What's Happening?

Facebook Twitter Youtube Linkedin

NEED HELP? QUESTIONS@FIA.ORG.ZA

become A FIA member TODAY
member login

Solar panel installations: What can go wrong?

ARTICLE BY

  • Tarina Vlok
  • MD
  • Elite Risk Acceptances, a subsidiary of Old Mutual Insure

SHARE THIS POST

Imagine installing a R2.5 million solar operation to power your property, only to have your property destroyed by a fire.

“This is the very real risk property owners face if the installation of the solar power solution is not done in accordance with regulation and South African National Standards (SANS),” says Tarina Vlok, MD of Elite Risk Acceptances, a subsidiary of Old Mutual Insure.

The ever-increasing cost of electricity and load shedding due to Eskom’s ageing coal-fired generation infrastructure, combined with the tax rebate incentives as announced in the February 2023 Budget speech, has led to an exponential increase in the installation of residential solar photovoltaic (PV) solutions. In the first quarter of 2023, R3.6 billion of solar panels were imported to South Africa, which is almost as much as those imported during 2022. This represents an estimated additional 1,000 megawatt of solar capacity.

But, according to Vlok, this scenario has also introduced risks, with the insurer noting more fire related claims because of incorrect installations. She says that the opening scenario is a real-life claim example of what can go wrong.

“The fire in this particular case was caused by the installation of charge controllers, which was done without a professionally authorised design document in accordance with the manufacturer’s instructions, and the issuing of a certificate of compliance (CoC) which did not comply with the relevant SANS code 10142-1,” says Vlok, adding that this specific code deals with the wiring of installations.

She says consumers may be tempted to settle for affordable solutions and installers, without verifying credentials, which may prove a very expensive decision.

“The installation and management of solar PV systems is a complex and highly skilled undertaking, installed on top of your most expensive asset. It is therefore important to ensure that the electrician can provide you with a CoC, which confirms that they complied with the rules and regulations in place to ensure safe installation.”

She explains that it is also important to ensure that the electrician has the relevant proof of registration with the Department of Labour. This is also called a wireman’s license, which ensures that the electrician is proficient in the wiring codes of SANS 10142-1 and is permitted to issue the necessary CoC.

When buying solar panels, it is advisable to buy the best quality that you can afford. With the huge capital investment that comes with investing in solar, top tier have better durability, unlike cheap imports that may be vulnerable to deterioration and wear and tear, which is not covered by insurance.

Other risks to be aware of include damage by weather-related causes like hail, or accidental damage, and theft.

“It is therefore important to ensure that you include your solar installation for replacement costs on your Buildings insurance so that you are not out of pocket if the installation is lost or damaged. Insurers have various responses to solar installations, and it is best to ensure that you are fully aware of the covers, limitations, conditions and excesses associated with your solar PV system insurance. If you are a tenant, it is important to talk to your broker about the most appropriate insurance cover for your solar installation.”

Below are Vlok’s important tips:

  • Ensure that your roof is well maintained without broken tiles or rust and ensure that all water damage and visible cracks are repaired before you have the solar system installed.
  • Use an installer who is accredited by the South African Photovoltaic Industry Association’s (SAPVIA) PV GreenCard programme for solar installers.
  • Buy the best quality solar panels you can afford.
  • Get the required municipal approvals for solar systems. Your accredited installer will be able to assist you with the process.
  • Increase the sum insured on your buildings insurance to cater for the replacement of your solar system.
  • Continue to manage your electricity usage and try to save wherever you can.
  • For tenants, ensure a watertight addendum with landlords is signed to remove any backup utilities should they move.
  • Keep all your invoices and remember to claim back your tax rebate!

 

“For property owners, solar PV will likely increase the value of their property by three to eight percent, and make the property more attractive for potential buyers, not only for the uninterrupted supply of energy, but also in support of green energy solutions,” concludes Vlok.

Subscriber Terms and Conditions

  1. APPLICATION OF TERMS
    • These terms and conditions (“Subscriber Terms”) apply to the subscription by any qualifying member of the South African Underwriting Managers Association NPC (“SAUMA”) to the services and benefits offered by FIA Services (Pty) Ltd (“FIA Services”) under the SAUMA affiliation arrangement (“Subscription”).

  2. NATURE OF SUBSCRIPTION
    • A Subscription under this arrangement:
      • does not constitute membership of FIA NPC;
      • does not confer any voting rights or governance participation in FIA NPC; and
      • is governed solely by the contractual relationship between the Subscriber and FIA Services.

  1. ELIGIBILITY
    • To qualify for the Subscription, the applicant must, at the time of application, be a current paid-up member of SAUMA.
    • FIA Services will verify the applicant’s SAUMA membership status with SAUMA prior to activation, and may re-verify such status periodically.
    • If a Subscriber ceases to be a paid-up member of SAUMA, the Subscription will correspondingly be terminated.
    • Applicants are required to authorise FIA Services to confirm their SAUMA membership status with SAUMA as part of the application process.

  1. SERVICES
    • The Subscription entitles the Subscriber to the following benefits:
      • Complimentary access to the FIA CPD Platform;
      • Complimentary access to the FIA Insight Magazine (digital edition);
      • Advertising opportunities on FIA platforms at a discounted rate of 15% (fifteen percent) off the prevailing published rates; and
      • Invitations to attend FIA Technical Webinars annually.
    • FIA Services reserves the right to update, vary or substitute the Services from time to time, provided that the overall value and nature of the benefits remain materially the same.

  1. FEES AND PAYMENT
    • The monthly subscription fee is R260.00 (two hundred and sixty rand) for up to seven registered individuals (Key Individuals and Representatives), and R36.00 (thirty-six rand) per additional registered individual thereafter, excluding VAT.
    • The Subscriber shall provide FIA Services with the required details of each individual to be registered under the Subscription for the purposes of activation and billing.
    • All fees are exclusive of VAT, which shall be charged at the prevailing statutory rate.
    • Subscription fees are reviewed annually in March and may be adjusted with effect from 1 April.
    • Any changes to the Subscription, including but not limited to the number of Representatives and Key Individuals registered under the Subscription, may only be effected once annually during the annual review period in March of each year, with such changes taking effect from 1 April.
    • Subscription fees shall be billed monthly in arrears, unless the Subscriber elects an annual billing cycle at the time of application.
    • The Subscriber shall ensure that all billing information (including contact details, authorised signatories and bank account details) is kept accurate and up to date.
    • Non-payment of subscription fees may result in suspension of access to the Services until such fees are brought up to date.
    • The Subscriber acknowledges and agrees that all subscription fees payable under these Subscriber Terms may be collected by way of debit order, which shall be processed by the holding company, FIA NPC (The Financial Intermediary Association of South Africa), on behalf of FIA Services. Payment to FIA NPC shall be deemed to constitute valid and sufficient discharge of the Subscriber’s payment obligations to FIA Services under these Subscriber Terms.

  1. ONBOARDING
    • Onboarding will be conducted as a Subscription with FIA Services under the SAUMA affiliation arrangement.
    • Onboarding will not confer FIA NPC membership status or any associated rights.
    • Onboarding is conditional on confirmation of the Subscriber’s current SAUMA membership at the time of application

  1. DATA PROTECTION
    • FIA Services will process all personal information in accordance with the Protection of Personal Information Act 4 of 2013 (POPIA) as set out in our POPIA policies.
    • By subscribing, the Subscriber authorises FIA Services to confirm their SAUMA membership status with SAUMA and to process personal information for the purposes of fulfilling the Subscription.

  1. TERMINATION
    • The Subscriber may terminate the Subscription by giving FIA Services one calendar month’s written notice.
    • FIA Services may terminate the Subscription on one calendar month’s written notice, or immediately if the Subscriber breaches these Subscriber Terms and fails to remedy such breach within 14 (fourteen) days of receiving written notice.
    • Termination of the SAUMA–FIA Services affiliation agreement shall not automatically terminate these Subscriber Terms.
    • Termination by the Subscriber shall not relieve the Subscriber of liability for any subscription fees accrued up to the effective date of termination.
    • FIA Services may suspend or terminate the Subscription with immediate effect in the event of non-payment of fees by the Subscriber.

  1. GENERAL
    • These Subscriber Terms are governed by the laws of the Republic of South Africa.
    • Any disputes arising under these Subscriber Terms shall be dealt with in accordance with the dispute resolution provisions contained in the FIA NPC membership terms and conditions, as modified to reflect that the contractual relationship is with FIA Services.
    • Any notices required under these Subscriber Terms may be validly delivered by email to the addresses provided in the Subscriber’s application form, and such notices shall be deemed received on the day of transmission if sent during business hours.
    • The Subscriber may not assign, cede or transfer any of its rights or obligations under these Subscriber Terms without the prior written consent of FIA Services.
    • No variation of these Subscriber Terms shall be of any force or effect unless reduced to writing and signed by both FIA Services and the Subscriber.