Solar installations are becoming an increasingly attractive option for commercial sectional title schemes, particularly as electricity costs continue to rise and with the constant threat of loadshedding, owners look for greater energy resilience and potential long-term savings.
However, installing solar in a sectional title scheme is not simply a matter of appointing a contractor and putting panels on the roof. Roofs, façades, electrical infrastructure and many other areas that may be suitable for solar installations generally form part of the common property and are therefore subject to the STSMA, the scheme's rules and the Body Corporate's governance processes.
Before you proceed
Owners considering a solar installation should follow these steps:
1. Speak to the Managing Agent and Trustees first
Before obtaining quotes or committing to a contractor, engage with the Managing Agent and trustees. They can advise on the scheme's existing rules, infrastructure, insurance requirements, and the approval process.
2. Establish where the installation will be located
The proposed location is important. If panels or equipment are to be installed on common property, the owner cannot simply appropriate that area for exclusive use. An appropriate Exclusive Use Area (EUA) arrangement may be required, together with the necessary approvals and rule amendments.
3. Obtain a proper technical proposal
The Body Corporate should receive sufficient technical information to assess the proposal. This should generally include the proposed panel layout, structural requirements, inverter and battery specifications, electrical design, cabling routes, mounting systems and any impact on existing infrastructure.
Where appropriate, structural, electrical, fire-safety and waterproofing assessments should be obtained from suitably qualified professionals.
4. Consider the impact on the Body Corporate and other owners
The proposal should not compromise the structural integrity, waterproofing, appearance, safety or operation of the building or interfere with common property or services.
Consideration should also be given to access for future roof repairs, maintenance and replacement of common-property infrastructure.
5. Check insurance requirements
Solar installations can affect the Body Corporate's insurance arrangements. The proposed installation should therefore be disclosed to the Body Corporate's insurer or broker before work commences, and any conditions or additional premiums should be addressed.
6. Obtain the required approvals
Depending on the nature and location of the installation, approvals may be required from the trustees, the Body Corporate, CSOS, the municipality, Eskom or another electricity supplier, as well as compliance certification from appropriately qualified professionals.
Do not commence work until all required approvals have been obtained in writing.
Who pays – and who benefits?
Where a solar installation benefits specific owners or a particular building, the costs and financial benefits should be clearly allocated.
This may include the costs of installation, maintenance, insurance, metering and administration, as well as any savings or credits generated through reduced electricity consumption or electricity exported to the grid.
Where an EUA is created by the Body Corporate's rules, the STSMA also provides for an additional contribution from owners enjoying the use of the EUA to cover the relevant costs.
A better approach: scheme-wide planning
For larger commercial sectional title schemes, it may be more appropriate to consider solar as a scheme infrastructure project, rather than allowing individual owners to install separate systems independently.
A coordinated approach can potentially provide:
• better utilisation of available roof space;
• consistent technical standards;
• centralised metering;
• improved procurement and installation costs;
• appropriate allocation of costs and benefits; and
• better integration with the building's existing electrical infrastructure.
Our recommendation
If you are considering solar, start with the Body Corporate rather than the solar contractor.
Spire can assist trustees and owners in navigating the governance, approval, procurement, technical and administrative considerations before any commitment is made.
The objective should be to ensure that the installation is legally compliant, technically sound, properly insured and fair to all affected owners while maximising the long-term benefit to the scheme.
