Cape Town has introduced a more affordable electricity meter for residents in its ‘Cash for Power’ initiative, enabling them to sell surplus solar power back to the city. This new single-phase meter costs approximately 40% less than the previous three-phase model, making renewable energy more accessible.
A More Affordable Single-Phase Meter
As announced on the city council’s website, Cape Town has launched an affordable single-phase feed-in meter to help more residents sell their surplus solar power. After a successful procurement and testing phase, the single-phase AMI meter is now available for customers.
Image: Collected
“In addition to ordering their meters, residents can now enrol in our Cash for Power scheme to get paid for the extra electricity they sell to the city. This ultimately advances our larger objective of gradually putting an end to load shedding in Cape Town,” Mayor Geordin Hill-Lewis stated.
1,537 Individuals and Companies Already Benefiting
Cape Town is the first metropolitan area to purchase surplus solar PV power from small-scale producers, offering both credits on municipal bills and cash payments. Between the start of the 2022/23 fiscal year and April 1, 2024, participating businesses and households earned a collective R30.8 million, mostly as bill credits.
Initially, a power seller’s municipal bill is automatically credited to a zero balance. Any surplus is then eligible for cash rewards upon application. While businesses have been able to earn cash for power since June 2023, this option is now open to households as well.
As of April 1, 2024, a total of 1,537 sellers were benefiting from their surplus energy, a group that includes 910 residential and 627 commercial/industrial participants.
Previously, sellers could only offset their electricity bills. However, recent policy changes now allow them to offset their entire municipal bill, with cash payouts available for any remaining credit. The City has also launched a new online portal to streamline the registration process for solar PV systems.
Mayor Hill-Lewis stated, “The City will purchase as much solar power as households and businesses can provide under the Cash for Power program. This initiative not only adds essential kilowatts to our grid but also puts money back into the pockets of Capetonians.”
How to Benefit From the Scheme
Customers can obtain the new meter through an automated process if they have a Small-Scale Embedded Generation (SSEG) application in progress, or they can use the Service Connection process to get started.
It’s important to note that the single-phase AMI meter is not suitable for three-phase customers. These users will need to ensure they have the correct metering infrastructure and may need to adjust their electrical installations.
Once the proper meter is installed, customers can export excess energy to the grid and join the “Cash for Power” initiative to earn credits on their monthly bill.
Under the program, participants with authorized grid-tied SSEG systems automatically receive credits on their electricity and rates accounts. To receive a cash payout for credit that exceeds their municipal bill, you can apply during the next assessment window, with dates to be announced later. Any remaining credit accumulates until it reaches a payment threshold, at which point the City will pay it out in cash.
The rollout of this affordable single-phase meter is a key step in Cape Town’s commitment to renewable energy and community empowerment. By enabling cash payouts and growing the program to over 1,500 sellers, the city is advancing its goal of ending load-shedding and setting an example for other municipalities to embrace sustainable energy solutions.
