Solar Panel Insurance

Solar panel insurance protects your renewable energy investment against damage, theft, and weather-related risks. Thinking about getting a solar panel? While your first thought might not be insurance, it’s crucial to know you’ll be covered if something goes wrong.

This is what you need to know about solar panel insurance to keep your investment properly protected.

What is solar panel insurance?

Solar panel insurance is specialist protection designed to safeguard your photovoltaic system against damage, theft, and other risks. Think of it as a safety net for your renewable energy investment.

Your solar panels are essentially expensive equipment permanently attached to your roof, exposed to the elements 24/7. They’re vulnerable to everything from storm damage and vandalism to accidental damage during maintenance. Without adequate protection, replacing damaged solar panels or fixing your inverter could cost you thousands.

The Energy Saving Trust says the average domestic solar system is 3.5kWp and costs around £6,100 , that’s valuable equipment that needs proper protection.

Will my home insurance cover solar panels?

Yes, most home insurance policies will cover solar panels automatically, which means you shouldn’t need to take out a separate policy to insure them.

Solar panels are typically covered under buildings insurance because they’re part of your home’s fabric. However, if you add a solar battery to your system, you’ll need to check with your insurer whether it’s covered under buildings or contents insurance, depending on where it’s located.

What does solar panel insurance typically cover?

Your solar panels will be covered for unexpected events through your buildings insurance:

What’s covered	What’s not covered
Fires (fire damage to solar panel and related property damage)	Accidental damage (available as optional extra for additional costs)
Storms (wind, hail, and severe weather damage)	Wear and tear (normal deterioration over time)
Falling trees (repair or replacement if trees damage your solar system)	Manufacturing defects (should be covered by manufacturer warranty)
Theft and vandalism (criminals targeting valuable solar panel)	Freestanding solar panel (garden or balcony solar panel aren’t part of building structure)

If you want accidental damage cover for protection against mishaps like damaging panels while cleaning gutters, this is often offered as an add-on for extra cost.

How much cover do I need for solar panels?

Most buildings insurance policies have limits on total payouts, known as the ‘sum insured’. You might need to increase this to account for your solar panels’ additional value.

Given the cost of solar panel systems, it’s wise to ensure you have sufficient cover to replace your panels completely if needed.

Key considerations:

• Current replacement cost of your entire system
• Installation and scaffolding costs
• Any roof repairs needed during replacement
• Technology changes that might make replacement more expensive

Your insurer needs to account for both the cost of replacing your solar panels and any value they’ve added to your home overall. Don’t forget that your building’s overall value has likely increased too.

Are all types of solar panels covered by my home insurance?

Almost all types of rooftop solar energy systems that are physically attached to your property should be covered by buildings insurance:

Covered panel types:

• Photovoltaic (PV) monocrystalline panels
• PV polycrystalline panels
• Thin film panels
• Hybrid panels with heat exchangers
• Solar tiles

Not automatically covered: If you have freestanding solar panels in your garden or on a balcony, they won’t be included in buildings cover as they’re not part of your home’s structure. You may need specialist insurance for these.

Your panels may also come with manufacturer or installer warranties covering faults within the warranty period. However, warranties won’t cover theft or weather damage, that’s where your home insurance steps in.

How do solar panels affect home insurance premiums?

Installing solar panels can affect your insurance premiums in several ways:

Potential premium increases:

• Your building’s value increases, potentially pushing up buildings insurance premiums
• Solar panels add expensive equipment that needs protecting
• Some insurers view panels as increasing risk of roof damage or fire

Potential benefits:

• Some eco-friendly insurers offer discounts for renewable energy systems
• Solar panels can make your home more attractive to certain insurance providers
• Reduced energy bills might be seen as improving your financial stability

Typically, you might see premium increases when adding solar panel cover to existing buildings insurance, but this varies significantly between insurance providers.

Getting an insurance quote from multiple insurers can help you find competitive rates. Some specialist renewable energy insurers offer better deals than traditional providers.

Should I consider specialist insurance for solar panels?

Here’s the thing: specialist separate solar panel insurance policies are pretty rare, and most homeowners will find much better value just adding solar panel protection to their existing home insurance policies.

You might come across specialist solar panel insurance bundled with those monthly service plans that roll installation, warranty maintenance, and insurance cover into one package over several years.

What these specialist policies might offer:

• Performance guarantees to make sure your solar panel actually generate decent electricity
• Income protection if your solar system stops working
• Claims handlers who actually understand solar energy tech

When you might genuinely need specialist cover:

• Massive solar system you’re using to make proper money
• Commercial setups needing business insurance
• High-end systems worth over £15,000

For most of us: Your standard buildings insurance with solar panels added on? Sorted. Just check your sum insured covers the lot and think about extras like accidental damage cover if you’re the clumsy type.

Red flags to watch for: Always check that your chosen insurance provider is regulated by the Financial Conduct Authority (FCA) and listed on the Financial Services Register,  it’s your guarantee they’re properly regulated and can handle claims appropriately. Avoid insurers without a clear registered office or proper trading name.

Bottom line

Solar panels are a smart investment in your home’s future, and the good news is that most standard home insurance policies already protect them. You shouldn’t need expensive separate insurance for typical domestic installations.

The key steps are simple: tell your insurer before installation, check whether you need to increase your sum insured, and consider whether optional extras like accidental damage cover are worth the additional cost.

With over 1.5 million UK homes already fitted with solar panels and new builds soon requiring them by law, insurers are well-equipped to handle solar installations. Your renewable energy investment is likely already covered – you just need to make sure the coverage limits are adequate.

Solar panel insurance FAQs