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. Daniel Sloan

    Well at this time our Electric Co-Op had a power surge that fried our surge protector box and 22 Microinverters on our solar panels the electric company tried to say it was a lighting strike but that day was not a cloud in the sky.Warrenty want cover the cost for the damage to our solar system.At this time not sure that our home owner’s insurance will pay because they said that the Electric company have to admit it was their fault which they are not going to do.Our solar system has been down since August 2,2021 not sure when it will be back up and running.

  2. Ray Satterfield

    I just spoke with 2 customers here in Florida who were told by their insurance company that they would cancel their insurance if they add solar. I called my insurance contact. She told me that a LOT has changed in Florida in the past 2 years. Almost every insurance company in Florida is now raising the premium IF they do insure solar. I was advised it has a lot to do with the hurricanes and claims filed for damages to solar from storms. They use the insurance COPE formula and then multiply by the #of panels and wattage to get the premium. This is a significant difference from the past. I would be happy to provide the contact information for my insurance connect to get more info from an insurance expert.

  3. Robert T.

    Solar Bear told me my insurance rates would not go up on my 7.08kw system, but they increased by 20%. The insurance company said that of course rates go up when the coverage has to be increased.

    1. Alysa Fleisher

      A 7.08kW system is very small and is not a huge cost or increase in value and the solar company’s thought on this would be generally correct, unless you were significantly underinsured. I would guess they also told you that they are not an insurance company either. I would say you should shop for a new homeowner’s insurance company if your insurance is really that much higher. No insurer has even asked me about solar panels when getting a quote.

  4. Pete Senchyshak

    I have a rooftop AND ground mounted PV system that combine for 16.6 kW production. I think if your system is 11 kW or greater, FL law requires the homeowner to purchase a $1 million umbrella policy (about $200/year through Progressive). Typical homeowners insurance will cover rooftop systems without any additional fees— as long as it’s under a certain size/production capacity.

    That $200/ year fee may act as a deterrent to some prospective customers because they may feel that the savings they achieve via solar energy (on one hand) is taken away by having to purchase another insurance policy (on the other hand). This was “the bone” state government threw to the utility companies years ago to help deter the spread of solar energy, or, at least, the spread of larger photovoltaic systems.

    My system(s) allow me to have just the connection fee of $8.49/month with FPL. However, it is sad that the excess energy generated by my system cannot be sold directly to other customers. Maybe one of these days

    Also, FPL was terrific in coming out to my house with the smart meter so my system could “go live” with net metering. There were no delays etc.

    Be aware, though, that if you install a larger system, you’ll have to pay an additional $400 one-time fee (another “bone”/ deterrent?) to FPL for a smart meter that is capable of handling all that excess energy that spins that baby backwards! I figured, $400 once divided by 30+ years of power generation …. why not?

    Check into joining a co-op to get better pricing and remember the federal tax credit of 30% ends this year and drops to 26% for 2020… then 22% in 2021. For 2022, there is no federal tax credit, so if you’re going to put solar in, you might want to shake a leg and do it soon.

    As the Beatles sang “here comes the sun… do do do do….”

    1. Alysa Fleisher

      I did not have a $400 fee from FPL for the new meter. We already had a $1 million umbrella. I believe most people don’t understand that they generally need this anyway as protection to cover their entire life as an umbrella.

    2. Laura

      I live in FL and we want to go solar with a Tesla battery back up if the power goes out. I’d like to further talk with you about a few things and I believe you’ll be really useful, especially because you’ve had your system for a couple of years now. Could you email me so we can get in touch somehow?


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