How Much Does It Cost To Insure Solar Panels?

How Much Does It Cost To Insure Solar Panels

The fast-track version is this: It won’t cost you a single dollar to get your solar panels insured because your home and contents insurance policy covers it already. 

However, your policy’s premium will likely go up to account for the increase in your property’s value as well as the cost of potential repairs. 

Now, there are exceptions to this, including ground-mounted solar panels. There are other details you need to know about this, too, which is what I’m discussing below. Here are the topics I’m covering: 

How much does it cost to get solar panels insured?

Setting up insurance for your solar panels doesn’t actually require any additional fee. It’s a straightforward process, too. You just need to inform your home insurance provider about your new solar panel installation.

What’s more, most insurance plans already cover solar panels. So there’s a high chance you won’t need to pay extra for another solar panel insurance or policy. Although, coverages can be different from provider to provider, hence why it’s still a good idea to check.

Moreover, keeping your home insurance provider in the loop leads to them increasing your sum insured amount. This, in turn, is what leads to a likely but slight increase in your premium.

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By how much will my home insurance increase after installing solar panels?

The truth is that there’s no one-size-fits-all answer to this. But, yes, your premium will likely go up because the value of your home has gone up, too.

That being said, your premium’s increase will largely depend on the value of your solar panel system, the terms of its insurance policies, as well as the cost of replacing or repairing it in case of damage.

If you need a more specific answer, it’s best if you talk directly with your insurance provider.

When will I need a separate policy for my solar panels?

Generally speaking, a separate insurance policy for your solar panels is rarely needed since most home insurance providers cover solar installations already.

This is particularly true for those mounted on buildings, such as roof-mounted and ground-mounted solar panels.

On the other hand, this exempts ground-mounted solar panels in most home and contents insurance coverages. So, if you’ve opted for this type of setup, you may need a separate policy for it.

Choosing the right insurance in case you need a separate policy

Key Considerations When Selecting an Insurance Provider for Your Solar Panels
An infographic of Key Considerations When Selecting an Insurance Provider for Your Solar Panels

If you’re required to get a separate insurance policy for your solar panels, take your time choosing the right one. Consider not just the cost, but also the extent of the coverage and the company’s reputation.

Oh, and don’t forget to read the fine print!

And before you put your signature on that piece of paper, here are a few key questions to ask your provider:

  • Does the policy cover all types of damage (storms, fire, vandalism, etc.)?
  • Does it provide coverage for loss of income if your panels are out of commission?
  • What are the policy exclusions?
  • What’s the claims process like?

Remember, the goal is to find an insurance policy that offers comprehensive coverage at a price that fits within your budget. Don’t rush the process.

Given the increase in my policy’s premium, are solar panels still a good investment?

Good question. And, of course, solar panels are still going to be well worth your money.

In the short term, you can save money with solar panels due to the immediate decrease in your energy bills. Depending on how large your solar power system is relative to how much power you use, your energy savings alone could pay for the slight increase in your premium.

In the long term, the solar payback period for most Australian households is 3-6 years. Given the 25-year lifespan of modern solar panels, that means you have 19-22 years of FREE energy.

Not to mention, electricity from solar panels have numerous environmental benefits, too. So, you not only get to keep more of your hard-earned money, you will be fostering a cleaner and healthier planet, too.

For further reading: Here’s why solar panels are worth it.

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Does it matter who installs my solar panels?

Well, yes and no. But before I explain that, just know that, at the very least, your installer should be CEC-accredited. Otherwise, you won’t get any rebates from the government and your installation likely won’t be as durable, reliable, and efficient, too.

With that said, no, you likely won’t need to hire a CEC-accredited installer to get insurance for your solar panels. Many insurance companies will insure solar panels regardless of who installed them.

However, choosing a CEC-accredited installer can also give your provider more confidence in the quality and safety of your installation. This, in turn, could impact your policy’s terms and premium.

Not to mention, these installers adhere to higher standards, only use CEC-approved products, and also come with both full performance warranties and product warranties. If you need help finding an installer, we can help.


Do Solar Panels Need To Be Insured?

Generally, no, solar panels don’t need another insurance policy particularly if they’re mounted on your roof. Ground-mounted solar panels, on the other hand, might need another policy depending on the coverage of your current home and contents insurance. 

How Long Do Solar Panels Last?

The standard for modern solar panels is that they should last for 25 years — as reflected in most warranties. Of course, some solar panels last shorter or longer depending on their quality. 

For further reading: Solar panels and degradation

What Voids Solar Warranty?

DIY installations as well as those that aren’t done by CEC-accredited installers will likely void the warranty of your solar panels. Furthermore, having your solar panels serviced or repaired by someone other than the original installer could also void the warranties. 


To recap, no, you don’t need to pay your provider to get your newly installed solar panels covered. However, you should still expect your premium to rise. 

And, just as important, remember to call your insurance provider to notify them about your home’s new addition so they can adjust your sum insured and premium appropriately. 

Lastly, you don’t need to hire CEC-accredited installers to get your solar panels covered by home insurance. However, not doing so will likely void your modules’ warranties, might result in a higher premium, and definitely nullify your chances of getting the government’s rebates. 

If you need help finding these installers, we can help you get 3 FREE quotes from our pre-vetted network right now.