South Africans investing in expensive solar and backup power systems should ensure they insure these products properly.
The severe load-shedding of 2023 has resulted in rising adoption of alternative power supply and storage equipment.
According to Trade & Industrial Policy Strategies senior economist Gaylor Montmasson-Clair, South Africa imported solar panels with roughly 2,200MWp capacity in the first half of 2023.
That is nearly half the nameplate capacity of one of Eskom’s newest power stations — Medupi and Kusile.
In addition to a surge in volumes, the value of these imports rose significantly — from about R5.6 billion in the entire 2022 to R12 billion over the first six months of 2023.
Including inverters and batteries in that tally takes the value up to roughly $2.5 billion (R47 billion), compared to $1.7 billion (R32 billion) in the entire 2022.
The severe load-shedding of 2023 has resulted in rising adoption of alternative power supply and storage equipment.
According to Trade & Industrial Policy Strategies senior economist Gaylor Montmasson-Clair, South Africa imported solar panels with roughly 2,200MWp capacity in the first half of 2023.
That is nearly half the nameplate capacity of one of Eskom’s newest power stations — Medupi and Kusile.
In addition to a surge in volumes, the value of these imports rose significantly — from about R5.6 billion in the entire 2022 to R12 billion over the first six months of 2023.
Including inverters and batteries in that tally takes the value up to roughly $2.5 billion (R47 billion), compared to $1.7 billion (R32 billion) in the entire 2022.
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Proper solar and battery backup systems that provide reasonable protection against load-shedding cost tens of thousands of rand.
But fickle electricity supply increases the likelihood of power surges that can damage or permanently destroy the equipment.
In addition, energy experts, security companies, and insurers have warned about a surge in the theft of solar panels in South Africa.
While you can take steps to mitigate against these risks, getting insurance on these products is critical to ensuring your hard-earned money does not go to waste in a worst-case scenario.
However, you also run the danger of getting inappropriate or insufficient cover because navigating the terms and conditions of insurers can be a complex endeavour.
In the sections below, South African short-term insurance company Naked has broken down the main principles to consider when insuring these valuables.
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