Solar and Inverter Cover in Sectional Title Schemes

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Posted: January 5, 2026

Solar panels on tiled roof

Solar and Inverter Cover in Sectional Title Schemes

Solar panels and inverters are fast becoming a common sight in South African community schemes. Rising electricity costs, load-shedding, and a push towards sustainable living have driven many owners and schemes to invest in alternative energy solutions. But while these installations offer benefits, they also create new insurance considerations that Scheme Executives must manage carefully. 

Are Solar Panels and Inverters Covered by Buildings Insurance?

Under the Sectional Titles Schemes Management Act (STSMA), buildings insurance must cover the structure and all fixtures of the scheme. Solar panels and inverters, when permanently installed, are typically considered fixtures and should be insured under the scheme’s buildings policy.

However:

  • The policy wording determines exactly what is covered.
  • Certain insurers may require proof of compliance (e.g., engineer’s certificate or electrical compliance).
  • Portable or removable units may not qualify as fixtures. 

Common Perils Covered

Most buildings policies for sectional title schemes cover solar panels and inverters against:

  • Fire and explosion
  • Lightning strikes and power surges
  • Storm, wind, hail, or flood damage
  • Theft (if forceful entry is evident)
  • Accidental damage (subject to policy wording) 

Common Exclusions

Not all risks are automatically covered. Common exclusions may include:

  • Gradual wear and tear
  • Manufacturer defects
  • Poor installation or lack of compliance certification
  • Damage from unauthorised alterations
  • Overloading the system beyond design capacity 

Compliance and Certification

For a claim to succeed, most insurers require:

  • Proof of electrical compliance in terms of the Electrical Installation Regulations
  • Engineer’s certificate confirming installation meets required standards
  • Maintenance records showing regular servicing

Failure to meet these requirements could lead to claim repudiation. 

Exclusive Use Areas and Responsibility

Solar panels are often installed on roofs designated as exclusive use areas.

  • If installed for an individual owner’s benefit, that owner may be responsible for the cost of repairs or replacement.
  • If installed as part of a scheme-wide project, the cost and responsibility typically rest with the Body Corporate.

Trustees should ensure that responsibility is clearly documented in the scheme’s rules. 

Valuations and Policy Reviews

It’s important to update the scheme’s insurance valuation to reflect:

  • The cost of the solar installation
  • Any structural changes made to accommodate the system
  • The impact on the replacement value of the building

Annual policy reviews ensure the sum insured is adequate and avoids the risk of underinsurance. 

Solar and inverter systems are valuable additions to sectional title schemes, but they must be insured correctly to protect owners and the scheme from financial loss. By ensuring compliance, updating valuations, and clarifying responsibilities, Scheme Executives can enjoy the benefits of solar while maintaining full insurance protection.

ANGOR Property Specialists works with schemes and insurance brokers to ensure solar installations are correctly valued, fully compliant, and properly covered.

 

Solar Installations and Insurance: Is Your Scheme Properly Covered?

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