Home solar cost and contracts

Do Solar Panels Increase Home Insurance? Cost Factors and Quote Checklist

Published · By the SolarPanelX editors · Updated · See individual checks and dates below

Summary

Solar panels can change your homeowners insurance premium, but the amount depends on your insurer and the coverage it offers. The NAIC guidance cited here does not provide an average premium increase. Ask for a revised quote before installation rather than budgeting for a standard percentage increase.

What the NAIC guidance actually says

The National Association of Insurance Commissioners says some insurers extend homeowners coverage to solar installations and others do not. It says adding solar can significantly affect policy cost in some cases. That does not establish that premiums usually rise, or by how much for a particular home.

Installation price is not an insurance valuation

An installation quote describes what you pay for a system. It is not automatically the replacement value your insurer uses or the amount to add to a dwelling limit. Give the insurer the equipment and installation documents, then ask how it values the system and whether limits or endorsements must change.

Information to prepare for a revised quote

InformationWhy to include it
Owned, financed, leased or PPA systemAsk who is responsible for equipment insurance under the contracts
Rooftop, ground-mounted or carport installationAsk which policy section applies to that installation
Equipment and installation documentsLet the insurer identify the system and assess the coverage needed
Current limits, deductibles and endorsementsRequest an explanation of each proposed change
Utility interconnection or export agreementAsk whether there are separate liability insurance requirements

Compare the same coverage before comparing premiums

Request the current annual premium and the revised annual premium in writing, including the effective date. Ask the insurer to identify changed limits, deductibles, exclusions and endorsements. A cheaper quote with a lower limit or a new exclusion is not an equivalent comparison.

The premium difference is the revised annual premium minus the current annual premium, provided the comparison period and other coverage are the same. If the insurer cannot cover the installation, the NAIC recommends asking the state insurance department about insurers authorized to offer that coverage.

Coverage and premium are separate questions

First confirm what equipment and losses the policy covers. Then assess the price of that coverage. The companion coverage guide below provides a checklist for limits, deductibles, exclusions and ownership; this article focuses on requesting and comparing the premium quote.

Does Homeowners Insurance Cover Solar Panels? What to Check

Sources

  1. NAIC — Environmentally-Friendly Insurance (2017)
  2. NAIC — Going Green? Make Sure Your Insurance Covers Your Environmentally-Friendly Decisions (2020)

This guide summarizes the linked public guidance. Coverage and premiums depend on the current policy and contracts; confirm them with your insurer. It is not individualized insurance advice.

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