SSEG in South Africa

Solar 101: SSEG in South Africa and the Costs Involved

Share this post

In South Africa, Small-Scale Embedded Generation (SSEG) is becoming an increasingly popular energy solution as homeowners and businesses look for ways to generate their own solar power. This system allows users to generate electricity for their own consumption and send any excess energy back to the grid. If you're considering solar power, it’s essential to understand SSEG, the registration process, and the costs involved.

In this blog post, we will explain what SSEG is, whether it’s necessary to register your system, and the costs that come with installation and compliance.


What is SSEG in South Africa?

Small-Scale Embedded Generation (SSEG) refers to the use of small renewable energy systems, like solar panels, that are connected to the grid. Homeowners and businesses generate their own electricity through solar power, and any excess electricity can be fed back into the national grid.

This system offers two primary benefits:

  1. Reduction of electricity bills by using self-generated power.

  2. Income generation by selling excess power back to the grid.

However, SSEG systems need to comply with local regulations to ensure safety and grid stability.


Do You Need to Register Your SSEG System in South Africa?

Yes, in South Africa, registration of your SSEG system is a legal requirement. This ensures that the system meets the necessary safety standards and won’t compromise the stability of the national grid.

When registering for SSEG, the system needs to comply with National Energy Regulator of South Africa (NERSA) and local municipality regulations. You’ll also need to connect your system to the grid through a municipal electrical network, and in some cases, a municipal impact study may be required.

In South Africa, Small-Scale Embedded Generation (SSEG) is becoming an increasingly popular energy solution as homeowners and businesses look for ways to generate their own solar power. This system allows users to generate electricity for their own consumption and send any excess energy back to the grid. If you're considering solar power, it’s essential to understand SSEG, the registration process, and the costs involved.

In this blog post, we will explain what SSEG is, whether it’s necessary to register your system, and the costs that come with installation and compliance.


What is SSEG in South Africa?

Small-Scale Embedded Generation (SSEG) refers to the use of small renewable energy systems, like solar panels, that are connected to the grid. Homeowners and businesses generate their own electricity through solar power, and any excess electricity can be fed back into the national grid.

This system offers two primary benefits:

  1. Reduction of electricity bills by using self-generated power.

  2. Income generation by selling excess power back to the grid.

However, SSEG systems need to comply with local regulations to ensure safety and grid stability.


Do You Need to Register Your SSEG System in South Africa?

Yes, in South Africa, registration of your SSEG system is a legal requirement. This ensures that the system meets the necessary safety standards and won’t compromise the stability of the national grid.

When registering for SSEG, the system needs to comply with National Energy Regulator of South Africa (NERSA) and local municipality regulations. You’ll also need to connect your system to the grid through a municipal electrical network, and in some cases, a municipal impact study may be required.


Costs Involved in Registering Your SSEG System

The costs involved in registering your SSEG system vary based on system size, installation requirements, and local municipal regulations. Here’s a breakdown of what you can expect:

1. Installation Costs

  • The cost of installing an SSEG system depends on its size, type of components (solar panels, inverters, batteries), and the complexity of the installation.

  • Average installation costs for a residential 5kW solar system can range from R50,000 to R150,000 depending on the system’s capacity.

2. Registration and Compliance Costs

Once your system is installed, registration fees may apply. These include:

  • Application and Connection Fees: Some municipalities may exempt fees for systems up to 50 kW until March 2026, after which standard charges will apply.

  • Advanced Metering Infrastructure (AMI) Meter: This meter, required for systems exporting power back to the grid, costs about R10,000.

  • Monthly Meter Reading Fees: Typically, around R90 per month if your system exports power to the grid.

3. Connection Fees

  • Connection to the grid may incur additional fees depending on your municipality’s infrastructure. This includes any necessary upgrades to the grid to accommodate your system, such as impact studies and inverter testing.

4. Meter and Installation Costs

  • You may also be required to pay for the installation of new meters, which can range from R5,000 to R10,000.

  • Specialist testing required by your municipality may also incur additional fees.


Solar System Size Limitations

There are size limitations based on the NRS 097-2-3 standard, which specifies the maximum generation capacity allowed based on your service connection type. Here’s a quick overview of the size limitations for residential and small commercial systems:

Service Connection No. of Phases Service Circuit Breaker Size (A) Maximum Total Generation Capacity (kVA)
1 Phase 1 40 2.3 (10A)
1 Phase 1 60 3.5 (15A)
3 Phase 3 40 6.9 (30A)
3 Phase 3 60 10.4 (45A)

Options for Your Solar System:

You have three main options when it comes to setting up your solar system in South Africa:

  1. Register for SSEG – Stay connected to the grid, comply with regulations, and benefit from feeding excess energy back to the grid.

  2. Go Off-Grid – Disconnect from the grid completely and generate all the energy you need independently.

  3. No Grid Connection – Disconnect your system from the grid, avoiding the need for SSEG registration while still having backup power options.

For a complete guide on SSEG, its costs, compliance, and the options available for South African homeowners and businesses, download our free eBook:
Comprehensive Guide to Small-Scale Embedded Generation (SSEG) in South Africa: Costs, Compliance, and Considerations.

In this eBook, we dive deep into the registration process, what’s involved in installation, costs associated with each SSEG option, and much more.


Conclusion

Understanding SSEG and the costs associated with it is vital for anyone interested in generating their own electricity in South Africa. Whether you choose to register your system, go off-grid, or disconnect from the grid entirely, each option comes with its own set of costs and benefits.

For more in-depth information on SSEG, be sure to download our Comprehensive Guide to SSEG and start your journey toward solar energy independence today!

Share this post


Related

Posts