A solar panel system is a significant investment, and you’ll want to ensure its long-term performance and protection against unforeseen damages.
According to estimates by the Energy Savings Trust, you may need around 7,000 to install an average solar panel system, which can be higher depending on the size and type of equipment.
With such high costs, ensuring your investment lasts long enough to pay itself back through reduced energy bills, cost savings, and potential earnings from incentives is essential.
Although installer and manufacturer warranties can offer some level of protection, they won’t keep you covered when life happens, and extreme situations or unforeseen events wreak havoc on your solar system.
In such cases, solar panel insurance can protect your shiny new investment and shield you from the financial losses resulting from unforeseen events.
This guide explores everything you need to know about insuring your solar panels in the UK and why it’s a wise choice for your peace of mind, wallet, and investment.
Key Points on Insuring Your Solar Panels in the UK:
- Solar panel insurance can cover you against theft, natural disaster damage, injury or property damage liability, and loss of income caused by covered perils.
- Homeowner insurance policies usually cover roof-mounted solar panels but may have limitations.
- Insurance and warranties complement each other to offer comprehensive protection.
What is Solar Panel Insurance?
Solar panel insurance helps cover your solar panel system from a broad spectrum of risks and occurrences.
It shields you from the financial losses that can occur when unforeseen events affect your solar panel system by covering replacement costs or repairs.
Solar panel insurance covers all solar panels, including polycrystalline PV, monocrystalline, or thin film solar panels.
What Is Covered by Solar Panel Insurance?
Solar panel insurance usually includes protection against:
- Theft – Thieves looking to make a quick buck can target valuable assets like solar panels. Most policies for solar panel insurance usually cover stolen panels or equipment and ensure you get compensated for replacement or repair costs.
- Natural Disaster Damage – Natural disasters and events can be a significant risk to the safety and functionality of solar panels. Insuring your solar panels can help mitigate any financial losses from damages caused by covered natural perils or disasters like storms, floods, hail, fire, or lightning.
- Injury or Property Damage Liability – Third-party liability coverage in solar panel insurance can safeguard you from any legal claims or associated expenses that can result when your solar panel system causes bodily injury or damage to other people’s property.
- Loss of Income Coverage – Some solar panel insurance policies can offer coverage for loss of income caused by covered perils like damage to your solar panel system. The coverage can compensate you for the lost revenue or power generation outage while your solar panels get replaced or repaired. Such coverage can be crucial if you rely on solar energy for daily operations.
What is Not Covered by Solar Panel Insurance?
Although solar panel insurance covers various perils and risks, there are limitations. Some things that are not covered include:
- Manufacturer Defects – The warranty usually covers manufacturing defects instead of solar panel insurance. You should address any manufacturing-related issues with the installer or manufacturer.
- Standard Wear and Tear – Environmental conditions affect solar panels over time, resulting in natural wear and tear. Solar panel insurance doesn’t usually cover damage caused by natural wear and tear, including solar panel deterioration due to ageing or gradual degradation of equipment components.
- Substandard or Improper Installation – Solar panel insurance doesn’t usually cover damage caused by substandard work, design flaws, or improper installation. Ensure only qualified professionals install your solar panel system to avoid such issues that your insurance may not cover.
- Intentional or Negligence Damage – Solar panel insurance will not cover damage caused by intentional acts or negligence like improper maintenance, vandalism, or reckless behaviour by the policyholders or their associates.
- Pre-existing Conditions – The policy will likely not cover defects or damage that existed before you obtained the insurance coverage. Insurers exclude pre-existing conditions to prevent people from obtaining coverage after discovering defects or damage.
Insuring Your Solar Panels with Homeowner Insurance
Homeowner insurance policies usually cover the structure of the building, including fixtures like solar panels, which are permanently attached to the property.
Most homeowner insurance policies will include solar panels installed on the roof as standard. You may need a separate policy or additional coverage if you mount your panels on a separate shed or the ground.
The home insurance policy may have limitations or exclusions related to solar panels, so ensure you consult your insurer and review the specific terms and conditions of the policy.
Seek clarifications on whether and to what extent solar panels are covered to ensure they’re adequately protected.
Solar Panel Warranties
Solar panels usually have a 25-year warranty covering parts. The warranties don’t cover damage from external factors like severe weather, and that’s where solar panel insurance comes in. There are two types of warranties:
- Equipment Warranty – Covers you against hardware or physical issues with the solar panels. It usually lasts around 10 to 12 years on average but can extend beyond 25 years and protect you if the panels fail or there’s a halt in energy production.
- Performance Warranty – Protects you against unacceptable stops, and you can get compensated or have your panels replaced if they don’t meet the performance guarantee. It can guarantee at least 90% production after ten years or 80% after 25 years.
Solar panel warranties are transferable, so you can pass the coverage to the new owners when you sell your home.
Warranties and insurance complement each other to ensure comprehensive protection for your solar panels.
When damages or malfunctions occur, manufacturers and insurers often work together to determine whether the issue is external damage or is warranty-related and decide on the responsibility for replacement or repair.
Final Thoughts on Insuring Your Solar Panels in the UK
Solar panel insurance can protect your investment and ensure your peace of mind in case of any unforeseen events.
Ensure you review your insurance policy to determine if it offers adequate protection for your solar panels and choose a plan that addresses your needs.