New Energy

Cape Town to Pay Homes for Excess Solar in South African First

  • City will also allow businesses to sell power to each other
  • Tourist hub to add as much as 1 gigawatt of independent power

South Africans endure regular blackouts due to years of neglect and mismanagement that have left the state-owned utility unable to keep up with demand.

Photographer: Guillem Sartorio/Bloomberg
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Cape Town, South Africa’s second-largest city, will pay residential households for excess power that they generate from their solar installations in a first for the country grappling with daily cuts.

“We will buy as much solar power as households and businesses can sell to us,” Mayor Geordin Hill-Lewis said in a statement Monday. Separately, the city will also allow businesses to sell energy to each other, which could add 350 megawatts of decentralized electricity to Cape Town’s grid, he said.