Johannesburg Residents Outraged by New 'Punitive' Solar Billing Regulations

Introduction: Mounting Frustration Over Solar Billing

Residents of Johannesburg, South Africa, are voicing widespread discontent and 'fury' over recent changes to solar billing regulations implemented by City Power, the city's electricity utility. The new measures, which include mandatory conversion to postpaid metering and the introduction of significant fixed monthly charges, are being described by many as 'punitive' and detrimental to the adoption of renewable energy. The controversy highlights a growing tension between the city's efforts to manage its electricity grid and residents' desire for energy independence and fair billing practices.

Mandatory Postpaid Conversion and Fixed Charges Spark Anger

A central point of contention is City Power's requirement for all customers with solar photovoltaic (PV) installations, particularly those currently on prepaid meters, to convert to postpaid billing accounts. This measure, which became a requirement for solar installations in July 2023, is intended to ensure accurate accounting of electricity imports and exports, improve network management, and ensure that solar PV customers contribute to network service fees. The deadline for this conversion, initially set for December 2025, has been extended to June 30, 2026.

Adding to residents' concerns are the substantial fixed monthly charges introduced in the approved tariffs for the 2024/2025 financial year and proposed for 2025/2026. These charges, which can amount to over R550 per month for a standard residential prepaid user before any electricity is consumed, represent a significant financial burden. Customers are also required to install a bi-directional meter at their own expense, estimated by City Power to cost around R2,100.

Slow Feed-in Tariff Implementation and Net-Billing Limitations

While City Power announced plans in July 2023 to implement feed-in tariffs, allowing residents to sell excess solar power back to the grid at rates such as 85.50 cents per kilowatt-hour (c/kWh) for residential users, the actual implementation has been slow. As of February 2025, the tariff had not yet been fully put into effect, with the utility citing an ongoing process to appoint a service provider.

Further complicating the landscape are the net-billing rules published by the National Energy Regulator of South Africa (Nersa) in February 2025. These rules stipulate that exported energy cannot be used to offset fixed, basic, or demand charges, only variable energy charges. Additionally, distributors are not to pay cash for excess generation; instead, credit for surplus power carries over but does not extend into a new financial year. This framework has been criticized for potentially making investment in solar power significantly less attractive for households and businesses.

City's Justification Amidst Broader Billing Issues

City Power maintains that these changes are crucial for improving billing accuracy, enhancing network management, and ensuring grid stability as solar adoption increases. The utility also aims to recover lost revenue and address persistent billing inefficiencies across its network. Spokesperson Isaac Mangena has clarified that the conversion to postpaid accounts is necessary for monitoring electricity use and generation, and that claims of a R30,000 fee for solar installations are 'misinformation'.

However, the controversy unfolds against a backdrop of long-standing complaints regarding Johannesburg's overall billing system. A High Court judgment in October 2024 characterized the municipal account system as a 'shambles', highlighting systemic failures and the city's lack of understanding of on-the-ground realities. This broader context of billing inaccuracies and disputes further fuels residents' distrust and frustration with the new solar regulations.