DO YOU NEED AN ELECTRICAL COMPLIANCE CERTIFICATE FOR SOLAR INSTALLATIONS WHEN SELLING YOUR HOME?
Category Legal
Electrical Compliance Certificate
In a property transaction, the Seller is required to furnish a valid electrical compliance certificate before transfer. The purpose is to provide a guarantee that all electrical work conforms to regulation standards and that the electrical installations on the property are in order.
With the present energy crisis in South Africa, more households are turning to alternative energy sources to lessen the impact thereof. Systems such as solar and/or inverters are connected to the distribution board box or electrical paneling, allowing for the integration of solar-generated electricity into the building's electrical system.
The Electrical Installation Regulations (the Regulations), promulgated under the Occupational Health and Safety Act, obligates every user of an electrical installation to have a valid certificate of compliance.
Regulation 7(5) of the Regulations reads:
"Subject to the provisions of Regulation 10(4) of the Act, the user or lessor may not allow a change of ownership if the certificate of compliance is older than two years".
A certificate remains valid from the date of issue and does not lapse by the mere passing of time. However, if there have been alterations to the installation or a fault has been detected in the installation, a new certificate must be obtained in such circumstances. In addition to this, a change of ownership is not allowed if the current certificate is older than two years, regardless of whether there has been any alteration or whether a fault has been detected.
What about a lease Agreement?
Regulation 2(1) reads:
"Subject to sub-regulation (3), the user or lessor of an electrical installation, as the case may be, shall be responsible for the safety, safe use and maintenance of the electrical installation he or she uses or leases".
Sub regulation 2(3) reads:
"Where there is a written undertaking between a user or lessor and a lessee whereby the responsibility for an electrical installation has been transferred to the lessee, the lessee shall be responsible for that installation as if he or she were the user or lessor".
It is clear from this wording that, in the absence of an agreement, the responsibility to obtain a valid certificate is on the lessor.
Even though the responsibility to obtain the electrical compliance certificate and the cost for repairs is for the account of the Seller, this obligation can be shifted to the Purchaser by way of agreement.
The question remains how does alternative energy influence the issuing of an electrical compliance certificate, and does it fall within the sphere of the definition of "Electrical Installation"?
The definition as stipulated in the Electrical Installation Regulations read as follows:
"Electrical installation" means any machinery, in or on any premises, used for the transmission of electricity from a point of control to a point of consumption anywhere on the premises, including any article forming part of such an electrical installation irrespective of whether or not it is part of the electrical circuit, but excluding-
- any machinery of the supplier related to the supply of electricity on the premises;
- any machinery that transmits electrical energy in communication, control circuits, television, or radio circuits;
- an electrical installation on a vehicle, vessel, train, or aircraft; and
- control circuits of 50 V or less between different parts of machinery or system components, forming a unit, that is separately installed and derived from an independent source or an isolating transformer".
The equipment that is connected to the electrical installation is regarded as a fixed or stationary appliance. The equipment therefore does not form part of the electrical compliance certificate, however, the wiring and switchgear used to connect the equipment to the electrical installation do. The installer of the equipment must be able to issue a compliance certificate.
There is nothing in the above-mentioned definition that will exclude solar panel control circuits from being an "electrical installation". Thus, it appears that a compliance certificate will still be a requirement in instances where solar power is used.
Does a solar system need to be registered in order for a transfer to take place?
There is currently no legislation prescribing such systems to be registered for the property to be transferred, however, there are certain council by-laws that require such systems to be registered. If the system is not registered, the owner may be fined, and the electrical supply may be turned off. It is to be noted that the aforementioned does not apply to water heating systems.
What is the registration process and the costs thereof?
The necessary documentation is readily available online, depending on the district in which the installation exists. The registration is submitted by the owner under the guidance of the installer. Registration is free, however, supporting documentation needs to be submitted which may incur additional costs. The aforementioned should preferably be discussed with installers before the commencement of installations.
In conclusion, it is evident that solar energy does fall within the sphere of the definition of "electrical installation" and therefore a compliance certificate should still be obtained in such instances.
Van Wyk Van Heerden Attorneys www.vwvh.co.za
Author: Bianca Esmeraldo
