As the City of Cape Town works towards independence from the national grid, it has recorded the best month on record for new solar photovoltaic (PV) installations.

The city received more than 600 solar PV installation applications in February, which, added to the applications the city received in January, totals 1 040 for the year so far.

These two months account for 11% of all solar PV applications received since records began in 2018.

Cape Town Mayor Geordin Hill-Lewis says the solar installations by businesses and residents are accelerating the city’s aim of ending loadshedding and selling excess power for cash.

“This is exactly the market response we were hoping for, by having made policy changes to end the net consumption requirements so that we can pay actual cash for power, instead of just crediting municipal bills only,” he explains.

He adds that the new national tax incentives will further enhance the viability of solar PV investment.

Cape Town is the first city in South Africa to offer households and businesses cash for their excess rooftop solar power. The city is set to start paying businesses cash for power before June, while residents will be able to start selling power for cash later in the year.

For example, residential customers will be credited with 78.98c/kWh plus 25c/kWh incentive for each kilowatt-hour fed into the city grid. Authorised customers need to install a specialised advanced meter to this end, the cost of which is R12 850.

However, Hill-Lewis assures citizens that the city is looking at how to bring the cost of this meter down.

Commercial customers will be credited with 73.87c/kWh plus 25c/kWh incentive for each kilowatt-hour fed into the city grid.

Hill-Lewis earlier this year announced a three-phased procurement plan for loadshedding protection, with the goal of protecting residents from the first four stages of Eskom’s loadshedding.