is measured and credited to your municipal account at the SSEG feed-in tariff rate. For residential customers, this rate is currently 87 cents per kilowatt-hour (kWh), plus an additional 25c/kWh incentive. Once your account balance reaches zero, any further credits accumulate. When these credits exceed R1,000, the city processes a cash payout, typically on an annual basis.

Financing Your Solar Installation

Investing in solar energy is now more accessible with various financing options. We have partnered with Trust Solar to offer flexible solutions tailored to both residential and commercial clients. You will have to follow an application process through our partner Trust Solar Finance department. Options include leases, rentals, and Power Purchase Agreements (PPAs), allowing you to choose a plan with approved financial institutions that aligns with your financial situation.

We will put you in contact with our Financial partner to apply. Please note, we are not personally authorised to personally provide any financial services, this is outsourced to the above to apply on your behalf with financial institutions.

Our Comprehensive Solar Installation Services

We specialize in designing and installing solar solutions for a diverse range of clients, including homes, businesses, agricultural enterprises, and industrial facilities. No project is too large or small; our team is equipped to handle installations of any scale. Contrary to popular belief, our services are competitively priced, ensuring you receive exceptional value without compromising on quality. With a national presence across South Africa, we are committed to delivering reliable and efficient solar energy solutions wherever you are located.

Contact Us for a Solar Power Quote

Embarking on your solar journey is a significant step toward energy independence and sustainability. Contact us today for a personalized solar installation quote tailored to your specific energy needs and preferences. Our team is ready to assist you every step of the way, ensuring a seamless transition to renewable energy.

Download This Guide

For your convenience, we’ve made this guide available for download. Click the link below to access a PDF version and refer to it as you navigate the process of selling power back to the grid.

Sources:

• City of Cape Town: Apply to Sell Surplus SSEG Energy
• First Energy: What is Net Metering and Is It Available in South Africa?
• Trust Solar: Commercial Finance