A hot topic of conversation around any braai at present is alternative and renewable energy. Do you have a generator, an inverter, solar, or all three… As a layperson, I can honestly say I know more now than I did a year ago on the subject.
Load shedding has plagued our country for many years, but it has never been at the stages and duration currently experienced. The accumulated load shedding time for 2023 has already surpassed that experienced in 2022. As the colder months of the year approach, insurers have issued repudiation warnings on claims associated with grid collapse and worrying thoughts of total anarchy pass through our minds. Scheme Executives should already be taking active measures to prevent loss in the event of a grid failure.
The below graph paints a dire picture.
CLICK TO VIEW IMAGE
Source: Businesstech 10 May 2023
Before investing in solar, a person must understand the limitations of the technology, for instance the space available on the roofs and the direction the panels face. Areas that receive a lot of shade from neighbouring buildings or trees may not be feasible locations. North facing is best.
Most scheme executives have gone the route of prioritising the power to the security whilst they consider the options available to the units and the rest of the common property. The securement of power via solar to the entire scheme will invariably come at a cost. The cost of securing power means a capital outlay or a significant increase in the rate per kWh at which electricity is sold. This may be the biggest hurdle to overcome when looking at the resolution requirements for sectional title schemes. All community schemes should carefully consider their conduct/house rules before allowing owners to erect solar panels.
In full title community schemes, after ratifying the house rules, owners will invariably be allowed to install solar solutions at their own cost. In sectional title community schemes, there are three possible scenarios that could play out:
The Body Corporate owns the system (or part owns):
The stable supply of electricity is not a luxury. It is often, as in the case of security and medical reasons, an absolute must. An improvement to the common property of this magnitude needs to follow Prescribed Management Rule 29(2) of the Sectional Titles Schemes Management Act (STSMA) giving 30 days’ notice and information such as cost estimates, drawings and details of how the scheme will fund the improvement. Scheme executives should also refer to their last AGM minutes to see if any restrictions or directions were imposed by their owners. Should any member request a meeting within the 30 days, a Special General Meeting (SGM) will need to be called giving 30 days’ notice for a Special Resolution to be passed. This being 75% in favour both in value and in number.
A Solar Service Provider owns the system:
In terms of Section 4(c) of the STSMA a body corporate may hire movable property for the use of and protection of the common property. One could debate whether a solar solution is “moveable”, but for the purpose of this point the entire asset belongs to a third party and it may be removed. Scheme executives are cautioned against entering into any contracts that are outside of the budget without first consulting with their owners. When signing a power purchase agreement (PPA), scheme executives must be mindful of:
The period involved
Who is responsible for installation issues such as damage to property or complications
Future maintenance
Who insurers the system and what are the requirements placed on the scheme in this regard
The Body Corporate lets owners install their own solar
The roof in the scheme is common property and does not belong to a single owner. Each owner owns an undivided share, and consideration must be given to the space allocation as not to prejudice any single owner. It is therefore suggested that a portion of the roof be allocated to each respective owner as an exclusive use area (EUA) which can be done on the passing of a Special Resolution in terms of the conduct rules. A detailed diagram and schedule showing allocations would need to accompany the rules as an annexure. The STSMA states that when an EUA is created, that an exclusive use levy must also be imposed.
Many schemes that have not had their rules revised since the promulgation of the Community Schemes Ombud Service Act in October 2016. Now would be a good time to revisit them in their entirety if you considering solar. Here are some solar rule recommendations:
Permission for each solar installation needs to be applied for by the respective owner/s
Permission is given in writing on a case-by-case basis by the scheme executives. Schemes should be careful of a blanket approval which cuts the scheme executives out of the process
Permission is only given on a specification and is revoked if not adhered to. Aesthetics and the safety should form part of this specification
Do the solar panels become a fixture or not is something to consider. You don’t want owners or tenants leaving the roofs damaged when they vacate
Electrical Certificates of Compliance (COC) are to be produced after installation
Should the scheme’s insurance premium increase, the said increase is for the respective owner’s account. The installation needs to be specified under all risks on the policy document. If moveable it is for the owner to insure under household content
Confirmation of who is responsible for what maintenance must be documented
Space allocation diagram and schedule (EUA)
As a closing thought – Those of you older than 30 may remember a cell phone called a Nokia 3210. At some stage it was the most popular cellular phone in the country and just about everyone had one. It had a phone book of contacts, SMS function, you could make and receive calls, and it even had a game called snake. In 20 years the technology on cellular phones has come leaps and bounds and one has to wonder what sort of renewable energy technology will be available in 20 years’ time. The irony is that my Nokia 3210 had a battery life far superior to that of my current cell phone!
