Homeowner’s Insurance

Will Going Solar Increase Your Homeowner’s Insurance? A Brief Guide


While only 4% of Americans are powered by solar energy, this number is expected to triple to 13% by 2030. Many homeowners are going solar because not only is it renewable energy, but it’s also a huge money saver.

There are so many benefits of solar energy that it’s a no-brainer to switch over. But that doesn’t necessarily mean it’s all sunshine and rainbows.

Yes, your costs will be offset by tax benefits and rebates. But will going solar increase your homeowner’s insurance?

Keep reading to find out.

What Does Home Insurance Cover?

The first thing you should learn about is if your homeowner’s insurance policy even covers your solar panels.

The answer isn’t a simple yes or no here. Instead, you have to look at whether your panels are permanently attached or not.

For example, if you have rooftop-mounted solar panels, this is counted as a permanent attachment. In this case, it’s very possible your homeowner’s insurance covers them, as they’d be part of your dwelling coverage.

On the other hand, if you have ground-mounted panels, these may be covered as part of other structures coverage.

Regardless of what coverage your solar panels fall under, you need to check the fine print. Many policies will specifically exclude coverage if your solar panels are damaged by hail or wind. So before you have them installed, you’ll want to be sure you’re covered in case of natural disasters.

Will My Premiums Go Up?

Unfortunately, it’s very possible that your premiums will go up after a solar installation. While they add value to your home, solar panels can also add to your costs.

For instance, if they’re damaged, you’ll file an insurance claim to get reimbursement for repair services or replacements. And even though solar panels are much more affordable now than they were decades ago, they’re still quite pricey.

As a result, insurance companies will want to cover all bases. They’ll raise your premiums so that if you ever file a claim on your solar system, they won’t go in the red.

Other Things to Consider

Even if you’re ready to go solar, things may not go 100% to plan.

Check with your homeowners’ association (HOA), as they might have certain rules and guidelines for solar panel installations. Not only that, but your local government may have rules and regulations regarding installations as well.

If you have any more questions or concerns, talking to a professional (like blueravensolar.com/south-carolina/columbia/) can give you peace of mind.

Going Solar Will Pay Off in the End

The above information might have you second-guessing the decision to switch to renewable energy. But going solar will ultimately pay off, as you’ll decrease your carbon footprint and your utility bills.

Just make sure you go into it knowing all the details. That way, you won’t run into any nasty financial surprises.

If you want to learn more about what affects the cost of homeowner’s insurance, then check out our other blog posts.