Warning for solar users in South Africa

While switching to solar power can be a great way for homeowners to save on their electricity bills, it is crucial to properly insure solar generation systems or risk expensive damages.

Santam’s head of personal underwriting, Marius Kemp, said that after 300 consecutive days of no load-shedding, the recent blackouts showed everyone how fragile Eskom’s power supply still is.

With energy uncertainty unfortunately still a reality, many homeowners are looking beyond the quick fixes of generators for long-term ways to dodge the country’s energy crisis.

According to Kemp, solar power remains the perfect light, heat and energy source.

“The use of solar is not just to keep the lights on but to protect homes, appliances, and daily routines from disruption,” he said.

While the savings potential of solar energy depends on the size of your home and the type of system installed, Kemp said some homeowners have successfully reduced their electricity costs by up to 60% from the very first day.

Whether you are integrating solar technology into a newly built energy-efficient home or upgrading an existing property, he added that solar not only enhances long-term savings but also increases property value.

In addition, solar systems have minimal maintenance requirements which is less than the traditional electric geysers.

“Not only does this option offer financial benefits, but generating your own energy reduces your dependence on the national grid – providing stability and peace of mind.”

However, Kemp urged homeowners to ensure that they correctly insure their solar power generation systems.

If and when you install a solar power system in your home, it’s important to inform your insurer so that your building insurance sum can be adjusted accordingly.

“This is because the worth of a building includes all permanent fixtures and fittings connected to the residential structure, including solar power systems,” Kemp explained.

“It is essential that the insured amount correctly represents the present replacement value of the home and any additional structures on the property.”

Kemp warned that failing to do so may result in underinsurance, meaning that if a claim is submitted, the payout could be lower than expected.

“Comprehensive building insurance is vital to protect homeowners from complete loss due to fire or extreme weather conditions as well as disasters like earthquakes,” he said.

Solar panels may also be damaged by falling objects, including hail or drones. Homeowners seeking full accidental damage coverage can opt for additional protection at an extra premium.

Kemp added that installation is a complex process and must be done by a professional and reputable installer.

“Make sure that you check the installer references and insist on a warranty and certificate of compliance (COC),” he said.

“Aside from a professional installer being able to expertly advise you on the best placement of your solar panels for optimal power generation, a reputable installer – and the correct installation documentation they provide you with – will support any insurance claims you may need to make later on.”

Kemp said a solar power generating system is a significant investment for any home and should be safeguarded accordingly.

“Homeowners should carefully vet their installer and ensure their insurance coverage is updated to protect this valuable, cost-saving addition,” he said.

Earlier this year, energy expert Matthew Cruise echoed this sentiment on Newzroom Afrika.

Recently, Eskom waived the application fee for registering solar systems through Eskom’s Small Scale Embedded Generators (SSEG).

As a result, many solar users who were not on the grid decided to undergo the registration process, which revealed just how many poor and dangerous installations had been done by unreputable “fly-by-night installers”.

For this reason, Cruise recommended that those undergoing the application process have an inspecting engineer ensure that their solar system’s COC is up to date since insurance companies could refuse to cover resulting fire damage if this is not done.

“There have been very unfortunate situations where businesses had a fire as a result of a poor quality installation from inferior installers, and then realise that they’re not going to get actually any payout from the insurance company because there was no COC that was updated and no SSEG application that was done.”

Cruise added that now that people are getting the correct inspections done for their SSEG applications during this grace period, households are facing costs of up to R50,000 for necessary infrastructural or safety improvements.

The cost could be even higher for businesses, especially if they hired unqualified installers who improperly installed the solar system.

Some of these installers placed solar panels facing the wrong direction or even created a potential fire hazard, for example. But now, these installers are “nowhere to be seen”.

Where this is the case, some solar users may decide that their best option is simply to reinstall the system completely, which could be a significant expense.