The National Energy Regulator of South Africa (Nersa) has noted public commentary following an article published by the Organisation Undoing Tax Abuse (Outa) on January 27 regarding the registration of residential solar and other small-scale embedded generation (SSEG) installations.

As previously reported in Engineering News on January 27, Outa described the recent “threats” by State-owned Eskom and certain municipalities to fine or disconnect the electricity supply of users for failing to register their SSEG systems as impractical, irrational and unfair.

Nersa, in a media release, says it wishes to clarify the applicable regulatory position to avoid public confusion and ensure that electricity consumers, installers and other stakeholders are correctly informed of the legal requirements governing embedded generation.

According to the Electricity Regulation Act of 2006 (as amended), read with the Exemption and Registration Notice, the requirement to register an embedded generation facility is determined by whether the installation has a point of connection to the electricity grid and its installed capacity, and not by whether electricity is exported to the grid or consumed on site, says Nersa.

Accordingly, Nersa explains that SSEG facilities with an installed capacity of 100 kW or less and with a point of connection to the electricity grid are required to register with the relevant distributor, being Eskom or the applicable licensed municipality.

Additionally, it notes that embedded generation facilities with an installed capacity of more than 100 kW and a point of connection to the grid are required to register directly with Nersa.

Embedded generation facilities without a point of connection to the electricity grid are exempt from registration requirements.

“These regulatory requirements exist to support the safe, reliable and efficient operation of the electricity system, including compliance with applicable technical standards, system planning and network protection,” says Nersa.

While a Certificate of Compliance confirms that an installation meets electrical safety requirements, it explains that registration serves a distinct regulatory purpose and does not duplicate those safety certification processes.

Nersa emphasises that registration is not intended to discourage the uptake of renewable energy technologies, but rather to ensure the integration of embedded generation occurs in a manner that protects the integrity of the electricity network and the interests of all electricity users.

The regulator says it remains committed to enabling South Africa’s transition to a more diverse and sustainable electricity supply, while ensuring compliance with the legislative and regulatory framework.

“Stakeholders are encouraged to engage with their licensed distributors or Nersa directly for accurate guidance on registration requirements.”