How not to get caught when investing in alternative power sources to counter load-shedding

If you’re considering investing in a solar system or some other setup to cope with load-shedding, you’d do well to learn from the mistakes of hundreds of South Africans who’ve been “caught” by dodgy service providers in the past year.

The consumer goods and services ombud (CGSO) revealed on Tuesday that the office received more than 200 complaints relating to the purchase and installation of solar systems and generators between February 1 last year and February 9 this year.

These are the most common complaints:

• Non-issuance of compliance certificates. This includes not disclosing the criteria that need to be met for a compliance certificate to be issued, or that an additional fee will need to be paid.
• Accepting payment and not delivering the goods or installing the systems within agreed time frames.
• Poor workmanship and installations that do not meet safety standards.
• Warranties not being honoured.
• Incorrect equipment purchased either by consumers or on behalf of consumers and suppliers refusing to accept returns.
• No aftercare services.
• Misleading advertising relating to the type, size and wattage of inverters, solar panels and batteries.
• Inflated prices for panels, inverters, batteries and installation services.

Interrogating a company’s track record with regard to its performance in those areas is vital before signing any contract.

Of the 134 complaints dealt with by the CGSO thus far, consumers got some form of help in 36% of cases, including a total of R277,273 paid back in refunds, the office said.

In other cases, suppliers agreed to replace faulty inverters, solar panels, generators and batteries or fixed substandard workmanship.

But here’s the problem: almost half of those cases (46%) had to be terminated by the CGSO because of a lack of co-operation from companies concerned.

The CGSO has no punitive “teeth” when a company ignores the complaint, and is thus forced to close the case.

“This is of great concern to us as it means that many complainants have not received any redress,” said ombud Magauta Mphahlele.

“There are high levels of noncompliance around the Consumer Protection Act in this sector, and we call on suppliers and installers of solar systems and generators to ensure that their service standards meet the requirements of the Consumer Protection Act and other manufacturing and safety standards required in terms of other laws of this country”, she said.

The complaints received revealed “low levels of awareness and understanding by consumers” of the highly technical product and installation specifications of solar systems and generators.

“Consumers are, generally speaking, not clued up on the requirements of systems or their limitations. As a result, many are suffering enormous financial losses by purchasing incorrect equipment and/or, appointing unqualified installers.”

Going the DIY route was not a good idea either, the ombud warned, as in most cases this would cancel the manufacturer’s warranty.

How to avoid making expensive 'alternative power source' mistakes

Before purchasing or installing a solar system, contact a qualified and trusted solar installer to assess your needs and the structure of your home to advise on the type of system you require.

“This is important as the CPA does not protect you if you buy incorrect equipment,” Mphahlele says. “You are only covered if you provided the correct specifications or communicated the purpose you want to use the product for, and the product is not fit for the purpose communicated.”

Obtain several quotes and verify the credentials of the installer.

Ensure that the system is installed by a qualified, accredited installer and that the contract you sign includes the provision of a certificate of compliance. Insurance companies and manufacturers will repudiate your claim if the system was not installed by an accredited installer.

Ensure that the inverter and batteries are installed with surge protection as most warranties do not cover surge damage.

Do not pay the full amount upfront and familiarise yourself with the terms and conditions relating to cancellations and refunds of deposits.

Familiarise yourself with the warranty conditions and do not try to fix any problems yourself or tamper with the equipment as this will nullify the warranty.

Insurance advice: do alternative power sources need to be specified?

And here’s some sage advice about insuring those expensive systems and products, courtesy of Ricardo Coetzee, who heads Auto & General Insurance.

Items which are fixed to the property are covered under your homeowners or “building” insurance policy and do not need to be specified separately, such as solar panels and some generators. But you must inform your insurer so that your total sum insured can be adjusted accordingly. (And yes, that means a higher premium.)

Devices which are free-standing rather than fixed — such as an inverter or UPS — would be insured under home contents cover and do not need to be specified, but, again, the overall total sum insured should be reviewed to ensure it is sufficient to cover the replacement of the items.

• GET IN TOUCH: You can contact Wendy Knowler for advice with your consumer issues via e-mail: consumer@knowler.co.za or on Twitter: @wendyknowler.

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