Cape Town has taken a significant step towards sustainable energy usage and economic enhancement with the introduction of its ‘Cash for Power’ program.
City of Cape Town ‘Cash for Power’ program: Here’s everything we know
This initiative not only sets a precedent in urban energy solutions but also aligns with global efforts towards renewable energy adoption, much like the UK’s proactive approach in incentivising solar power.
What the Program Is
Launched by Mayor Geordin Hill-Lewis, the ‘Cash for Power’ program is Cape Town’s innovative answer to energy sustainability and economic growth.
It encourages residential households equipped with solar PV systems to sell their excess solar power back to the city.
This initiative marks Cape Town as a trailblazer in renewable energy incentives, mirroring efforts seen in the UK to bolster solar energy use among its residents.
“Today Cape Town becomes the first city with a formally adopted Energy Strategy, which clearly outlines how we plan to end load-shedding, as the most important action we can take for job-creating economic growth,” the mayor said at the launch event held on Monday.
Mechanics and Purpose
The program operates on a straightforward premise: households with surplus solar energy can feed it back into the municipal grid, receiving cash in return.
This not only offers an additional revenue stream for residents but also contributes to the city’s broader goal of reducing reliance on fossil fuel-based energy sources.
Similar to Cape Town’s endeavour, the UK has implemented the Smart Export Guarantee (SEG), allowing homeowners to earn money by exporting surplus solar energy back to the national grid.
The UK’s approach, effective since January 2020, complements its broader strategy to achieve energy independence and economic resilience by promoting renewable energy sources, including significant reductions in solar panel costs and VAT exemptions for energy-saving installations.
“In the short-term, we are planning for four stages of load-shedding protection by 2026, as we make the great transition from unreliable, costly and fossil fuel based Eskom energy, to an increasingly decentralised supply of reliable, cost-effective, carbon neutral energy from a diverse range of suppliers,” Hill-Lewis explained.
How to Apply
Residents of Cape Town interested in participating in the ‘Cash for Power’ program must apply by 8 March 2024, with eligibility requirements including:
- an approved grid-tied SSEG system; and
- a bi-directional AMI meter.
Information on the application process is available on the City of Cape Town’s official website, where potential applicants can find detailed instructions and necessary links for registration.
Households applying for the ‘Cash for Power’ program must be registered as a service provider on both the City Supplier Database and the National Treasury Web-Based Central Supplier Database (CSD)