NERSA Clarifies Rules on Small-Scale Embedded Generation Registration

Regulator says SSEG registration depends on grid connection and capacity, not power exports.

The National Energy Regulator of South Africa (NERSA) has issued a clarification on the regulatory requirements governing Small-Scale Embedded Generation (SSEG), following media reports suggesting that electricity users were being threatened with fines or disconnection for failing to register their systems.

In a statement, NERSA said the clarification was necessary to prevent public confusion and to ensure that electricity consumers, installers and other stakeholders are correctly informed about the legal obligations under the current regulatory framework.

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What the Law Says

According to the Electricity Regulation Act, 2006 (as amended), read together with the Exemption and Registration Notice, the obligation to register an embedded generation facility is determined by:

• whether the system has a point of connection to the electricity grid, and

• the installed generation capacity of the facility.

NERSA stressed that registration requirements do not depend on whether electricity is exported to the grid or consumed on site.

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Registration Thresholds Explained

NERSA outlined the applicable regulatory requirements as follows:

• SSEG systems of 100 kW or less, with a point of connection to the electricity grid, must be registered with the relevant distributor, either Eskom or the applicable licensed municipality.

• Embedded generation facilities above 100 kW, with a point of connection to the grid, must register directly with NERSA.

• Embedded generation facilities with no point of connection to the electricity grid are exempt from registration requirements.

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Registration Is Not a Safety Certificate

The regulator emphasised that registration serves a distinct regulatory purpose and should not be confused with electrical safety compliance.

“While a Certificate of Compliance confirms that an installation meets electrical safety standards, registration ensures compliance with regulatory, system planning and network protection requirements, and does not duplicate safety certification processes,” NERSA said.

These measures are aimed at supporting the safe, reliable and efficient operation of the national electricity system.

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Supporting Renewable Energy Uptake

NERSA underlined that the registration framework is not intended to discourage the adoption of renewable energy technologies, but to ensure that embedded generation is integrated in a manner that:

• protects the integrity of the electricity network, and

• safeguards the interests of all electricity users.

The regulator reaffirmed its commitment to supporting South Africa’s transition to a more diverse and sustainable electricity supply, while ensuring compliance with legislative and regulatory requirements.

NERSA encouraged stakeholders to engage directly with their licensed distributors or with NERSA for accurate guidance on SSEG registration obligations.