Business Report

'Unfair and confusing': OUTA advises South Africans against rushing solar registration

Mthobisi Nozulela|Published

Civil action group Organisation Undoing Tax Abuse (OUTA) has called on residential solar users not "rush" to register their systems with Eskom

Image: Supplied

Civil action group Organisation Undoing Tax Abuse (OUTA) has called on residential solar users not to "rush" to register their systems with Eskom or municipalities for now.

This comes after Eskom and certain municipalities, including the City of Johannesburg, reportedly sent communications warning that homeowners could face fines or disconnections if they failed to register small-scale embedded generation (SSEG) systems, including solar PV, even when these systems do not feed electricity back into the grid.

"OUTA believes the recent intimidating letters sent to consumers and public announcements by Eskom and some municipalities, regarding the need to register and/or obtain permission for solar system installations, amount to coercive tactics designed to create fear and panic and to force unwarranted so-called 'compliance' requirements."

The organisation said these registration demands are unclear, frequently changing, and causing confusion for homeowners.

“What is at stake here are the rights of citizens who have gone to significant personal expense to protect themselves against years of escalating electricity prices and an unreliable power supply,” OUTA CEO Wayne Duvenage said.

“People have installed gas appliances, solar power systems, generators, inverters and other alternatives, in direct response to Eskom and government’s calls - as well as incentives - to reduce electricity demand."

He added that homeowners with safe, compliant solar installations that have a valid Certificate of Compliance (CoC) from a registered electrician are meeting all legal and safety requirements, and should not face fines or disconnections for their systems.

OUTA warned that the shifting and unclear registration requirements are delaying projects and creating uncertainty for installers, insurers, and financiers, and the organisation encouraged homeowners to ensure technical compliance while holding off on registering with Eskom or municipalities for now.

"These developments echo similar irrationality and administrative challenges we saw unfolding during the e-toll debacle. The government often makes the mistake of believing that certain processes and desired administrative functions can magically be introduced through threats and administratively cumbersome regulations or new laws."

"When in fact it is the practicality, rationality and public acceptance that are the most important ingredients for successful implementation. Aside from clear indications that Eskom and several municipalities' plans in this regard are lacking in public acceptance and feasible application thereof, it appears there may also be significant legal stumbling blocks which OUTA’s team is finalising with its legal counsel.”

mthobisi.nozulela@iol.co.za

IOL Business

Get your news on the go. Download the latest IOL App for Android and IOS now