Warning for South Africans who want to dump Eskom

South Africans looking to protect themselves from the country’s water and electricity struggles must be aware of the risks associated with installing solar panels, electricity inverters, battery chargers, battery packs, backup generators, and water storage systems.

Momentum Insure chief actuary Rudolf Britz warned that these systems provide much-needed relief but come with their own share of risks.

While Eskom has managed to stave off load-shedding for the better part of a year, persistent power outages over the past few years have pushed many South Africans to invest in energy alternatives.

Now, with Eskom’s system still vulnerable and short bouts of load-shedding being implemented sporadically, more South Africans are considering doing the same.

In addition, the country’s water crisis continues to worsen and has become as bad as, if not worse than, South Africa’s energy crisis.

“With failing water and power infrastructure becoming a daily reality, South African homeowners and businesses are turning to alternative solutions,” Britz said.

However, he warned that solar panels, electricity inverters, battery chargers, battery packs, backup generators, and water storage systems have significant risks that South Africans must be aware of before investing in them.

Momentum Insure data shows that hail, theft and power surge claims on solar installations more than doubled in 2023 when compared to previous years.  

This indicates how many more houses got these systems installed during the 2022/23 period, coupled with the additional exposure to theft, inclement weather and power surges. 

“These systems must be properly installed to avoid additional headaches further down the line,” he said.“If things aren’t done right, issues such as poor workmanship and faulty installations can lead to bigger problems.”

He added that insurers are within their rights to decline claims under these circumstances.

He used solar panels as an example, as they have become one of the most popular solutions to avoid Eskom’s load-shedding, but they also present unique challenges. 

“The wiring involved increases the potential for fires, and improper installation leaves them vulnerable to severe weather, such as hailstorms,” Britz said. 

“Moreover, countless homeowners fall victim to subpar installers, leading to dangerously inadequate workmanship in their solar systems.” 

Solar installations often involve lithium-ion batteries, which are difficult to extinguish when they catch fire, requiring a specialised fire extinguisher to put out the flames.

Therefore, getting the right insurance coverage is as important as getting the installation right. 

“That’s why specific policies exist to address the unique risks of alternative energy and water systems,” Britz explained.

“When adding something like solar, you want to ensure it’s properly insured. Having the right coverage can save you from unnecessary expenses.”

How to limit the risks

Britz provided homeowners with guidance on how to mitigate the risks that accompany installing alternative water and energy systems.

He advised South Africans to ensure the installation is up to code and has a Certificate of Compliance (COC). 

He highlighted surge protection as another “must-have” to keep these systems from getting damaged during a power surge. 

He said it is important for South Africans installing solar panels to get an engineer to check if their roof can support the extra weight. 

Similarly, if someone is installing a water backup system, Britz advised getting an engineer involved to ensure the plinth and tanks can withstand the elements and weight they intend to put on them.

“Water shortages are also more than a simple household inconvenience,” he said. 

“They expose businesses to the malfunction of already installed risk mitigations. If there is no water, fire sprinkler systems can’t do their job. Without them, a fire could result in total loss.”

Therefore, Britz advised considering alternative firefighting measures, especially if someone is depending on a water mitigation system that may not be functional at the most crucial moment. 

“It’s wise to safeguard your property with a range of effective fire mitigation systems, especially when water is in short supply,” he said.

By anticipating water and power challenges, Britz believes businesses and households alike can safeguard their properties and finances against ongoing infrastructure issues.

“From compliance with regulations to securing the right coverage, it’s all about planning,” he said. 

“While Johannesburg deals with its infrastructure challenges, those who prepare now will be best equipped to weather the storm.”