What insurance considerations are there for commercial solar panels?

Installing solar panels on commercial properties offers significant financial and sustainability benefits, but insurance plays a crucial role in safeguarding the investment. Owners or tenants planning such installations in the UK should take care to address certain key insurance considerations to ensure comprehensive coverage. Some of these may be obvious, but others less so. Here are our top tips based on our extensive experience:

Coverage for the Solar Panels - Property Insurance

• Ensure the solar panels are covered against risks like theft, fire, and extreme weather under an existing property insurance policy. If not, a specific policy for the panels may be required.

• Business Interruption Insurance: consider coverage for lost revenue if the panels are damaged and unable to generate power.

Liability Coverage - Third Party Liability

• Protect against claims arising from damage or injury caused by the installation, operation, or malfunction of the panels.

• Roof Damage Liability: installation could damage the roof or building structure, so liability coverage specific to installation related damage should be confirmed.

Compliance with the Property Owner’s Insurer Requirements

Policy terms and approval 

• Property owners must notify their insurers about the solar panel installation to ensure it complies with the terms of their existing policy. Failure to do so could result in a breach of the policy, leaving the property uninsured. 

Installation standards 

• Confirm that the installation meets all insurer requirements, such as compliance with building regulations, use of certified installers, and adherence to safety standards. Panels installed incorrectly or without proper certification may invalidate coverage. 

Maintenance obligation 

• Insurers often require proof of regular maintenance and inspections to minimise risks. Neglecting these obligations could lead to denied claims in the event of damage or loss. panies to focus on their core operations while benefiting from reliable, lower cost, green energy.

Responsibilities for Coverage

• Clearly outline whether the landlord, tenant, or a third party (e.g., a PPA provider) is responsible for insuring the panels.

• Installation Contractors: require contractors to provide evidence of public liability and professional indemnity insurance before commencing work.

Building Owner Insurance

• Meeting the building insurer’s requirements is critical for property owners and tenants considering solar panel installations. Non-compliance can leave the property uninsured, exposing all parties to significant financial and legal risks.

• Early communication with the property owner’s insurer and adherence to their conditions will ensure comprehensive protection and long term benefits for both parties.

Fire and Structural Risks

• Solar panels can increase fire risk if installed improperly or if defective components are used. Ensure that the system is compliant with fire safety regulations and that coverage explicitly includes fire damage.

Structural Assessments

• The weight and load of solar panels can impact a building’s structural integrity. Insurers may require an engineering report to confirm the building’s capacity to safely support the installation.

Upgrading or Modifying Existing Insurance Policies

• Installing solar panels may require changes to existing policies, such as increased coverage limits for higher property values or new risks introduced by the system.

• Document all changes, installations, and agreements to provide evidence of compliance in the event of a claim or dispute.

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Take your step to a more sustainable future

Ensuring robust insurance coverage is a critical part of a successful commercial solar panel project. Property owners and tenants must work closely with their insurers to meet policy requirements, avoid breaches, and maintain comprehensive protection. This includes addressing installation standards, liability coverage, and compliance with regulatory and insurer requirements. Getting it wrong can be costly!

As experienced developers, Eden prioritise delivering systems that not only perform optimally but also meet the highest safety and quality standards demanded by insurers. By facilitating open communication between landlords, tenants, and insurers, we help our clients mitigate risks and protect their investments. Whether you’re a property owner or a tenant, partnering with an experienced solar developer ensures your system is designed, installed, and maintained to align with all insurance and regulatory needs, giving you peace of mind and long-term energy benefits.

Contact us today to learn more about our solar services and how we can help you achieve your sustainability goals. Together, we can power a greener future.

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