Eskom’s newly implemented Retail Tariff Plan (RTP) has sparked significant concern among South African households utilising rooftop solar systems. The changes, effective from April 1, 2025, introduce higher fixed charges and mandatory compliance requirements, leading to increased electricity costs for solar users.
Key changes and implications:
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Introduction of fixed network charges: The RTP restructures Eskom’s tariffs by introducing fixed charges for transmission, distribution, and administrative services. This move aims to ensure that all grid-connected users contribute fairly to the maintenance and operation of the electricity network, regardless of their consumption levels.
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Removal of inclining block tariff (IBT): The previous IBT system, which offered lower rates for low-consumption households, has been eliminated. Eskom argues that the IBT provided “uneconomic incentives” for customers installing embedded generation systems, such as solar panels.
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Impact on solar users: Households with solar installations, particularly those with reduced reliance on Eskom’s supply, will experience significant bill increases. Analyses indicate that a typical user consuming 600kWh per month could see a 28% increase in 2025, with further hikes leading to a total increase of over 75% by 2027/28.
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Mandatory transition to Homeflex tariff: All solar users are required to switch to Eskom’s Homeflex tariff plan, necessitating the installation of smart meters. While Eskom has waived registration and smart meter installation fees for residential systems up to 50kVA until March 2026, the overall compliance costs, including certification and potential infrastructure upgrades, could range from R20,000 to R50,000.
Expert opinions:
Energy analyst Chris Yelland has criticised the new tariff structure, stating that it disproportionately affects low-consumption households and solar users. He argues that the mandatory installation of smart meters for all solar users, regardless of whether they feed electricity back into the grid, imposes unnecessary financial burdens.
Registration requirements:
In line with regulations from the National Energy Regulator of South Africa (NERSA), all embedded generation systems under 100kVA must be registered with Eskom or the respective local municipality. Eskom has launched a campaign to assist residential owners of Small-Scale Embedded Generation (SSEG) systems in becoming compliant, offering exemptions from registration fees and smart meter costs for eligible households until March 2026.
Eskom’s revised tariff plan aims to address revenue shortfalls and ensure equitable contributions to the electricity grid’s maintenance. However, the changes have raised concerns among solar users and energy experts, who argue that the new structure may discourage the adoption of renewable energy solutions and place undue financial strain on households striving for energy independence.
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Picture: Britannica
