Ensuring Compliance for Solar Panel and Inverter Installations

Insurance providers require strict adherence to local and national regulations for solar panel and inverter installations to mitigate risk and ensure policyholder safety. Policy terms and conditions relating to solar and inverter installations specifically highlight exclusions that speak to the contravention of manufacturer specifications which may apply to solar claims, but there are more factors to take into account to ensure a good claims outcome. I-Scale Embedded Generation (SSEG) and Insurance Implications

SSEG refers to the process of obtaining permission to install a distributed power generation system (like solar panels) on residential, commercial, or industrial properties. Currently, SSEG applications do not directly impact insurance claims. However, this may change with future legislative updates.

However, a crucial requirement is a valid COC (Certificate of compliance) issued by a qualified and registered electrician. This document confirms that the installation meets safety standards and regulations. Notably, solar panel and inverter COCs are specialised and more comprehensive than standard electrical COCs, typically spanning approximately nine pages.

South African National Standards (SANS) mandate that roof-mounted solar panel installations undergo inspection and approval by a qualified civil engineer. Failure to provide a civil engineer's report may result in claim rejections for roof collapses or wind-related damage to the solar panels.

City of Cape Town (COCT) specific registration requirements

In the City of Cape Town, grid-tied solar systems must be registered with the COCTUnregistered systems pose a higher risk due to potential non-compliance with safety and quality standards. COCT registration through the SSEG process provides insurers with confidence that the system adheres to regulations, reducing the likelihood of claims. However, from an Auto&General claims perspective the requirement is that the system is installed correctly by a qualified individual and that a valid COC is issued. The registration of the system with the COCT may not necessarily be a claims requirement.

It’s worth noting that the SSEG registration process requires detailed information about the solar system, including capacity, installation details, and maintenance plans. This allows insurers to accurately assess the system's value and potential risks, leading to appropriate coverage and premium calculations. For more information on the SSEG registration process, please read <SSEG Application process - Energy Advisory Services>.