Insurance on Solar Panels: Protecting your | Solar Investment with Insurance

8 min readFeb 11, 2023

The installation of solar panel systems is gaining mainstream popularity as more and more people are finding ways to reduce their carbon footprint and cut down on their electricity costs in this inflated economy. As we all know, going solar is a worthy investment. The important thing you want is an unexpected event to damage your solar systems, leaving you with a hefty repair bill or having to replace them entirely. This is where Insurance on solar panels comes to play, offering peace of mind and assurance to those who invest in solar panel systems.

Check out the Estimated Solar Cost of your home INSTANTLY!

See Solar Prices

Its 100% FREE

You can have a quick idea about the cost of switching to solar

Our Energy professionals are one call away for advice

Important Points To Remember

Insurance on solar panels is a type of insurance policy that provides coverage for damage to your solar panels.
The damages that are covered under the homeowner’s insurance policies are known as covered perils.
Homeowners’ insurance will ensure that your solar panels get protected against physical damage, performance losses, and also make sure that the replacement and repair happen as quickly as possible.
Rooftop solar panels come under the category of home attachments and are protected under Coverage A of your homeowners’ insurance policy.
You might want to increase the coverage limit of your insurance policy to ensure the protection of your solar systems.
For ground-mount, wall mounts, and carport-mounted solar panels you need to buy an extra insurance policy.
Homeowners insurance policy depends upon the property value of your home. The higher your property value the higher your insurance policy will get.
If you are leasing solar panels or buying them on the power purchase agreement. You do not have to buy extra homeowners’ insurance policy.

What’s in this Article?

What is Insurance on solar panels?

Insurance on solar panels is a policy that provides coverage for damage to your solar panels. This can include damage from natural disasters, such as hurricanes, earthquakes, and hall storms, as well as from other events such as theft, vandalism, and fire. The insurance on solar panels will help you recover the cost of repairing or replacing your solar panels.

What are Covered Perils?

Covered perils refer to the damages that are covered under the homeowner’s insurance policies. It mostly includes damages by fire or hail. It means that your insurance company will pay for any repair or even replacement in case, something happens to your solar panels. The homeowners’ policy will not cover wear or tear damages and flooding and earthquake. For this, you need to buy a separate insurance policy or you can contact your insurance agent to expand the horizon of your current insurance policy.

Why do you Need Insurance for Solar Panels?

There are several reasons why you should consider getting insurance on solar panels. The first and most obvious reason for obtaining insurance on solar panels is to protect against physical damage. The panels are highly susceptible to damage from severe weather conditions such as strong winds, hail, and heavy rain. By having insurance, you can ensure the protection of your investment and that you can receive reimbursement for repairs or replacements if needed.

Other Benefits

Another important reason for insurance on solar panels is to ensure protection against performance losses. Solar panels rely on the sun to produce energy, and any disruptions or impediments to this process can result in significant losses. For example, shading caused by trees, buildings, etc can reduce the efficiency of the panels and lower energy production. Similarly, dust, dirt, or bird droppings can accumulate on the panels which may cause hindrances in their performance. Insurance on solar panels can provide protection against these risks and ensure that you receive compensation for any performance losses.

Furthermore, the insurance makes sure that the replacement and repair of your solar panel can happen as quickly as possible. If your solar panel sustains any sort of damage, you want to get them back up and operating as soon as possible so that you can continue to generate electricity and save money on your energy bill. Insurance on solar panels will help you do this by covering the cost of the repairs or replacement.

Does Homeowner’s Insurance Cover Solar Panels?

Installing solar panels on your property isn’t cheap. This makes people wonder whether solar panels come under the homeowner’s insurance policy or not. The good news is that the insurance premiums cover the solar panels. If solar panels are attached to your home like rooftop solar panels. It come under the category of home attachments and are protected under Coverage A of your insurance policy. In the same way, look for the dwelling portion of the homeowners’ insurance policy because it includes the classification of protection. Which can help determine whether certain damage come under cover peril or not.

This is the loftiest form of coverage that you can attain for your household. In case something forsaken happens, this will provide the right amount of coverage for your solar panels. It is better to increase the dwelling coverage of your homeowner insurance policy during solar system installation. Because eventually, it will help you pay for any damages that can happen during the installation process.

Do I need separate Insurance for Ground Mount Solar Panel System?

Yes, for ground-mount, wall mounts, and carport-mounted solar panels you need to buy an extra insurance policy. Such systems are usually not part of your home. So, the requirement to extend or buy a new homeowner insurance policy becomes vital. If you have rooftop solar panels installed, they will most probably come under the home attachment category. Therefore, will get covered under the umbrella of Coverage A of your insurance premium policy. Hence, eliminating the need for a new insurance policy on solar panels. It is always better to double-check your current insurance policy with your insurance agent. Because the coverage policy can vary from insurance company to company.

Does my Insurance Company need to know about my Solar System Installation?

Certainly, your insurance company will help you reevaluate your homeowner insurance policy. Your insurance agent will also tell you whether you need an extra coverage policy or not. They will also recommend the best possible insurance plan for your current solar system investment. So, letting them know is like putting the ball in their court leaving you nothing but comfort.

Will I have to Increase my Insurance Coverage on Solar Panels or not?

Honestly, it depends upon your insurance company and your homeowner’s insurance rules. It is best to increase your insurance coverage just to remain on the safer side. Usually, the insurance coverage you have before installing solar panels will not likely be enough to cover the cost of repair or repayment while filing a claim. Solar panels can cost about $ 11000 to $ 13000, after applying 30 percent federal tax credits which is a huge investment in your property. To make sure that the homeowner insurance policy protects these solar panels, you might want to increase the coverage limit of your insurance policy. Remember this, the higher your coverage limit is, the more expensive your homeowner insurance will be going to get.

Why does the Homeowner Insurance Policy get expensive after Solar System Installation?

Solar system installation can increase the cost of the homeowner’s insurance policy. This happens because solar panel installation can add value to your property. According to an estimation, adding solar panels to your property can hike your property value by up to four percent. Homeowners insurance policy depends upon the property value of your home.

Moreover, the homeowner insurance policy will also help you deal with any future damages related to solar panel systems installation. To get the best of both worlds it is better to discuss your current insurance policy with your insurance agent before solar panel installation. They will be able to guide you better according to the demands of your homeowner’s insurance rules and guidelines. And eventually, help you bring the solar panels under coverage policy.

How does an Insurance Policy work for Leased Solar Panels?

Leased solar panels are basically borrowed solar panels. If you are leasing solar panels or buying them on the power purchase agreement, you do not have to worry about the hike in your insurance premiums or buying an extra homeowner insurance. Third-party companies, which are usually solar panels providers will cover the insurance since they practically own the systems. You can reach out to your lease providers to confirm whether they offer any insurance on damages to solar panels or your home while their installation process. It is better to clarify details with the lease provider beforehand.

Leased solar panels are a better option for those who want to go solar but do not have the upfront money to do so. Many solar company providers give you the option to lease their solar panels with little to no upfront cost. This will help you to enjoy clean and renewable energy at a sustainable cost.

What happens if your Roof gets damaged during the Solar Panel Installation?

If your roof is old or you are working with an experienced solar installer company, you can face such problems. In most cases, the damages done to your rooftop, during the installation process, do not qualify for a homeowner’s insurance policy. This can cause you to pay for the repairs out of your own pocket. To avoid such circumstances, you need to reach out to your insurance agent beforehand, to make sure that whether such damages come under covered perils or not. Since precaution is better than cure. It is better to hire an experienced installer company to begin with, like SolarSME, which not only ensures the timely installation of solar panels but also makes sure that the installation of solar panels happens without causing any damage to your rooftop.

Why invest in Solar Insurance?

To sum this all up, we can say that insurance on solar panels is an essential investment for anyone who has or want to install solar panels on their property. It offers protection against physical damage, performance losses, and legal and regulatory risks, ensuring that your investment is protected against any potential risks and uncertainties. With the growing cost of electricity and uncertainty in global climate patterns, now is the time to take advantage of this valuable coverage. By obtaining insurance on solar panels you can enjoy peace of mind and the assurance that your investment will not go waste. This will allow you to focus on maximizing the benefits of your solar panels for years to come.