Essential Strategies for Adapting to South Africa's Water and Energy Challenges

Johannesburg’s ongoing water crisis now mirrors the country’s energy challenges. Some areas have gone without water for prolonged periods, while Eskom’s unpredictable load shedding recently hitting Stage 6, adds further strain. With failing water and power infrastructure becoming a daily reality, South African homeowners and businesses are turning to alternative solutions.

Chief Actuary at Momentum Insure, Rudolf Britz, warns that solar panels, electricity inverters, battery chargers, battery packs, backup generators, and water storage systems provide much-needed relief but come with their own share of risks.

Momentum Insure data shows that hail, theft and power surge claims on solar installations more than doubled in 2023 when compared to previous years.  This is indicative of how many more houses got these systems installed during the period 2022-2023, coupled with the additional exposure to theft, inclement weather and power surges.

These systems must be properly installed to avoid additional headaches further down the line.

“If things aren’t done right, issues such as poor workmanship and faulty installations can lead to bigger problems,” warns Britz.  “Insurers are within their rights to decline claims under these circumstances.”

Solar panels are one of the most popular solutions, but they also present unique challenges. “The wiring involved increases the potential for fires, and improper installation leaves them vulnerable to severe weather, such as hailstorms," warns Britz. “Moreover, countless homeowners fall victim to subpar installers, leading to dangerously inadequate workmanship in their solar systems.”

Solar installations often involve lithium-ion batteries, which are particularly difficult to extinguish when they catch fire, requiring a specialised fire extinguisher to put out the flames.

Getting the right insurance coverage is as important as getting the installation right. That’s why specific policies exist to address the unique risks of alternative energy and water systems.

“When adding something like solar, you want to ensure it’s properly insured. Having the right coverage can save you from unnecessary expenses,” says Britz.

So, what should homeowners and businesses be thinking about when adding these systems?

For starters, ensure the installation is up to code and has a Certificate of Compliance (COC). Surge protection is another must to keep systems from getting damaged during a power surge. And if you're installing solar panels, don’t forget to get an engineer to check if your roof can support the extra weight – nobody wants their roof collapsing because it wasn’t designed to hold solar panels.

Similarly, if you are installing a water backup system, Britz advises getting an engineer involved to ensure the plinth and tanks can withstand the elements and weight you intend putting on them.

Water shortages are also more than a simple household inconvenience. They expose businesses to the malfunction of already installed risk mitigations. “If there is no water, fire sprinkler systems can’t do their job. Without them, a fire could result in total loss.”

Britz advises considering alternative firefighting measures, especially if you are depending on water mitigation system that may not be functional at the most crucial moment. “It’s wise to safeguard your property with a range of effective fire mitigation systems, especially when water is in short supply.”

By anticipating water and power challenges, Britz believes businesses and households alike can safeguard their properties and finances against ongoing infrastructure issues.

“From compliance with regulations to securing the right coverage, it’s all about planning. While Johannesburg deals with its infrastructure challenges, those who prepare now will be best equipped to weather the storm,” he concludes.