Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      State broadband merger limps into a second decade - Solly Malatsi

      State broadband merger limps into a second decade

      28 April 2026
      The AI policy that AI broke

      The AI policy that AI broke

      28 April 2026
      New DStv owner Canal+ confirms JSE listing date

      New DStv owner Canal+ confirms JSE listing date

      28 April 2026
      Pivotal week for US tech stocks

      Pivotal week for US tech stocks

      28 April 2026
      WhatsApp becomes the doctor's office in Turn.io's voice AI play

      WhatsApp becomes the doctor’s office in Turn.io’s voice AI play

      28 April 2026
    • World
      Taylor Swift trademarks her voice to fight AI fakes

      Taylor Swift trademarks her voice to fight AI fakes

      28 April 2026
      DeepSeek's long-awaited V4 model enters preview

      DeepSeek’s long-awaited V4 model enters preview

      24 April 2026
      More organic compounds detected on Mars - Nasa Curiosity rover

      More organic compounds detected on Mars

      21 April 2026
      Adobe bets on AI agents to fend off cheaper rivals

      Adobe bets on AI agents to fend off cheaper rivals

      16 April 2026
      Google poised to lose ad crown to Meta

      Google poised to lose ad crown to Meta

      14 April 2026
    • In-depth
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      The R18-billion tech giant hiding in plain sight - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
    • TCS

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
      TCS | Donovan Marsh on AI and the future of filmmaking

      TCS | Donovan Marsh on AI and the future of filmmaking

      7 April 2026
      TCS+ | Vodacom Business moves to crack the SME tech gap - Andrew Fulton, Sannesh Beharie

      TCS+ | Vodacom Business moves to crack the SME tech gap

      7 April 2026
      TCS | MTN's Divysh Joshi on the strategy behind Pi - Divyesh Joshi

      TCS | MTN’s Divyesh Joshi on the strategy behind Pi

      1 April 2026
    • Opinion
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      R230-million in the bag for Endeavor's third Harvest Fund - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Energy and sustainability » Electricity generation by farmers? ‘No,’ says state

    Electricity generation by farmers? ‘No,’ says state

    By Antoinette Slabbert20 December 2018
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    The failure of energy regulator Nersa to register small-scale solar photovoltaic installations in Eskom electricity distribution areas is costing farmers dearly, says Ig du Plessis, director of power consultancy Sonfin.

    It is also stifling the development of an industry that could provide economic growth and employment, he says.

    Du Plessis says Nersa stopped such registrations in February to develop a registration process and has just published a consultation paper about a once-off R200 fee that would be required from each applicant.

    This all adds up to an astronomical amount which in the end will result in the loss of job opportunities on the farm

    These installations are exempted from the extensive process involved in obtaining generation licences from Nersa, but are required to register in terms of regulations published in November 2017. More than a year later, Nersa is still not geared to do such registrations.

    The registration process is merely administrative, and Nersa has in fact acknowledged that the applications it has received are fully compliant. It nevertheless refused to do provisional registrations pending the finalisation of the registration regime.

    In the meantime, the applicants, mostly irrigation farmers, are foregoing monthly savings in energy charges of up to R100 000 (on a 1MW system), while paying interest on multimillion-rand loans for the development cost of their photovoltaic systems.

    Timeline might change

    Members of the public have until 16 January to comment on the method Nersa used to calculate the R200 registration fee, or to propose a different method. Nersa estimated at the November meeting of its electricity sub-committee that the process would be finalised by March next year but acknowledged that the timeline might change if it receives many public submissions.

    Wary of the risk of further delays Sonfin’s attorneys have written to Nersa to tender the R200 registration fee on behalf of the company’s clients and requesting preliminary registration.

    In the meantime, similar installations are increasingly being registered in municipal electricity distribution areas such as Cape Town, which means farmers are being discriminated against, says Du Plessis. These registration processes are managed by the municipalities themselves as holders of the distribution licences.

    In November, AgriSA wrote to energy minister Jeff Radebe to request his intervention to speed things up. AgriSA cites the example of a specific “fully BBBEE farm” that has already invested R9-million in its 300kW solar photovoltaic plant, without gaining any benefit from its investment. “This investment is now going to waste every day they are not able to generate electricity.”

    According to AgriSA, the farm borrowed the R9-million from the bank at an interest rate of 10%. Throughout the delay of eight months and counting, the farm must continue repaying the loan as well as an estimated R400 000 to Eskom in electricity charges, which the system was meant to save it over the period.

    “This all adds up to an astronomical amount which in the end will result in the loss of job opportunities on the farm,” AgriSA told Radebe.

    Farmers who irrigate their land, using a lot of electricity during seasonal operations, would in particular benefit from these systems

    It attached a letter from Nersa to Eskom dated 28 August stating that its application complies with all Nersa’s registration requirements.

    Du Plessis explains that Eskom will not connect any photovoltaic system to its grid unless it is registered with Nersa.

    Once registered, the electricity consumer can enter into a new agreement with Eskom to do “net-metering” and banking on the Eskom network. This means it will be credited for the electricity it generates and feeds into the Eskom system, with this credit offset against the cost of the electricity it later extracts from the system.

    Du Plessis says the systems are designed to save customers up to 90% of their energy charges (the units they use) and they are left with the obligation to pay the balance as well as the fixed charges.

    Farmers who irrigate their land, using a lot of electricity during seasonal operations, would in particular benefit from these systems, he says.

    Eskom requirements

    Nersa requires applicants to show that the proposed photovoltaic system complies with Eskom’s requirements and that Eskom is prepared to connect it to the grid. To get to that point, applicants must fork out substantial amounts of money, including around R1-million for the connection point, which will connect their PV system to the network. Du Plessis says it could take up to two years before an applicant will reach the point that the connection work can begin; they must first receive a cost estimate letter, followed by a budget quote (cost estimate).

    If the process runs smoothly, the owner should be able to recover their investment through savings on their electricity bill in less than seven years.

    The current delays are, however, impacting negatively on the business case, Du Plessis says.

    Sonfin currently has four clients who have collectively invested almost R50-million, where the construction of the PV systems is complete but Eskom refuses to connect them without proof of Nersa registration.

    It has another five clients who have committed at least R1-million to ensure Eskom compliance, but cannot proceed without certainty from Nersa.

    Once Nersa gets its process sorted out, the industry will grow exponentially, says Du Plessis. He says Sonfin is aware of more than 100 applications that have already been submitted to Eskom and are at different stages of processing.

    • This article was originally published on Moneyweb and is used here with permission
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Eskom Ig du Plessis Nersa Sonfin top
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleWatch | Ex-Nasa engineer builds ‘glitter-bomb trap’ to shame package thieves
    Next Article Computicket, Shoprite face prosecution for ‘anticompetitive conduct’

    Related Posts

    Eskom developing bitcoin mining plan but needs Nersa's nod - Agnes Mlambo

    Eskom developing bitcoin mining plan but needs Nersa’s nod

    22 April 2026
    Eskom to decide fate of older coal stations by September - Dan Marokane

    Eskom to decide fate of older coal stations by September

    22 April 2026
    New Wits-built app to warn South Africans of pollution spikes - Bruce Mellado

    New Wits-built app to warn South Africans of pollution spikes

    20 April 2026
    Company News
    AI governance: the key to growth for SA's financial institutions - Fenergo

    AI governance: the key to growth for SA’s financial institutions

    28 April 2026
    Turn passion into presence with a .digital domain name - Domains.co.za

    Turn passion into presence with a .digital domain name

    28 April 2026
    Cybersecurity in the age of AI: why speed and trust now define resilience - iqbusiness

    Cybersecurity in the AI age: speed and trust define resilience

    24 April 2026
    Opinion
    Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

    Free calls, dead voice and Shameel Joosub’s Spanish ghost

    22 April 2026
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    State broadband merger limps into a second decade - Solly Malatsi

    State broadband merger limps into a second decade

    28 April 2026
    The AI policy that AI broke

    The AI policy that AI broke

    28 April 2026
    New DStv owner Canal+ confirms JSE listing date

    New DStv owner Canal+ confirms JSE listing date

    28 April 2026
    Pivotal week for US tech stocks

    Pivotal week for US tech stocks

    28 April 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}