Concerns about climate change, as well as an erratic supply of electricity from Eskom is seeing more and more homeowners and companies using natural resources like the sun to power their homes and businesses, reducing their electricity bills.

However, as with any new technology, new knowledge is required. This Earth Day (April 22), Hollard brings you some green energy food for thought.

Here’s what you need to know before installing a green energy system:

Becoming more energy-efficient

Before adding a solar PV system, it’s practical to lower your energy usage as much as possible. This allows you to save on costs by installing a smaller solar PV system (that still meets a significant portion of your energy needs). You can do this by evaluating the amount of electricity you consume daily and modifying your usage by doing things like using energy-efficient appliances; switching to gas-powered stoves or ovens and energy-saving light bulbs; and lowering your geyser thermostat (or better yet, changing to a solar-powered or gas geyser).

Before installing your renewable energy equipment:

– Ensure your roof can withstand the weight and wind load of the installation of the solar PV panels – get a structural engineering assessment if you’re in any doubt.
– Ensure that the material of the roof is conducive for the installation of solar panels – thatch or glass may be more susceptible to damage in addition to not being able to withstand the weight of the solar panels.
– Check with local authorities for necessary authorisation.
– Contact the Electrical Conformance Board by visiting its website, https://ecb.org.za/, to find a registered electrician to do electrical installations.

Once your installation is complete, make sure that you obtain a certificate of compliance.

Maintaining your renewable energy equipment:

– Clean solar panels are up to 30% more efficient than dirty solar panels. Clean them regularly using only lukewarm water.
– Remove any bird or rodent nests, dry leaves, branches or other debris that collects on or under the panels and wiring, as they are potential fire hazards when the panels warm up and reach high temperatures.
– It is recommended that you clean the panels early in the morning when they are not hot from the sun. Cold water on hot panels can potentially cause cracks and other problems.
– Periodically inspect solar panels, especially after storms, and report any damage to installers or manufacturers.
– Avoid mixing and matching different panels, as lost or damaged panels can significantly impact performance. Finding a compatible replacement is essential to avoid contravening warranty conditions.
– In case of storm damage, remember that a registered electrician should assess and repair the equipment.

When insuring your renewable energy equipment:

Weather events, such as severe hailstorms, can damage solar panels. This is where insuring renewable energy equipment correctly is important: it allows a homeowner or business to get any damaged solar panels assessed, repaired or replaced – quickly, and with very little disruption or financial strain.

Without such cover, the costs of repair or replacement can be excessive and result in a significant financial setback. It’s thus imperative that homeowners and companies carefully consider, and get advice on, insuring this equipment.

At a very basic level, policyholders are advised to:

– Read the policy document thoroughly to check that renewable energy equipment kept or used outdoors is covered for hail and theft, even if there are no visible signs of forced entry or exit;
– Increase Contents or Buildings sum insureds to include the full replacement cost of renewable energy equipment, to avoid being underinsured; and
– Double-check the sum insured applicable to the equipment during annual policy reviews to ensure its sufficient, as the cost of such renewable energy equipment may increase by more than the inflationary percentage applied to the overall sum insured.

Renewable energy equipment insurance is a growing feature of the insurance market. The rising interest in sustainable energy solutions has created an increased demand for insurance products specifically designed to address the unique risks involved.

Customers who own sectional title buildings may face challenges when they want to insure their fixed energy equipment, since some body corporate policies do not provide coverage for such equipment. However, some insurance policies do offer cover under the Contents section, on the condition that the policyholder owns the items and is legally and financially responsible for them. In such cases the value of these items must be included in the Contents sum insured. Consulting your broker for advice on the ins and outs of insuring such items is always beneficial.

But it’s not only households that need to secure their renewable energy equipment.

Forward-thinking companies installing solar as a primary or back-up power source are increasingly catered for through commercial policies offered by the likes of Hollard.

At a more industrial level, large scale renewable energy projects such as wind farms and solar arrays must also be insured if they are to be financially viable. Specialist insurance players such as Itoo Renew Risk, a Hollard underwriting manager, have entered the fray to provide the comprehensive and complex cover demanded by such projects.

As we celebrate Earth Day, we are reminded of our collective responsibility to the environment. Each of us can play a part – simple actions like conserving energy, water and resources in our daily activities can make a difference. Investment in large-scale “green” solutions can multiply that difference. And insurance can make it sustainable – in all senses of the word.

Article credit Insuring your green energy equipment: a guide for homeowners (fanews.co.za)