Navigating the risks of your solar energy installation 

Unprecedented levels of load-shedding have been the catalyst for a dramatic increase in solar energy installations in South Africa across residential and commercial properties.  South Africa quadrupled its solar panel imports in the first half of 2023 to 3.4GW – which, at peak production, amounts to nearly the generation capacity of Eskom's Duvha or Matla power stations.  The value of imports in the first half of 2023 is more than the entire value imported in 2022, which was R5.6 billion. By the beginning of August, R12 billion worth of solar panels had been imported by South Africans so far in 2023.

While solar energy has many advantages in a country with abundant sunshine, including the ease and speed of installation, a reduction in electricity consumption from the grid and utility bill savings, not to mention its environmental benefits, there are a number of intrinsic risks that need to be considered and managed.

“From a risk management perspective, one of the most important considerations is to ensure that a registered, qualified and experienced solar installer is appointed to undertake the work and that a qualified and registered electrician issues a supplementary electrical Certificate of Compliance (CoC) upon completion of your solar energy system installation, ensuring that all electrical wiring and connections meet the required electrical standards.  It is also important to note that it is a legal requirement that the supplementary CoC must reference the certificate number of the initial electrical CoC for the building,” explains Ivor Davis, a Risk Consultant at Aon South Africa.

The solar energy boom has given rise to a proliferation of fly-by-night contractors that have suddenly sprung up trying to cash in, leaving unsuspecting consumers ripped off with either a bad deal, outdated technology, wholly unqualified installers and non-compliant installations.  More recently, counterfeit and stolen goods have also crept into the mix. In some of the worst cases, these fly-by-nights have disappeared with large deposits from customers never to be seen again. Another important consideration is that the lifespan of your solar PV system is a good 20+ years, so this isn’t a short-term relationship with your solar provider – you need to be sure that they will be around for the ongoing backup, support, warranty management and servicing and maintenance of your system.

“A solar solution that is installed incorrectly, poses a serious fire and electrical risk to the building and its occupants whether at your home or at your business premises. Ensuring safety and an installation that is done correctly is pertinent, right from the vetting process of selecting an installer, through to the installation process through to the maintenance and monitoring of your solar solution post installation,” says Ivor.

During the installation of a solar solution:

• Incorrect wiring could cause a fire, which makes it critical for all connections to be carried out by a qualified electrician in compliance with The Occupational Health and Safety Act; (EI) Electrical Installation Regulations and SANS 10142 – The Wiring of Premises Part 1: Low Voltage Installations.
• The installation company should be a Verified PV Green Card Installation Company that is registered as an electrical contractor with the Department of Employment and Labour. Thus, the verified PV Green Card Installation company is authorised and competent to carry out both the AC and DC portion of the Solar PV installation.  As a customer, please ensure that the installer issues both a CoC and a PV Green-Card “As-Built” report that forms part of a handover pack upon completion of the installation.
• The appointed installer/contractor should also have an appropriate Contractors All Risks policy in place that will cover any loss or damage during the installation process as well as possible damage to surrounding property in a worst-case scenario.
• Make sure the roof structure is designed to take the additional weight of any solar panels that are installed on the roof of the building. It is a task best undertaken by a structural engineer to ensure the safety of the installation. Larger installations for commercial properties would need to have a proper engineering audit done not only to verify the correct design of the system for your needs but also to check and confirm the structural integrity of the buildings, rooftops or ground mount structures to carry the weight of the panels.
• Extra precautions need to be taken if the installation is taking place in a high-wind area to ensure the structural integrity of the installation.
• Check that the inverter specified is compliant in terms of NRS 097-2-1 and that it can be legally connected to the grid.  SSEG (Small-Scale Embedded Registration) is now required by many local councils and Eskom if you are a direct customer. You need to apply for authorisation of an embedded generation system such as a rooftop solar PV connected to the grid.  As the property owner, you would need to make this application in person, or your installer may offer to do this for you at a fee to handle the documentation and application process on your behalf.  One of the primary requirements for this process is that the inverter is approved in terms of NRS 097-2-1. Be especially wary of any provider who does not inform you of this important process upfront or says it is not required.

Maintaining a solar installation:

• Maintenance should be carried out on an annual basis, checking for loose connections or even doing infrared hot spot scanning on larger installations, particularly where solar panels are exposed to excessive wind conditions.
• Cleaning of solar panels should be conducted in accordance with recommended manufacturer guidelines to enhance the functionality of a solar installation. The best approach would be to engage the services of professional cleaners who are experienced in dealing with solar panels.
• If your solar solution is being installed in a coastal region, it is pertinent to check solar panel securing brackets regularly as corrosion can occur. 
• Crime is a reality and as the energy crisis deepens, solar equipment and cables become the target of theft and vandalism. Make sure that your solar solution is added to your insurance to give you peace of mind and put the necessary security measures in place at your property.
• Severe weather also threatens your solar installation, especially in the event of a hailstorm, which can seriously damage your solar panels. Make sure that your solar solution is covered for severe weather.
• If any of your solar panels need to be replaced, it is important to confirm that any additions are compatible with the existing set of solar panels. An electrical engineer will be able to confirm if you are in doubt.

The solar industry is still in its infancy and there are many regulations that are still being formulated.  “Your best approach is to insist on a Certificate of Compliance (CoC) from your installer to ensure that electrical work is up to standard. Your insurance will also insist on a CoC to support any claims made in the event of a loss. Make sure that you are dealing with an experienced installer, ask for references and check them, to ensure that your installation is in good hands,” Ivor concludes.

-- ENDS --

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. 

Follow Aon on LinkedIn, Twitter,Facebookand Instagram. Stay up-to-date by visiting the Aon Newsroomand sign up for News Alerts here.