Solar panels are a big investment, and to make sure it pays off, it’s better to protect them. Let’s break down solar panel insurance, different levels of coverage and what you can expect to be protected from.
The very first level of your panels’ protection is provided directly by the manufacturer. You don’t need to pay any extra for it, all is included in your panels’ price. The solar panel manufacturers offer two main warranties: product warranty and performance warranty.
This warranty covers defects in materials or workmanship of the solar panels themselves. Think of it as a guarantee against manufacturing flaws. The duration ranges from 12 to 30 years, with some premium panels like SunPower extending up to 40 years. During this period, if a panel malfunctions due to a covered defect, the manufacturer will repair or replace it at no cost to you.
This warranty focuses on the power output of your solar panels over time. It guarantees a minimum level of electricity production your panels will maintain throughout the warranty period. Most warranties ensure your panels will produce at least 90% of their original output after 10 years and 80% after 25 years. This translates to a gradual decrease in efficiency, typically around 0.7% per year. A linear performance warranty is often referred to as linear because it guarantees a steady decline in power output, not sudden drops.
Longer is not always better. When choosing solar panels, focus on the manufacturer’s reputation over the warranty length. There are many top companies offering humble 12 years for product and very young ones with tempting 30 years. And there is a but: about 50% of new businesses in the US go bankrupt in the first few years. If things don’t work out for a young company, they won’t be able to honor their 30-year guarantee.
Separate from the warranties provided by solar panel manufacturers, installer’s warranties cover the workmanship of the installation itself. In essence, it’s a guarantee by the company putting in your solar panels that they will fix any problems caused by faulty installation for a set period. Common coverage areas include:
Defects in workmanship: This could include leaks around roof penetrations, faulty electrical connections, or improper mounting of the panels. Equipment malfunction due to installation errors: If your panels aren’t producing the expected power output due to a mistake during installation, the installer’s warranty should cover repairs. Roof leaks caused by installation: A poorly sealed roof penetration can lead to major water damage. A good installer warranty will ensure they fix any problems they cause.
Installer warranties may range from 5 to 10 years. Make sure the warranty clearly outlines what is and isn’t covered. If you plan on selling your home in the future, consider whether the warranty can be transferred to the new owner.
If you live in a hurricane-prone state, there may be an interesting option in your installation contract – removing solar panels before a hurricane hits. Solar panel installers usually work with insurance companies – in some states, they can’t work without them. If a hurricane is in the forecast, you can call the installer to come and take your panels down for the storm and then come and put them back on. That’s at the expense of the insurance company.
Good news for homeowners – most standard home insurance policies do cover rooftop solar panels. Since they’re permanently attached to your roof, they’re considered part of your house. This means you don’t need to buy a separate policy for your panels – your home’s coverage would kick in for repairs or replacements if the panels are damaged by insured events like fire, fallen tree, or theft.
On average, a home with a PV system costs 4% more on the market than a house without it
Since solar panels are a significant investment and add value to your home – about 4% according to studies – you might need to increase your coverage amount as well. Before installing solar panels, talk to your insurance company. Check the amount covered by your insurance now and calculate if you need to increase your homeowners insurance for solar panels. Discuss your plans, get details on coverage specifics, and inquire about any adjustments to your policy.
If your current insurer has limitations or exclusions, don’t hesitate to get quotes from other providers who offer comprehensive coverage. Be aware of potential exclusions. Some insurers might exclude specific weather events like wind or hail damage for roof-mounted panels. Always study your policy details to avoid surprises.
Some roof manufacturers may void your warranty if you install solar panels without their specific approval. Check with your roofer or the manufacturer before starting solar installation.
If you are installing a solar system on the ground, carport, or any other freestanding structure rather than on your roof, it won’t be covered by your house insurance, as solar panels are not part of your home. To protect your ground-mounted investment, you’ll have to get a separate insurance policy. However, some insurance companies may not cover ground-mounted panels at all, as this type of installation is considered less reliable and more risky for the panels by some. Talk to your insurance agent to see what options you have.
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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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