Ownership and insurance of solar infrastructure

Proprietary rights & stuff on the roof in sectional title

This article is derived from a recorded webinar hosted by Zerlinda van der Merwe of TVDM Consultants, with contributions from Reghard Britz (Brits Dreyer Inc.), Willie Roos (Stratafin) and Mike Addison (Addsure).

The YouTube recording was transcribed using automated transcription technology and subsequently edited for readability. The substance of the discussion remains the speakers’ original views. The embedded video appears below.

Why this conversation matters – Managing agents, trustees and owners are seeing a surge in “installations” in community schemes, especially solar. The questions sound simple:

“If I paid for it, is it mine?”

“If it’s on my roof, can I remove it when I sell?”

“If it breaks or gets stolen, whose problem is it — and is it insured?”

“Can a body corporate insure a system that’s rented or financed by someone else?”

The webinar panel tackled the real-world friction behind those questions: ownership, rights to use common property, and the practical knock-on effects for insurance, sales, and disputes.

1) The starting point: where is the installation going?

Zerlinda’s first “triage question” is a good one:

What is the legal nature of the area where the installation is being made?

In sectional title, the uncomfortable truth is that most external surfaces (including roofs) are common property, owned by the body corporate, with owners holding undivided shares through membership.

That’s why installations like solar panels, awnings, chimneys, DSTV dishes, cameras, aircon condensers and even pools can trigger confusion: they’re often attached to property the individual owner doesn’t “own” in the normal sense.

2) Mike’s insurance lens: insurance is the “easy part”

From an insurance brokerage perspective, Mike framed the first practical step like this:

Step 1: Is it movable, or is it effectively part of the building?

If it’s movable (something you take with you), it typically sits closer to the content/household cover.

If it behaves like a fixture (part of the building), it tends to fall under the building policy (community scheme policy).

Step 2: What perils are you actually covering?

Mike explained a common split: Standard building perils (fire, storm, wind, hail, etc.) often apply when the item is treated as part of the building.

Theft and more specialised risks may require broader cover (often structured more like “all risks”/specified cover), which can materially affect premium.

A key operational point for trustees/managing agents: ask the theft question upfront. If the system is later stolen and nobody raises theft cover as an option, relationships get strained quickly.

3) Reghard’s legal core: attachment can change ownership

Reghard Britz gave the “why it matters” explanation in plain terms:

If something becomes a fixture, it generally can’t be owned separately anymore.

In general property law, the owner of the building is automatically also the owner of things permanently attached to it once they become accessories/fixtures.

In sectional title, that becomes even more layered because:

• External areas are often common property
• The common property is owned by the body corporate

So an owner may install something and later discover the scheme (or the body corporate) claims it forms part of the common property/building.

The sale-and-move-out problem – this is where conflict shows up fast:

• Buyers see solar panels on a roof and expect them to come with the unit
• Sellers sometimes think, “I paid for it, I’m taking it”
• Bodies corporate may say, “It’s attached to common property, so it’s not yours to remove”

A practical risk-reducer raised in the discussion: spell it out in the sale agreement and disclose clearly during the sales process.

4) How courts decide: three factors (and a dose of common sense)

Reghard summarised the typical factors courts consider when deciding whether an installation is part of the building:

• Nature and purpose of the object – Is it the sort of thing society sees as part of a building (like a geyser or alarm system), or more like furniture?
• Method of attachment – How is it fixed? Can it be removed without damage?
• (This test is imperfect — many things can be removed, yet everyone expects doors/windows to remain.)
• Intention of the person who attached it – Was it intended to be permanent, or temporary?

His practical conclusion: over time, solar is increasingly being seen as an “ordinary part” of buildings, similar to geysers, security systems and aircons, though facts and exceptions matter.

5) Two major exceptions that often change the outcome

Two scenarios were highlighted as “overrides” in many cases:

1. A) Tenant installations

If a tenant installs something, there’s often a presumption it was not intended to become permanent (context matters).

1. B) Credit-provider / financed installations

Where a financier retains ownership as security, courts are often reluctant to treat the item as having become part of the building (for commercial/credit reasons).

Willie Roos reinforced this with examples from practice: solar systems are increasingly financed or rented, and those agreements commonly assume the provider can remove the equipment if the arrangement ends.

6) Formalising rights on common property: the “bundle of rights” tools

Because common property is shared, the panel returned repeatedly to one message:

Don’t rely on assumptions; formalise rights and responsibilities.

Reghard outlined the main “limited real rights” and related mechanisms:

• Registered exclusive use areas (real rights) – Registered in the Deeds Office

Often evidenced by separate documentation (sometimes even a separate deed relating to the exclusive use right).

• Rule-based exclusive use areas (personal rights) – Allocated via the scheme’s rules (often with an attached plan/map). Practically similar day-to-day, but not the same legal strength as a registered real right.
• Servitudes and registered leases (less common for roofs, but possible)

Servitudes are classic “rights over another’s property,” registered in the Deeds Office.

• Long-term leases to non-owners can require registration depending on the structure and duration. These are powerful tools, but often heavier than an exclusive use solution for rooftop solar.

7) The “swimming pool on common property” lesson (and other surprises)

Zerlinda raised an old but still relevant example: an owner installs a swimming pool on common property and later discovers it’s treated as belonging to the body corporate, with shared use implications.

Mike added a practical warning: problems often emerge years later:

• When the installation deteriorates
• When it leaks/cracks
• When trustees change
• When the unit is sold
• When a new owner didn’t know about the earlier agreement

He also flagged other frequent flashpoints: garages (especially “de facto” exclusive use situations), aircon units, and external items stolen from buildings (pipes, downpipes, even a flagpole).

8) Can the body corporate insure a rented solar system?

Willie gave a helpful “legal test” answer: Insurance often starts with insurable interest – does the body corporate have a real financial/legal interest in the item that would justify a claim being paid?

That usually depends on:

• The agreement governing the installation (lease/rental/financing terms)
• Who is responsible for maintenance and replacement
• How the right to use the area was structured

In short, you can insure many things; the question is whether the insurer will pay, and whether the insured has the right kind of interest.

9) A reality check on disputes: court timelines and the human factor

The discussion ended on two grounded points:

Most sectional title problems are “people problems”

Regard noted that disputes aren’t only about rules; they’re often about human dynamics, expectations, and poor communication.

Courts can be slow (so structure and prevention matter)

Willie shared that court timelines became significantly longer post-COVID, though processes are improving. The practical takeaway for trustees and managing agents: prevention and early dispute resolution beat litigation.

Practical takeaways for trustees and managing agents

• Treat external installations as a governance and risk issue, not only a technical one.
• Clarify upfront – Who owns it? Who maintains it? Who insures it? Who can remove it?
• Choose a formal structure that fits your scheme – registered exclusive use, rule-based exclusive use, lease, or (rarely) servitude.
• Record decisions and keep documents accessible for future trustees and buyers.
• When selling, disclose clearly whether items like solar form part of the sale, and reflect it in the agreement.

FAQs

Are solar panels on a sectional title roof automatically “mine” if I paid for them?

Not necessarily. If they are attached to common property and treated as fixtures, ownership questions can become complex and may shift toward the body corporate/common property framework.

Can I remove my solar panels when I sell my unit?

It depends on how they were installed, how the rights were structured, and what the sale agreement says. Clear disclosure and a written agreement reduce conflict.

Is solar automatically covered under the building policy?

Often it can be treated as part of the building for standard perils, but theft and specialised risks may need additional or specific cover. The insurer’s approach and underwriting requirements matter.

Should theft cover be considered for solar?

In higher-risk environments (especially commercial/industrial areas), theft is a real consideration. In residential schemes, it’s a cost-versus-risk decision – the key is that trustees/managing agents raise the option and document the decision.

What’s the cleanest way to formalise rooftop solar rights in sectional title?

Often, an exclusive use approach (registered or rule-based) is more practical than servitudes for roofs, but the right fit depends on scheme layout and governance.

Can a body corporate insure a rented/financed solar system?

Only if the body corporate has an insurable interest under the applicable agreements and structure. This is one of those “check the contract carefully” situations.