people
R
R
m
L
Total Off-Grid Investment
R 401 500
Payback: 9.1 years
Solar (6kW system)
R 108 000
Battery (15kWh)
R 135 000
Borehole (60m)
R 86 000
Water tank (5 000L)
R 22 500
Septic system
R 35 000
Monthly Savings
R 3 695/mo
Annual Savings
R 44 340/yr
Section 12B Rebate
R 14 850
SARS individual solar rebate
SA regulations: Boreholes abstracting more than 10kL/day must be registered under the National Water Act (NWA). Solar systems above 1kW must be registered with your municipality as SSEG and require a Certificate of Compliance. Eskom disconnection fee applies if going fully off-grid.
Understanding Off-Grid Property Costs in South Africa Setup costs • Regulations • Example

What Does Going Off-Grid Cost in South Africa?

Going off-grid in South Africa involves four main infrastructure components: a solar PV and battery system (for electricity), a borehole (for water), water storage tanks (JoJo or similar), and a septic or conservancy tank (for sewage). The total investment for a full off-grid setup for a 250m² home typically ranges from R250,000 to R600,000, depending on household size, location, and the depth of the borehole.

Persistent load shedding has fundamentally changed the ROI calculation for solar in South Africa. Many homeowners who previously saw solar as a luxury are finding that the fuel savings alone from eliminating a generator justify the investment within 4–6 years.

Solar System Sizing Guide (2026)

Monthly electricity bill R1,000–R2,000: 3–5 kW system Monthly electricity bill R2,000–R4,000: 5–8 kW system Monthly electricity bill R4,000–R7,000: 8–15 kW system Cost: R18,000–R22,000/kW installed (panels + inverter) Battery storage: R8,000–R10,000/kWh (lithium)

Worked Example

The Dlamini family (4 people, Midrand) pay R4,200/month for electricity and R900/month for water. They want a full off-grid setup.

Solar system (8kW): R144,000. Battery (20kWh): R180,000. Borehole (65m): R82,750. JoJo 5,000L: R22,500. Septic system: R35,000. Reticulation: R15,000. Total: R479,250.

Monthly savings: R3,570 (electricity) + R810 (water) = R4,380/month. Payback: 9.1 years. With 15% annual Eskom increases, 10-year net cost is approximately R42,000 — versus R750,000+ spent on Eskom and municipal water over 10 years.

Frequently Asked Questions

Do I need permission to install solar in South Africa?

For systems above 1kW, you must register as a Small-Scale Embedded Generator (SSEG) with your municipality. Your installation must be done by a registered electrician and a Certificate of Compliance (COC) issued. Many municipalities now require a bi-directional meter if you plan to feed surplus electricity back to the grid. Requirements vary by municipality — check with your local authority before installation.

What regulations apply to boreholes in South Africa?

Boreholes are regulated under the National Water Act (NWA). If your borehole abstracts more than 10,000 litres (10kL) per day, you must register it with the Department of Water and Sanitation. A geological survey before drilling is highly recommended — drilling a dry borehole can cost R50,000–R80,000 with no water yield. Water quality must be tested (R2,000–R5,000 for SABS compliance testing) before drinking or using for irrigation.

What is the Section 12B solar tax incentive?

Section 12B allows individuals to claim a rebate of 25% of the cost of new solar panels (not batteries or inverters), up to a maximum rebate of R15,000. The rebate is applied against your income tax liability for the year. This is separate from the Section 12B accelerated depreciation for businesses. Confirm the current status and requirements with SARS as the rebate has been extended and amended over the years.

How much does borehole drilling cost per metre in South Africa?

Borehole drilling typically costs R700–R1,200 per metre in South Africa (2026 rates), depending on the geological formation and province. The average depth is 40–80 metres in most inland areas and 60–120 metres in the Karoo and dry northwest. Add R15,000–R35,000 for a submersible pump and installation, R3,000–R5,000 for a geological survey, and R5,000–R15,000 for reticulation to the home.

Can I go completely off-grid from Eskom?

Yes, it is legally possible to disconnect from Eskom and go fully off-grid. You must apply to Eskom or your municipality for formal disconnection. The process can take several months and costs R5,000–R15,000 for the Eskom-side disconnection. Once disconnected, you will need sufficient solar, battery, and backup generation capacity for all your needs. Most households prefer a grid-tied or hybrid approach that allows them to draw from the grid during extended cloudy periods.