The City of Cape Town is making waves in the renewable energy sector with its pioneering Cash for Power programme.
Launched in the 2022/23 financial year, the initiative allows residents and businesses to sell excess solar Photovoltaic (PV) power back to the city, earning bill credits and cash payments.
Spearheaded by Cape Town Mayor Geordin Hill-Lewis, the initiative aims to decentralise the city's energy supply and end reliance on traditional power sources like Eskom.
In a statement, the City expressed that the “programme's success has been nothing short of remarkable,” with payments to participants surpassing R25.8 million by the end of January 2024.
Hill-Lewis attributed this achievement to key policy changes that enable sellers to accumulate credits against their total municipal bill and receive cash payments beyond a zero balance.
"At present, there are 1,461 sellers benefiting from Cape Town’s Cash for Power scheme, comprising 869 residential and 592 commercial/industrial entities," Hill-Lewis stated.
"We are transitioning this city’s energy mix to a far more decentralised supply of reliable, cost-effective, and increasingly carbon-neutral energy that will come from a diverse range of suppliers."
The impact of the Cash for Power programme extends beyond financial rewards, as it plays a pivotal role in Cape Town's broader plans to end load-shedding over time. By incentivising solar power generation, the initiative bolsters the city's energy resilience and reduces dependence on traditional power grids.
As the programme gains momentum, residents and businesses alike are eager to participate in Cape Town's renewable energy future. With applications now open for residential customers to earn cash for their surplus energy, the city anticipates further expansion of the programme and increased community engagement.
Cape Town's Cash for Power programme represents a paradigm shift in energy governance, empowering citizens to contribute to a sustainable future while reaping the rewards of renewable energy generation.
How to apply to get Cash for Power
Cash for Power applications are open for all residential customers on the home user tariff with an approved grid-tied SSEG system and bi-directional AMI metre to feed power back into the grid.
Interested parties are required to first be registered as a service provider on both the City Supplier Database and the National Treasury Web Based Central Supplier Database (CSD), accessible here.
Any submissions received after the first round closes on 8 March 2024 will be kept for the next round, with the date to be announced.
As per Supply Chain rules, successful Cash for Power sellers will contract with the City for a period of three years after appointment.