Urgent Warning to South African Solar Users: Update Your Insurance Policy
As Eskom proposes a 36% power tariff hike for 2025, South Africans are seeking alternative energy sources to keep costs down and ensure consistent electricity supply. Solar power remains a popular choice, but there are insurance implications to consider.
Don’t Get Caught Off Guard: Ensure Your Solar Installation is Properly Insured
Karen Rimmer, head of distribution at PSG Insure, warns that South Africans with solar installations need to update their insurance policies to cover their installations, manage risks, and safeguard their alternative energy investments. Rimmer emphasizes that installing solar panels can add significant value to a property, and underinsuring could result in significant shortfalls if a claim is made.
Homeowners and businesses must ensure that their property values are adjusted in line with the installation cost, and use a qualified and compliant installation company to reduce the risk of malfunction and ensure a successful claim. Rimmer advises factoring your power supply plans into your business processes to ensure that all staff know how to operate and maintain new devices.
Protect Your Investment from Unexpected Costs
In addition to updating your insurance policy, Rimmer recommends factoring in additional security enhancements, such as anti-theft mechanisms, to prevent solar panels from being targeted by criminals. She also advises confirming with your insurance adviser about what level of cover you need, alongside the risk management requirements, such as warranties and proof of compliance with installation standards.
Furthermore, Rimmer warns that policies previously automatically covered power surges up to a certain limit, but this is no longer standard. Today, surge cover generally incurs an additional premium, so it’s essential to review and understand these options with your insurance adviser to protect against unexpected repair costs from surges or power inconsistencies.
By taking preventative measures and ensuring your solar installation is properly insured, South Africans can safeguard their alternative energy investments and enjoy the long-term benefits of solar power.
