Alternative Energy Solutions

SOLAR & ALTERNATIVE ENERGY SOLUTIONS IN YOUR PROPERTY - An easy yes?

The last few years have shown a significant increase in property owners investing in a wide array of energy solutions for their properties. And these days, it seems imminent that in almost any upmarket property estate, like Clara Anna Fontein, energy-efficiency at the home has become the norm. Solar and/or alternative energy solutions are however costly and if not done legally, could cost a homeowner significant time and money.

Johan de Bruyn, principal at Louw & Coetzee Properties and resident agent at Clara Anna Fontein, says many homeowners pose this question to him: "Will my property value increase if I install an alternative energy solution?"

Considering the steep capital investment of some solutions, one could say that this is an easy "yes". However, regulations pertaining to alternative energy solutions are relatively new and the City of Cape Town has issued a new ruling that, as from 1 October 2023, all new solar and/or battery systems must use City-approved inverters, be authorised, and have professional sign-off before switching on. All new solar PV and/or battery system applications are being treated as grid-tied systems in an effort to make SSEG (Small Scale Embedded Generation) approvals faster and safer.

Many systems using non-approved inverters are not correctly wired. These pose risks to the safety and integrity of the network and significantly slow down the registration process. The City will no longer accept applications for standby and off-grid systems.

Systems that have already been authorised will remain valid, and pre-October 2023 applications for standby/offgrid systems will still be processed, but priority will be given to grid-tied systems using City-approved inverters.

The following do not require authorisation:
- Solar Water Heaters (thermal)
- Solar security/garden lights
- Portable UPS trolley inverters (that you plug into the wall socket)

THERE ARE 3 TYPICAL CONFIGURATIONS FOR RESIDENTIAL & COMMERCIAL PV (Rooftop Solar
Photovoltaic) SYSTEMS:

1. Grid-tied PV Systems

SSEG that is connected in parallel to the distribution network either directly or through a customer's internal wiring is said to be grid-tied. SSEG that is connected to the grid through a reverse power flow blocking relay is also considered to be grid-tied.

a) Grid-tied with export: Customer is allowed to export excess electricity generated by the system onto the grid. Commercial customers are allowed to be net generators while residential customers still need to be net consumers for now.

b) Grid-tied with no export: Customer needs to install reverse power flow blocking protection in order to ensure that no excess electricity is exported to the grid.

2. Grid-tied Hybrid PV Systems

Grid-tied hybrid PV systems are able to disconnect the incoming supply and connect the load to the PV system or stored energy in batteries. These systems can operate in load-shedding scenarios.

3. Standby PV Systems (Interconnected with electrical installation)

In a standby PV system, electrical loads are supplied by either the PV system or the grid but never both at the same time.

There are two types of standby PV systems:
1) Passive standby UPS utilised as standby hybrid SSEG, and
2) Alternative supply.
In an effort to make SSEG approvals faster and safer, from October 2023, "Standby systems" will no longer be allowed. Please refer to the City of Cape Town link below for more details.

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CITY OF CAPE TOWN VS ESKOM

The City distributes electricity to 75% of Cape Town, while Eskom distributes electricity directly to the remaining 25%. Make sure you know who distributes electricity to your area: it will be on your electricity bill. The type of PV systems that are permitted to be connected to the network may differ between City and Eskom supply areas. Furthermore, the process of authorisation will be different.

For more information on the application processes:

City of Cape Town Customers: https://www.capetown.gov.za/solarPV for options and
http://www.capetown.gov.za/elecserviceforms for application forms and documents.
Eskom customers: https://www.eskom.co.za/distribution/small-scale-embedded-generators/

Note: If your property is in the City's licensed area of supply, you will require written permission from the City's Electricity Generation and Distribution Department prior to installing your system, irrespective of the type of system. To grid-tie and feed-in, you will require a specialised meter and you will be placed on a new tariff. To grid tie with reverse power flow blocking, you must have a prepayment meter and will remain on your existing tariff. For details on how to grid tie and register your system for authorisation, consult the City's Requirements for Small Scale Embedded Generation at: www.capetown.gov.za/ElecServiceForms, under 'Document downloads'.

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OUR SUMMARY:

Louw & Coetzee Properties understands the value and significance of expensive energy solutions and advises owners that before installing a rooftop solar photovoltaic (PV) system, they should do it safely and legally.

With new regulations in place, owners should consider the pros and cons when installing a new PV system. Bear in mind that should a system be installed prior to 1 October 2023 and not comply with the City's regulations, potential buyers may not see the capital value in such a system. It will be up to seller and buyer to agree on the market value of that PV system at the time of sale.

When the question is posed by sellers "Will my property value increase if I install an alternative energy solution"; the short and the long of it, it is in fact not an easy yes.

Disclaimer: Louw & Coetzee Properties does not purport to be experts in installation of PV systems and above is meant for information purposes. Owners are advised to contact professional service providers or the City of Cape Town Resource Library in order to ascertain the legality of their system. For more information on installation and PV systems - please visit https://resource.capetown.gov.za

Written by: Alet van Zyl

Source: City of Cape Town