Should You Buy Solar Panel Insurance?

September 27, 2023

Solar panel insurance is becoming increasingly popular as the industry continues to boom. Many homeowners across the country see the benefits of installing solar panels on their homes and businesses, but some risks come with this green energy source. If you’ve decided to install solar panels on your home or business, you should also consider getting solar panel insurance.

With all of the benefits of going solar, it’s easy to overlook all potential risks and problems. Unfortunately, things like broken panels, fire damage from a nearby wildfire, or even a hailstorm are all risks associated with having solar panels on your property. 

What Is Solar Panel Insurance?

Solar panel insurance is a type of property insurance meant to protect you if your solar panels are damaged or stolen. Most solar panel home insurance policies will also cover damage caused by fire, hailstorms, or a nearby wildfire. 

Solar panel insurance may include a few different types of coverage: damage to panels, loss of panels, and repair/re-installation of panels. However, the inclusion or exclusion of particular coverage – as well as coverage amounts, deductibles, and other details – will depend on the insurer, so make sure to get a few quotes before you decide on a policy.

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Energy-Efficient Future

Solar panels are becoming a popular alternative to fossil fuel-based energy systems. They harness the power of the sun to generate electricity, reducing our reliance on fossil fuels and helping to clean up the environment. 

But not only that! A solar panel system is also an affordable option for many homeowners, offering them a chance to reduce their utility bills while contributing to a greener planet.

Three Major Types of Solar Panels

Monocrystalline Silicon

This is the most common type of solar panel, and it’s made from silicon crystals. It has high efficiency, but it’s also relatively expensive.

Polycrystalline Silicon

This is another type of solar panel that uses silicon crystals. It’s less expensive than monocrystalline silicon, but it has lower efficiency.


Thin-film solar panels are made from materials other than silicon, such as polysilicon or copper indium gallium diselenide (CIGS). They’re cheaper than monocrystalline silicon, polycrystalline silicon, or CIGS solar panels, but they have lower efficiency and shorter lifespans.

Solar Panel Insurance Benefits

Solar panel insurance coverage protects homeowners from potential financial losses that may result from damage to their solar panels. This type of coverage can be especially useful for homeowners who are engaged in rooftop solar panel installation projects and live in areas where there is a higher risk of property damage. 

Another benefit of residential solar panel insurance is that it can help protect your family’s financial stability in a disaster. For example, if your home were to be flooded by a storm or damaged by an earthquake, you could be left with broken solar panels that need repair or replacement.

Solar panel insurance can protect you from these types of financial losses and help prevent future problems with your solar system, such as breakdowns or overheating. In a nutshell, insurance protection will likely be a good idea if you are unsure about how to care for your solar panels.

Tips for Shopping for Solar Panel Insurance

First, it’s important to shop around and compare quotes and policies from multiple companies before deciding on a policy. For example, many different solar panel insurance companies include things like solar panel cleaning insurance, which you may or may not need.

Next, it would help to do some research considering these points: 

  • One thing to look for is solar panel hail damage insurance, which covers extreme weather conditions and other perils that could prevent you from installing or using your solar panels. If the policy doesn’t include these types of claims, you could be out of luck if something happens.
  • An important aspect to look out for is what percentage of the project’s total cost the policy will cover. Not all policies are equal when covering damages due to a delayed project or a failed installation. If you want to know how much solar panel insurance costs, just ask.
  • Don’t forget to ask the right questions when talking with an insurance company. Make sure that the policy covers both personal property and physical damage. It’s possible for someone else to accidentally leave their umbrella on your roof while they go inside, causing thousands of dollars in damage.

Why You Need Solar Panel Insurance

Solar panels are an excellent investment for people looking to save money on their energy bills and reduce the carbon footprint of their homes. However, there are some potential drawbacks to consider. The panels themselves cost money to install, sometimes more than the actual value of your property. They aren’t perfect, and they can fail in unpredictable ways. 

Additionally, they can get damaged by hail and fallen branches or break due to overuse or poor maintenance. They take a long time to pay off, or they might never do so. If your roof has a leak or is otherwise damaged, your solar panels could be compromised.

If you move into a new home with solar panels, you may not be able to use them, especially if they are insured. Solar panel insurance covers the cost of repairs if your panels need it and protect you from loss if your home is sold before those panels have paid off.

Can You Afford Solar Panel Insurance?

The solar panel impact on home insurance is quite big, especially when you’re responsible for many other costs, such as paying off your home mortgage, monthly installments on your vehicle, and home essentials like furniture and big appliances. 

Long-term investments require a long-term strategy, and opting for a cash advance might be the best solution. There are many options like credited loans from CreditNinja available online. When thinking long-term, loan payments can be made in installments to handle solar panel insurance coverage easier. 

Speak to a financial advisor and ask all the necessary questions, such as the maximum time frame a loan can be and what happens when a late payment occurs.


Whether you’re considering getting solar panels or have recently installed them on your property, insurance is something you should strongly consider. Taking it out will very likely assist you in protecting your financial future.

Author’s Bio

Karla lives in Miami. She started freelance writing as her full-time job when the COVID pandemic closed her office. She lives with her mother and younger brother, and their parrot, Sinbad. When she isn’t writing, she loves to read and chill, watching Netflix. She also enjoys traveling.

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Oleksandr Rohovnin is a Content Marketer at and an expert contributor to CoverExplore. His passion is digital marketing, innovative technologies, tech industries, and – above all – distilling vast amounts of complex information into engrossing narratives anyone can relate to. At CoverExplore, Oleksandr stokes passion for auto insurance and the automotive industry in general in every story he curates.