Eskoms newly implemented Retail Tariff Plan RTP has sparked significant concern among South African households utilising rooftop solar systems. The changes, effective from April 1, 2025, introduce higher fixed charges and mandatory compliance requirements, leading to increased electricity costs for solar users.
Key changes and implications:-
Introduction of fixed network charges: The RTP restructures Eskoms tariffs by introducing fixed charges for transmission, distribution, and administrative services. This move aims to ensure that all grid-connected users contribute fairly to the maintenance and operation of the electricity network, regardless of their consumption levels.
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Removal of inclining block tariff IBT: The previous IBT system, which offered lower rates for low-consumption households, has been eliminated. Eskom argues that the IBT provided uneconomic incentives for customers installing embedded generation systems, such as solar panels.
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Impact on solar users: Households with solar installations, particularly those with reduced reliance on Eskoms supply, will experience significant bill increases. Analyses indicate that a typical user consuming 600kWh per month could see a 28 increase in 2025, with further hikes leading to a total increase of over 75 by 2027/28.
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Mandatory transition to Homeflex tariff: All solar users are required to switch to Eskoms Homeflex tariff plan, necessitating the installation of smart meters. While Eskom has waived registration and smart meter installation fees for residential systems up to 50kVA until March 2026, the overall compliance costs, including certification and potential infrastructure upgrades, could range from R20,000 to R50,000.