Photovoltaic Insurance
Photovoltaic insurance covers property damage to solar power systems and the resulting loss of feed-in revenue, and is often complemented by dedicated liability cover for operating the system.
Comparison profile
- Trigger
- All risks
- Insured interest
- Physical damage to photovoltaic system components (panels, inverters, mounting structures, cabling) and the resulting loss of feed-in revenue.
- Rating basis
- Installed capacity (kWp) / sum insured, System age and technology, Roof-mounted vs ground-mounted / open-field installation, Feed-in tariff or expected revenue
- Typical limits
- Sum insured based on new replacement value of the installation, with a separate sublimit or indemnity period for loss of feed-in revenue.
- Typical deductibles
- Per-occurrence deductible, typically modest for residential systems and higher for large commercial or ground-mounted installations.
- Target segments
- Private homeowners, SME and commercial roof operators, Renewable energy investors
Insured events
- Storm and hail
- Lightning strike and power surge
- Theft and vandalism
- Animal damage to cabling
- Faulty mounting and installation defects
Key exclusions
- War and nuclear energy
- Wear and tear and gradual output degradation
- Manufacturer defects recoverable under warranty
- Grid operator curtailment without physical damage
- Consequential loss beyond the loss-of-revenue extension
Concept
Photovoltaic insurance covers property damage to solar power systems – panels, inverters, mounting structures, and cabling – caused by perils such as storm, hail, lightning, power surge, theft, or vandalism. Unlike simple inclusion under a building policy, a dedicated photovoltaic policy typically also covers installation-specific risks such as faulty mounting, cable damage from animals, or grid-induced power surges.
Loss of revenue and liability
Beyond pure property cover, photovoltaic insurance frequently includes loss-of-revenue cover, which compensates the financial loss from reduced or interrupted electricity feed-in during the repair period – comparable to business interruption insurance for commercial installations. For ongoing operation, particularly for commercially used or grid-connected systems, operator liability insurance is also relevant, covering third-party losses caused by fire, technical failure, or installation work.
Relevance for insurance practice
With the rapid spread of photovoltaic systems on residential and commercial buildings, photovoltaic insurance has become a distinct and fast-growing coverage need; intermediaries should check whether an installation is already covered under an existing building or commercial policy, or whether a dedicated policy with installation-specific scope and adequate loss-of-revenue cover is required.
Comparison and delineation
Photovoltaic insurance can either be added as a sublimit under an existing homeowners or commercial building policy, or written as a stand-alone all-risks policy with installation-specific extensions and dedicated loss-of-revenue cover; the latter is generally preferable once the system’s value or feed-in dependency becomes material. Its loss-of-revenue module mirrors the logic of business interruption cover but applies to feed-in tariff income rather than trading profit. Operator liability for third-party losses arising from the installation or its operation is not covered under the property module and is normally placed as a separate general liability extension.