The table above lists every City of Cape Town residential tariff for 2026/27. Below: which one you are probably on, what changed on 1 July 2026, and what it means for solar. This applies to homes supplied by the City. If Eskom supplies your area, use the Eskom figures on our tariff tracker instead.
Which Cape Town tariff are you on?
The City places you on a residential tariff using three things: your municipal property valuation, the type of meter you have, and your average monthly purchases over the previous 12 months. It reassesses customers every year. Your valuation appears on your monthly rates account.
| If you have... | You are usually on | What you pay (incl. VAT) |
|---|
| A prepayment meter, a valuation of R500,000 or less, and average purchases below 450 kWh a month | Lifeline | 283.04 c/kWh, no fixed charge, plus free basic electricity of 60 kWh or 25 kWh a month depending on use |
| A prepayment meter and a valuation above R500,000 but below R1,000,000 | Domestic | 413.79 c/kWh up to 600 kWh, 493.90 c/kWh above that, plus a Service and Wires Charge of R2.46 a day |
| A credit meter (including an AMI smart meter) at any valuation, or a prepayment meter on a property valued at R1,000,000 or more | Home User | 355.95 c/kWh up to 600 kWh, 469.06 c/kWh above that, plus R424.30 a month |
Two rules catch people out. A Lifeline customer whose purchases average more than 450 kWh a month over 12 months moves to another tariff, usually Domestic. And the 600 kWh block counts everything you buy in a calendar month, resetting on the 1st. The City's guide shows that buying once or ten times a month costs about the same, but buying a year's units in one go pushes most of them into the dearer second block.
To check your tariff: on Domestic prepaid, a daily Service and Wires amount is deducted each time you buy. On Home User, your municipal account shows "ELEC HU SERVICE AND WIRES CHARGE". Lifeline has no fixed charge.
The new opt-in Residential Time-of-Use tariff
New for 2026/27, this tariff needs an AMI meter and a written request. Its Administration Charge (R396.16), Capacity Charge (R288.48) and AMI fee (R6.80) add up to R691.44 a month before you use a unit. The City pitches it at homes with batteries that can charge off-peak and avoid the weekday peaks (07:00 to 09:00 and 18:00 to 21:00).
What changed on 1 July 2026
NERSA approved a 9.01% average increase in what Eskom charges municipalities for bulk electricity from 1 July 2026. That figure is Eskom's price to the City, not a cap on household tariffs. Cape Town's increases for households, taken from the City's 2026/27 tariff annexure, were lower on the energy charges and higher on the fixed charges:
| Charge | 2026/27 increase |
|---|
| Domestic energy, Block 1 / Block 2 | 5.84% / 6.27% |
| Domestic Service and Wires (daily) | 8.59% |
| Home User energy, Block 1 / Block 2 | 5.42% / 6.16% |
| Home User Service and Wires | 8.55% |
| Lifeline energy | 8.65% |
The City's illustrative bills put the total rise at 5.92% for a home buying 600 kWh a month on either Domestic (R2,414.53 to R2,557.51) or Home User (R2,416.83 to R2,560.00). Fixed charges rising faster than unit prices matters for solar, because solar cuts the units you buy but not the fixed charge.
Solar in Cape Town: the rules that shape your system
Every system must be authorised first
The City requires authorisation for any embedded generation system below 1 MVA, including rooftop solar and battery-only backup systems, before it is switched on. You apply through the Energy Services section of the City's e-Services portal. The steps are: submit the application, receive a Permission to Install letter, install without switching on, upload the electrical Certificate of Compliance and signed supplemental contract, have an ECSA-registered professional sign off the commissioning report, and switch on only once the City issues its commissioning letter. The City does not charge for registration, although installers may charge to handle it. Our guide to SSEG registration covers the paperwork in more detail.
Approved inverters only
The inverter must be on the City's Approved Photovoltaic (PV) Inverter List, which records equipment type-tested to NRS 097-2-1. The current list is dated 11 September 2026. The City says systems using non-approved inverters will not be authorised, so ask for the exact model in writing before you sign.
No new standby or off-grid systems
The City's SSEG page states: "We are no longer accepting applications for standby and off-grid systems due to the risks they pose." Since 1 October 2023, all new solar and battery systems on properties with a City connection are treated as grid-tied. Systems already authorised stay valid. In practice, any new hybrid system in Cape Town is designed and registered as grid-tied.
Exporting, the feed-in rate and Cash for Power
You can choose a non-feed-in system or a feed-in system:
- Non-feed-in. The inverter must block reverse power flow. The City's SSEG page says you stay on your current tariff, and the City supplies the prepayment meter at its cost.
- Feed-in. You need an AMI meter, installed by the City at your cost, and you move to or stay on Home User (or opt in to Residential Time-of-Use). An AMI administration fee of R6.80 a month applies.
For 2026/27, the City's tariff annexure lists the residential SSEG feed-in tariff at 107.98 c/kWh excluding VAT (124.18 c/kWh in its VAT-inclusive column), up 6.67%, plus an SSEG feed-in incentive of 25.00 c/kWh excluding VAT (28.75 c/kWh inclusive), unchanged and reviewed annually by Council. Credits are offset against your monthly municipal account. If your account is regularly fully offset, you can join Cash for Power by emailing an expression of interest to the City, and residential customers are paid once a year when the remaining credit exceeds R1,000. Note that the City's Cash for Power web page still shows an older feed-in figure; the annexure is the current approved tariff.
What this means for sizing
Exported power earns well under half of what a bought unit costs. A unit you use yourself saves 413.79 c/kWh on Domestic or 355.95 c/kWh on Home User, while a unit you export earns 107.98 c/kWh plus the 25.00 c/kWh incentive before VAT. So the best Cape Town systems are sized to what the home uses during the day, with geyser and pool pump loads moved to midday. Exports are a bonus, not the business case.
There is a catch for Domestic customers. Choosing a feed-in system moves you onto Home User, which swaps a fixed charge of about R74 a month for R431.10 (R424.30 plus the R6.80 AMI fee). If your property is valued at R1,000,000 or more, you are already on Home User and the switch costs you only the meter and the AMI fee.
Worked example: a 600 kWh home on Domestic (SolarGuide calculation)
This uses the featured Domestic prepaid tariff from the table above, VAT-inclusive rates and a 30-day month.
| Item | Calculation | Amount |
|---|
| Energy, Block 1 | 600 kWh × 413.79 c | R2,482.74 |
| Service and Wires | 30 days × R2.46 | R73.80 |
| Monthly total | | R2,556.54 |
| All-in price | R2,556.54 ÷ 600 kWh | 426.09 c/kWh |
The City's own illustration gives R2,557.51 because it uses the monthly charge of R74.77 instead of a 30-day count.
Offsetting 300 kWh with solar, staying on Domestic (non-feed-in). All 600 units sit in Block 1, so each unit solar replaces is worth 413.79 c. Saving: 300 × 413.79 c = R1,241.37 a month. The new bill is R1,241.37 + R73.80 = R1,315.17.
The same 300 kWh offset, but registered as feed-in on Home User. Bill: 300 × 355.95 c = R1,067.85, plus R424.30 and R6.80 = R1,498.95. Saving against the original bill: R1,057.59 a month, before export credits. That is R183.78 a month less than the non-feed-in route, so you would need to export roughly 120 to 140 kWh a month at the feed-in rate plus incentive just to break even on the switch.
A bigger user. At 1,000 kWh a month on Domestic, the bill is R4,532.14, and the top 400 units cost 493.90 c each. Solar takes those dearest units off first, so offsetting 300 kWh saves 300 × 493.90 c = R1,481.70 a month.
These are bill savings at today's rates, not a payback figure. Your actual savings depend on your roof, your daytime use and the system price.
Your next step
Start with the numbers for your own home. The solar roof-fit calculator estimates what your roof can hold, the geyser cost calculator shows how much of your bill is hot water, and the national tariff tracker compares Cape Town with other metros. For local context, read our Cape Town solar guide, how feed-in tariffs and net billing work, and how to estimate a solar payback period.
When you want a firm figure, SolarGuide can put you in touch with Alumo, which installs, finances and warrants the system, including the City's SSEG paperwork. Alumo's rent-to-own Watt-a-Deal starts from R1,449 a month over seven years (with 6.5% annual escalation), and subscriptions start from R1,499 a month. A site assessment confirms the final system.
Get a free solar quote →
Frequently asked questions
What is the Cape Town electricity tariff per kWh in 2026/27?
It depends on your tariff. Including VAT, Lifeline is 283.04 c/kWh, Domestic is 413.79 c/kWh up to 600 kWh and 493.90 c/kWh above, and Home User is 355.95 c/kWh up to 600 kWh and 469.06 c/kWh above. Domestic adds R2.46 a day and Home User adds R424.30 a month in fixed charges.
What are the City of Cape Town prepaid electricity rates?
Prepaid homes are on Lifeline (valuation up to R500,000 and under 450 kWh a month), Domestic (valuation above R500,000 and below R1,000,000) or Home User (R1,000,000 or more), at the rates above.
Who is on the Home User tariff in Cape Town?
Every credit-meter or AMI-meter customer, whatever the property value, plus prepaid customers on properties valued at R1,000,000 or more. Homes with a feed-in solar system are also on Home User unless they opt in to Residential Time-of-Use.
How much does Cape Town pay for solar power fed into the grid?
For 2026/27, the residential SSEG feed-in tariff is 107.98 c/kWh excluding VAT, plus a 25.00 c/kWh feed-in incentive. You need an approved feed-in system and an AMI meter at your own cost. Credits reduce your account, and Cash for Power pays residential customers once a year when the leftover credit exceeds R1,000.
Can I install an off-grid or standby solar system in Cape Town?
Not as a new application on a property with a City connection. The City stopped accepting standby and off-grid applications and treats all new solar and battery systems as grid-tied, so they need a City-approved inverter, professional sign-off and authorisation before switch-on.
Sources and review note
Checked on 21 October 2026. Tariff rates, increases and the feed-in tariff come from the City of Cape Town's 2026/27 Budget, Annexure 6, section 25: Electricity Generation and Distribution (Consumption and Generation Tariffs), pages 25.1 and 25.4. Eligibility, the AMI fee, Time-of-Use periods and the illustrative bills come from the City's Understanding Residential Electricity Tariffs in Cape Town 2026/27. SSEG rules come from the City's SSEG authorisation page, SSEG FAQs, Approved PV Inverter List (dated 11 September 2026) and Cash for Power page. The 9.01% bulk increase is from NERSA's media statement of 12 March 2026. Worked examples are SolarGuide calculations from these published rates and are not quotes. Tariffs change each July, so confirm your own tariff on your account or with the City before relying on these figures.