Civil rights organisation AfriForum has accused financially struggling municipalities of treating rooftop solar users as a cash cow rather than fixing their money problems.

The organisation sent a formal request to Emfuleni local municipality earlier this month asking for clarity on the legal basis for proposed registration fees and monthly charges on homes with solar panels. The municipality has not responded.

“Residents deserve certainty regarding the legal basis for these proposed charges, yet Emfuleni has thus far failed to provide any meaningful clarification. The absence of a response raises serious questions about whether the municipality can justify these charges,” said Deidré Steffens, AfriForum’s adviser for local government affairs.

Emfuleni council approved plans in June to charge households with rooftop solar systems a once-off registration fee of R2 400 and a monthly levy of R463. The charges have not been finalised as policy as of mid-July.

AfriForum’s concerns spreading beyond Emfuleni

AfriForum has launched a petition against Emfuleni’s proposed solar fees. Close to 1 000 people have signed it.

The organisation is now investigating Thaba Chweu local municipality after finding it charges R582.64 per month for properties with solar installations. The charge applies even to properties not connected to the municipality’s electricity network.

AfriForum is checking whether Thaba Chweu followed all legal requirements before introducing the tariff, including proper public participation.

The organisation has asked the National Energy Regulator of South Africa (Nersa) to explain its decision on Thaba Chweu’s tariff application. Nersa said on 30 June it would publish reasons for all municipal tariff decisions on its website, but Thaba Chweu’s reasons are still missing.

“It is becoming increasingly apparent that some financially distressed municipalities view rooftop solar users as a convenient source of additional revenue. Municipalities certainly have the right to recover legitimate electricity network costs, but any new charges must be lawful, transparent, cost-reflective and properly authorised,” Steffens said.

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OUTA’s ongoing dispute with Eskom

The solar registration issue has been contentious since early this year when the Organisation Undoing Tax Abuse (OUTA) challenged Eskom’s mandatory registration requirements for small-scale embedded generation systems.

Eskom and various municipalities threatened in January to fine or disconnect consumers who did not register their residential solar systems. OUTA called these demands impractical, irrational and legally unsupported.

In February, OUTA advised residential solar users with valid certificates of compliance to delay registration. The organisation argued that Eskom has no legal standing to enforce “behind-the-meter” registration for domestic systems that do not export power back to the grid. The Electricity Regulation Act specifically excludes residential households.

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OUTA says a valid certificate of compliance issued under the Occupational Health and Safety Act is enough proof of safety and technical compliance.

Eskom extended the waiver of registration and connection fees for SSEG systems up to 50 kW until 30 September following public pushback. The original deadline was 31 March.

OUTA welcomed the extension but maintains that registration remains unnecessary and administratively burdensome.

The dispute centres on whether Eskom has authority over private, behind-the-meter installations. OUTA maintains that homeowners who do not feed electricity back into the grid or seek compensation for exported energy have no obligation to register with the distributor.

OUTA has advised homeowners with valid certificates of compliance to consider challenging any formal notice of disconnection. The organisation has been preparing potential legal action should Eskom attempt to enforce these requirements.

As of July, the situation remains unresolved with OUTA continuing to monitor policy implementation and calling for transparency from the utility.

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