With South Africa’s increasing reliance on solar power due to energy instability, many homeowners and businesses have turned to Small-Scale Embedded Generation (SSEG) solutions. However, a crucial regulatory requirement is often overlooked: the mandatory registration of grid-tied solar systems with Eskom or the relevant municipal authority. Failure to comply could have significant financial and legal consequences—including potential insurance implications.
What You Need to Know About SSEG Registration
All grid-connected solar installations must be registered with Eskom or municipal electricity distributors. This requirement applies to homeowners, commercial property owners, resorts and game lodges in outlying areas that are tied to the grid to ensure safety and grid stability in compliance with the Electricity Regulation Act (2006).
To encourage compliance, Eskom has launched a campaign running until March 2026, allowing homeowners to register their solar installations without incurring connection fees for systems below 50 kVA. After this period, standard charges will apply, and failure to register may result in fines or other enforcement actions.
Who Needs to Register?
- Homeowners with grid-connected solar systems, whether they export electricity or not.
- Commercial buildings using solar power while remaining connected to the national grid.
- Game lodges in remote areas that are still supplied by Eskom or a municipality.
- Any entity with a solar system connected to the grid.
Homeowners, commercial buildings, and game lodges connected to the grid are required to register their solar systems. Off-grid systems are exempt, but it is advisable to check local regulations for safety compliance.
Application and Compliance Process
The registration process involves several steps:
- Engage a Qualified Professional: Homeowners are required to hire a qualified engineer or technologist to certify that the SSEG system complies with safety and operational standards. This certification should ideally be obtained before the installation to prevent potential non-compliance issues.
- Submit Application Forms: Complete the necessary application forms for connecting an SSEG to the Eskom network. These forms, along with required personal documentation, should be submitted to Eskom or the relevant municipal authority.
- Metering and Compliance: Grid-tied generator options will require a meter upgrade and adherence to legal and technical requirements.
- Pay Applicable Fees: An application fee is payable to Eskom, along with any other applicable costs outlined in the quotation provided by Eskom.
- Submit NERSA Documentation: Provide the necessary documents to NERSA in support of the SSEG application.
Detailed Registration Process
To register an SSEG system, clients should follow these steps:
- Gather necessary documentation (e.g., installation details, proof of ownership)
- Submit the registration application to Eskom or the relevant municipal authority
- Await confirmation of registration, which may take several weeks
Consequences of Non-Compliance
Failing to register SSEG systems can lead to significant repercussions, including fines, legal actions, complications with insurance claims, and potential disconnection from the grid. Compliance is crucial to avoid these consequences.
Unregistered SSEG systems are deemed illegal. Property owners who fail to register their installations may face:
- Fines and legal repercussions from Eskom or municipal authorities.
- Insurance claim complications—unregistered systems may be viewed as non-compliant, potentially voiding coverage for property damage, fire, or liability claims related to the solar installation.
- Potential disconnection from the grid if authorities enforce compliance measures.
Why Could an Insurer Reject a Claim?
Insurance contracts must comply with the law. If a solar installation is unregistered and deemed illegal, insurers may reject claims related to it. Understanding specific policy clauses that may be affected by non-compliance is essential for clients.
An insurance contract, like any other contract, is subject to the ‘law of the land’ and cannot be against public policy. This means that insurers cannot provide coverage for activities or installations that contravene legal requirements. If a solar installation is not registered as required by law, an insurer may lawfully reject any claim arising from it, as the loss stems from an illegal or non-compliant act.
For example, if an unregistered solar system causes a fire that damages a property, the insurer may refuse to pay out the claim because the installation was not legally compliant. The same principle applies to motor insurance—if a vehicle is unroadworthy and not legally licensed, an insurer would not be obligated to cover damages resulting from its use.
Impact on Property Value
Unregistered solar installations can negatively affect property value, as potential buyers may be wary of properties with illegal installations.
What Is the Broker’s Role?
Insurance brokers play a critical role in advising clients about the risks associated with unregistered solar installations. They must ensure clients understand the need for registration and the implications of non-compliance on their insurance coverage.
While it may be assumed that clients are aware of legal requirements, brokers have a responsibility to inform them of the potential risks and implications of non-compliance. A broker’s guidance can ensure that:
- Clients are aware of the need to register their solar systems with Eskom or their municipality.
- Policies are reviewed and updated to ensure coverage includes registered solar installations.
- Clients understand the potential consequences of an unregistered system on their insurance claims.
How Brokers Can Assist Clients
Brokers can assist clients by:
- Educating them on registration requirements
- Encouraging compliance through qualified certifications
- Reviewing insurance policies for coverage
- Conducting risk assessments to ensure safety standards are met
Future Regulatory Changes
Stay informed about anticipated changes in regulations or policies regarding solar installations that may affect registration requirements.
Environmental Impact
Registered solar installations contribute to reducing carbon footprints and promoting sustainable energy practices, aligning with global environmental goals.
Support Resources
Government programs, financial incentives, or grants may be available for registered solar installations through relevant authorities.
Common Misconceptions
Addressing common misconceptions about SSEG registration can help clarify misunderstandings and encourage compliance.
The Bottom Line
While solar power offers significant financial and environmental benefits, the risks of non-compliance are substantial. Brokers and clients must act promptly to register their installations before the end of Eskom’s campaign in March 2026. Compliance is essential for seamless insurance protection.
For brokers, addressing these risks proactively is essential to protect their clients and reinforce trust in the advisory process. If you or your clients have an unregistered solar installation, now is the time to act before the Eskom registration campaign ends in March 2026. Compliance today ensures seamless insurance protection tomorrow.
For more information, visit Eskom’s official website or consult your local municipal electricity provider.
Sources
- South African Local Government Association (SALGA)
- Small-Scale Embedded Generation (SSEG)
- Overstrand
- Technical Standard for the Interconnection of Embedded Generation
- African Business Quarterly
- PQRS
- Navigating Solar Installation Registration in South Africa: A Comprehensive Guide
- Requirements for SSEG
- City of Cape Town small-scale embedded generation (SSEG) requirements
This document does not constitute legal advice and is provided for information purposes only. Advisers need manage and investigate risks on a case by case basis.
