Many homeowners installing solar panels can be confused to add insurance, but imagine this, you’ve just had a brand-new solar panel system fitted on the roof of your home, set to cut your energy costs and reduce your carbon footprint; Then, a big storm sweeps through your region, and before you know it, you’re being hit with a bill for thousands of pounds in repairs. In this report we will explore whether you actually need solar panel insurance or is it an extra expense with the chances of your solar panels getting damaged or even stolen.
Understanding Solar Panel Insurance in the UK
Solar panel cover is your best option in order to protect your investment against unexpected events that could damage or destroy your solar power system. With the average UK home solar PV system costing around £7,000 and installs continuously rising, doubling in 2022/23, it has become a serious question amongst many on what the best steps are to take in order to protect your new solar investment.
The good news is that most home insurance policies covering solar panels already include your system as an automatic addition. Solar panels are typically assumed to be part of your building’s structure when installed onto your roof, so they’re automatically covered under your buildings insurance policy.
But it is important to note that all coverage is not the same, and you must be aware of what is covered so that you are able to make a successful claim should anything happen to your expensive installation.
What Solar Panel Insurance Truly Covers
Your standard home insurance policy will typically cover you against:
1. Storm and Weather Damage: Your panels are covered if they get damaged by high winds, heavy rain, or trees falling upon them. Although solar panels can handle hail of up to 25mm, with a speed of 80 km/h, abnormal weather conditions with larger-sized hailstones can cause damage.
2. Fire Protection: Because solar panel fires in the UK have increased six times over the past ten years, with 66 were recorded in the first six months of 2023 alone, fire protection is considered vital. Faulty installation, inverter malfunction, and short-circuit wiring can all pose very real fire hazards.
3. Theft and Vandalism: Solar panels are a costly investment, and unfortunately, they’re being targeted by thieves now. Experienced burglars can take apart a solar system within minutes, resulting in losses up to £15,000 or more.
4. Water and Environmental Damage: Your home insurance typically covers damage from water penetration, flooding, or any other environmental factor that can affect your system’s performance.
The Complete Picture: Solar Panels and Home Insurance
The short answer to whether home insurance covers your solar panels is yes! Most UK insurers cover roof-mounted systems as standard. But there are some key facts that you need to know.
Your solar panels homeowners insurance generally covers certain types of installations, including:
- Photovoltaic monocrystalline panels (the black ones)
- Photovoltaic polycrystalline panels (the blue ones)
- Solar roof tiles
- Hybrid panels with heat exchangers
- Standalone panels for backup power
There’s a key distinction homeowners tend to miss though and that is panels mounted on the ground, carports, or detached structures like sheds typically aren’t covered under standard home coverage. You’ll need separate coverage or a signup specific policy for these installations, depending on your provider.
Battery Storage Systems: An Important Consideration
If you’ve had a battery storage installation with your solar installation, you will need to specifically inform your insurer. Battery systems, particularly lithium-ion batteries, are fire risks if incorrectly installed or not maintained. Certain insurers may require stand-alone cover for batteries, whilst others will include them as part of your policy once they are notified. If you fail to inform your insurer, it could result in rejection of your claim if there’s a fire.
Informing Your Insurance Company
It is very important that you notify your home insurer when you fit solar panels. There are a few reasons why this step is essential, with one of the most important is that it’s part of the policy; Most home insurance policies require you to report any significant structural alterations or additions to your property. Fitting solar panels is a substantive change that affects your home’s structure, value, and risk profile. Another reason is that solar panels contribute to your home value, so your sum insured has to be adjusted accordingly.
If anything happens to your panels and you have not informed your insurer, they can outright reject your claim on a technicality of non-disclosure. This could leave you with repair costs of several thousand pounds.
What Information to Provide
When you phone your insurance provider, you will be asked to give the following details:
- The total cost of installation, including panels, inverters, and batteries
- That it was installed by an MCS-approved fitter
- Warranty and guarantee information
- Any ongoing maintenance contracts
- The installation date
The Typical Cost Increase
According to industry statistics, the cost addition every year for solar panel home insurance ranges from £118 to £152. Some insurers charge as low as £10-£25 yearly for solar PV alone with an extra £20-£40 for the battery storage.
Most reputable insurers now include solar panels as part of standard provisions with small increases, acknowledging that properly installed and well-maintained systems pose little risk.
How to Reduce Your Insurance Premiums
While fitting solar panels can increase your premium, you can take action to keep costs down:
- Use an MCS-Certified Installer: Using a Microgeneration Certification Scheme (MCS) certified installer will reduce premiums. One of the reasons is that it reduces possible risks through higher quality installations.
Contact us or fill in our form to check your eligibility for a free solar panel installation under the ECO4 scheme. We only work with reliable and certified installers to ensure you are in safe hands and to be able to provide you with extended warranties.
- Maintain Your System: Regular maintenance and a check-up will show that you are a responsible owner and can save you from claims.
- Improve Home Security: Alarm systems and good locks do not just prevent burglary but can also lower your overall home insurance cost.
- Shop Around: Always compare prices to find the most appropriate cover at competitive rates.
Solar Panel Insurance: The Exclusions
Understanding what is not covered is as important as understanding what is covered. The following are some of the common exclusions you need to watch out for:
1. Normal Wear and Tear
Your insurance will not cover the natural aging of your panels over time. Solar panels naturally lose efficiency, degrading by a minute percentage per year. This is normal and is not covered by insurance.
2. Manufacturing Defects
If your panels are faulty from the factory or installed with damaged materials, this is covered under your product warranty from your manufacturer, not your insurance. Most solar panels come with product warranties of 25-10 years.
3. Poor Performance
If your panels are not producing at levels anticipated, this is under your performance warranty (typically 25 years, to 80-90% of original output).
4. Accidental Damage
Standard policies generally do not cover accidental damage. If you accidentally damage your panels during DIY activities or other circumstances, you will have to add this as an optional extra. Some insurers provide basic accidental damage cover for solar panels of up to £1,500, while full cover can be more extensive.
5. Improper Installation
If your panels were not installed correctly and problems arise as a result, your insurance will not be able to cover the damage. This is why it is so critical to use certified installers, as it’s not just important for your safety, but for protection by your insurance.
6. Unauthorised Alterations
Any changes to your system that were not done by qualified technicians can nullify your coverage.
The Growing Fire Risk: Why Proper Insurance Matters More Than Ever
Solar panel fires are becoming a major problem in the UK. Official government statistics registered a remarkable rise from just 3 fires in 2010 to 66 fires in January and July 2023 alone.
What is Causing Solar Panel Fires?
The rise in fire figures coincides with neglected older systems passing 10-12 years of age. Common causes are:
- Faulty wiring and aging connections
- Inverter failure
- Poor installation by non-certified fitters
- Failure to maintain regular servicing
- Issues with DC (direct current) systems, that are more prone to arcing by nature
Putting the Risk into Context
While these figures are discouraging, it is to be kept in context. MCS figures indicate that of over 1.5 million solar panel installations in the UK, few percent are involved in fires every year. A recent report showed that there were fewer fires per unit installed from solar arrays than from tumble dryers.
When properly installed and serviced by MCS-qualified personnel, solar PV systems are low risk. The issues come with poor installation, neglect, and aging equipment that has not been well serviced.
How Insurance Protects You
As fire is one of the biggest risks to insurers, being properly covered means you are protected in the event that things go seriously wrong! You need your buildings insurance to cover your fire damage to your panels and your consequential damage to your property.
Smart Export Guarantee (SEG) and Insurance
If you’re generating income from selling excess electricity back to the grid through the Smart Export Guarantee, some insurers will still cover this to protect you in case something goes wrong. While most understand if you simply use solar to save you money on bills, selling electricity back to the grid could technically be operating a business in the eyes of certain suppliers. Always get your insurer to make it clear if this is part of what they offer.
Standard home insurance typically does not cover lost income from feed-in tariffs or SEG payments if your system is no longer working. If this income is relevant to you, you may require specialist insurance to protect against lost income.
Looking to install a renewable energy source like solar panels or a heat pump at no cost to you? Fill in our simple 1-minute eligibility check and see if you qualify for free heating system upgrades.
Making a Claim: The Process
In case you experience solar panel damage and need to make a claim you will have to:
- Inform your insurer at once of the damage
- Document evidence of damage in the form of photos and videos
- Don’t organize repairs until your insurer has inspected the damage
- Provide all required documentation, such as installation certificates
- Your insurer will arrange an inspection and authorized repairs
- Hold Your Documentation Secure (including warranties and installation photos)
Making the Decision: Do You Really Need Solar Panel Insurance?
Having weighed all the factors, the simple answer is that you already need to have home insurance, and solar panels need to be included in it. The real question is not whether you need it but whether you need to adjust your existing policy or add special insurance.
You Certainly Need Insurance If:
- Your solar system cost you thousands of pounds to set up
- You live in an area of extreme weather conditions
- Your system is ground-mounted or standalone
- You’ve invested in battery backup into your system
- You’re earning significant income from energy exports
- Your system is older and may need more protection
Protecting Your Investment for the Long Term
Solar panels are an important investment in the future of your home and the environment. Since systems last 25-40 years, keeping them safe from the very beginning is crucial.
The reality is, good insurance cover isn’t going to break the bank. For many homeowners, adding solar panels to buildings insurance is inexpensive, being typically under £150 per annum. Compare this with the potential cost of paying for a faulty system, and the value is clear.
By being aware of your coverage options, having an open line with your insurer, choosing certified installers, and maintaining your system in top condition, you can enjoy your renewable system with peace of mind.
Home Energy Guide: Achieve Energy Independence
At Home Energy Guide, we understand the importance of creating your home to be a sustainable, comfortable, and cost-effective living environment for you and your family.
As a trusted energy grant advisor, we specialize in connecting UK homeowners such as yourself with the right energy suppliers and ECO4 scheme grants. Whether it’s solar panels, heat pumps, improved insulation, or new-age boiler systems, we’re here to guide you every step of the way.
Not sure whether you are eligible for ECO4 grants? We’ll test your eligibility for free energy efficiency installations like solar panel installation, loft and cavity wall insulation, and boiler replacements.
Our qualified advisors simplify the whole process for you, explaining exactly what grants you can claim and how you can receive them.
We work with only the most reliable, MCS-registered energy installers and suppliers, so you receive top-quality workmanship to industry standards, insurance, and peace of mind.
Apply now and save hundreds of pounds on your energy bills at zero cost to you. Contact us if you have any enquiries.
