Two things about rooftop solar in South Africa are widely believed and both are wrong. The first is that you only need to register if you feed power back into the grid. The second is that you can claim a 125% tax deduction. Neither is true, and the second stopped being true on 28 February 2025.
This guide covers what actually triggers registration, who you register with, what the tax position is now, and what a compliant installation has to include.
Exporting is not the trigger
Registration is determined by whether the system has a point of connection to the grid, and by installed capacity. Not by whether you feed back.
Up to 100 kVA goes to your distributor
Your municipality, or Eskom if you are an Eskom direct customer. Above 100 kVA, registration is with NERSA.
The 125% allowance has closed
Section 12BA covered assets brought into use to 28 February 2025 and was not renewed. Section 12B remains: 100% in year one for PV up to 1 MW.
The rules are actively changing
NERSA put draft SSEG registration rules out for public comment during 2026. Check the current position before you commit.
What actually triggers registration
Under the Electricity Regulation Act as amended, the requirement to register an embedded generation facility is determined by whether the installation has a point of connection to the electricity grid, and by its installed capacity. It is not determined by whether the electricity is exported to the grid or consumed on site. NERSA has issued clarification saying exactly this.
Up to 100 kVA: the electricity distributor. In practice that is your local municipality, or Eskom directly if you are an Eskom customer.
Above 100 kVA: NERSA.
Municipal processes differ. Some require the application before installation, and the paperwork usually wants your electrical certificate of compliance, the system design and the inverter's certification.
The tax position, as it is now
A great deal of solar marketing still advertises a 125% deduction. That was section 12BA, a temporary enhanced allowance for assets brought into use between 1 March 2023 and 28 February 2025. It was not renewed in the 2025 Budget. It has closed.
Solar PV not exceeding 1 MW: 100% in year one, apportioned by the number of months the asset was in use.
Larger systems, and wind, hydro and biomass: a 50/30/20 write-off over three years, not apportioned.
The allowance applies to assets used in the production of income, and for a PV system it is generally understood to cover the system as installed rather than the panels alone.
If you did claim section 12BA on assets during the qualifying window, the recoupment treatment on a later disposal differs depending on whether you dispose before or from 1 March 2026. That is circumstance-specific and worth asking your accountant about rather than reading off a page.
Read the SARS guidesWhat a compliant installation has to include
A supplementary Certificate of Compliance
Adding generation is an alteration to your fixed electrical installation, so the new work needs a supplementary CoC from a registered person.
An inverter that is approved for grid connection
Distributors care about what the inverter does when the grid goes down. Equipment that cannot demonstrate the required protection will not pass.
Registration with the right body
Your distributor up to 100 kVA, NERSA above it. Some municipalities want this before installation rather than after.
A quote that names the equipment
Panel and inverter make and model, battery capacity if fitted, and what happens in an outage. A quote in kilowatts with no model numbers cannot be compared with anything.
Choosing an installer without getting burned
Ask who signs the CoCRequired
Get the contractor's registration number and the name of the registered person who will issue the supplementary certificate. If they cannot answer, that is your answer.
Ask who handles the registrationRequired
Some installers do it, some leave it with you and do not say so. Establish it in writing before the deposit.
Ask what happens when the grid failsRecommended
A grid-tied system with no battery and no backup circuit will not power your building during an outage. Many buyers discover this after paying.
Check the tax claim on the quoteRecommended
If it says 125%, the supplier is working from rules that closed on 28 February 2025.
Common questions
Do I need to register my solar if I do not feed power back into the grid?
Very likely yes. Under the Electricity Regulation Act as amended, the registration requirement is determined by whether the installation has a point of connection to the grid and by its installed capacity - not by whether electricity is exported or consumed on site. NERSA has clarified this specifically. Blocking export affects your tariff position; it does not by itself remove the registration question.
Who do I register with?
Up to 100 kVA, with the electricity distributor - your municipality, or Eskom if you are an Eskom direct customer. Above 100 kVA, with NERSA. Municipal processes differ, and some want the application before installation.
Can I still claim the 125% solar tax deduction?
No. That was section 12BA, which applied to assets brought into use between 1 March 2023 and 28 February 2025, and it was not renewed. Section 12B remains in force: solar PV not exceeding 1 MW qualifies for 100% in the first year, apportioned by months of use, while larger systems and other renewables follow a 50/30/20 pattern.
Does a solar installation need its own Certificate of Compliance?
It needs a supplementary certificate of compliance covering the new work, because adding generation alters your fixed electrical installation. It does not usually require a fresh certificate for the entire building.
Is registration free?
Eskom extended a registration fee waiver to 30 September 2026 for systems up to 50 kVA, covering quotation, connection, smart meter and tariff conversion costs. That is a time-boxed waiver rather than a permanent position, and municipal charges are set by each municipality. Check the current position before assuming.
Where to check
NERSAEskom - Small Scale Embedded GeneratorsFree check - about 3 minutes
Are your certificates and registrations actually in order?
For electricians and solar installers, and for the businesses and landlords who hire them: check the registrations that decide whether work may lawfully be signed off, whether the solar on site is registered, and whether your rates cover a call-out.
Free, and you see your full result immediately. We ask for your name and an email or phone number so we can send you the scorecard.