THE Zimbabwe Energy Regulatory Authority (ZERA) has called on corporates to consider net metering in their 2024 strategy as one of the ways to reduce or offset their electricity bills and become more profitable.
Zera further noted that net metering would allow businesses to reduce their carbon footprints, which is critical to reverse the impact of induced climate change.
Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. In Zimbabwe it is being implemented through Statutory Instrument (SI) 86 of 2018 and its amendment SI 38 of 2022 – for Solar Systems that are 5 megawatts (MW). The threshold was extended from 100 kilowatts (kW).
In a presentation unpacking the net metering system at the 9th edition of the CEO Africa Annual Roundtable in Victoria Falls on Thursday, ZERA Renewable Energy Engineer, Engineer Tobias Mudzingwa said as an authority they were was mandated to develop the net metering regulations by the National Renewable Energy Policy of 2019.
“Zimbabwe is experiencing power shortages mainly due to a rise in electricity demand in the face of limited local generation capacity and imports. The National Development Strategy (NDS1) prioritizes promotion of new and renewable energy sources. Zimbabwe has an abundant solar photovoltaics (PV) energy resource which is largely untapped and underutilised.
“The country is committed to the revised Nationally Determined Contribution (NDC) target of 40 percent per capita emissions reduction across all sectors of the economy below the projected business as usual scenario by 2030. Net metering reduces daytime load shedding as well as electricity imports. Net metering saves energy which can otherwise be channeled to other productive sectors of the economy such as industry and mining.
The increased implementation of net metering will go a long way in accelerating energy transition and helps the country to meet its climate change goals.”
Through the system, the Zimbabwe Electricity Transmission Distribution Company (ZETDC) earlier this year started purchasing surplus solar power from households and businesses. Eng Mudzingwa said the total cumulative installed capacity for the 145 connected points was 8.869 MW as at end of September 2023. He said the capacity was distributed as 6.949 MW from commercial which was 78 percent and 1.920 MW from domestic being 22 percent.
“The utility is currently processing 97 applications that is 8.9 MW pending. The net metering operational aspects include the compensation factor of 0.8 for domestic customers and 0.85 for maximum demand time of use customers. This provides for the utility network use charges. The accrued energy credits to be rolled over only for a period to be determined by the authority from time to time as opposed to perpetual roll over. The connection fees are determined by the power utility subject to ZERA approval,” he added.
The net metering concept seeks to mitigate the energy crisis in the country providing renewable energy resource potentials. In terms of the net metering challenges, Eng Mudzingwa said there were high upfront cost of solar equipment and as ZERA they were lobbying for Value Added Tax (Vat) exemption on renewable energy (RE) and efficient energy (EE) products to make them affordable.
Source Zimbabwe Situation
