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Johannesburg Residents with PV solar systems will soon be able to feed back their excess power to the grid

Johannesburg Residents with PV solar systems will soon be able to feed back their excess power to the grid

The move to pay solar users for excess electricity follows similar measures introduced in Australia in 2008 and closer to home in the City of Cape Town last month. Feed-in tariffs for residential generation in Cape Town is expected in 2024.

A feed-in tariff (FiT) is a credit you can receive for any unused electricity sent back to the grid. Also known as a buy-back rate, it’s usually a set rate per kilowatt hour paid as a credit on your bills.

Feed-in tariffs were introduced in 2008 in South Australia and Queensland, 2009 in the Australian Capital Territory and Victoria, and 2010 in New South Wales, Tasmania and Western Australia. The Northern Territory offers only local feed-in tariff schemes.

A feed-in tariff (FIT) is a policy designed to support the development of renewable energy sources by providing a guaranteed, above-market price for producers. FITs usually involve long-term contracts, from 15 to 20 years. FITs are common in the U.S. and around the world and used most notably in Germany and Japan. South Africa is lagging behind the rest of the world big time! But hey, rather late than never.

City Power did not indicate when the feed-in tariffs would take effect, but the move forms part of a bigger strategy to open the grid to third parties.

According to City Power, residential embedded generator is approved for 85.50 c/kWh and for business and Large Power User embedded generator (<=1 MW) is approved for 70.85 c/kWh.

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