Back-up Power Systems: Risk Mitigation

With the winter chill comes increased demand for electricity. And with the chances of load-shedding being implemented again, South Africans are bracing for a cold, dark winter. In this context, the possibility of a widescale electrical grid failure has captured headlines. Although the president has recently reiterated that the risk of a national blackout is extremely low, the possibility remains a serious concern for all South African business owners.

Proactive measures such as solar kits and backup power systems have become a necessity for business continuity, but these measures, in turn, introduce their unique risks. From the risk of theft and fraud to safety concerns and legislative limitations, these are the common risks business operators need to look out for when deciding on a backup power system to maintain operational resilience.

?

Solar panel scams

The South Africa Rooftop Solar Market size is expected to grow at a compound annual growth rate of 8%1between now and 2028. The sharp increase in demand for solar energy has also attracted the attention of criminals, who are preying on inexperienced and misinformed customers. Unscrupulous sellers offer counterfeit products or use unethical or high-pressure sales tactics promising inflated or non-valid tax rebates. It is, therefore, important to ensure you only engage with a fully accredited solar provider. Contact your bank, insurer or trusted supplier for a referral if in doubt.?

?

Generator regulations

Generators have become a popular alternative option for home-run businesses, as they require less capital investment up-front (than solar panels) and are relatively easy to operate. Both national and municipal regulations govern the installation and operation of a generator. In South Africa, all generator installations should adhere to the South African National Standard (IS0 SANS 8528 series of standards), and standby generators must be registered with the municipality’s electrical department for record purposes. In addition, when operating a generator, municipal bylaws will dictate the type of generator one is allowed to operate in a given area, the acceptable noise levels, and, in some cases, the time of day/duration at which you may run your generator.

?

UPS management

UPSs are essential tools for businesses whose systems cannot afford downtime, as they protect and power the equipment that runs critical systems. However, it is important to note that UPS systems require periodic maintenance and replacement of their energy storage components to avoid avoidable disruptions. To get the most out of your UPS and ensure it operates effectively when needed, be sure to follow operational guidelines and regular maintenance procedures.?

?

Managing evolving risks

South African businesses have shown resilience and innovation in rapidly and effectively adapting to load-shedding and the broader macro risks we all currently face. However, as business operations evolve, new risks and opportunities emerge. In this context, ongoing engagement with your risk partner is an important way of staying ahead of the risk landscape. Contact your broker or your usual Bryte representative for an up-to-date customised risk strategy that considers your business and charts a path to future growth.