A recent snap survey of property agents found that they would add, on average, 16% to their valuation of a home if it were not reliant on the municipal grid for water, electricity and sewerage.
With concerns about government service delivery failings and ageing infrastructure, more people are considering their options for reducing their reliance on the municipal grid. The good news is that doing so could add significant value to your property.
Just Property recently polled their agents to investigate demand for off-grid properties. They found that this is definitely something buyers are looking for and that, consequently, properties that were less reliant on the municipal provision of utilities are valued higher.
On average, when asked the question, “When valuing a property, how much would you add if the property is ‘off the grid’ with water?” the agents answered they’d add 9%, with Sandy van Rooyen of Just Property Hartbeespoort saying she’d add more than 20% to the valuation.
To the question, “And if it was ‘off the grid’ with electricity?” the average addition was 10%, with Marelize van Heerden of Just Property Kimberley, Henry Palk of Just Property Living, Sandra van Rooyen of Just Property Hartbeespoort, and Tamsyn Coetzee of Just Property Uitenhage saying they’d add 20%.
When asked about properties that were “off the grid” for sewerage, the average increase the agents were prepared to offer was 7%, with more than half of the individual increases being 5% and the rest between 10 and 20%.
If a home was not reliant on the municipality for any of these utilities, the average increase in value jumped to 16%, with most agents saying this would increase the home’s value by 20%. One of these, Lenie van Wyk, also of Just Property Living, explained that in her experience, “homeowners are looking for safety, security, and as little disruption to utility supply as possible. Off-grid homes are becoming more sought after.”
However, a number of the agents raised issues that buyers of off-grid properties should be aware of. Denise le Roux of Just Property Living warned buyers looking at off-the-grid properties to should go in with their eyes open: “Be aware that there will be no backup from Eskom or your local municipality if anything should go wrong with the installation, and the costs for sorting out the problem will be entirely for your account.” It might be worth investigating a hybrid system, where you retain access to the grid when you need it.
Graham Ross of Just Property Blouberg added, “Even though you are off the grid, there are still costs involved on a monthly basis. Be aware of these costs as, in some cases, they could be more than being on the grid.”
Kath Robinson of Just Property Port Elizabeth emphasised that “buyers need a full understanding of exactly what they are buying when a seller is advertising an ‘off the grid property, especially when dealing with alternative electricity systems like solar panels and batteries. Ask those difficult questions: How old are the components? Who installed them? Is the company still operating? Ideally, get the opinion of a certified professional before making any decisions based on value adds and potential energy savings.”
Her PE colleague, Suzette Moco, agrees, adding that all paperwork and guarantees should be made available. “In terms of fixtures-and-fittings clause of the offer to purchase, buyers should insist that sellers ensure that off-grid installations are fully operational and noted on the electrical certificate of compliance.”
Surina Klynhout of Just Property Kuruman noted that “solar systems are more expensive to maintain”. She recommends including a stipulation in the offer to purchase a certificate of compliance for the solar system.
If agents are recognising the value that off-the-grid systems add to homes, now may be the time to push play if you’ve been thinking about investing in one or more of the options. Just be aware that, as with any upgrades you make to your property, quality is important – use an authorised installer and do your own research regarding the legislation governing off-grid installations.
WATER
Rainwater harvesting – According to the Water Services Act, it is illegal to install any plumbing component that does not comply with the relevant specifications listed in the latest versions of SANS 10106, 10252, and 10254. Rainwater Harvesting infrastructure must also meet the stipulations of National Building Regulations (NBR) SANS 10400. (Available from the SABS online store.)
Be aware that there may be local bylaws pertaining to the installation of rainwater harvesting systems. Contact your local municipality for any approvals necessary in the early stages of planning.
The KZN Policy Directive: Rainwater Harvesting For Rural And Urban Housing Projects contains useful guidelines on rainwater harvesting. It notes the national standards that are directly applicable to alternative water installations. Don’t forget to include filtration and treatment costs when compiling your budget.
Boreholes – There are several regulations governing borehole drilling and usage, and a specific process to follow when applying for various permits and licences. You can find a step-by-step guide on how to register a borehole on the website of Gauteng Boreholes. You will also need to check for bylaws covering installation, components, alteration, operation, protection, inspection and signage.
Greywater systems – The Water Research Commission has developed Guidelines for Greywater Use and Management when reusing household water (from bathrooms, kitchens and laundry equipment) to irrigate gardens or flush lavatories. This document states that, at the time of publication, there were few regulations governing greywater systems. However, when selling, depending on your local council bylaws, such installations would need to be inspected by a plumber as part of the water installation compliance certificate. It is worth reading Part B of this document in full before exploring the systems available.
ENERGY
First, work out how much energy you consume daily (kWh units) and throughout the year to determine the best system for your needs, whether that’s purely solar (inverter, batteries and panels), a mix of solar and gas, or a hybrid system that includes access to Eskom as required. You must also factor in any fluctuations you’ll be prone to due to seasonal weather changes.
Solar – Be aware that the installation of solar panels, whether you buy, subscribe or rent to own, is governed by the National Building Regulations, Occupational Health and Safety (OHS) Act, and the Construction Regulations. If your installation did not comply with these regulations and something went wrong, say, your solar geyser burst, insurance would not cover you.
According to the Electrical Contractors Association of South Africa, “No person other than an Installation Electrician (IE) and a Master Installation Electrician (MIE) can issue a Certificate of Compliance on a solar installation. No other qualification other than an IE or MIE can qualify a person to do so. No solar installation is allowed to be used by any end-user without it having been inspected and certified as safe by an IE or an MIE… It is illegal to install [photovoltaic installations] when you are not a registered electrical contractor.”
If you plan to take advantage of the City of Cape Town and the National Government’s initiatives to encourage consumers to put their excess energy back into the grid, make sure you install the approved components, including a bi-directional meter.
Gas – A gas compliance certificate is required for built-in gas stoves, geysers, braais and fireplaces etc. An authorised expert will need to be satisfied that the installation complies with current regulations, for example, that the emergency shut-off valves and other components have been installed in the correct positions (in relation to electrical points etc.). Cylinders outdoors need to be a certain distance from doors, drains, windows and electrical appliances and undercover.
SEWAGE
If you plan to install a non-sewered sanitation system that uses a septic tank, conservancy tank or French drain, it must be designed and installed in accordance with SANS 10400-P to satisfy the requirements of Part P of the National Building Regulations and Building Standards Act. It is also advisable to check local bylaws.
South Africa is one of the first countries in the world to adopt the ISO 30500 standard on non-sewered sanitation. “While [the Department of Water and Sanitation] can make recommendations regarding certain technologies, it is ultimately the municipality’s choice with regard to the type of sanitation solutions that will be implemented,” says Dr Preyan Arumugam-Nanoolal, a research scientist at the Water, Sanitation & Hygiene Research & Development (WASH R&D) Centre, University of KwaZulu-Natal.
A final reminder for buyers from Ruan Alberts of Just Property Living: “When a property presents itself with off-the-grid features, make sure that every component is in working order. Even if legislation doesn’t require compliance certificates, seek the guidance of reputable companies/installers in the area.”
For more information on Just Property, please visit www.just.property or call (087) 583 3333.
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