Does my solar project need a NERSA licence or only registration?
Since the 2021 amendment to Schedule 2 of the Electricity Regulation Act, generation facilities are exempt from licensing regardless of capacity, but must be registered with NERSA. Registration is required where you connect to the grid or wheel power to a third party. A true off-grid facility for own use generally needs neither.
What is the installed capacity of the facility?
AC capacity in megawatts. For a 900 kW plant, enter 0.9.
How this is decided in law
The Electricity Regulation Act 4 of 2006 required a generation licence from NERSA for most generation facilities. The 2021 amendment to Schedule 2 removed the licensing requirement based on capacity, so facilities are now exempt from licensing but must be registered with NERSA where they are grid connected or supply a third party.
That change is the reason commercial and industrial solar became viable at scale in South Africa. It did not remove regulation; it moved the practical bottleneck from NERSA adjudication to the network connection process and the commercial agreements.
Registration is required where the facility connects to a transmission or distribution network, or where it supplies electricity to any person other than the generator itself. Genuinely off-grid own-use facilities fall outside it.
Wheeling means generating at one site and delivering to an offtaker at another over someone else's network. It needs three things: NERSA registration, a use-of-system agreement with each network operator involved, and a power purchase agreement with the offtaker. Metering, losses, curtailment and imbalance settlement all have to be dealt with expressly.
The network operator is usually the critical path. Eskom and each municipal distributor have their own connection application process, cost estimate letter and budget quote stages, and capacity constraints differ street by street. Confirming capacity before ordering equipment prevents the most expensive kind of surprise.
Environmental authorisation is a parallel question. Larger facilities and any project on a sensitive site trigger listed activities under the NEMA EIA Regulations, and grid connection infrastructure can trigger its own activities even where the panels do not.
Land and title matter more than developers expect. Rooftop and ground-mount projects need lease or servitude arrangements that survive a sale of the property and match the term of the power purchase agreement, or the project is unfinanceable.
Our NERSA and wheeling fees are fixed and agreed in writing before work starts, with NERSA fees included. Where the project needs environmental authorisation, we quote that separately and openly rather than folding it into an estimate.
| Configuration | NERSA requirement | Timeline | Our fixed fee |
|---|---|---|---|
| Off-grid, own use only | None | 2 – 4 weeks compliance check | R25,000 – R55,000 |
| Grid-tied, own use, no export | Registration | 3 – 5 months | R65,000 – R120,000 |
| Grid-tied with export to the network | Registration plus export arrangement | 4 – 6 months | R95,000 – R145,000 |
| Wheeling to a single offtaker | Registration plus use-of-system and PPA | 5 – 10 months | R145,000 – R285,000 |
| Wheeling to multiple offtakers | Registration, multiple agreements, trading question | 6 – 14 months | Quoted on structure |
| Trading or market sales | Trading licence assessment required | 6 – 14 months | Quoted on structure |
The process, step by step
- 1Configuration review
Capacity, connection and offtaker structure determine whether you need registration, a wheeling arrangement or nothing at all. We confirm it in writing.
- 2Network capacity check
We engage Eskom or the municipal distributor early to confirm capacity and the connection cost before you commit to equipment.
- 3Registration pack
Technical schedules, single line diagram, connection agreement and corporate documents, compiled in the form NERSA accepts.
- 4Commercial agreements
Use-of-system agreement, power purchase agreement, and the lease or servitude over the generation site — drafted to be financeable.
- 5Environmental and municipal approvals
Where the project triggers a listed activity or needs land use and building approvals, those run in parallel rather than after.
- 6Registration and handover
Registration is confirmed and we hand over the ongoing NERSA reporting and compliance obligations in a schedule you can follow.
Questions people ask
Do I still need a NERSA licence for solar in South Africa?
No. The 2021 amendment to Schedule 2 of the Electricity Regulation Act exempted generation facilities from licensing regardless of capacity. Registration with NERSA is still required for grid-connected facilities and for supply to third parties.
Does a rooftop solar plant for own use need registration?
If it is grid-tied, yes, registration applies even without export. A genuinely off-grid own-use installation does not need NERSA registration, though municipal and electrical compliance still applies.
How long does NERSA registration take?
Three to six months in practice, and the network connection process rather than NERSA itself is usually what sets the date.
What is wheeling?
Generating electricity at one site and delivering it to a customer at another site over a third party's network. It needs NERSA registration, a use-of-system agreement with the network operator, and a power purchase agreement.
Can I wheel power to more than one customer?
Yes, but multiple offtakers raise aggregation and trading licence questions and multiply the network agreements. That structure should be settled before equipment is ordered.
Do I need environmental authorisation for a solar project?
Larger facilities, and any project on a sensitive site, trigger listed activities under the NEMA EIA Regulations. Grid connection infrastructure can trigger activities of its own.
What does NERSA registration cost?
Our fixed fee runs from R65,000 for a straightforward grid-tied registration to R285,000 for a wheeling project, with NERSA fees included. Environmental work is quoted separately.
Who negotiates with Eskom or the municipality?
We do, as part of the mandate. Early engagement on capacity and the cost estimate letter is the single most useful thing you can do at the start of a project.
Registration 2016/074955/07. Registered with the Department of Water and Sanitation (DWS) and an applicant for EAPASA registration. Regulatory and licensing advisory across South Africa — Pretoria offices, serving Gauteng, the Western Cape and all other provinces. 087 153 6207 · support@dlegal.co.za
This page is general information on the applicable legislation, not legal advice on your specific facts. Fee ranges are indicative; your fixed fee is agreed in writing before any work starts.