Coverage Options for Solar Installations — What Should I Know?

Equipment Insurance Coverage

Equipment insurance is a crucial aspect of solar installation coverage. This type of coverage typically protects against damage to the solar panels, inverter, and other equipment due to natural disasters, theft, or other unforeseen events. For example, a standard equipment insurance policy might cover up to 80% of the system’s value, with deductibles ranging from $500 to $2,000. It’s essential to review your policy to ensure it covers the replacement value of your equipment, not just its depreciated value.

Power Output Guarantees

A power output guarantee ensures that your solar system will produce a certain amount of electricity within a specified timeframe. This type of guarantee typically covers the system’s expected performance over a set period, usually 10-20 years. For instance, a reputable solar panel manufacturer might guarantee that their panels will produce at least 90% of their rated capacity for 25 years. If your system fails to meet this standard, the manufacturer may provide a replacement or refund.

Liability Insurance for Solar Installations

Liability insurance is critical for protecting yourself and your business against accidents or injuries on your property. This type of insurance typically covers medical expenses, lost wages, and other costs associated with accidents or injuries. For example, if a contractor is injured while working on your solar installation, liability insurance would help cover their medical expenses and lost wages. It’s essential to review your liability insurance policy to ensure it includes coverage for solar installation-related activities.