Solar panel insurance: cover, costs and what to check

Insurance for a home solar PV system depends on the country, the property and the contracts involved. A policy can protect against hail, theft, fire and other events, but only within its terms and limits. Business installations may also be subject to specific national requirements.

A rooftop system is intended to operate for decades, exposed to the elements. Warranties provide protection against defects under the applicable terms; a hailstorm or someone removing the panels raises a different question.

This guide explains when insurance is worth considering, what an all-risks policy can cover, what affects the premium and what to check before taking out cover.

Is solar panel insurance compulsory?

There is no single answer that applies throughout Europe. National rules, the ownership of the building and any financing or grid connection agreements all need to be checked. Do not assume that a requirement in one country applies elsewhere.

For a home installation, distinguish insurance for damage to the system from liability cover for damage it might cause to other people or property. The requirements for these two types of protection may differ.

For businesses, check national rules on property insurance and natural catastrophe risks, as well as conditions attached to a lease, loan or public funding. The Italian Cat Nat scheme, for example, is a national arrangement rather than a general European requirement.

Where a building is jointly owned, review the building insurance, the ownership of the installation and the responsibilities of the owners’ association or equivalent body. Panels on a shared roof should not be assumed to be covered automatically.

Is solar panel insurance worth it? Consider three things: the installation’s exposure to risks such as hail or flooding, the cover already provided by your home insurance, and the cost of replacing panels, the inverter and battery storage without an insurance payment.

What does solar panel insurance cover?

Solar PV insurance can cover physical damage and, where the relevant sections are included, certain financial losses and liabilities to third parties. Cover varies considerably between contracts. The following are common options to check.

Physical damage to the installation

• Hail, strong winds, snow and other weather events.

• Lightning and electrical surges.

• Fire and explosion.

• Theft and vandalism.

• Electrical and mechanical breakdown, where insured.

• Natural catastrophes such as floods and earthquakes, subject to the policy and any applicable national scheme.

Financial losses and third-party liability

• Loss of generation: may compensate for specified financial losses following insured damage, according to the calculation method, maximum indemnity period and any waiting period in the contract.

• Third-party liability: may cover liability for damage caused by the installation, such as a panel coming loose and damaging a car, subject to the policy terms.

Which components are insured?

The insured property may include panels, the inverter, mounting structures, cables and electrical equipment. Battery storage needs an explicit check: telling the insurer that a battery is installed does not, by itself, confirm that the policy covers it.

What is all-risks solar panel insurance?

An all-risks policy may cover accidental physical damage to the insured property, except for exclusions and other contractual restrictions. The name does not mean unlimited protection.

A named-perils policy covers the events specified in the contract. With all-risks cover, the exclusions are particularly important because they define which causes of damage fall outside the protection offered.

What is usually excluded?

• Wear and tear and the natural decline in panel output.

• Manufacturing or design defects, with possible differences between the defective component and resulting damage.

• Damage associated with non-compliant installation or a failure to carry out required maintenance.

• Damage that existed before the policy started.

Read the actual wording: these categories are not identical in every policy.

Home insurance or a specialist solar PV policy?

There are two main routes: include the installation in your home or buildings insurance, or take out a specialist solar PV policy. An extension to existing cover can be suitable for a domestic installation if the insured property, events and limits meet your needs.

Extending home or buildings insurance

Some policies include fixed installations within the definition of the building; others require a specific extension. Ask for written confirmation of the solar PV cover, the insured value and the components included.

Incomplete information or an inadequate sum insured may affect a claim under the applicable law and policy terms. It is not correct to assume that every unreported installation will automatically lead to a rejected claim.

The scope still depends on the sections purchased. If weather damage, theft from outside the building or electrical breakdown is not insured, the panels will not be protected against those risks under that policy.

Taking out a specialist policy

A dedicated solar PV policy may include loss of generation or inverter breakdown. Compare the wording: these benefits are neither automatic nor necessarily absent from home insurance.

A specialist policy can be worth considering for higher-value systems, installations with battery storage, properties exposed to hail or systems used by a business.

Before buying another policy, review the one you already have. Ask whether the installation is covered, for which events and up to what limits.

How much does solar panel insurance cost?

The premium depends mainly on the value of the system and the cover selected. Insurers may also consider installed capacity, technical specifications, location and the claims excess.

There is no reliable annual price that applies to every European market. An extension to buildings insurance and a separate all-risks policy are different products. For a meaningful figure, request quotes for the same installation and equivalent cover.

Factors that can affect the price include:

• System value and capacity: more panels, a larger inverter or battery storage can increase the value to insure.

• Cover selected: adding benefits may increase the premium.

• Location: exposure to hail or flooding can affect price and terms.

• Installation type: rooftop, carport or ground-mounted systems can present different risks, including accessibility to thieves.

• Excess and limits: accepting a higher excess may reduce the premium but leaves you paying more towards a claim.

• Existing policy or separate cover: compare costs on equivalent terms.

What about a 6 kWp system? The same principle applies: the value of the complete installation, including any battery, matters alongside capacity. A battery increases the value to consider, but the premium still depends on the insurer’s offer.

For hail, check whether the panels are insured, any separate limit and the excess that applies. 

Warranties, insurance and maintenance: what covers what?

These forms of protection serve different purposes and do not replace one another.

• Statutory rights and the legal guarantee: protect consumers against non-conforming goods under the applicable national law. These rights generally concern the seller and are distinct from a manufacturer’s warranty.

• Commercial warranty: provides the remedies promised by the manufacturer or other guarantor. Panels may have separate product and performance warranties.

• Insurance: pays for damage that falls within the policy. Check how it treats defects and resulting damage.

• Maintenance: helps preserve safety and performance. Tasks and intervals depend on the system and its instructions. Check any maintenance conditions in the insurance and warranty documents too.

How long are solar panels covered by a warranty? Panels commonly have a product warranty against defects and a separate performance warranty, often lasting longer. Duration, output thresholds and remedies vary: read the warranty terms as well as the technical datasheet. Other components have their own terms.

How to choose insurance for your solar PV system

Choose cover that addresses the actual risks to your installation. Before signing, check:

1. Insured property: are the panels, inverter, mounting structures, cables and battery included?

2. Valuation basis: does the policy use replacement cost or a depreciated value? Check any conditions attached to replacement.

3. Insured events: hail, wind, lightning, surges, theft and fire. For all-risks cover, read the exclusions.

4. Separate limits: hail or theft may have a lower limit than the overall sum insured.

5. Excess: check fixed and percentage-based amounts, minimums and how they apply together. Terminology varies between countries.

6. Loss of generation: is it included, which financial losses qualify and when does payment start?

7. Policyholder duties: maintenance, electrical safety and installation requirements, together with the consequences of failing to meet them.

8. Documents: invoices, datasheets, commissioning records and the electrical compliance documents required locally.

What to do if your panels are damaged

Safety comes first. A panel with broken glass may remain electrically live while exposed to light.

1. Arrange safe isolation. Do not touch damaged panels or cables or climb onto the roof. Contact a qualified professional: switching off the inverter does not necessarily remove voltage from every circuit.

2. Document the damage. Collect photographs safely, record the date and time, and retain generation data from the inverter app. This may help identify when an anomaly began but does not prove the cause by itself.

3. Notify the insurer promptly. Follow the policy and applicable national rules. There is no single Europe-wide claim notification deadline. Report theft to the police and retain the report.

4. Preserve evidence and agree repairs. Arrange the inspection and repair process with the insurer. Necessary safety and damage-limitation work should not be delayed: document it and keep receipts.

5. Have the installation checked. The inspection should reflect the event and symptoms and may include wiring, the inverter and battery storage.

For electrical risks, distinguish prevention from insurance. Surge protection for solar PV systems concerns technical protective measures; the policy determines whether a resulting loss will be paid.

Frequently asked questions about solar panel insurance

Does home insurance cover solar panels?

It can, depending on the definition of the building and the cover purchased. Ask for written confirmation that the installation and its value are included. The policy must also cover the event responsible for the damage.

Is hail insurance compulsory?

Do not assume a single rule applies across Europe. Check the rules and contractual obligations relevant to your installation. Hail cover may already be included in another section or require an extension.

If a panel breaks, is it a warranty claim or an insurance claim?

It depends on the cause. A conformity defect may fall under statutory rights or a commercial warranty. Damage from an external event may be insured if the policy includes it.

Is battery storage covered?

It must fall within both the insured property and the relevant cover. When adding a battery, tell the insurer its details and value and obtain confirmation of the updated protection.

What if I do not tell my home insurer about the system?

The outcome depends on the contract, the information provided and the sum insured. Some installations may already fall within the building definition; others need to be added. Notify the insurer of installation and subsequent changes to avoid uncertainty.

Can I buy solar panel insurance online?

Yes, where an insurer or intermediary offers the service. Verify the provider’s authorisation before paying. Within the EU, EIOPA’s register of insurance intermediaries links to national registers. Compare quotes using the same capacity, value, battery details, installation type and address.

Insuring solar PV: where to start

For a home installation, start by reading your existing insurance and asking whether the panels are included, at what value and for which events. If protection is missing or insufficient, compare an extension with dedicated cover.

Insurance only covers risks within the contract. Component warranties, maintenance and insurance perform different roles: considering them together helps you understand which costs may still fall to you.