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Johannesburg powers informal settlements with solar microgrids

businessday.co.za · 24 September 2026
Johannesburg powers informal settlements with solar microgrids
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Johannesburg, South Africa is investing R517.8-million to bring electricity to five informal settlements using solar microgrids and battery storage, where traditional grid connections are impractical.

City Power, the municipal power utility, launched the program to address electricity theft, unsafe connections, and significant revenue losses, currently estimated at R4.5-billion, in these communities. Two projects in Amarasta and Shalazile are already operating, while others are under construction or partially completed.

Residents of the Shalazile settlement, relocated after a fire, now receive reliable electricity through the microgrids and pay standard tariffs, with support available for vulnerable households. The city initially funded the program through a provincial emergency plan, later involving the Human Settlements Department to identify priority areas. While the program originally aimed for 21 settlements, future expansion depends on continued funding and logistical considerations.

The microgrids aren’t intended to replace traditional infrastructure, but to provide power where conventional options are limited by safety, land availability, or technical challenges. Residents like Zakhele Khanyile report the solar systems offer a more dependable and affordable energy source than previous methods, such as paraffin and candles. City Power is tracking the performance of the systems, noting that the Amarasta project experienced outages due to illegal connections, while Shalazile has maintained 100% system availability.

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