As South Africans embrace the potential of alternative power sources, so do criminals, albeit for a very different reason. Alongside the solar boom, the private and business sectors are seeing a rise in the theft of alternative power source equipment.
Last week, Wynand van Vuuren, client experience partner at King Price Insurance, told Moneyweb radio host Jeremy Maggs that the short-term insurer had seen an increase in solar panel theft, and it was likely to become worse.
In a media statement released earlier this month, Vodacom shared that battery theft continued to have a serious impact on the mobile network industry, costing many of the country’s leading providers billions.
Although concrete statistics on the theft of such equipment are not available, Charnel Hattingh, the head of communications and marketing at Fidelity Services Group, says, based on the incidents to which the security solutions provider has responded, it seems solar panels and batteries are popular targets for criminals when they gain access to a property.
Hatting says although they can’t point to a predominance of home or commercial spaces being targeted, there do seem to be more cases reported when the properties are empty – for example, over weekends when staff are not on-site.
“The suspects would at these times have enough time to dismantle the system before leaving the property. Stolen items are, in our experience, often sold to people who are looking to use them as scrap materials or as their own alternative energy source.”
Hattingh adds that solar panels are also often not monitored by the home- or business owner’s existing security system.
“This is why we recommend that customers look at ways of spreading the system’s coverage to also protect any solar panels that are installed.”
What makes these panels even more attractive to thieves is that once stolen, they are difficult to trace or, if located, to prove that they are indeed stolen goods.
De Wet Taljaard, technical specialist: solar energy, at the South African Photovoltaic Industry Association (Sapvia), says all solar photovoltaic (PV) equipment, including panels and inverters, has serial numbers.
Sapvia is a non-profit industry association established in 2010 to promote, develop, and grow the PV industry as part of the wider renewable energy sector in South Africa.
Taljaard explains, for solar PV panels, the serial information is typically captured on a barcode laminated between the PV cells and the outer glass layer. This makes it difficult to remove or tamper with the serial information without damaging the panel beyond repair.
For inverters, the serial information is typically placed in a few different locations to prevent tampering.
“Unfortunately, the serial information is often placed on stickers or displayed via non-permanent methods, thus the serial information can be removed with relative ease. However, the serial information is also saved on the software of the inverter, and access to the software can be password-protected by the authorised installer,” he says.
Hattingh says a few companies are investing in tags, and some products can track the panels.
“It is, however, very expensive and normally not worth the monthly costs and effort.”
In the agricultural environment, she says, similar technology is being investigated and deployed to link a panel to its buyer or owner.
“The idea would be to do a communication grid as well, and as these panels are being moved past these technology readers or gateway points, they would be monitored in control rooms with software for despatching and recovering the devices. It would be a way to make sure the panel becomes inoperable, should the security tag be removed,” Hattingh says.
Getting the right cover
According to Dr Hardy Ncube, head of personal products at Standard Bank Insurance, the solar system or panels are normally covered by homeowners/building insurance because they form part of the fixtures and fittings of the property.
Homeowners/building insurance covers the physical structure of your home, and its permanent fixtures and fittings, and provides cover against unforeseen loss or damage, caused by specific perils (fire, lightning, storm, theft).
Theft cover typically forms part of the insured perils covered under comprehensive building insurance.
“However, it is important that the home- or business owner check the terms and conditions of their insurance policy, taking special note of the insured perils and any exclusions/limits that may be applicable. For example, theft of external panels may be limited, theft cover may require the payment of an additional premium, and so on,” Ncube says.
When taking out insurance, home- and business owners need to consider their individual needs.
“Everybody’s circumstances are different, and it’s not one-size-fits-all. Homeowners are encouraged to understand the cover they require, what potential risks they face, and any unique circumstances that may require special consideration. Then ensure that they speak to their insurer or broker, obtain the correct advice, and understand the cover afforded, and policy terms and conditions.”
Most policies require forcible or violent entry or exit from the premises for theft claims to be considered. However, according to Ncube, there are ways in which commercial policyholders can insure their solar installations:
- Buildings combined – the terms and conditions of the policy apply. Customers should check their wording, as some policies automatically include unaccompanied theft cover.
- Fire section – the standard terms and conditions apply.
- Theft section – request unaccompanied theft cover.
- Business All Risks cover – comprehensive all risk cover, including unaccompanied theft.
At the point of insuring the solar system, you are required to insure the system as a whole: supplying the relevant details and documents and confirming the components installed.
Ncube says it is important for the client to disclose the full details of the system (including the number of panels installed) upfront and to ensure that the sum insured is adequate to cover the replacement cost of the insured property, to prevent any complications at the point of claim.
If the system is upgraded and enhanced, you would likewise need to ensure that your insurer is notified, and the policy (and sum insured) is further updated to reflect the enhancement.
Apparently, when thieves do strike, they tend to steal only one solar panel, be it because of being interrupted or being pressed for time. A problem arises if the make and model is no longer manufactured or imported. What often happens is that a replacement panel will not be compatible with the existing system.
Ncube says, usually, insurers will pay only for the damaged or stolen parts.
If any part or matching material that is needed to repair the damage is not available in South Africa as a standard, manufactured and readily available item, insurers will normally pay cash for the replacement cost of the damaged part or item, not for the replacement cost to match all the material or items.
“Therefore, if the whole system needs to be replaced (due to a part not being able to be sourced and/or the system being outdated), this would not be covered, and the liability in this regard would be for the client’s account. The insurer would only pay for the damaged/stolen parts.”
