Solar panels are sustainable solutions for converting sun rays into energy that can replace electricity. They’d make a good investment that you’d want to protect because they’d benefit your household in the long run. Yet because solar panels can be costly, you might also be wondering if your insurance can cover them and how they can impact your premium should you pursue your purchase.  

How Much Are Solar Panels?  

Solar panels can cost up to USD$25,000, and that’s already pricey for many American households. Many families are buying them because they account for about 40% of renewable energy during the first quarter of 2020. Note that solar panels will be covered by home insurance as long as they are attached to your home, more commonly on the rooftop. There might also be coverage limitations that you need to learn from your insurance provider.  

Solar panels, also known as photovoltaic systems, benefit both frugal individuals and those looking for environment-friendly ways of living. You can inquire with reputable solar panel manufacturers, like Solar Run, about how much they will cost and if they include installation services. 

How Do Solar Panels Impact My Insurance Premium? 

  • Possible Premium Increase 

There are benefits to having solar panels installed in your home. However, your homeowner’s insurance premium will likely increase after installing solar panels. These panels are expensive, and their replacement is also costly. The coverage limit, the maximum amount your insurer is willing to pay for a loss, will likely increase, too. Thus, be ready to pay a higher insurance premium if you’ll have solar panels on your property.  

It’s best to discuss with your insurance agent the possible costs you will have to pay if you purchase solar panels. Your primary goal is to understand your coverage limits. You’d want to know if your insurance premium will cover the repairs on your home and the replacement of solar panels in case of a natural disaster.  

  • Need To Get An Additional Policy 

Rules will depend on your insurance provider. You might be required to purchase extra coverage or even a separate policy to cover your solar panels. That may be the case if your solar panels are not attached to your roof but mounted on your property’s ground. Your homeowner’s policy will cover solar panels attached to the home, but different insurance companies will have requirements, so it’s best to ask your representative. 

  • Ownership Can Make A Difference In Your Policy 

Did you buy your solar panels, or are you leasing them? You are not responsible for maintenance if the system installed in your home comes with a power purchase agreement. The company you signed a deal with must purchase coverage for the solar panels. You won’t need to spend anything on that case. However, you must take a look at any lease agreements before signing. You must have the proper coverage for your home and the solar panels when you need them.  

  • Policy May Or May Not Cover Installation 

Solar panel installation requires careful hands. Your source of solar panels may likely offer free installation by skilled technicians. Accidents happen, though. During the installation process, there could be an unfortunate incident that causes damage to your roof or your solar panels. This is likely if you’re not working with a licensed installer.  

You might want to call your solar panel provider if they offer a warranty. At the same time, inquire about your home insurance provider to see if they provide any coverage in such a situation. A damaged roof may be among the list of covered perils.  

To avoid damage to your property and extra out-of-pocket expenses, read reviews before hiring a contractor to install the panels for you. Some companies may not have the workforce to have installers, so you might need to hire one. It’s also worth asking about their license and related validity, and whether they carry insurance proof.  

  • Stand-alone Solar Panels Might Cost Higher 

Suppose you are a landlord or an establishment owner who obtained solar canopies and had them installed on your property. Said purchase is an investment decision, so you can retain quality tenants and be more environmentally conscious. Like any other commercial property owner, you will also be paying for commercial property insurance.  

Solar panel on a red roof

Remember that there might be varying set coverage for stand-alone structures, including your solar canopies. If your property is insured for up to USD$2 million, you could be paying USD$200,000 coverage for the outbuildings. Some policies won’t even cover solar panels because insurers will be reluctant due to the risk of stand-alone arrays. 


Solar panels make perfect sense as an investment. They are built to supply homes with renewable energy and help lower utility expenses. Yet if you want to protect them, you can also ask your home insurance provider if they are covered and at what maximum so you can budget your monthly payments. Understand how they impact your home insurance so you can weigh your options.