Eskom coming after South Africans with solar panels by 2026

As South Africa grapples with an ongoing energy crisis, the role of renewable energy sources, particularly solar power, has become increasingly critical.

With frequent power outages, many households have turned to rooftop solar panels as a viable solution. However, this shift has raised concerns and debates around the implications of such decisions, especially in relation to the national grid and the policies imposed by Eskom.

Eskom’s fixed charge on households, as well as those that have invested in rooftop solar but remain connected to the national grid, is unfair.

The Organisation Undoing Tax Abuse (OUTA) has criticized this, calling it irrational and self-defeating and warning that it could backfire badly for both the power utility and the government.

Power and energy expert Vally Padayachee, a former Eskom and City Power executive, has shed light on the implications of this fixed levy for solar users. He points out that this fixed network maintenance fee is not just an inconvenience; it represents a discouragement for those trying to contribute positively to the energy crisis. The message it sends is clear: even if you are making efforts to alleviate the burden on the grid, you will still be penalized for it.

“Well, first they asked us to save power, then told us to get solar. Now they want to charge us for it,” said Duvenage, voicing the growing frustration among South Africans who have made personal investments to reduce pressure on the grid.

Duvenage and other critics argue that it penalizes proactive citizens helping stabilize the country’s fragile electricity system.

Duvenage explained that many solar users still rely on the grid to some extent, especially at night or during extended periods of cloud cover. However, an added fixed charge could push these users to make the final move off-grid entirely.

“If that’s the case, they’ll think, ‘Let me just get a loan for R20,000, pay it off over the next 20 months, and go off-grid fully,” Duvenage said.

Duvenage argues that the push for more citizens to adopt solar technology is paradoxically met with punitive measures. The technologies available today, such as battery storage and hybrid systems, allow users to go entirely off-grid. Eskom’s current policies not only threaten their revenue base but also contradict their stated goals of promoting renewable energy use and sustainability.

The solar surcharge is a symptom of a bigger crisis

The solar surcharge issue also prompts a reevaluation of the energy policies at a national level. Policymakers must consider how to foster an environment that supports renewable energy adoption while ensuring the stability of the national grid. This requires a delicate balancing act that not only addresses the financial implications but also the long-term sustainability of South Africa’s energy landscape.

Experts have argued that the grid still needs to be maintained, even for minimal users, and that the surcharge helps cover those infrastructure costs. However, Duvenage rejected this justification as inconsistent and unfairly targeted.

The argument surrounding the solar surcharge is not merely about costs; it reflects the broader challenges faced by the energy sector in South Africa. Many communities are looking for sustainable alternatives, and solar power is seen as a step in the right direction. However, the increasing fees imposed on solar users can discourage investment in this technology, undermining progress towards a more sustainable energy future.

“That should apply to everyone, whether you’re a minimal or a maximum user,” he said.

“So what you’re saying to people with solar is, ‘We’re going to charge you more because you’ve reduced your reliance on Eskom.”

The issue also ties into the broader failure of infrastructure governance at the municipal level, where local governments collect surcharges from electricity users.

Duvenage said these funds are often misused instead of being reinvested in critical infrastructure upgrades.

“Local government should be spending around 8% of its budget on maintaining and upgrading infrastructure. In Johannesburg, we spend less than 1%. The revenue doesn’t go where it should,” he added.

He believes the root of the problem lies in the lack of professionalism and expertise in local government. “You cannot have people in charge of complex portfolios who don’t understand what they’re doing.”

“You’d never run a private business like that. Yet we have municipalities with multi-billion-rand budgets being run by people who don’t have the required financial or technical knowledge.”

He cited examples such as municipalities without a chief financial officer or agencies lowering qualification standards for leadership positions to allow political appointees through the door.

“The politics is overpowering the administration. That’s the problem. You need to professionalize local government. It’s that simple,” he said.

Duvenage added that the fixed charge is another symptom of a bigger crisis in governance and public trust.

“Punishing those trying to be part of the solution is hardly a sustainable fix. If Eskom and municipalities want to remain relevant and financially viable, they should enable the energy transition, not penalize it.”

Finally, as the conversation around energy continues to evolve, it will be essential for authorities to engage with citizens actively. Collaborative efforts can lead to innovative solutions that benefit both the users and the energy providers. Building trust and transparency will be critical in navigating the path towards a stable energy future for South Africa.

In addition to the economic implications, the environmental benefits of solar energy adoption should not be overlooked. By investing in renewable energy, households contribute to a decrease in carbon emissions, which is crucial in combating climate change. This broader perspective emphasizes the need for favorable policies that encourage rather than discourage solar usage.

Moreover, public perception plays a significant role in how these policies are received. Many South Africans feel disillusioned by the government’s approach to energy management. The frustrations expressed by individuals like Duvenage resonate with a larger sentiment of helplessness against bureaucratic inefficiencies. This disconnect between the government and citizens raises questions about accountability and the future of energy governance in South Africa.

More: 2025 Warning about new solar power taxes by ITAC.