Solar scam warning in South Africa

Versofy Solar CEO Ross Mains-Sheard has warned South Africans about the dangers of illegitimate solar installations and has emphasised the importance of vetting installers.

South Africa has seen a surge in solar power adoption in recent years, with capacity increasing by 453% from 983MW in March 2022 to 5,440MW in March 2024.

According to the South African Photovoltaic Industry Association (SAPVIA), the frequency and intensity of load-shedding and access to finance are the primary drivers behind residents installing rooftop solar systems.

Mains-Sheard told the SABC that the increased demand for household solar installations has come with those who try to capitalise on the boom without the necessary qualifications or adherence to laws and regulations.

For this reason, it is crucial to vet solar installers.

He says this can be done by conducting a simple Google search and examining referrals, past customer experiences, and reviews.

This is important because solar power is a large investment, and a faulty installation puts the homeowner, their family, and the people living around them at risk.

“The rules and regulations that need to be followed are a fewfold,” Mains-Sheard said.

He says installers need to follow the rules and regulations at a governmental level according to the South African National Standards (SANS). They are required to follow the same guidelines that electricians do.

When installing solar equipment, a supplementary certificate of compliance (CoC) must be attached to the household’s original CoC.

South Africans planning on installing solar systems in their homes have every right to question a prospective installer about these specifics.

Mains-Sheard says legitimate installers will welcome these questions, including what components will be installed and whether they are correctly rated. This makes it easy to discern between legit and phoney installers.

“There are a few bad apples that have given the industry a bad name,” he said.

“People need to respect that these are professionals who should be installing these systems and therefore have gone through the required training and have the necessary experience.”

Mains-Sheard believes that due to the demand for solar energy in South Africa, more stringent regulations and governing bodies are needed to enforce them.

He said this will not only allow solar installers to stay up to date with the latest standards and training methods but also help stimulate the economy from a training perspective by creating jobs at a local level.

South Africa’s rooftop solar generation growth from July 2022 to March 2024

Mains-Sheard noted that solar penetration within the South African market is currently at 0.7%, so there is still plenty of room for growth.

However, recent data shows that the rapid uptake of solar power has plummeted over the past three months.

SAPVIA noted that heightened demand for solar installations usually coincides with the winter months when demand for power increases.

However, it said this hasn’t been the case in 2024.

“On the residential sector market segment, absolutely, the rate of installations has decreased significantly compared to the same period last year when we were experiencing stage 3 or 4 of load-shedding at this time of year,” SAPVIA’s De Wet Taljaard said.

Taljaard added that most people decide to install solar power systems when they can no longer tolerate load-shedding.

South Africa’s solar tax rebate incentive, launched in March 2023, also likely contributed to the country’s uptake of rooftop solar generation.

SARS offered households a 25% rebate on the cost of solar panels up to a maximum of R15,000 during the 2023/24 tax year, while businesses could get a 125%  deduction.

However, while the residential tax rebate probably had some impact on uptake, it wasn’t the main driver behind the surge.

Solar installers told MyBroadband that people soon realised the household rebate wasn’t that great.

Part of the reason was that it allowed only solar panel purchases to be deducted, not the inverter or batteries.

The tax incentive was not renewed in National Treasury’s 2024 budget in February this year.

In addition, finance minister Enoch Godongwana gazetted a new tax on 28 June 2024, stating that “photovoltaic cells assembled in modules or made up into panels” are now subject to a 10% general import duty.

Although this will lead to a 10% price increase, AWPower managing director Christiaan Hattingh told MyBroadband that he doesn’t see this as a concern as panels will still be affordable.