Cape Town has hit an impressive R50 million in earnings through its innovative Cash for Power programme, which has been empowering local businesses and households since its launch in 2022.

This initiative is the first of its kind in South Africa, making the City a leader in buying excess solar power from small-scale generators.

The programme has not only helped promote sustainable energy but also provided significant financial benefits for its participants.

A Game-Changer for Capetonians

The Cash for Power programme allows residents and businesses to sell excess solar power back to the City, and in exchange, they receive cash or savings on their municipal bills.

This has proven to be a win-win situation, as it incentivizes solar power investment while helping reduce the City’s overall reliance on traditional energy sources.

Mayor Geordin Hill-Lewis expressed his excitement about the success of the programme, stating, “We are delighted to reach the R50m mark in Cash for Power earnings for Capetonians.

We are on track to double our earnings in the 2024/25 year, compared to the first year of our programme.”

How the Programme Works

Here’s how the Cash for Power programme works for both households and businesses: Initially, the City automatically credits the power seller’s municipal bill, effectively lowering it to zero.

For the 2023/24 period, both businesses and households were given the opportunity to earn actual cash after their municipal bills were fully settled.

Once the bill is cleared, any remaining credit accumulates until it reaches R1,000 for households or R5,000 for commercial entities. At this point, the seller is eligible to receive cash payouts.

A Growing Success

As of February 1, 2025, businesses and households in Cape Town have already earned over R55 million through this initiative, with 1,842 sellers currently benefitting.

Among them, 1,090 are residential sellers, while 752 are commercial or industrial businesses.

This reflects the growing popularity of solar power investments and the City’s commitment to encouraging renewable energy solutions.

Looking Ahead to the Future

Cape Town’s achievement raises the question: should other provinces and municipalities consider adopting a similar programme? The success of Cash for Power shows how such initiatives can have a positive financial impact while supporting sustainability.

As the programme continues to grow, it’s likely that more cities could follow Cape Town’s lead in the future.

Do you think this type of programme would work well in other areas? Let us know your thoughts