When we go on site to do property inspections for a new installation, many prospective clients ask whether they need solar panel insurance coverage for their systems.
As a general rule, you don’t.
Solar photovoltaic (PV) damage is incredibly rare. With no moving parts, most PV systems can continue generating clean, free electricity for decades. This explains why standard installations come with 25-year warranties, and most reputable solar installers offer performance guarantees. In fact, your system could last 40+ years – with minimal maintenance and upkeep.
But what about falling debris and freak accidents? Do you need solar panel insurance coverage for these things?
Why Most Solar Installations Don’t Need Additional Insurance
The vast majority of home insurance policies cover solar panel installations automatically:
- Some insurance companies will actually lower your premium. They realize that environmentally conscious policyholders are less likely to file fraudulent claims.
- Other home insurance companies will raise your premium. We don’t understand the logic behind this decision. Maybe it’s just greed.
If you discover that your insurance company wants to raise its prices, it’s probably worth shopping around for better coverage. You shouldn’t have to pay a higher price for doing the right thing for your family and the environment.
But if switching isn’t an option, don’t despair. By going solar, you’ll have lower monthly electricity bills for the next 25 to 40 years. You can do a lot with an extra $100 to $200 in your pocket every month.
In addition, your home will also fetch a much higher price when it comes time to sell. According to the National Renewable Energy Laboratory (NREL), the property value of your home goes up an average of $20 for each additional $1 an annual electricity bill savings from your solar panel installation. And according to another study, a small 3.1 kW solar installation adds about $17,000 to a home’s value.
You can do a lot with $17,000. In fact, that’s almost enough to buy 2 solar installations in a region like San Diego.
Should You Buy Solar Panel Insurance Coverage Just in Case?
Whether or not to buy insurance is ultimately a personal decision. It really depends on your risk tolerance:
- There is a very high probability that your solar panels will never get damaged.
- And there’s an even higher probability that you are already fully covered.
But if you are a truly risk-averse person who doesn’t like to take any chances, you can go ahead and purchase extra insurance for your solar PV installation. And why not? You’ll certainly be able to afford it once you switch over to a truly sun-powered lifestyle.
If you’re ready to begin exploring your solar options today, contact us for a free consultation. You pay absolutely nothing to have our expert installation team come out and survey your residential or commercial property.