solar panels and home insurance

Solar panel insurance: does solar increase your home insurance?

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Millions of homes have solar installed on their roofs. Investing in a solar PV system has a variety of benefits: solar panels will reduce your electricity bills by generating electricity on-site for 25 years or more. A solar energy system can also increase your home value by tens of thousands of dollars. Home solar is a significant investment in your home, which leaves many homeowners wondering: do I need to get solar panel insurance or will my system be covered by my home insurance?

The good news: most home insurance covers solar panels

Once a rooftop solar panel system is installed on your home, it is considered part of your home under most home insurance plans. That means ­that – in many cases – covering your solar panels under your home insurance won’t create the need for a special add-on (or “rider”), won’t change your plan, and won’t increase your premiums. That being said, every insurance policy is different, which is why you should still call your insurance company to confirm that your PV panels are covered.

While your home insurance likely covers your solar panels, there are a few things to keep in mind:

Your insurance company might require an add-on or separate policy for certain types of solar panel systems

While rooftop solar is typically covered in a standard policy, your insurer may or may not cover other types of installations, such as ground mounted solar panels and solar panel carports. Whether or not these separate systems are covered depends on your insurer’s policy. You may also be able to get an add-on or separate policy if your system is large enough to warrant its own coverage.

Solar is valuable, so you may want to raise your coverage limit

Your insurance policy’s coverage limit is the maximum amount that it will pay towards a covered loss. In 2021, the cost of an average 6-kilowatt solar panel system is $16,860 before tax incentives and rebates; many homeowners will install systems sized at 10 kW or greater, which means that solar is an investment worth tens of thousands of dollars. While your solar panels are likely covered under your standard home insurance policy, you may want to talk to your insurer about raising your coverage limit. That way, you can be confident that you’re covered for all possibilities.

Your insurer may or may not cover damage caused during the installation process

When you call to confirm that your insurer covers solar panels, ask about whether the coverage extends to the installation process. Qualified solar installers will often offer a workmanship warranty that will cover you in the unlikely event that there is damage to your roof or your solar panels as a result of the installation process.

Whether you buy or lease your solar panels can make a difference in your policy

If you install a system with a lease or power purchase agreement (PPA), you are not technically the owner of the system – the company with whom you have the agreement owns the panels and is responsible for maintaining them. This means that you won’t need to worry about your home insurance covering solar panels. However, you should closely scrutinize any lease or PPA before you sign to ensure that your home and your solar panels are adequately protected in the event of a problem.

Regardless of home insurance, use quality solar panels and a well-vetted installer

Solar panels are very durable. Panel manufacturers test their products in real-life conditions and verify that they can withstand both the usual wear & tear and more extreme weather events like high winds, hail, and heavy snow. Your solar equipment will also come with warranties that range in terms and conditions; getting a strong solar panel warranty helps ensure that your system will produce clean, emissions-free electricity for decades.

However, not every solar panel is created equal. Explore multiple solar offers options to find the option has the appropriate equipment certifications and warranties for your needs. Additionally, spend some time looking for a solar installer that offers a design and workmanship warranty to demonstrate that they stand behind their work.

The EnergySage Solar Marketplace is the best way to quickly receive and compare multiple solar offers. EnergySage has a network of 350+ pre-vetted solar installers across the country waiting to provide you with quotes so you can identify the best option for your home. When you choose quality equipment and a qualified installer, you can be confident that your solar investment will pay major dividends.

17 thoughts on “Solar panel insurance: does solar increase your home insurance?

  1. Brenda Ford

    Does any damage resulting from Solar flares or solar storms impact my home owner coverage of my new system differently?

  2. Roshan Chauhan

    I live in Toronto Canada & my insurance just informed me that they cannot Insure my house anymore, after being with them for more than 20 years. As I had solar panels installed on my roof
    Anyone in Toronto had the same problems and got someone to insure them, please give me the name of the insurance company, so I can contact them

  3. Crystal

    People should also be educated in the fact that if you get a solar system that is larger than 11.700 then you will be required to have additional insurance imposed by your Energy company when they come out to review your installation. I live in Florida so it’s not uncommon to want to have the largest system that will fit on your roof especially with $400 bills in the summer. I had a friend go with a system that was 12.5 only to find out after the installation that he would have to pay an additional $60/month for insurance which is $720 a year. Sure he is getting a break on the energy but he still has to pay about $80/month to Duke energy. Also- keep in mind that it’s a good idea to get energy efficient appliances. A new hot water tank- hybrid solar water tank will cut a percentage of those monthly bills also.

  4. Robert Youngberg

    My insurance company increased the ‘value’ of my home by $56,000 and the cost of my homeowners insurance by $300 per year when I added a solar system with 22 solar panels (6.7 kW) which cost me $18,675 before the Federal tax credit, about $2.80/watt, about $1.95/watt after tax credit. The insurance company’s cost estimate is about $8.36 per watt which was typical about 5 years ago.
    The cost of my system included complete installation, inverter, roof mounts, meters, taxes, all labor and materials by the installer, which is one of the premium installers in Colorado. I appreciate I live in ‘hail valley’ Colorado, and there may be additional cost in replacement, but last spring we had 1″ and larger hail and most solar systems survived just fine. Panels including installation are typically 2/3 of the cost of the overall solar system.
    Solar systems have dropped by more than half in the last few years and the National Renewable Energy Laboratory predicts they will continue to decrease in cost for several more years.
    I have challenged my insurance company to review the new $300 annual premium. I am hoping to save about $1,200 per year in electricity, so the increase in insurance is equal to about 25% of my electrical savings, which significantly affects the payback on my investment!! Any suggestions?

  5. giovanni

    i just discover that my home insurance is not covering my solar panel installation, after preparing for the hurricane Irma,, Im in Florida.
    Was my understanding since is something attached to the roof or the home structure should be , but they say no..
    Have to do some research on this , not sure if this is like that or not……………..

  6. jresquival

    That’s good to know that most home insurance covers solar panels. Solar panels can be quite the investment, after all. My energy bill has been pretty high, so I’m thinking about getting solar panels.


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