How to start a solar installation business in South Africa

Q: Do I need to be a qualified electrician to start a solar business?

You personally don't have to be, but someone in the business must be. Founders without an electrical background typically run the sales, finance and project management while a partner or employed wireman issues the CoCs. If you have no electrical background and no partner who does, expect 18–24 months of apprenticeship and training before you can install legally.

Q: What's the difference between a Wireman's licence and the PV GreenCard?

The Wireman's licence is a legal qualification from the Department of Employment and Labour that lets you issue a Certificate of Compliance on an electrical installation. It is mandatory. The PV GreenCard is a market certification from SAPVIA specific to solar PV; it signals to clients and insurers that you've been trained on PV-specific safety and design. It's optional but increasingly expected.

South Africa is the busiest rooftop solar market on the continent. Department of Mineral Resources and Energy (DMRE) figures show small-scale embedded generation behind the meter passed 6,000 megawatts in 2024, and Eskom's own data has the number rising every quarter as households and businesses install their way out of load-shedding. The buyers are real, the kit is available, and the paperwork is well-defined. What stops most new operators is not technical skill. It is missing one of the five overlapping approvals you need before you can install, invoice and get paid.

This guide is the one we wish we had when we started fielding solar-company registrations. It covers the business side (CIPC, SARS, COID, B-BBEE, CSD), the electrical side (Wireman's licence, PV GreenCard, ECB registration), the equipment side (NRCS Letter of Authority for inverters), and the client side (municipal SSEG approval, NRS 097-2-1 grid-tie standard, SARS Section 12B tax incentive). It also covers the parts nobody writes about: funding your first installs, winning your first contract, and where new operators actually get stuck.

Govchain handles the company, tax and tender-readiness paperwork (CIPC, SARS, COID, B-BBEE, CSD) in one go. The electrical accreditations and municipal approvals you handle directly with the relevant body, but you'll need everything below in place before you can take your first paying job.

Where the SA solar market actually stands

A useful cross-check on the SA solar economy is who's registering companies. Across the ~950 solar, PV and renewable-energy businesses on Govchain, incorporations tripled between 2021 and 2023 as load-shedding peaked: 54 new solar Pty Ltds registered in 2021, 144 in 2022, 159 in 2023. That ran ahead of every other industry on our books for two years.

Then 2024 reversed sharply. Solar incorporations dropped about 75% to roughly 40, and have stayed in that band into 2026. This isn't the solar market dying (installed PV capacity continued to grow, according to DMRE figures), but it is the market re-pricing after the load-shedding panic. The casual entrants chasing quick-payback residential installs have thinned out. The operators who'll do well from here treat solar as a discipline (compliance, financing, customer acquisition) rather than a gold rush.

Geography is concentrated. About 73% of Govchain-registered solar businesses sit in Gauteng (50%) and the Western Cape (23%). The Greater Johannesburg metro (JHB, Pretoria, Centurion, East Rand) clears around 190 companies, ahead of the Cape Town metro's ~120. Durban and the rest of the country are thinner. For an operator willing to be the only credentialed installer in a smaller catchment, that's an opportunity, not a problem.

By self-described focus: 36% of solar companies on our books mention installation, 29% mention electrical contracting (with solar as a sideline), 16% offer maintenance or service, 11% are retail or wholesale. Inverter and battery specialists are smaller niches at around 2.5% each. Govchain-registered companies aren't the whole SA market, but they are a useful directional read on where the activity is happening.

Pick your solar stream

"Solar business" is a category, not a job. The compliance, capital and customer-acquisition profile of each stream is different. Decide first.

Residential PV installation: grid-tied or hybrid systems for households (3 kW to 15 kW). Highest volume, smallest tickets (R60,000 to R350,000 per install), shortest sales cycles. Capital-light if you sub-contract panels and inverters as you sell.
Commercial PV installation: rooftop systems on warehouses, retail, schools, body corporates (30 kW to 500 kW). Bigger tickets (R500,000 to R7 million), slower sales cycles (3–9 months), needs deposit-funded working capital or supplier credit. NRS 097-2-1 grid-tie compliance and municipal Small-Scale Embedded Generation (SSEG) approval are non-negotiable.
Off-grid and rural systems: full-island systems for farms, lodges, clinics, and houses without grid. Lithium battery sizing is the differentiator. Most profitable per-kW because clients have no alternative.
Solar geyser installation: water-heating only, separate from PV. Lower capital, plumbing and electrical overlap. Eskom's residential solar water heater rebate ended in 2015, but the demand is steady from new builds and replacement market.
EV charging installation: domestic and commercial Level 2 chargers. Growing fast on the back of new EVs entering the SA market. Pairs naturally with PV installs.
Solar retail / shop: selling panels, inverters, batteries, mounting, cables to other installers and DIY customers. Stock-heavy, margin-thin (typically 8–15%). NRCS Letter of Authority compliance falls on you.
Wholesale and distribution: importing or distributing branded inverters and modules to installers nationally. Capital-heavy. Direct relationships with manufacturers in China and Vietnam (or local plants like ARTsolar).
Operations and maintenance (O&M): annual service contracts for existing installs. Recurring revenue, no big install capex, builds on top of an installation business once you have a base.
Solar financing / PPA: selling power instead of systems. The client pays a monthly tariff lower than Eskom; you own the asset on their roof for 10–20 years. Capital-intensive (R5m+ per project), needs project finance partners.

Residential PV is the typical starting stream because the tickets are small enough that one job's profit funds the next, the technical complexity is bounded, and the SSEG approval pathways are well-trodden. Commercial and O&M usually get added once a company has 30+ installs done. Pick the stream before you register the company, because the SARS code (SIC), the SETA you fall under, and the wireman class you need all depend on it.

Step 1: Register a Pty Ltd company at CIPC

A Pty Ltd (Private Company Limited by Shares) is South Africa's standard incorporated business structure. You don't need to be one to install a single residential system. You do need to be one to claim SARS Section 12B / 12BA on a client's behalf, to win commercial RFPs (Requests For Proposal: the formal procurement process bigger clients use), to register on the Central Supplier Database (CSD) for government and parastatal tenders, and to open a business bank account that won't get flagged for FICA (the Financial Intelligence Centre Act rules that require banks to verify your identity and business).

A Pty Ltd also separates your personal assets (your car, your house, your savings) from the business. Solar installs touch high-voltage AC and lithium batteries. The first time something goes wrong on a roof, you'll be glad the company carries the liability, not you personally.

Register your Pty Ltd with Govchain. It takes about 48 hours, one form, R990 all in, and you get your CoR 14.3 (Notice of Incorporation), CoR 15.1A (Memorandum of Incorporation) and a tax number from SARS in the same package. If you're not sure whether to register at all yet, read when you're legally required to register a company in South Africa first.

Step 2: Get the electrical and PV qualifications you actually need

This is where solar diverges from a normal industry guide. You can't just register a company and start installing. You need someone in the business (owner, employee or contracted partner) who carries the qualifications below.

Wireman's licence (Single Phase, Three Phase, or Installation Electrician). Issued by the Department of Employment and Labour (DEL) under the Electrical Installation Regulations. You need at least a Single Phase wireman to issue a Certificate of Compliance (CoC) on a residential install. Three Phase is required for most commercial work. Without a CoC, the system is technically illegal, your client can't insure it, and Eskom or the municipality won't connect it to the grid.

Trade Test certificate (electrician). Issued through merSETA (the Manufacturing, Engineering and Related Services Sector Education and Training Authority, which quality-assures electrical trade tests). The Trade Test is the practical-and-theory exam that lets you apply for a wireman's licence. If you don't already have it, the path is: become an apprentice electrician, complete a Section 28 apprenticeship (4 years) or RPL (Recognition of Prior Learning) if you have informal experience, then sit the Trade Test.

PV GreenCard. A safety and quality certification specifically for solar PV installers, run by SAPVIA (the South African Photovoltaic Industry Association). It's not a legal requirement, but it is the standard most insurers and commercial clients now ask for. It also unlocks SAPVIA membership, which puts you on the public installer directory used by many residential lead generators.

Engineering Council of South Africa (ECSA) registration. Required for the engineering sign-off on commercial installs above a certain size (rules vary by municipality and project complexity). Eskom recently relaxed the mandatory ECSA sign-off for small residential SSEG registrations, but commercial work still expects it.

ECB (Electrical Contracting Board) registration. If you trade as an electrical contracting business, you must register the company with the ECB as the registered employer of a wireman. Without ECB registration, your wireman cannot legally issue CoCs in the company's name.

The cleanest sequence: get the Trade Test → apply for the wireman's licence → register the Pty Ltd → register the company with the ECB → sit the PV GreenCard short course → apply for SAPVIA membership. If you're starting from zero, allow 18–24 months. If you're already a qualified electrician, the PV-specific add-ons take about 6–8 weeks.

Step 3: NRCS Letter of Authority for inverters and modules

This step catches almost every new importer-installer.

Any inverter sold or installed in South Africa needs a Letter of Authority (LOA) from the National Regulator for Compulsory Specifications (NRCS) under VC9008. The LOA confirms the inverter meets NRS 097-2-1 (grid-tie behaviour) and IEC 62109 (safety). If you're buying from a major SA distributor (Sunsynk, Deye via SA-authorised partners, Victron, SMA, Solis-imported-by-Segen, Goodwe-SA), the LOA is already in place and you're covered. If you're importing your own brand to save money, the LOA is yours to obtain and it takes 6–12 months. Don't import a pallet of unbranded inverters from Alibaba and try to install them. You'll fail the SSEG and you'll be liable.

The same logic applies to PV modules (LOA under VC9087) and lithium batteries. Stick to brands with established SA distribution unless you're building a wholesale arm with capital to wait for the certifications.

Step 4: Understand the SSEG approval your client needs

You don't apply for the Small-Scale Embedded Generation (SSEG) approval yourself. Your client does. But you do all the technical paperwork on their behalf, and your install is dead in the water until it's approved. Knowing the process cold is one of the things that separates a real solar business from a guy with a ladder.

Each metro and municipality runs its own SSEG process:

City of Cape Town: most mature, online application portal, typically 4–8 weeks turnaround for residential under 16 kVA. Requires a CoC, NRS 097-2-1 sign-off, single-line diagram and inverter LOA.
City of Johannesburg (City Power): application via City Power's portal, typically 6–12 weeks. Demands a registered engineer for systems above 50 kVA.
eThekwini (Durban): similar process via eThekwini Electricity, expect 6–10 weeks.
City of Tshwane: process tightened in 2024, expect 6–12 weeks.
Eskom direct-supply areas (rural, peri-urban, towns Eskom services directly). The customer applies to Eskom via their Embedded Generation portal. Allow 8–16 weeks.

Two NERSA rules to track separately. Registration with the National Energy Regulator of South Africa (NERSA) is required for embedded generators of 100 kW and above (the customer's responsibility, not yours, but you'll do the technical paperwork). A NERSA licence is a different, more onerous process and is only required above 100 MW, since the 2022 amendment to Schedule 2 of the Electricity Regulation Act. Almost no rooftop or small commercial install hits the licence threshold; most commercial work needs registration only.

If you install without SSEG approval, the client is technically operating an unauthorised generator. Insurance can be denied. The municipality can disconnect them. Word travels, and angry customers cost more than the approval ever does.

Step 5: COID and the Letter of Good Standing

Solar installation is roof work, ladder work, electrical work. Three of the highest-risk activities on the COIDA (Compensation for Occupational Injuries and Diseases Act) schedule.

You register the company with the Compensation Fund within 7 days of employing your first worker. The Compensation Fund covers medical costs and lost earnings if an employee is hurt on a job. In exchange, you pay an annual levy based on your payroll and risk class. Solar installers sit in one of the higher classes.

Once you're registered and your levies are paid, the Compensation Fund issues a Letter of Good Standing. This letter is what commercial clients and government tenders ask for before they let your crew on site. No Letter of Good Standing, no commercial work.

Register for COID and get your Letter of Good Standing through Govchain. The full process is covered in our COIDA registration guide.

Step 6: SARS tax registration and the Section 12B story

PAYE, UIF, and SDL get registered with SARS within 21 days of paying your first salary. PAYE (Pay As You Earn) is the income tax you withhold from employees. UIF (Unemployment Insurance Fund) is the 2% you split with your employee. SDL (Skills Development Levy) is 1% of payroll if your annual wage bill exceeds R500,000.

VAT is compulsory once your taxable turnover passes R2.3 million in any rolling 12-month period. You can register voluntarily from R50,000. For solar installers, voluntary registration almost always pays. Most commercial clients are VAT vendors and will claim back the VAT on your invoice, so charging it costs them nothing. It also lets you claim back VAT on the panels, inverters and batteries you buy. That's a real margin lift when you're moving R200k of equipment a month. Register for VAT here. For context, read our VAT explainer.

Tax Clearance PIN is your "I'm in good standing with SARS" certificate. You need it for tenders, B-BBEE verification, and most commercial contracts. Get yours here.

The Section 12B and 12BA story (the demand driver to learn)

Knowing Section 12B well enough to walk a client through the saving is the difference between a quote that closes and one that doesn't. It rarely appears in installer training, which is the gap.

Section 12B of the Income Tax Act lets businesses claim accelerated depreciation on renewable energy assets. Before the 2023 budget, a business buying a solar system could depreciate 100% in year 1 (for systems under 1 MW) or 50/30/20 over three years (for larger systems). This was already a serious tax saving.

Section 12BA, introduced in the 2023 budget and active from 1 March 2023 to 28 February 2025, supercharged this for two years: businesses could deduct 125% of the asset cost in year 1 against taxable income, with no ceiling on system size. The window has now closed and we're back on Section 12B (still 100% in year 1 for under-1MW).

For your client (a Pty Ltd buying a R1 million commercial solar system), Section 12B means roughly R270,000 off their corporate tax bill in year 1 (at the 27% rate). That's a third of the system cost back through SARS in the same financial year. Knowing this and being able to walk a client through it is worth more than your install quality. Most competitors don't.

Read SARS's own Section 12B guidance and pass it on with your quote.

Step 7: B-BBEE affidavit and CSD registration

Most solar installers under R10 million annual turnover qualify as an Exempt Micro-Enterprise (EME) and get a B-BBEE Level 1 contribution if 100% black-owned, Level 2 if 51%+ black-owned. The affidavit is a sworn statement signed at a Commissioner of Oaths. You don't need a paid verification agency at this turnover band.

For commercial clients, B-BBEE level moves their procurement spend recognition. For government work, it's mandatory. Get your B-BBEE affidavit through Govchain and read the certificate-vs-affidavit explainer to understand the difference.

The Central Supplier Database (CSD) is the master register every government buyer uses. If you ever want to install solar on a government building, a school, a clinic, a parastatal warehouse, you must be on the CSD. Register on the CSD. Background reading: the secret to getting government contracts and documents needed to apply for a tender.

Funding your first installs

Solar is a cash-flow business before it's a margin business. A R250,000 residential job typically demands a 50–60% deposit (R125k–R150k), with the balance on commissioning. You pay your supplier for the panels and inverter when they ship (no credit terms in your first year), pay your installer crew on the day, pay for the SSEG application up front. You collect the balance two to six weeks later. The gap is the cash-flow trap.

Most new operators close that gap with one or more of:

Supplier credit. After 10–20 successful jobs with a distributor, ask for 30-day terms. Saves the deposit-funded working capital.
Bank instalment sale (for your bakkie and tools). Standard Bank, Absa, FNB and Nedbank all do commercial asset finance. Don't tie up cash on a vehicle.
SEFA (the Small Enterprise Finance Agency). Government-backed loans for SMEs up to R5 million via SEFA. The Small Enterprise Foundation runs micro-loans for very early-stage operators.
IDC's Energy and Mining unit. The Industrial Development Corporation funds renewable-energy projects from R1 million up. Slower decision cycle (3–6 months) but cheaper money than commercial banks. They also run sector-specific facilities like the Green Energy Efficiency Fund.
NEF (National Empowerment Fund). NEF targets black-owned businesses with funding from R250,000 up. Strong fit for B-BBEE Level 1 solar installers.
DSBD-backed schemes. The Department of Small Business Development runs the Township and Rural Entrepreneurship Programme (TREP) and similar funds for SMEs in solar-relevant sectors.
JET (Just Energy Transition) finance. South Africa's JET Investment Plan has earmarked international climate finance for distributed energy SMEs. Watch announcements from the Presidential Climate Commission.
Sub-contract first. The lowest-risk way to start is to install for a bigger company until you have the cash to take your own jobs. Avoid taking deposits you can't service.

For a full breakdown read our business-funding guide. The funders all want the same documents: CIPC documents, B-BBEE affidavit, Tax Clearance PIN, 6 months of bank statements, a one-page business plan. The faster you have that pack ready, the faster you raise.

Winning your first contract

The technical side of solar is well-taught. The "where do customers come from" side is not. Order books tend to go thin in months 3–6, which is when most cash-flow failures actually start.

Residential lead aggregators. Platforms that match householders to installers and take a commission per lead (R200–R800) or a percentage of the job. Worth using to fill capacity in your first six months. Names change yearly; ask in the Power Forum which platforms are sending real, paying leads this quarter.
SAPVIA installer directory. Once you have the PV GreenCard and SAPVIA membership, you appear in the public installer directory at sapvia.co.za. High-intent traffic, free.
Body corporates and estate managers. Pick three estates within 20 km of your base. Email the trustees with a one-page proposal: "We install your residents' systems at a 5% discount, with a single point of contact, full SSEG handling, and ten-year workmanship guarantee." Body corporates love a single accredited installer because the alternative is fielding complaints from 50 different setups.
Agricultural clients. Farms run heavy diesel-pumping and refrigeration loads. A 50 kW farm hybrid can pay back in 24 months. Reach farms through agricultural co-ops and the Agri SA member directory.
Commercial RFPs through property managers. The big property management firms (managing centres, malls, warehouses) increasingly run formal RFPs for solar. Get on their approved-vendor list early. Requirements: B-BBEE Level 2 or better, Letter of Good Standing, valid Tax Clearance PIN, ECSA-registered engineer on staff or retainer, three reference installs.
Government and parastatal tenders via the CSD. Solar tenders run regularly from the Department of Public Works, schools (Western Cape DoE for example has run several), and clinics. The barrier here is paperwork (the tender-document checklist is real) and your B-BBEE level.
Sub-contracting under bigger EPCs. National engineering, procurement and construction firms doing utility-scale and large commercial sub-contract residential and small commercial wings of their portfolios. You install, they invoice. Lower margin, but it builds banking history and references for your own commercial pitches.

Contract before crew. Don't hire installers until you have signed jobs. Use day-rate sub-contracted crews while you build the order book. The cash-flow trap is hiring a four-person crew on month one and then bleeding payroll while you cold-call for leads. Solar lead cycles are 4–8 weeks; payroll runs monthly.

What it actually costs to start

Realistic ranges for a residential installer in 2026, before your first install:

Company registration, Tax Clearance, B-BBEE affidavit, COID, CSD (all via Govchain): R3,500 to R5,000
Wireman's licence application (if you already have the Trade Test): R500 application fee, plus exam costs
PV GreenCard short course and certification: R8,000 to R15,000
SAPVIA membership (annual): R3,500 to R8,000 depending on member class
Tools (drill, MC4 crimper for the standard solar-panel cable connector, multimeter, IR camera, harness, ladder, generator): R25,000 to R60,000
Bakkie (used 1-tonne, financed): deposit R30,000 to R60,000 on a R250,000 vehicle
Quoting and design software (PVsyst or Helioscope, plus accounting): R2,000 to R8,000 per month
First sample stock (one demo inverter and battery for a showroom or vehicle, optional): R30,000 to R80,000
Marketing (website, Google Business profile, first month of paid leads): R5,000 to R20,000 to start
Working capital float (one job's worth of float before deposits cycle): R80,000 to R200,000

All-in to be operational and ready to install your first paying job: roughly R200,000 to R400,000 if you already have the wireman's licence. Double that if you're starting from a non-electrical background and need to fund the training pathway.

Where new solar operators get stuck

No wireman's licence, no CoC, no business. New operators try to register the company and start quoting without anyone in the business able to issue a CoC. The first compliant install needs a wireman. Plan the qualification before the marketing.
Inverter LOA misses. Importing unbranded or grey-import inverters to "save 20%" on a quote, then discovering the SSEG application is rejected for missing NRCS LOA. Stick to brands with verified SA distribution.
SSEG ignorance. Quoting a 15 kW residential system in Cape Town and not factoring in the SSEG application timeline. Client expects power in three weeks; reality is six to ten. Set the expectation up front and quote the application fee separately.
Cash-flow blow-up on job 3. Taking three deposits, paying three suppliers up front, then needing to pay the wireman crew before the first balance lands. One delayed payment cascades the others. Solve with supplier credit, factoring, or smaller deposit-to-payment gaps.
No Letter of Good Standing for the commercial pitch. Quoting a body corporate or a property manager and discovering at the eleventh hour that COID isn't registered, so the Letter of Good Standing isn't issued. Lose the job. Sort COID and the Letter of Good Standing first.
Underpricing. Pricing per kW because that's how the lead-gen platforms compare quotes. Real margin sits in cable runs, mounting complexity, distribution-board work and battery sizing. Build a line-item quote, not a per-kW one. The clients who only buy on R/kW are the same ones who'll be hardest to please.

FAQ

Is a solar business profitable in South Africa?

Yes, in the right stream. A residential installer doing 3–5 jobs a month on R200,000–R300,000 tickets at a 22–28% gross margin will net R50,000–R150,000 a month after overheads in year two. Commercial installers running 30 kW–100 kW jobs at lower percentage margins but much larger tickets can clear R300,000+ per month with two installs. The unprofitable end is unbranded grey-import retail, where margins are sub-10% and one warranty claim wipes a month.

How do you become a registered solar installer in South Africa?

The legal minimum is a Single Phase Wireman's licence (issued by the Department of Employment and Labour) and ECB registration of the company you trade through. The market standard, increasingly, is the SAPVIA PV GreenCard on top. ECSA registration is required for the engineering sign-off on commercial systems above the size and complexity threshold set by each municipality.

How much does a solar installer earn in South Africa?

An employed solar technician earns R12,000–R30,000 per month depending on certification (wireman class, PV GreenCard) and city. An owner-operator running their own installs typically draws R40,000–R120,000 per month in year two, scaling with the order book.

Do I need to be a qualified electrician to start a solar business?

You personally don't have to be, but someone in the business must be. Founders without an electrical background typically run the sales, finance and project management while a partner or employed wireman issues the CoCs. If you have no electrical background and no partner who does, expect 18–24 months of apprenticeship and training before you can install legally.

What's the difference between a Wireman's licence and the PV GreenCard?

The Wireman's licence is a legal qualification from the Department of Employment and Labour that lets you issue a Certificate of Compliance on an electrical installation. It is mandatory. The PV GreenCard is a market certification from SAPVIA specific to solar PV; it signals to clients and insurers that you've been trained on PV-specific safety and design. It's optional but increasingly expected.

How long does SSEG approval take in Cape Town and Johannesburg?

City of Cape Town averages 4–8 weeks for residential systems under 16 kVA and 8–12 weeks for commercial. City of Johannesburg (City Power) is typically 6–12 weeks for residential and 12–20 weeks for commercial. Both timelines depend on having a complete application. A wrong single-line diagram or a missing NRCS LOA can add weeks.

Ready to power up?

If you've got the wireman's licence, the PV GreenCard sorted (or planned) and a customer pipeline, the business-side paperwork can run alongside. Most solar installers we register go from first form to install-ready company in about a week, because CIPC, SARS, COID, B-BBEE and CSD get worked in parallel rather than sequentially. That gives you a useful window: while you're finishing the PV GreenCard course or chasing your SAPVIA membership, your company is already filing for COID and going onto the CSD.

Register your solar installation company with Govchain and we'll handle everything CIPC, SARS, COID, B-BBEE and CSD need from you. You focus on the roofs.