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How to spot a solar power scam

Spotting a solar power scam is essential to protect yourself from fraud and make informed decisions about renewable energy investments. Here are some tips on how to recognize potential solar power scams:

High-Pressure Sales Tactics:

Be cautious if a salesperson uses aggressive or high-pressure tactics to get you to sign up for solar power. Legitimate companies provide information and allow you to make an informed decision at your own pace.

Unrealistic Promises:

If a company promises excessively high savings, guaranteed results, or an immediate return on investment, it could be a scam. Solar power savings typically accumulate gradually over time.

Lack of Licensing and Accreditation:

Check if the company and its installers are properly licensed and accredited by relevant authorities.

Unclear or Misleading Contracts:

Read the contract carefully and ensure that all terms, conditions, and warranties are clearly stated. Be wary of any ambiguities or hidden fees. A reputable company should be transparent about all costs and contract details.

No Physical Address:

Scammers may use P.O. boxes, temporary offices, or lack a legitimate physical address. Verify the company's location and visit their office if possible.

Lack of References and Reviews:

A reputable solar company should have a track record and references from satisfied customers. Look for reviews and testimonials online and ask for references if needed.

No Written Estimates:

A legitimate solar company should provide a written estimate with a breakdown of costs, equipment, and projected energy savings. If they refuse to do so, it's a red flag.

Request for Payment Upfront:

Be cautious if the company insists on receiving full payment before starting the installation. Reputable companies typically require a deposit and then payments as work progresses.

Lack of Permits and Approvals:

Ensure that the company obtains the necessary permits and approvals for the solar installation. Failure to do so can lead to legal and safety issues.

Check for Scam Reports:

Research the company online to see if there are any complaints, scams, or negative reviews associated with their name.

Be Wary of Unsolicited Offers:

If someone calls you out of the blue or shows up at your door offering solar power services, be cautious. Legitimate companies typically don't engage in unsolicited marketing.

Evaluate the Quality of Equipment:

Ensure that the equipment the company offers is from reputable manufacturers and has warranties in place.

If you suspect a solar power scam, it's crucial to report it to the appropriate authorities, such as your local consumer protection agency. Always take your time to research and choose a reputable solar power provider to protect your investment and energy savings.

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How Cape Town residents can apply for a solar panel system

New changes were implemented in the City of Cape Town with respect to solar power, battery backup systems, and inverters.

As of October 1, new solar photovoltaic (PV) and/or battery systems are being treated as grid-tied. Residents are now instructed to use inverters approved by the City of Cape Town, have a professional sign-off on the inverter, and be authorised before switching on.

The City of Cape Town will no longer be accepting applications for standby and off-grid systems.

If you want to install a power system larger than 100MVA, proof of registration from the National Energy Regulator (Nersa) is required before the City of Cape Town can consider authorisation.

It is important to note that there is no charge to register embedded generation (EG) systems such as generators, inverters, or solar panels, but a fee will only be applied if you fail to register your system.

This is how to apply

– To apply for small-scale embedded generation systems (SSEG) authorisation you need to complete the Application for Connection of Embedded Generation form.

The form requires technical information that your installer will be able to assist you with. Once you fill it in with the required information, email the completed form to the listed email addresses on the application form.

– The City of Cape Town will then assess your registration for authorisation. This could include a visit to your property to confirm that the meter and connection are able to support the EG system. For the sake of privacy, the visit does not typically require access to your property.

– Once all relevant information has been provided, the City of Cape Town will issue a Permission to Install Letter, allowing you to install your proposed EG system.

It will state what you have registered for authorisation and outline the next steps, including which meter to install. You cannot install any PV-generating equipment until you have received this letter.

– Once you have installed and tested your EG, you will need to submit the following documents to the City of Cape Town:

Grid-tied SSEG Installation Commissioning Report (found in Appendix 1 of the Application for the Connection of EG form), completed and signed by an Engineering Council of South Africa (ECSA) registered electrical engineering professional; a final copy of the circuit diagram; an electrical installation Certificate of Compliance; a signed Supplemental Contract for Embedded Generation; and a Commissioning Approval Letter will then be issued within 10 working day.  Need assistance? Contact us anytime. 

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Cape Town's rooftop solar boom at record levels

Cape Town's rooftop solar boom is at record levels, with August 2023 seeing the highest ever solar PV installation applications to the City. More than 1 500 small-scale embedded generation applications were received in August 2023, a 50% increase compared to July, the previous record-holding month at around 1 000 applications. This as more and more Capetonians are installing solar PV and battery systems to avoid Eskom's load-shedding and to take advantage of forthcoming City incentives to pay cash for power generated by residents.

The City is working to shorten authorisation times by developing a forthcoming easy-to-use online applications portal. Turnaround times are further expected to be drastically reduced from 1 October 2023, the date from which all SSEG systems will need a City-approved inverter and professional sign off, with all systems to be regarded as grid-tied. This is due to an increase in fly-by-night operators offering systems of inferior quality, or which are not wired correctly, a practice which is contributing to extended outages when power returns after load-shedding.

'Each new month has broken the solar PV applications record for four months straight since May 2023, with over 100 MW and counting of installed capacity in Cape Town. We are determined to make it more viable for households to go solar, with a cheaper AMI meter option to be rolled out early in the new year, alongside Cape Town's cash for power incentives for households and businesses to sell their excess power to us

'Enabling more rooftop solar forms part of our broader plans to add 1GW of independent power from various sources to Cape Town's grid over time. The first 650MW is forecasted to come online by 2025/26 to protect against the first four stages of Eskom's load-shedding, which will be achieved largely through a mix of Steenbras Hydro Plant; 500MW of dispatchable energy; and demand management programmes, including the forthcoming Power Heroes incentives for households to flatten peak usage,' said Mayor Geordin Hill-Lewis.

'The City is moving toward a future grid for all – where customers use and generate electricity as part of an integrated network. This is the exciting future of the changing energy environment internationally and also in our own backyard. We have been sending the signal for a few months now that from 1 October, only SSEG systems using City-approved inverters with professional sign-off will be authorised, and all systems will be regarded as grid-tied. This will dramatically improve the authorisation turnaround time, improve safety, prevent the risk of area outages due to inferior systems connected to the grid and help to protect our homeowners from the many fly-by-night operators out there. We thank those in the industry who are already driving safe and legal systems, our teams are here to assist all stakeholders in this transition,' said the City's Mayoral Committee Member for Energy, Councillor Beverley van Reenen in a recent address to solar industry stakeholders.

National legislation and regulations require authorisation:

National legislation and regulations require the authorisation of all power generating systems connected to the electricity supply. Authorisation requirements have been around for almost a decade and the City continues to work to refine processes to the benefit of customers.

Making the application process faster, safer

1. From October 2023 all SSEG systems will need a City-approved inverter and professional sign off. Currently many systems using non-approved inverters are not wired correctly, posing risks to the safety and integrity of the network. This significantly slows down the registration process because there are too many different wiring configurations for the City professionals to consider. Reducing the wiring configurations speeds up the process.

To note: this applies to solar PV and battery systems connected into wiring of the building. It doesn't apply to the trolley inverters for example that plug into wall sockets. These are regarded as electrical appliances.

2. Applications for standby and off-grid systems will not be accepted. Pre-October authorisations and applications will remain valid and be processed, but priority will be given to grid-tied systems using City-approved inverters.

The City is working on an online application process.