Small Scale Embedded Generation: Registration vs. application for connection

The South African small scale embedded generation (SSEG) market, dominated by rooftop solar PV, has grown to over 100,000 systems (over 1GW) as of 2020. However, market growth is hindered by an indistinct regulatory landscape and stakeholder uncertainty regarding licensing and registration. The document outlines a tiered regulatory framework based on capacity: systems under 100kW generally do not require NERSA registration (provided local utility conditions are met), those between 100kW and 1MW require NERSA registration, those between 1MW and 10MW require licensing, and those over 10MW require both licensing and ministerial determination. It emphasizes that all grid-connected generation must be registered with the relevant transmission or distribution grid operator, and for systems between 100kW and 1MW, a connection application to the distributor must precede the NERSA registration application.

• The South African SSEG market, primarily consisting of rooftop solar photovoltaic installations, expanded from a few hundred systems in 2015 to more than 100,000 systems with an installed capacity exceeding 1GW by 2020.
• The SSEG market is projected to reach a total installed capacity of 7.5 GW by 2035, with an estimated annual available market of approximately 500 MWp, representing a total available market value of R75 billion.
• Regulatory uncertainty regarding licensing and registration has increased project risk and financing costs, and may lead to the disconnection of unauthorized SSEG connections and the imposition of service fees.
• The regulatory requirements for SSEG are determined by capacity: systems <100kW do not require NERSA registration (subject to local utility registers and conditions); systems 100kW-1MW require NERSA registration; systems 1MW-10MW require NERSA licensing; and systems >10MW require both NERSA licensing and ministerial determination.
• For SSEG systems between 100kW and 1MW, the approval process is a two-phase sequence: first, a connection application must be approved by the local municipality or Eskom, and second, an application for registration must be submitted to NERSA using the distributor's confirmation letter.

APA

Radmore, J. (2021). Small Scale Embedded Generation: Registration vs. application for connection. GreenCape. https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_27_1_21-3.pdf

Chicago

Radmore, Jack. Small Scale Embedded Generation: Registration vs. application for connection. GreenCape, 2021. https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_27_1_21-3.pdf.

Wikipedia

{{cite report |last1=Radmore |first1=Jack |title=Small Scale Embedded Generation: Registration vs. application for connection |publisher=GreenCape |date=2021 |url=https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_27_1_21-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{radmore2021small, author = {Radmore, Jack}, title = {{Small Scale Embedded Generation: Registration vs. application for connection}}, institution = {GreenCape}, year = {2021}, url = {https://greencape.co.za/wp-content/uploads/2022/10/LICENSINGREGISTRATION_27_1_21-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }