Tariffs
How much does electricity cost per kWh in South Africa in 2026?
For 2026/27 most metro households pay roughly R3.30 to R4.70 per kWh including VAT, plus a monthly fixed charge that solar does not remove. NERSA approved an average 8.76% increase for Eskom direct customers from 1 April 2026 and 9.01% for municipalities’ bulk supply from 1 July 2026. The price of your most expensive kWh is what solar saves first.
Updated 26 October 2026 · Tariffs quoted are the 2026/27 municipal year (from 1 July 2026) unless stated.
2026/27 residential rates in the big metros
| Distributor | Tariff | Energy rate | Fixed charge |
|---|---|---|---|
| City of Cape Town | Home User (credit, or prepaid on property over R1m) | 355.95c/kWh up to 600 kWh; 469.06c/kWh above 600 kWh (incl. VAT) | R424.30/month services and wires, plus R6.80 AMI fee if you have a smart meter (incl. VAT) |
| City of Cape Town | Domestic (prepaid or credit, lower-value homes) | 413.79c/kWh up to 600 kWh; 493.90c/kWh above (incl. VAT) | R74.77/month credit meter (incl. VAT) |
| City Power (Johannesburg) | Residential Prepaid High | 334.03c (0–350 kWh), 383.16c (351–500 kWh), 436.59c (above 500 kWh) per kWh (incl. VAT) | R241.50/month service plus capacity charge (incl. VAT) |
| City of Tshwane | Residential (inclining blocks) | 324.12c (1–100 kWh), 379.32c (101–400), 413.27c (401–650), 445.51c (650+) per kWh, as published by the city | Check your account; varies by meter type |
| eThekwini (Durban) | Domestic scales 3, 4, 8, 9 and 13 | 357.47c/kWh as approved by NERSA (9% increase) | Depends on scale |
| Eskom direct | Homepower, Homeflex, Homelight | Average increase 8.76% from 1 April 2026 | Fixed service and admin share raised in 2026/27 |
Rates as published by each distributor or NERSA for 2026/27. Where a source did not state VAT clearly we have shown the figure as published. Your tariff code is printed on your municipal account or prepaid slip.
Residential SSEG / feed-in credits 2026/27
Export credits are real money, but still well below the buy rates in the table above. Full caveats and conditions: feed-in tariffs answer.
| Distributor | Export credit excl. VAT | ≈ Incl. 15% VAT | Notes |
|---|---|---|---|
| City of Cape Town (Home User SSEG) | 107.98 + 25.00 incentive = 132.98 c/kWh | 152.93 c/kWh | Annexure 6 generation tariffs |
| City Power (Johannesburg) | 124.60 c/kWh | 143.29 c/kWh | Residential embedded generator; TOU conventional required |
| City of Tshwane | 94.13 c/kWh | ≈108.25 c/kWh | NERSA RfD “credit reverse”; City FAQ still cites older 11.99 c — confirm with sseg@tshwane.gov.za. Domestic SSEG fixed R324/month excl. in same schedule |
| eThekwini (Durban) | 160.52 c/kWh | ≈184.60 c/kWh | Residential net-billing; plus network access R76.83/kVA/month excl. on inverter size; credits not cash |
Why the fixed charge matters for solar
Cape Town’s own example bill shows why: a Home User household using 800 kWh a month pays about R3 498, but even at 0 kWh the R424.30 services and wires charge stays. Solar cuts the energy part of the bill, never the fixed part. Eskom also moved more of its Homepower and Homeflex cost into fixed charges this year and lowered energy rates to compensate, which slightly reduces what each solar kWh saves.
Find your “top block” price
Most metros use inclining blocks: the more you buy each month, the more each extra kWh costs. Solar and batteries remove your most expensive kWh first. If you use 900 kWh a month in Cape Town, your first 300 kWh of solar are worth 469.06c each, not the 355.95c average-looking rate. That is the number to give an installer when they work out your savings.
Increases are still running ahead of inflation
Municipal increases for 2026/27 landed close to the NERSA bulk figure: City Power implemented an average of about 8.63% (after 12.7% in 2025/26), eThekwini 9% (after 12.72%), and Tshwane 8.8%. Cape Town’s Home User example bills rose about 6%. Plan payback on modest future increases, not the double-digit years.
How to work out solar payback from these rates · Is solar worth it in 2026? · Metro tariff overview
Quick questions
How much did electricity go up in 2026?
NERSA approved 8.76% on average for Eskom direct customers from 1 April 2026 and 9.01% for municipal bulk purchases from 1 July 2026. Metros then set their own retail increases, for example Tshwane 8.8% and eThekwini 9%.
Does solar reduce my fixed charge?
No. Fixed service, network or capacity charges stay whether you use the grid or not. Solar reduces the per-kWh energy part of the bill.
Which kWh does solar save first?
Your most expensive ones. On inclining block tariffs, every kWh you stop buying comes off the top block first.
Sources
- NERSA media statement: Eskom retail tariffs 2026/27 (5 March 2026)
- Eskom Distribution: 2026/2027 tariff increase
- City of Cape Town: The cost of electricity (Home User 2026/27)
- City of Cape Town 2026/27 tariff book: consumption and generation tariffs
- NERSA decision: City Power 2026/27 tariff application
- City of Johannesburg: approved electricity tariffs 2026/27
- City of Tshwane: 2026/27 tariff increases
- City Power Johannesburg: Annexure A1 Embedded Generator Tariff 2026/27
- NERSA RfD: City of Tshwane 2026/27 (SSEG tariffs)
- NERSA decision: eThekwini 2026/27 tariff application