Legalities of Solar Power Systems (SSEG) in Cape Town
Category Property Tips
The rise in solar installations continues as Capetonians look to become more self-sufficient in terms of electricity supply. Sustainability features such as solar heating, inverters, and battery storage systems also add value to properties, and is certainly a feature that many buyers look for.
Since solar installations (small-scale embedded generation (SSEG) systems) involve connection to the electricity grid, the City of Cape has put regulations in place for all City-electricity supplied areas to ensure systems connected to the grid are installed safely, operate correctly, and comply with the most recent regulations.
In terms of the City of Cape Town's "Electricity Supply By-Law", all small-scale embedded generation (SSEG) systems, including alternative power sources up to 1000 kVA connected to residential, commercial, or industrial premises, must be registered for authorisation before installation. This is for the City to keep a track of all systems, and ensure the safety of electrical installations in terms of the Occupational Health and Safety Act.
There is a two-stage registration process. The initial application, typically made by the installer, involves submitting technical specifications via the COCT online portal. The City may inspect the property to verify meter and connection suitability before issuing a "Permission to Install" letter. Post-installation, an ECSA-accredited engineer's commissioning report, a Certificate of Compliance, a final circuit diagram, and a signed Supplemental Contract must be submitted. The City then issues an Approval letter within ten working days. Failure to register an SSEG installation is a criminal offense.
The City's 'Cash for Power' programme allows property owners to register, and sell surplus electricity back to the City for a credit on their municipal accounts. Visit the COCT website for more information.
In terms of the sales and transfer process, any unauthorised system is regarded as a latent defect which must be disclosed in the "Immovable Property Condition Report". The purchaser can accept the property as-is with post-transfer authorisation, or insist on pre-transfer registration. The seller can also simply decommission the system, and notify the City so that it can be disconnected from the electrical network, at the seller's cost.
While no specific Compliance Certificate required for an SSEG system, the "Electrical Certificate of Compliance" which must be provided by the seller (at its cost) to the buyer before transfer, will be deemed to confirm that the system complies, and is in working order, or verifies its disconnection status. The new owner will need to sign a new Supplemental Contract with the City post-transfer.
There is no doubt that solar and alternative power systems are sought-after, but property owners must ensure they are fully compliant to facilitate a smooth selling and transfer process.
More incentive to sell as the interest rate comes down again
With a second interest rate cut now in effect, it is a good time to get into the market and take advantage of the increased buyer activity. Cape Town, and areas such as the Southern Suburbs/Constantiaberg in particular, remain the most favourable market for sellers.
As an added incentive, don't forget that if you sell with Seeff before the 30th of April 2025, you could be entered into our fantastic R1 million cash prize competition. Don't delay, contact us today!
(Legalities of solar power systems - source: STBB Newsletter, dd 22/11/2024)
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Author: Gina Meintjes
