A simples guide

Solar Panel Home Insurance

In the past two months, the homeowners that installed new solar panels could generate over 20 megawatts of power. That’s enough to power over 3,000 homes.


That requires a lot of panels. But you might be wondering if solar panels are covered by your home insurance policy and what effect they have on the value of your home?

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How are solar panels covered by home insurance?

It sounds simple but the best thing to do is to contact your existing insurer before you go ahead with installation and ask them how the solar panels will affect your insurance. 

The good news is that many insurers will tell you that they are covered and that there is no change required to policy or premium.

Most solar panels as covered under the buildings section of the home insurance policy. In this case it is wise to ensure that the building sum insured is sufficient to include the replacement cost of such items.

However, there are also some reported cases of insurers refusing to quote or cover solar panels so it’s always best to check.

If you do find yourself in the position where they decline, don’t panic. Shop around as there are plenty who will.

Solar Panel Home Insurance

What is the real cost of fitting solar panels?

Solar panels cost on average between £6,000 and £9,000 to install but the costs can differ for a number of reasons:

  • The more electricity the system generates, the more it will cost.
  • Whether you opt for PV panels or PV tiles - the latter is currently more expensive.
  • Building in your panels versus sitting them atop your roof.

Generally, once installed solar systems need little maintenance and can last 25 years or more. Ensuring the system is maintained properly and that the panels themselves are kept clean and free of tree shadows will help.

As well as generating electricity for your own consumption, a big attraction of solar power is that it allows homeowners to benefit from so called ‘feed in tariffs’. These are payments made for each kWh of electricity generated by your system.

When doing your calculations about how cost effective solar panels could be, make sure to use up to date ‘feed in tariffs’.

In December last year the Government reduced the payment by 65% from 12.47p per kWh to 4.39p.  This led to an almost 75% drop in new installations in the first part of 2016 compared with 2015.

Will they affect the value of my home?

Given the upfront costs involved in installing a solar system they only make economic sense if you’re staying in your home for a number of years. That is of course, unless they have the effect of increasing your home value.

Whilst there are many factors that affect the value of a home, installing solar power is likely to be of benefit because:

  • Lower electricity bills are a draw for buyers.
  • Solar panels are durable and low maintenance.
  • Benefit of ‘feed in tariff’ payments.
  • They may raise the house’s Energy Performance Certificate (EPC) value.

At comparethemarket.com we allow you to compare the costs of home insurance simply while saving you money. 50% of customers comparing building and contents insurance achieved savings of over £78.02, and 10% of custoers could save up to £237.61**. Why not see what you could save?

**Based on Online independent research by Consumer Intelligence during February 2018 10% of customers could save up to 62.78% on their home insurance premium
do solar panels affect the value of my home?

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