Solar insurance: Does home insurance cover solar panels?

Millions of homes have solar installed on their roofs. Investing in a solar PV system has various benefits: solar panels will reduce your electricity bills by generating electricity onsite for 25 years or more. A solar energy system can also increase your home value by tens of thousands of dollars. Home solar is a significant investment in your home, leaving many homeowners wondering: do I need solar panel insurance, or will my home insurance cover my system?

Once a rooftop solar panel system is installed on your home, it is considered part of your home under most home insurance plans. That means ­that – in many cases – covering your solar panels under your home insurance won't create the need for a special add-on (or "rider"), won't change your plan, and won't increase your premiums. Every insurance policy is different, so you should still call your insurance company to confirm that your PV panels are covered.

While your home insurance likely covers your solar panels, there are a few things to keep in mind:

Your insurance company might require an add-on or separate policy for certain types of solar panel systems

While rooftop solar is typically covered in a standard policy, your insurer may or may not cover other types of installations, such as ground-mounted solar panels and solar panel carports. Whether or not these separate systems are covered depends on your insurer's policy. You may also be able to get an add-on or separate policy if your system is large enough to warrant its own coverage.

Solar is valuable, so you may want to raise your coverage limit

Your insurance policy's coverage limit is the maximum amount it will pay for a covered loss. In 2021, the cost of an average 6-kilowatt solar panel system was $16,860 before tax incentives and rebates; many homeowners will install systems sized at 10 kW or greater, meaning that solar is an investment worth tens of thousands of dollars. While your solar panels are likely covered under your standard home insurance policy, you may want to talk to your insurer about raising your coverage limit. That way, you can be confident you're covered for all possibilities.

Your insurer may or may not cover damage caused during the installation process

When you call to confirm that your insurer covers solar panels, ask about whether the coverage extends to the installation process. Qualified solar installers often offer a workmanship warranty that will cover you in the unlikely event that there is damage to your roof or solar panels due to the installation process.

Whether you buy or lease your solar panels can make a difference in your policy

If you install a system with a lease or power purchase agreement (PPA), you are not technically the system owner – the company with whom you have the agreement owns the panels and is responsible for maintaining them. This means you won't need to worry about your home insurance covering solar panels. However, you should closely scrutinize any lease or PPA before you sign to ensure that your home and solar panels are adequately protected in case of a problem.

Solar panels are very durable. Panel manufacturers test their products in real-life conditions and verify they can withstand the usual wear & tear and more extreme weather events like high winds, hail, and heavy snow. Your solar equipment will also come with warranties that range in terms and conditions; getting a strong solar panel warranty helps ensure that your system will produce clean, emissions-free electricity for decades.

However, not every solar panel is created equal. Explore multiple solar offers options to find the option that has the appropriate equipment certifications and warranties for your needs. Additionally, please look for a solar installer offering a design and workmanship warranty to demonstrate that they stand behind their work.

The EnergySage Solar Marketplace is the best way to receive and compare multiple solar offers quickly. EnergySage has a network of 350+ pre-vetted solar installers across the country waiting to provide you with quotes so you can identify the best option for your home. When you choose quality equipment and a qualified installer, you can be confident that your solar investment will pay major dividends.