How does solar panel insurance work?

Commercial solar panel insurance typically covers a comprehensive range of risks specific to solar energy systems. The primary coverage includes physical damage protection against events such as severe weather conditions (hail, lightning, storms), fire, theft, and vandalism. This protection extends to all critical components including panels, inverters, mounting systems, and electrical infrastructure.

Business interruption coverage is particularly valuable for commercial installations, as it compensates for lost revenue during system downtime. This ensures financial stability when your solar assets aren’t generating expected income. Most commercial policies also include public liability coverage, protecting against third-party claims for property damage or bodily injury caused by your solar installation.

Additionally, commercial solar insurance may cover:

• Mechanical and electrical breakdown
• Bedieningsfouten
• Natural disasters (like floods or landslides)
• Transit insurance during transportation of components

Specialised solar insurance addresses unique risks that conventional property policies typically exclude. For instance, standard business insurance rarely covers the specific technical failures common in solar installations or business interruption claims. Learn more about comprehensive solar panel insurance tailored to commercial solar projects.

How much does solar panel insurance cost?

The cost of commercial solar panel insurance varies significantly based on several key factors. Premiums typically range from 0.20% to 0.5% of the total system value annually, with system size and capacity being primary determinants. Larger commercial installations benefit from economies of scale in premium calculations.

Location plays a crucial role in pricing, with systems in areas prone to extreme weather events commanding higher premiums. The quality of equipment significantly impacts insurance costs. Installations using Solarif-Certified panels can benefit from an exclusive discount on the premium for inherent defect coverage, an optional extension to our Zonnepaneel allriskverzekering.

Onze Eigen gebrek dekking dekt de kosten die de fabrikant niet vergoedt, zoals arbeidsloon, transport en productieverlies. Als de fabrikant failliet gaat, dekt de verzekering ook de vervanging van de defecte panelen.

Installation quality is perhaps the most influential factor affecting insurance costs. To qualify for coverage, insurers typically require a Scope 12 inspectie, and coverage is only granted if the outcome of the inspection is positive. Unlike Scope 10 inspections (which are not mandatory for solar panels), the Scope 12 inspection specifically evaluates photovoltaic system safety, quality, and performance.

Other factors affecting premiums include:

• Security measures (security systems, fencing, surveillance)
• Maintenance protocols and service agreements
• Claims history for similar installations
• Deductible levels and coverage limits

Professional risk assessments conducted before policy issuance can identify potential issues that, when addressed, may reduce premiums. This proactive approach to risk management not only improves insurability but often results in more comprehensive coverage at competitive rates.

Is solar panel insurance different for residential vs. commercial installations?

Commercial solar insurance differs substantially from residential coverage in scope, requirements, and complexity. Commercial policies are specifically designed for the scale and operational nature of business installations, with coverage extending beyond physical assets to include business interruption.

For commercial installations, insurers require more rigorous risk assessment protocols. Most notably, a Scope 12 inspection is typically required by insurers for commercial solar projects, though it’s not legally mandatory. This inspection evaluates the quality, reliability, and safety of the installation according to industry standards. Residential installations generally don’t face this requirement.

Coverage limits also differ significantly. Commercial policies typically offer higher coverage limits reflecting the larger investment and greater potential losses.

How do quality inspections affect solar insurance policies?

Quality inspections have a profound impact on commercial solar insurance policies, with the Scope 12 inspection being particularly significant. This inspection, while not legally mandatory, is required by most insurers for commercial solar installations and serves as a critical risk assessment tool that directly influences policy terms, coverage limits, and premium rates.

The Scope 12 inspection thoroughly evaluates installation quality, electrical safety, and system performance and reliability against established industry standards. It identifies potential hazards such as improper wiring, insufficient structural support, or component incompatibilities that could lead to system failures or safety incidents. By addressing these issues before policy issuance, both insurers and system owners benefit from reduced risk profiles.

While Scope 12 is the primary inspection for commercial solar insurance purposes, other inspection types like factory audits for panel manufacturing can also positively influence insurance terms. These inspections help verify component quality and manufacturing standards, which reduces potential for component-related failures.

For optimal insurance outcomes, commercial solar operators should conduct quality inspections early in the project development cycle rather than treating them as a final compliance step. This approach allows for issue remediation before system commissioning and insurance application, resulting in more favourable policy terms and comprehensive solar project risk management.

What’s the difference between manufacturer warranties and solar insurance?

Manufacturer warranties and solar insurance serve complementary but fundamentally different purposes in protecting commercial solar investments. Manufacturer warranties primarily cover defects in materials and workmanship, while solar insurance protects against external events and broader operational risks.

Manufacturer warranties typically include:

• Product warranty (10-20 years) covering defects in materials and manufacturing
• Performance warranty (25-30 years) guaranteeing minimum power output levels

However, these warranties have significant limitations. They don’t cover damage from external factors like weather events, theft, or vandalism. They also typically exclude consequential losses such as business interruption resulting from component failures. Additionally, warranties become void if the manufacturer ceases operations – a considerable risk in the rapidly evolving solar industry.

Solar insurance addresses these gaps by providing coverage for:

• External damage (storms, fire, theft)
• Business interruption
• Third-party liability
• Operator errors
• Environmental damage (optional)

For comprehensive protection, commercial solar operators should maintain both warranty documentation and specialised solar insurance. The insurance can even include Eigen gebrek dekking that might emerge after the manufacturer’s warranty expires, providing truly complete protection, or even if the manufacturer is no longer in business.

When evaluating commercial solar projects, investors and financiers typically require both robust manufacturer warranties and comprehensive insurance coverage, recognising that each addresses different aspects of risk management. Together, they provide the complete security needed for long-term solar investments.