LAILA CASSIM | CONVEYANCING SUPERVISOR &
KHADEEJAH ALLY | ATTORNEY TRUST SAVER OFFICER
South Africa's energy challenges have transformed residential solar power from a luxury into a common feature of many homes. Solar panels, inverters and battery storage systems now form part of the value proposition of countless residential properties. However, as solar installations become more prevalent, so too do the legal and practical issues surrounding compliance.
Is there such a thing as a Solar COC?
A common misconception is that a "Solar Certificate of Compliance (COC)" is required when a solar installation is present in a property. In reality, there is no separate certificate officially called a "Solar COC". Once solar panels, inverters and battery systems are connected to a property, they become part of the broader electrical infrastructure and must comply with the applicable electrical compliance guidelines and regulations, including the requirements relating to an Electrical Certificate of Compliance (Electrical COC).
Where an electrical installation has been altered by the installation of a solar system, the compliance status of the installation must be carefully considered. Depending on the circumstances, an updated or supplementary Electrical COC may be required to reflect the changes made to the system.
Purchase and sale of a property containing a solar installation
1. Buying a property with solar
If you are buying a property with a solar system, do not assume the existing Electrical COC covers the solar installation.
Ask for proof that the solar system has been properly inspected and, where required, covered under the relevant Electrical COC. A compliant solar installation helps ensure the system is safe and may reduce the risk of future insurance or legal complications.
It is also good practice for the sale agreement to record details of the solar installation, including the inverter, solar panels and battery system, where applicable.
2. Selling a property with solar
A valid Electrical COC is required when transferring property ownership. If solar was installed after the original Electrical COC was issued, the seller may need to provide an updated or supplementary Electrical COC reflecting the solar-related alterations to the electrical installation. This is often requested by conveyancers, buyers and financial institutions during the transfer process.
3. Bond registration and home loans
Financial institutions increasingly encounter properties equipped with solar installations when considering mortgage finance and property-backed lending.
As part of their risk assessment processes, financial institutions may require confirmation that electrical installations, including solar systems, comply with applicable regulatory requirements. Non-compliant installations may raise concerns regarding safety, insurability and the long-term value of the property as security for the financing.
Why compliance is important
Solar systems carry high electrical loads and if installed incorrectly can create fire and safety risks.
An Electrical COC confirms that a qualified and registered electrician has inspected the installation and certified that it complies with applicable regulations and standards.
Compliance is also important for insurance purposes. Many insurers require electrical installations to be compliant and may investigate whether the necessary certification was in place when assessing a claim.
Final thoughts
As solar installations become a permanent feature of South African residential property, parties to property transactions should treat compliance of solar installations with the same level of scrutiny as any other component of the electrical installation. Addressing compliance issues early in the transaction process can reduce risk, prevent delays and provide greater certainty for all parties involved.
When it comes to solar installations, clarity on compliance today can prevent costly complications tomorrow.
This article is provided for general information purposes only and does not constitute professional advice. For advice tailored to your specific circumstances, please consult a suitably qualified professional.