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Solar Surge: What South Africa’s Growing Love Affair with Solar Means for UMAs

Written by Oaktree Strategic Desk on . Posted in .

Why every rooftop panel is changing the risk landscape — and what underwriting teams should be thinking about.

Load Shedding Might Be Easing — But The Solar Boom Is Just Getting Started

In a country where we’ve memorised Eskom’s schedule like it’s a family birthday calendar, it’s no surprise that South Africans have gone all-in on alternative power solutions.

Solar, in particular, has gone from luxury nice-to-have to practical necessity. Residential, commercial, even small businesses, panels are popping up everywhere.

For UMAs, that’s not just a sign of consumer resilience. It’s a rapidly changing risk landscape.

  • More installations = more assets to insure.
  • More assets = more complexity.
  • More complexity = more room for things to go wrong.

Welcome to underwriting in the age of solar.

The Scale of The Shift

Recent surveys suggest that:

  • 1 in 3 South African consumers have invested in power backup equipment.
  • 20% of those have installed solar panels.
  • That number is only going up.

And it’s not just homes. Businesses, complexes, sectional titles, and even agricultural properties are joining the solar rush.

That’s a whole lot of value sitting on rooftops, sometimes insured properly, sometimes not.

The Risk Factors UMAs Need to Watch

Solar comes with clear benefits for property owners, but for insurers and UMAs? It’s layered.

1. Increased Sum Insured

Solar isn’t cheap. Panels, batteries, inverters – installations can easily add R100,000+ to replacement values.

Is this always being declared? Not reliably.

2. Fire Risk

Poor installations, substandard components, or corner-cutting to save costs? That’s a recipe for fire claims. Particularly if installations aren’t SANS-compliant.

3. Theft Risk

Solar equipment is highly desirable and often poorly secured. We’re already seeing a rise in theft claims for inverters and batteries.

4. Liability Exposure

DIY installations or uncertified contractors increase the risk of injury or property damage, which can open a liability can of worms.

What UMAs Should Be Doing (Yesterday)

The good news? These risks are manageable, but only if underwriting, brokers, and clients are having the right conversations.

1. Ask The Solar Question — Every Time

It’s no longer safe to assume “building improvements” are brick and mortar only.

Whether it’s new business or renewals, underwriting questionnaires need to include:

  • Solar installations?
  • Value?
  • Certificate of Compliance?
  • Security measures?

2. Check Compliance and Certification

If a client doesn’t have a COC for their solar install, that’s a risk red flag.

This is also an opportunity for brokers and UMAs to play advisor, not just risk assessor.

3. Review Sums Insured

Is the solar system included? Or sitting outside the cover limits?

Undervaluation = disputes = unhappy clients = avoidable claims mess.

4. Clarify Cover Terms

Is solar equipment covered under building or contents? Are batteries included? Is theft limited to forcible entry? Are specific security conditions applied?

If the policy wording is vague, now’s the time to tighten it.

5. Educate Brokers and Clients

Solar feels simple to the consumer – install, switch on, forget.

But UMAs know better. Risk increases with:

  • Poor installation
  • No maintenance
  • Load shedding surges
  • Theft trends

Education now = fewer claims surprises later.

Solar, Reinsurance, and Portfolio Volatility

Here’s the reinsurance reality: widespread solar adoption changes the shape of a property portfolio, and reinsurers are paying attention. If installations are under-declared, poorly valued, or inconsistently underwritten, that increases the chance of unexpected accumulation or loss severity.

From a reinsurance perspective, questions like these matter:

  • Are sums insured adjusted to reflect solar assets?
  • Are installation standards and certificates documented?
  • Are theft and fire risks appropriately rated and managed?

UMAs that demonstrate consistent underwriting discipline on solar exposures will stand out as reliable partners, not just to insurers, but to reinsurers looking to manage property volatility across the region.

Solar Installations Are Here To Stay. So Are The Risks.

South Africa’s energy reality isn’t changing anytime soon. That means solar installations aren’t a blip – they’re the new normal.

For UMAs, this is a perfect example of how the risk landscape evolves faster than policy documents.

→ The winners?
UMAs who see these shifts early, adapt their underwriting approach, and help brokers guide clients well.

→ The losers?
Those left arguing over excluded claims when the inverter’s already gone up in smoke.

At Oak Tree, we help UMAs stay ahead of risk and the conversations that matter. If your policy wordings, underwriting processes, or broker training need a solar-ready refresh, let’s talk.