Compensation for energy exported to the grid

This is where clients generate more solar power than they require, and the energy is exported into the grid for Eskom’s benefit. The energy exported is for Eskom to use and is not wheeled (transported) to another Eskom customer specifically. The clients are credited for this exported energy.  Additional admin costs are incurred, and clients need to be on a ‘Time of Use’ tariff which often requires an increased deposit that Eskom holds. Additional admin costs are incurred. The size of the solar generator also needs to be large.

This is where accounts are administratively consolidated, and the over production on one account is credited against another account. This is done within a short time period i.e. one month. The client must be on the same feeder. Additional admin costs are incurred but are not major.

Banking is often found in situations where energy consumption is seasonal, like agriculture. Many clients have high energy consumption during summer and very little in winter. During the peak summer season, they are consuming more than the solar is generating. In winter they are generating more than they require, and this amount is then banked. This excess energy is exported to Eskom where it is banked (other people use it). During the busy period you want to recall what was banked in winter. Even though banked there is still a charge for this when you recall it. The cost is currently 38 cents per kWh. The banked energy must be used within the Eskom financial year otherwise it is lost.

Wheeling is the generation of large-scale energy from one point, and then delivered to another end-user located in another area using the existing Eskom distribution network. This may also be across multiple different distribution networks, such as through Eskom to a municipality. All customers have energy wheeled to them, whether it’s supplied by Eskom or from a third party. A simple example of wheeling could be an IPP solar farm based in the Northern Cape, selling its energy to a corporate company in Gauteng and the electricity is delivered using Eskom’s transmission network and the municipal distribution network.

Wheeling charges are standard tariff charges raised to all parties that use the grid. The use-of-system costs are unbundled tariff structures and rates that recover the costs associated with the delivery of energy and making capacity available on an electricity network.  These are payable by the energy generator and the user (load customers) for all wheeling/delivery of energy.  In addition, connection charges are raised and are recovered upfront for connection costs not recovered through Use-of-System charges.