South Africa’s New Solar Rules Spark Legal Uncertainty and Potential Court Action

• OUTA says the latest solar regulations are creating unnecessary administrative hurdles for households and businesses
• City Power’s new approval system introduces multiple steps before and after solar installation can be completed
• Critics warn that increased compliance requirements may discourage investment in private energy solutions

South Africans looking to reduce their reliance on an unstable electricity grid through solar power are increasingly finding the process more complicated than expected, as new regulatory measures begin to reshape how installations are approved and managed. While demand for alternative energy continues to rise amid ongoing power challenges and high electricity costs, recent changes have sparked debate over whether the system is making it easier or harder for households and businesses to go solar. Energy watchdogs argue that the added compliance steps risk slowing down adoption at a time when many consumers are actively seeking energy independence.

The government’s stricter approach to solar installations is facing growing criticism, with many South Africans arguing that it is becoming harder to move away from an unstable electricity supply and rising tariffs. According to Business Tech, recent regulatory changes are being introduced at a time when demand for alternative energy solutions continues to grow across both residential and commercial sectors.

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The Organisation Undoing Tax Abuse (OUTA) has raised concerns that authorities are adding unnecessary complexity to solar adoption, despite publicly supporting renewable energy expansion. OUTA CEO Wayne Duvenage says the current system is discouraging investment by turning what should be a straightforward process into a bureaucratic one.

The criticism follows City Power’s introduction of a six-step approval process for Small Scale Embedded Generation (SSEG) systems in Johannesburg. The process requires applicants to first obtain an electricity supply application number before submitting a formal solar PV application.

Solar installation rules in South Africa in 2026

A site inspection must then be conducted by City Power before installation can proceed. After installation, users are required to submit compliance documents, including a Certificate of Compliance and commissioning forms, before receiving final approval.

Duvenage argues that the system places unnecessary pressure on residents and businesses trying to reduce reliance on the grid. He also questioned why stricter rules are being introduced now, despite thousands of existing solar installations reportedly operating without grid damage or safety issues. He further warned that growing bureaucracy could push more consumers toward fully disconnecting from the grid, potentially affecting municipal revenue models in the long term.

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Concerns have also been raised about rising costs, particularly for prepaid customers who are required to switch to postpaid billing systems when installing solar, significantly increasing fixed monthly charges. While OUTA has not yet taken legal action, Duvenage says it is considering its options should consumers face penalties for installations completed without prior municipal approval.

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Source: Briefly News