With relentless load shedding and increasing electricity costs, the small light at the end of the country’s energy crisis tunnel is, for those who can afford it, solar.
Motivated by a global drive towards renewable energy and with a local electricity supply that is unreliable and increasingly expensive, many residents are joining the energy revolution and switching to the sun. While the cost of embracing solar energy was prohibitive a decade ago, the steady drop in solar panel prices has resulted in the current boom in home solar photovoltaic (PV) roof installations.
Benefits of home solar systems
Going off-grid ensures that you have a consistent power supply, it lowers your electricity costs in the long term and your carbon footprint is reduced. In addition, you can also boost the resale value of your property by between 4% and 8%. This is, however, dependent on a number of factors including the size of the installation and the current value of your home.
Furthermore, in his Budget Speech, Finance Minister Enoch Godongwana announced a new tax incentive for individuals who install rooftop solar systems. This comes in the form of a 25% tax rebate of the cost of new PV rooftop solar panels, amounting to a maximum of R15 000. This incentive is only available for one year, from 1 March 2023 up to 29 February 2024, and can be used to reduce tax liability in the 2023/24 tax year.
Choosing the right installer
You’ve made the big decision to go solar, but as this is a significant investment, you’ll want to ensure that you find a reliable and professional installer. As there are a number of regulatory requirements to consider, it’s essential to check that the installer has the correct qualifications. A professional installer should be an accredited service provider under a relevant body such as PV GreenCard.
Good experience is just as important as accreditation, so ask the installer about their company and how long they’ve been in the solar PV installation business. You can also ask for the names of clients to contact as references and spend some time looking through online reviews.
A valid Certificate of Compliance (CoC) will need to be issued to guarantee that the electrician who performed the installation complied with rules and regulations, ensuring a safe installation. As solar systems can be expensive, ask what warranties come with the equipment.
Update your insurance policy
A CoC is also needed for building and household content insurance, so homeowners don’t run into issues with their insurer down the line. As solar is a costly investment, it’s key that your homeowners insurance is updated to ensure that you are covered for the system, for any damage or events that could cause damage. In addition, a CoC will enable you to claim the new tax rebate.
Get in contact with your Indwe advisor to check if solar systems are covered in your existing building cover. If not, you will have to provide the installation information and documents to have it added to your policy. Contact us on 0860 13 13 14 or indwe@indwe.co.za.
Indwe Risk Services (Pty) Ltd is an authorised FSP 3425.