🌍 ZambiaRegulatory Guide14 min read

ZESCO Solar Grid Connection 2026: Net Metering, SPP & ERB Licensing

Complete guide to ZESCO solar grid connection in Zambia — net metering application, SPP framework, ERB licensing categories, technical standards, and import duty exemptions.

Rainer Neumann

Written by

Rainer Neumann

Editorial contributor · SurgePV

Keyur Rakholiya

Reviewed by

Keyur Rakholiya

CEO & Co-Founder · SurgePV

Published ·Last reviewed ·Regulator: ZESCO Limited / Energy Regulation Board (ERB)

ZESCO Limited is the gatekeeper for every grid-connected solar project in Zambia. Whether you are a residential prosumer applying for net metering or an independent power developer negotiating a 20-year PPA, ZESCO’s processes, technical standards, and timelines define your project. This guide covers the complete regulatory pathway: ERB licensing categories, the net metering application process, the Small Power Producer framework, grid code technical requirements, and the tax exemptions that make solar equipment imports viable.

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Grid Operator
Net Metering Regulations
Electricity (Net Metering) Regulations, SI No. 38 of 2024
Grid Code
Zambian Distribution Grid Code
Net Metering Portal
Licensing Exemption
Generation under 100 kW for own use — no ERB license required

Critical Compliance Point

ZESCO requires all grid-connected solar systems to comply with the Zambian Distribution Grid Code. The most common reason for connection rejection is an incomplete single-line diagram or protection settings that do not match the grid code requirements. Anti-islanding protection must disconnect the system within 3 seconds when voltage or frequency limits are exceeded. Failing this test will block commissioning.

ERB Licensing Categories for Solar

The Energy Regulation Board (ERB) is the statutory regulator for all energy sector activities in Zambia. Solar projects must obtain the correct license before construction or operation.

The Four Main License Types

License Type Scope Validity Annual Fee
Generation Generating electricity 30 years 0.7% of gross turnover
Transmission Bulk power transmission 30 years 0.7% of gross turnover
Distribution Electricity distribution networks 15 years 0.7% of gross turnover
Supply Electricity supply and trading 5 years 0.7% of gross turnover

A Combined License covering generation, transmission, distribution, and supply is available with a 30-year term. This is commonly used for mini-grid and off-grid developers who need to own the full value chain.

Solar-Specific Licensing

Activity License Required Threshold
Trading solar equipment Solar Business License Any scale
Importing solar panels/inverters/batteries Solar Business License Any scale
Installing solar systems Solar Business License Any scale
Generating electricity for sale Generation or Combined License Above 100 kW
Generating electricity for own use Exempt Below 100 kW

The solar business license is renewed annually with a fee of 0.5% of annual turnover from the sale of solar PV panels, inverters, batteries, and charge controllers.

Key Licensing Thresholds

Capacity Regulatory Treatment
Under 100 kW (own use) No ERB license required
100 kW to 5 MW Generation license or net metering
5 MW to 20 MW Generation license + REFIT eligible
Above 20 MW Generation license + competitive tender

Licensing Application Requirements

First-time applicants must submit:

  • Completed ERB license application form
  • 5-year business plan (3-year for renewals)
  • Audited financial statements (not older than 2 years)
  • Certificate of incorporation from PACRA
  • Proof of funds (bank statements or sponsor letter)
  • Current shareholders and directors list
  • Valid tax clearance certificate from ZRA
  • ZEMA environmental permit decision letter
  • Zonal approval from local council
  • Title deed or letter of consent from Chief or Traditional Leader

The assessment fee is 0.1% of total investment cost.

ZESCO Net Metering Policy

Zambia’s net metering framework is established under the Electricity (Net Metering) Regulations, SI No. 38 of 2024, which took effect on August 1, 2024.

Program Parameters

Parameter Detail
Legal basis Electricity (Net Metering) Regulations, SI No. 38 of 2024
Launch date August 1, 2024
System size range 5 kW to 5 MW
Eligible technologies Solar PV and other renewable sources
Export tariff (2025) K1.67 per kWh
Generation limit Customer’s contracted or declared demand with ZESCO
Meter Bidirectional smart meter (prosumer bears cost)

Tariff Structure

Export Level Credit Rate
Exports 50% or less of total generation 100% of reference tariff
Exports 50-75% of total generation 75% of reference tariff

The ERB determines the reference tariff annually, published in the last month of each year for the following year.

Program Status (Early 2025)

Metric Figure
Prosumers connected 521
Total installed capacity 15.3 MW
Electricity exported to grid 12,228 MWh
Total credits paid out K3,685,032

Application Process

1

Submit Application to ZESCO

Submit the Prosumer Application Form (Doc Number: DS.13510.FORM.03390) to the nearest ZESCO Customer Service Centre or through the net metering portal at netmetering.zesco.co.zm. Include credentials of the Competent Person undertaking the installation, certified by the Engineering Institution of Zambia (EIZ).

2

Pay Administrative Fee

Pay the nominal administrative fee as approved by ERB at the time of submission. Receive an acknowledgement receipt with a reference number for tracking.

3

Site Verification and Technical Assessment

ZESCO conducts a site visit to assess technical feasibility. The assessment ensures the system can be safely connected to the grid and evaluates safety and compatibility requirements.

4

Approval and Agreement Signing

If approved, pay connection costs and sign two key agreements: the Net Metering Supply Agreement (NMSA) and the Net Metering Connection Agreement (NMCA). ZESCO will reject applications that do not meet technical standards, with stated reasons.

5

Installation and Commissioning

Install the renewable energy system per the approved design. Submit the Renewable Energy System Installation Completion Certificate to ZESCO. ZESCO installs the net meter at the premises (prosumer bears the cost) and commissions the system.

Billing and Settlement

Meter Type Settlement Method
Pre-paid Export credits added to meter account; subsequent purchases reduced by credit value
Post-paid Monthly bill charged for imports less monetary value of exports

Prosumer credits can be used to reduce current or future electricity bills. Reconciliation follows Regulation 23 of the Net Metering Regulations.

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Small Power Producer (SPP) Framework

The SPP framework covers solar projects too large for net metering but below utility-scale competitive tender thresholds.

Micro-Generator Scheme

Feature Detail
Capacity range 100 kW to 5 MW
Total capacity signed 270 MWp (as of February 2025)
Number of projects 28-29 IPPs with signed PPAs
Construction timeline 2 months to commence; 3-8 months delivery for smaller projects

REFIT Program

The Renewable Energy Feed-in Tariff (REFIT) program governs solar projects up to 20 MW:

Solar PV Size Range Benchmark Tariff (US cents per kWh)
500 kW to under 1 MW 17.82
1 MW to under 5 MW 16.76
5 MW to under 10 MW 15.74
10 MW to 20 MW 14.25

Key REFIT terms:

  • ZESCO is the mandatory off-taker
  • Minimum 20-year PPA term from commercial operation date
  • USD-denominated tariffs with annual CPI indexation from July 2016
  • Guaranteed purchase of all energy delivered
  • Full cost pass-through to ZESCO’s retail tariff

Grid Connection for SPPs

Step Action Responsible Party
1 Submit grid connection application to ZESCO Developer
2 ZESCO conducts stability studies and cost estimates ZESCO
3 Developer pays interconnection costs upfront Developer
4 ZESCO processes design, construction, commissioning ZESCO (or developer with prior arrangement)
5 Execute Grid Connection Agreement Both parties
6 ZESCO connects plant to national grid ZESCO

Interconnection costs — including transmission lines, substations, and upgrades — are borne entirely by the developer. The REFIT benchmark tariffs include a standardized allowance for these costs.

Grid Code Technical Standards

The Zambian Distribution Grid Code establishes the technical requirements for all renewable energy plants connecting to the ZESCO network.

Connection Capacity Limits

System Type Maximum Capacity
Single-phase small embedded generators 10 kVA
Three-phase systems 30 kVA
Variable Renewable Energy at any POC 50 MWac recommended

Protection and Safety Requirements

Parameter Requirement
Grid impact study Required for connections above 100 kVA
Inverter standards Must comply with relevant IEC standards
Voltage variations Must not exceed limits stated in ZS 387
Phase jump withstand Designed to withstand sudden phase jumps up to 20 degrees
Anti-islanding protection Mandatory disconnection within 3 seconds when voltage exceeds limits
DC content limit Maximum 0.5% of rated output current at AC terminals
Reactive power Required capability for voltage control

Common Rejection Reasons

Issue Correct Approach
Incomplete single-line diagram Include all protection relays, metering, and correct symbols
Protection settings outside permitted range Use values from inverter’s type-test certificate
Inverter without IEC certification Specify make, model, and certification reference
Missing grid impact study Commission study for all systems above 100 kVA
Export limiting device not specified Document where required by ZESCO

Import Duty Exemptions and VAT

Zambia offers significant tax incentives for solar equipment, though the details vary by product category.

Current Tax Incentives

Incentive Rate Legal Basis Valid Until
VAT on solar equipment 0% (zero-rated) SI 104 of 2021 Ongoing
Customs duty suspension on solar power equipment Suspended 2024 Budget December 31, 2027
VAT on electricity generation equipment 0% 2024 Budget December 31, 2033
Accelerated depreciation 50% first-year wear-and-tear Income Tax Act Ongoing

Duty Rates by Product (2025)

Product Typical HS Code Customs Duty VAT
Solar PV panels 8541.43.00 25% 0%
Lithium-ion batteries 8507.60.00 / 8507.80.00 0-5% 0%
Solar inverters 8504.40.00 0-5% 0%
Charge controllers 8537.10.00 0-5% 0%
Solar water heaters 8419.12.00 0-5% 0%
Solar street lights 9405.41.00 0-5% 0%

The 25% customs duty on solar panels is a critical exception. While most solar components enjoy low or zero duty, panels attract the full rate. Importers should verify HS codes with ZRA before ordering.

Requirements to Qualify

Importer Type Requirements
Businesses ERB import license + product quality certificates
Individuals ERB/ZRA Self-Declaration form (non-commercial)
All importers Proper HS code classification, correct documentation

ZRA Guidance

The Zambia Revenue Authority has specifically urged suppliers to pass tax savings to consumers through reduced prices. Despite tax breaks, solar equipment remains expensive for many Zambians. Proper documentation and correct HS classification are essential to realize the full benefit of these incentives.

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Open Access and Power Wheeling

The Electricity (Open Access) Regulations, SI No. 40 of 2024 introduced a significant reform for solar developers:

Category Duration Minimum Capacity
Long-term open access More than 5 years 1 MW
Medium-term open access 3 months to 5 years 1 MW
Short-term open access Less than 3 months 1 MW

Qualifying participants — traders, suppliers, and consumers at 1 MW and above — can now access ZESCO’s transmission and distribution networks to sell electricity directly to third-party buyers for a regulated wheeling fee. This creates new revenue opportunities for C&I solar developers who can serve off-site customers.

Common Mistakes in ZESCO Applications

Mistake Why It Happens Correct Approach
Applying with non-certified inverter Cost-cutting on equipment Only specify IEC-certified inverters with valid type-test documentation
Undersizing protection relays Using residential-grade equipment for C&I projects Size all protection equipment for the system’s maximum fault current
Missing EIZ certification for installer Using uncertified contractors Ensure the Competent Person holds valid EIZ certification
Incorrect HS code on import documentation Lack of ZRA consultation Verify HS codes with ZRA before shipment to avoid duty disputes
Skipping environmental clearance Assuming exemption applies Submit EPB to ZEMA for all ground-mount and large rooftop systems

Frequently Asked Questions

What are the ERB licensing categories for solar projects in Zambia?

The ERB issues four main license types: Generation (for electricity generation above 100 kW, valid 30 years), Transmission (for bulk power transmission, valid 30 years), Distribution (for electricity distribution networks, valid 15 years), and Supply (for electricity trading to consumers, valid 5 years). A Combined License covering all four activities is available for 30 years. Generation below 100 kW for own use is exempt. Solar business licenses for trading and installation are renewed annually.

How do I apply for ZESCO net metering?

Apply through the ZESCO net metering portal at netmetering.zesco.co.zm. Submit the Prosumer Application Form (DS.13510.FORM.03390), credentials of a Competent Person certified by the Engineering Institution of Zambia (EIZ), and a single-line diagram. Pay the administrative fee, undergo a ZESCO site verification, then sign the Net Metering Supply Agreement and Net Metering Connection Agreement. ZESCO installs a bidirectional smart meter at the prosumer’s cost and commissions the system.

What is the SPP framework in Zambia?

The Small Power Producer (SPP) framework in Zambia covers solar projects from 100 kW to 5 MW under the Micro-Generator Scheme. As of February 2025, ZESCO signed PPAs for 270 MWp across 28-29 projects. The REFIT program guarantees purchase of all energy delivered with 20-year PPAs denominated in USD with annual CPI indexation. ZESCO is the mandatory off-taker. Interconnection costs are borne by the developer.

What technical standards apply to grid-connected solar in Zambia?

Grid-connected solar must comply with the Zambian Distribution Grid Code. Key requirements include: grid impact studies for systems above 100 kVA, IEC-compliant inverter standards, voltage variation limits per ZS 387, anti-islanding protection (disconnection within 3 seconds), maximum DC content of 0.5% of rated output current, and reactive power capability. Single-phase systems are limited to 10 kVA and three-phase to 30 kVA without special studies.

Are solar inverters and batteries duty-free in Zambia?

Solar inverters and batteries benefit from favorable duty treatment. Under the 2024 Budget, customs duty on solar power equipment, generators, and components is suspended through December 31, 2027. Inverters and batteries typically face 0-5% customs duty. VAT is zero-rated at 0% on all eligible solar equipment under SI 104 of 2021. However, solar panels specifically attract 25% customs duty. Proper HS code classification with ZRA is essential.

About the Contributors

Author
Rainer Neumann
Rainer Neumann

Editorial contributor · SurgePV

Rainer Neumann is credited as an editorial contributor on SurgePV content. This profile does not assert engineering credentials, project totals, software-testing experience, education, speaking engagements, or media citations because independent verification evidence is not retained in the publication record.

Editor
Keyur Rakholiya
Keyur Rakholiya

CEO & Co-Founder · SurgePV

Keyur Rakholiya is identified by SurgePV as its CEO and a company co-founder. His SurgePV author page lists only role information that can be tied to the public profile below; credentials, project totals, testing claims, media appearances, and speaking engagements are not asserted without retained evidence.

ZESCO grid connectionZambia net meteringERB licensingSPP frameworksolar grid code Zambiaimport duty exemption

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