How to choose and insure the right electricity backup system

For South Africans who worry about load shedding stage 6 returning, choosing and insuring an electricity backup system has become an important subject.

It is important to choose the correct system for your needs, but you should also know how to maintain it and ensure that it is insured in case of loss or malfunction.

“South Africans do not only need to pay increasingly more for electricity, but are also constantly aware of pressure on the national power grid that can leave them in the dark in an instant,” says Anneli Retief, head of Dialdirect Insurance.

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How to start

As a good starting point, Dialdirect and the team at Solar Craft have given these tips, based on the energy pyramid for efficiency when choosing an electricity backup system

• Energy saving (no or low cost): Switch off lights, set geyser thermostats to a lower temperature, use less hot water, and unplug devices and appliances not in use.
• Energy efficiency (relatively low cost): Use energy-efficient globes and other devices, geyser timers, heat pumps or solar panels for geysers.
• Renewable energy (higher cost): Alternative energy sources such as solar water heating and solar panels provide excellent value, along with independence from the network and a lower impact on the environment.

Retief makes it clear that it is not a question of all or nothing, because you can adopt a phased approach in switching to an energy smart household.

“Firstly, focus on savings and efficiency, and address the biggest electricity consumers in your home.”

Then you can look at backup systems such as batteries that charge from the grid to help you during outages, systematically adding more batteries to keep you going for longer, or with more devices and appliances switched on.

“In the last phase you can consider energy generation through alternative sources such as solar panels, and adding more panels as you go to make you more independent from the grid.”

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Choosing the right electricity backup system

When it comes to choosing an electricity backup system, the best solution is firstly determined by your current consumption and how energy efficient you are, and not the size of your house or the number of people in it, and secondly by your requirements during an outage, says Rohann Mattheus, a director at Solar Craft.

Mattheus suggests these solutions based on your needs:

• Lights only: A small system of around R15 000 for sporadic outages of a few hours. It charges from the grid and switches to battery power when supply is interrupted. Energy-efficient globes help to get the maximum runtime from batteries. Here solar panels will not make a notable savings difference.
• Lights and essential devices: If you need to keep devices such as TVs, computers, wi-fi, electric fences, alarms and fridges running, a 3kW inverter with 2.4kWh battery capacity (3 hours standby) is the minimum requirement. A 5kW inverter is recommended for upgradability. For around R60 000 a system with 1.8kW solar panels can be installed, with estimated savings of about 8kWh to 10kWh on a sunny day.
• Lights, essential and non-essential devices: If you add devices such as washing machines, pool pumps and microwave ovens, a 5kW inverter with a 4.8kWh battery (3 hours standby) is the minimum requirement, although an 8kW inverter is recommended for upgradability.  For about R90 000 you can install a 5kW system with 3kW solar panels and a 4.8kWh lithium battery, with estimated savings of 15kWh to 18kWh on a sunny day.
• Heating systems: This includes geysers, stoves and heaters. Stoves and heaters can be powered by a solar panel or gas system, but for geysers a solar water heater system using pipes, not solar panels are strongly recommended as a more money smart investment.

Mattheus says solar panel and solar water heating systems are an excellent investment, with no or low risk. These solar water heating systems can pay for themselves in fewer than 24 months and solar panel systems in about 3.5 to 6 years.

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Advice for consumers

Dialdirect and Solar Craft has the following advice for consumers to check the company installing the electricity backup system:

• How long they have been in business the number of successful installations, and how well the business will be able to provide after sales support in 5 years time.
• Whether they have positive feedback from their existing or previous clients.
• Whether their installations adhere to SANS and NERSA requirements, are done by qualified and registered electricians, and whether an electrical engineer checks the quality of components and installations.
• Whether they have enough knowledge to provide good advice and whether the product they offer is 100% suited to your needs.
• Whether they issue a Certificate of Compliance (COC) after the installation.

When it comes to the design and care of these systems, it is better to get an electricity backup system that is slightly bigger than you need, as pressure on the system will be lower, limiting the risk of problems. All standard protection mechanisms should be included and components should be installed in a suitable space to ensure optimal running temperature and minimal exposure to dust and water.

Most modern inverters have monitoring systems that will alert you when something is wrong. It is important to check this immediately, have the source of the problem located and fixed.

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Insuring the electricity backup system

When ensuring your system, Retief recommends:

• Freestanding systems can be specified under all risk insurance or covered under home contents if it is not located outside. Systems permanently connected to a building will be covered under buildings insurance, but the insured value of the building must be adjusted accordingly.
• Any installation must be done according to the manufacturer’s specifications and where applicable, the relevant building regulations.
• Inclusions and exclusions are, in most cases, the same as for all risk insurance, home contents and buildings insurance, depending on where the system is included or specified. However, it is important to get clarity directly from your insurer.