Warning to South Africans who want to dump Eskom

South Africans are turning to off-grid solutions like solar power to escape Eskom, but experts warn that homeowners should update their insurance policies.

These eco-installations may not be automatically covered and could leave homeowners underinsured in the event of damage, theft, or claims.

Although Eskom’s energy supply has improved over the last year, the country isn’t out of the woods where load-shedding is concerned.

South Africa’s Energy Availability Factor (EAF), a measure of the online capacity for operating and generating electricity, is currently at 56.63%.

However, for the power system to be stable and reduce the risk of load shedding, it needs to be between 65% and 70%.

Essentially, this means that the country could be one outage or problem away from load-shedding making a comeback, as evidenced by the intermittent load-shedding periods that have already been implemented in 2025.

At the same time, Eskom’s prices are growing above inflation rates, going up by 12.74% in 2025/2026. As a result, many South African homeowners are taking matters into their own hands by investing in sustainable home upgrades.

From solar panels and battery backups to greywater systems, rainwater tanks and gas appliances, these eco-friendly installations offer greater independence and reduced environmental impact.

However, Leruo Malumo, head of product strategy development & governance at Santam, warned that standard homeowner policies may not automatically cover these new eco-installations.

“Homeowners’ policies may differ in how they define your buildings,” Malumo said. “Some may include battery systems, while others may require that these be specified as fixed machinery.

For this reason, it is important to understand exactly what your policy includes – and what it doesn’t. Malumo said that South Africans who have recently added any off-grid systems may need to review their property insurance.

“Off-grid infrastructure can significantly increase the value of your home. It’s important to ensure that the amount for which your property is insured reflects these additions, so you’re not left underinsured in the event of a claim.”

Documentation is also essential. In this regard, it is important to remember that off-grid systems are often tailored to each household’s needs.

Therefore, Santam recommended keeping a record of all invoices, the technical specifications of the system, and the details of who installed it, as well as an electrical certificate of compliance (CoC).

This information can be crucial in the event of a claim. If your home is underinsured, you could be left covering the costs yourself.

Risks and rewards

Malumo explained that while the shift to clean energy has many benefits, it is not without complications. “Solar panels and battery systems are integrated into a home’s electrical system.”

“If the installation has faulty wiring or isn’t properly grounded, this can result in an electrical fire.” There are also structural risks.

Solar panels add weight to your roof; if your roof structure isn’t strong enough, the panels and the roof itself could be damaged.

Theft and vandalism are additional concerns, especially as solar installations and lithium-ion batteries are high-value items.

Insurers may require a physical inspection by an assessor before settling a claim and will generally expect a police case number to be provided.

While off-grid homes are generally insured like standard residential properties, Malumo said homeowners should take steps to avoid shortfalls in cover.

First, it is crucial to use an installer accredited by a recognised industry body and keep records of the technical specifications and invoices for all components.

It is also essential to notify your insurer as soon as the installation is complete and ensure your insured value reflects the building and the new systems.

Additionally, Malumo said that homeowners should request high-value off-grid infrastructure to be noted separately on their policy, if necessary. “Insurance should be part of your upgrade planning, not an afterthought,” he added.