The single most useful line to remember is 500 kW. Under Uganda's Electricity Act 1999 and the ERA Net Metering Regulations 2024, a self-consumption solar system below 500 kW does not need a generation licence; it must be registered with the Electricity Regulatory Authority (ERA). Systems from 500 kW up to 2 MW need a certificate of exemption, and above 2 MW you are in full generation licence territory. Captive power means generation for your own operations rather than primarily for sale to the grid.
The 500 kW line: registration, exemption, or full licence
Section 51(2) of the Electricity Act 1999 requires projects below 500 kW to register with ERA. The registration process is supported by ERA in liaison with the Solicitor General's office, and a prescribed fee is paid. In practice, this step can take one to three weeks. Under the Electricity (Isolated Grid) Regulations 2020, projects from 500 kW up to 2 MW must apply for a certificate of exemption — not a full licence. For self-consumption, a licence of own use is provided. Above 2 MW, a full generation licence from ERA is required.
- Below 500 kW
- Register with ERA. No generation licence required for self-consumption. Typical timeline: 1–3 weeks.
- 500 kW – 2 MW
- Certificate of exemption required; a licence of own use covers self-consumption. Application fee approx. USD 3,000.
- Above 2 MW
- Full generation licence from ERA required. Primarily commercial export falls outside net metering and may consider REFIT.
Net metering for systems up to 500 kW
Under the ERA Net Metering Regulations 2024, systems up to 500 kW installed for self-consumption can export surplus electricity to the grid and draw it back later. A bi-directional smart meter records both imports and exports. When you later import energy, the imported energy is discounted by 20% to cover the grid's operation and maintenance costs. This means you receive credit for exported kilowatt-hours, less a 20% grid service adjustment.
- A bi-directional smart meter is mandatory.
- Exported surplus creates a credit you can draw on later.
- Imported energy drawn back is discounted by 20% for grid O&M.
- Net metering applies to self-consumption systems up to 500 kW.
The 200 MW pause does not stop your rooftop
In October 2025, ERA issued Regulatory Notice No. 002, which paused new permits and licences for grid-connected solar and wind projects. The critical distinction is that off-grid, mini-grid, hybrid, and captive solar projects are explicitly exempted from the pause. A factory rooftop or on-site captive plant is not a utility-scale grid-connected project, so it can proceed. For the utility-scale context, read Uganda's 200 MW Solar Ceiling.
Independent advisory note
This guide reflects the rule framework as of 2025. Regulations and fees can change; confirm current forms, fees, and timelines with ERA before you commit. Vendor-neutral advisory: we evaluate the decision landscape, not sell solar.
Installer permits and certification
The system owner's approval is separate from the installer's qualifications. Companies installing solar PV must hold a Class X permit, while individuals need a Class Z permit. Installers must be ERA-certified. Before you sign a contract, ask for proof of current ERA certification and confirm the correct class for the work.
0.68 → 7.92 MW
Uganda C&I solar installed capacity, 2017–2022
Compliance timeline and decision points
Below 500 kW, registration can move in one to three weeks when documentation is complete. Between 500 kW and 2 MW, the certificate of exemption route is lighter than a full licence, but budget for the application fee of about USD 3,000 and allow time for ERA review. Above 2 MW, your project is a full generation licence matter and should be treated as a regulated infrastructure decision rather than routine procurement. If cost or ownership structure is the bigger question, see Solar Without Upfront Cost in Uganda.
For a like-for-like comparison of solar against diesel generation, including realistic cost per kilowatt-hour, Solar vs Diesel in Uganda is a useful next step.
ERA offices
New ERA House, Plot 5C-1 Third Street, Lugogo Industrial Area, Kampala. Email info@era.go.ug; phone +256 417 101800.