In recent months, there has been growing attention on the issue of Small-Scale Embedded Generation (SSEG) compliance in residential complexes and estates across South Africa. This is particularly relevant to sectional title schemes, homeowners' associations, and retirement villages where individual unit owners have installed solar PV systems with inverters and batteries.
These systems were primarily implemented in response to load-shedding, allowing households to maintain power during outages. While the benefits are clear, especially in the face of unreliable supply and rising electricity prices, they are now under scrutiny due to regulatory requirements that many have overlooked.
Most of these systems qualify as embedded generation. And under South African law, any grid-connected SSEG installation must be registered and approved by the relevant utility, either Eskom or the local municipality, even if it does not feed back into the grid.
This is often a surprise to residents and trustees alike, particularly where the body corporate is the electricity account holder and residents are not directly billed by the utility. If the inverter connects to the grid side of the complex - even behind a sub-meter - it still triggers compliance obligations.
What complicates matters is that the account holder - typically the body corporate, homeowners' association, or retirement village management - bears legal responsibility for ensuring compliance. If a resident installs a solar system, even with trustee approval, it is technically the management entity that must submit the SSEG application, oversee the approval, and ensure the system meets applicable technical standards.
Recent amendments to the Electricity Regulation Act have scrapped the need for a generation license for private embedded generation systems. However, registration remains mandatory for grid-connected systems under Schedule 2 of the Act. This includes rooftop solar systems installed for own use, even if they are located behind sub-meters and configured as “no export.” These systems must be registered through the relevant utility, which submits the details to NERSA. So, while licensing is no longer needed, registration is still a legal requirement.
That said, in practical terms, many utilities have shown a willingness to work with sectional title schemes on a case-by-case basis. Where the bulk supply point is fitted with an approved meter, and all individual systems are behind sub-meters with “no export” configurations, some utilities may allow the body corporate to internally enforce the NRS 097-2-3 standard. This flexible approach can simplify the process - but it does not absolve the body corporate of responsibility. The trustees still need to ensure that each private system meets technical and safety requirements, even if not formally registered one by one.
The NRS standard itself is not law, but rather a voluntary technical framework adopted by many utilities. Its implementation and enforcement vary by utility, and some may introduce additional conditions.
For systems already installed without formal approval, the situation becomes more complicated. Some municipalities and Eskom allow retrospective SSEG applications - but this is not guaranteed and may come with conditions.
Installations may need to be inspected, older non-compliant inverters replaced, or metering infrastructure upgraded. For body corporates, this could mean installing a bi-directional meter to account for both consumption and any potential export - even if exporting is not currently allowed.
A further challenge arises when a complex seeks to install a communal solar PV system (often via partners like Decentral Energy) to reduce bulk electricity costs. In these cases, the SSEG application for the communal system may be delayed or rejected if there are individual units with unregistered solar systems. Even the presence of back-up generators may complicate a SSEG application. Utilities may require full compliance across the internal grid before approving the shared installation - forcing trustees into difficult decisions: pause the communal project or disconnect non-compliant private systems.
Fortunately, there are specialist service providers who assist body corporates and retirement communities with the SSEG application process. These professionals understand the technical, procedural, and regulatory requirements and can manage much of the burden on behalf of trustees. But one thing is clear: they will be in high demand over the next year, and schemes that delay compliance may find themselves at the back of a long queue.
Registering for SSEG doesn’t just trigger technical compliance - it often triggers a change in tariff too. Both Eskom and many municipalities require SSEG customers to move to a Time-of-Use (TOU) tariff.
This means the body corporate may move from a flat-rate or block tariff to a pricing structure that varies by time of day. In a communal billing context, this change can lead to unintended cost shifts particularly for residents who have already installed solar and who may see less benefit under the new structure.
Eskom has indicated that, from March 2026, it may begin issuing fines or even disconnecting non-compliant complexes from the grid. This puts significant pressure on body corporates corporate to act swiftly.
In extreme cases, trustees may have no choice but to disconnect individual unit systems from the internal grid if they jeopardise the compliance status of the entire development. While this is a difficult and potentially contentious step, it may be necessary to preserve grid access and protect the interests of all residents.
Trustees and managing agents should start by identifying whether any units have installed grid-tied systems, including those behind sub-meters. If so, they should:
Transparency is key. Residents must understand the regulatory environment, potential costs, and the wider impact on the complex’s electricity supply and billing structure.
While many systems were installed in good faith, often with the body corporate’s informal blessing, this does not remove the legal obligation to comply. Proactive engagement now will help avoid penalties later and ensure that all systems are safe, legal, and beneficial to the wider community.
