1. Self-consumption
Every kWh you generate and use yourself displaces retail electricity at your municipal/Eskom rate. This is usually the strongest rand return.
Money matters
Ranges below are illustrative teaching tools — not quotes. Your roof, municipality, tariff, self-consumption and equipment choice change the outcome.
Worked on real rates: solar payback on 2026/27 Cape Town tariffs · 2026 tariffs by metro · is a battery worth it?
Every kWh you generate and use yourself displaces retail electricity at your municipal/Eskom rate. This is usually the strongest rand return.
Harder to price, but real: spoiled food, lost work hours, generator fuel, UPS replacements.
Where your distributor allows export, credits are often based on avoided cost methodologies under NERSA-related net-billing frameworks — typically less valuable than self-use. Confirm your metro’s schedule.
Inclining block, time-of-use, and fixed charges all matter. A fixed charge does not disappear when you go solar.
| Scenario (illustrative) | Focus | Payback story |
|---|---|---|
| Daytime-heavy home, good roof | Self-consumption | Often faster — solar offsets expensive daytime kWh |
| Backup-first home | Battery heavy | Longer pure “bill payback”; value includes resilience |
| Business with weekday loads | Daytime offset | Can be strong if loads align with sun |
Assume electricity price inflation carefully; installers sometimes use optimistic assumptions. Ask them to show the self-consumption ratio and tariff used.
NERSA publishes municipal tariff decisions and has set net-billing related rules. Individual metros (e.g. City of Cape Town, City of Johannesburg, eThekwini, Nelson Mandela Bay and others) publish SSEG application guides and export credit schedules. Requirements often include approved inverters, bi-directional meters, and registration before export.
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