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How to protect your solar PV renewable energy investment

More than 1.5 million homes across the UK have solar, and installations reached a new high last year. While around 60% of solar installations are for domestic properties, a growing number of businesses are installing photovoltaic (PV) systems to reduce their energy costs. But with the cost of solar panels starting at £15,000 for a commercial installation (depending on the size of the system), it’s an expensive investment.  

Despite the high cost of solar installations, home and business owners don’t always have the right cover in place to protect their investment. In this article, we look at whether existing buildings or business insurance policies are suitable and what you might need if they aren’t.  

16.10.26

By Lesley McKee

Insurance considerations for solar PV installations 

The increase in solar installations across homes and businesses highlights the surge in green energy adoption in the UK. Although panels have no moving parts that can easily break, they are still exposed to the elements 24/7, putting them at risk of damage.   

Their cost means it’s vital to let your insurer know about your intention to install a solar PV system. Doing this means your policy can be updated to reflect your new investment and ensures it remains valid. If you’ve already installed panels, don’t forget to let your insurer know. Not letting your provider know risks invalidating your buildings insurance, business insurance or farm insurance policy, and you may not be covered if you make a claim.  

If you’re considering a new solar PV system installation at a commercial premises, you should always speak to your broker or insurer before commencing work to ensure plans comply with your insurer’s requirements.  

Does standard home or business insurance cover solar panels?

Most standard home insurance and business insurance policies can cover solar installations, provided the replacement cost is included in the sum insured (rebuild value). However, you must ensure your insurer knows about the system.  

If you don’t tell your insurer and your solar panels are damaged or cause damage (for example, if they are the source of a fire), your insurer could reject any claim you make. You’ll also need to be aware that the type of solar installation you have will affect the type of insurance they fall under; for example: 

  • Rooftop panels – Solar panels fixed to your roof are usually covered by residential or commercial building insurance (as they are permanent fixtures).  

  • Ground-mounted installations – these may be covered by building insurance, but you should check with your insurer. Because they are not fixed to your property, they may not be covered. If so, you may be able to extend your existing policy to cover them or take out a standalone policy.  

  • Solar storage – if you store captured energy in batteries, they may be covered by buildings insurance if they’re wired in and considered fixtures. 

What are the risks of solar PV systems? 

While they’re sturdy, solar panels aren’t resistant to all damage and can be affected by:   

  • Weather damage – strong winds risk lifting panels if they’re not securely fixed to roofs or the ground. Panels can also crack or be damaged by large hailstones or debris blown around by the wind. Lightning can also cause damage.  

  • Fire and electrical faults – as with any electrical item, faulty or damaged wiring can cause a fire. Inverters can also be a fire hazard. For residential homeowners and businesses having a solar system of less than 50kW installed, it’s recommended you choose an MCS-certified installer. Certified installers work to the highest standards of compliance, and most insurers will insist on this certification for your policy to be valid. Businesses installing a larger system should also ensure the installer is NAPIT- or NICEIC-accredited and ensure they comply with any fire-proofing requirements set out by their insurer.  

  • Theft and vandalism – commercial solar farms and business premises with ground-mounted solar installations are at increased risk of theft and vandalism. As well as the panels themselves, thieves steal easily accessible cabling. Insurers have varying security requirements, but policyholders are usually required to implement measures to prevent cable theft, including security fencing and CCTV. 

  • Weight – rooftop-mounted solar panels can affect tiles and flat roofs, causing damage. Older buildings or those with weaker roofs may struggle to bear the extra weight of solar panels.  

  • General maintenance – panels should be cleaned regularly and inspected for wear and tear to ensure they continue to perform as expected. If insured under a commercial policy, the insurer will normally require annual professional inspections and evidence of cleaning and maintenance.  

Protecting commercial and agricultural yields with business interruption

If your business relies on renewable energy to run daily operations, or a significant proportion of them, it’s worth considering business interruption insurance. Policies vary, but typically cover income, wages and bills if your business is temporarily disrupted by an incident that you’re insured for. If your business is paid for the renewable energy it generates through a feed-in or export tariff, policies can also cover these costs if your solar installation is damaged.  

Agricultural businesses that have diversified into solar farms (the second most popular diversification activity) are particularly vulnerable to risks such as theft and vandalism. For example, a solar farm suffered three break-ins in which criminals stole cables worth a total of £90,000. For these businesses, as well as farmers who use renewable energy on farms to reduce bills, business interruption cover with farm insurance can be a much-needed and crucial safety net.  

FAQs 

Do I need to insure solar panels if they are under manufacturer warranty?  

Yes, because manufacturer warranties usually cover only mechanical faults or component failures. Warranties won’t cover the panels themselves if they’re damaged by external causes, such as a storm.  

To protect solar panels and cover damage costs, consider adding cover to your building insurance or commercial business insurance.  

Does home insurance cover accidental damage to solar panels?  

In most cases, standard home insurance won’t cover accidental damage (for example, if a panel was cracked while being cleaned). Instead, you’ll need accidental damage cover, which you can usually add to your main home insurance policy.  

How does a solar battery storage system affect my insurance?  

Adding solar panels to your home or commercial property changes its risk profile. While it can increase rebuild value, an installation also brings added hazards (fire, theft). This in turn affects your insurance. 

Similarly, adding a solar battery energy storage system (BESS) will also affect your insurance and potentially increase your premium. As with the panels themselves, this is due to the added cost of replacing the battery storage if it’s damaged and the increased risk of an incident.  

Protect your renewable energy system, your home and business

To protect your assets, you’ll need the right type of insurance for your needs. With solar panels, those needs can vary depending on whether your installation is fixed, ground-mounted, residential, or commercial, and whether you rely on the energy generated to run your business and receive income from surplus energy. 

Make an enquiry today

If you’d like help exploring your insurance options, speak to a member of our team. 

Speak to us:  01603 218000
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