Solar panels and home insurance: A sunshine coverage check

About five million Americans have installed solar panels on their roof, and that number is expected to double by 2030. That's because more homeowners are learning that investing in a solar energy system not only helps you live more sustainably, but can also save you tens of thousands of dollars on energy bills.

There is one small cost increase to plan for, though: a slight uptick in your annual home insurance premium. Because solar panels increase your home's value, your coverage needs—and potentially your premium—go up a bit, too.

Depending on your state and the specifics of your property, most homeowners can expect their premium to climb anywhere from a few extra dollars to a few hundred dollars a month after going solar. It's not a dealbreaker for most homeowners considering the long-term savings, but it's worth understanding before you sign anything.

Here's what you need to know about how to make sure your solar panels are covered under your home insurance policy and how to make sure you're paying the right price for the right coverage.

Once a rooftop solar panel system is installed on your home, it's generally considered a part of your home under most home insurance plans. However, it's important to alert your insurer about any changes you want to make to your property to confirm your existing policy will cover that change.

In some cases, if you make a change to your property without notifying your insurance company, it can void your coverage. Call and confirm your company will approve adding solar panels to your coverage, and if they will approve a coverage limit increase if necessary.

But, while your home insurance likely covers your solar panels, there are a few things to keep in mind:

Location matters: rooftop vs. ground-mounted systems

Rooftop solar panels are typically covered under your standard homeowners policy as part of your dwelling coverage, since they're considered a permanent attachment to your home.

However, ground-mounted solar panels and solar panel carports may require additional coverage since they're not attached to your home's structure. Ground-mounted solar panels may be covered under your other structures coverage as well, but you should verify this with your insurer.

You may need to increase your coverage

Solar panels may increase your homeowners insurance costs depending on your current policy's coverage limit and if you choose to update it. Your insurance policy's coverage limit is the maximum amount it will pay for a covered loss. Since solar systems cost $30,505 on average in 2026, you may want to talk to your insurer about raising your coverage limit to ensure you're fully protected.

Your insurance premium will likely stay the same if the replacement value of your home with solar panels remains under your coverage limit. Your insurance premium can increase if solar panels increase the replacement value of your home enough to exceed your coverage limit and you decide to adjust your coverage amount.

For those who do see increased homeowners insurance costs after they go solar, payments can go up by as little as $15 a month, or as much as a few hundred dollars a month.

Installation and workmanship coverage

When you call to confirm that your insurer covers solar panels, ask about whether the coverage extends to the installation process. Qualified solar installers often offer a workmanship warranty that will cover you in the unlikely event that there's damage to your roof or solar panels due to the installation process. But it's always smart to ask if your home insurance policy will also cover installation-phase damage to your solar panels should any occur.

Owned vs. leased solar panels

How you finance your solar panel system matters for insurance purposes. If you purchase your system outright or through a solar loan, the panels become part of your property and your homeowners insurance policy typically covers them.

If you go solar through a lease or power purchase agreement (PPA), the company you sign with owns the panels, not you. That means they're generally responsible for maintaining the system, and their coverage may extend to the equipment. Still, you should read any lease or PPA carefully to understand what's covered and what isn't, and confirm with your insurer whether any additional coverage is needed for your home.

Most homeowners insurance policies cover solar panels against common issues like:

• Fire damage

• Wind and hail damage ( some insurance policies may exclude coverage for solar panel damage caused by wind or hail)

• Lightning strikes

• Theft and vandalism

• Falling objects (such as tree branches)

Coverage typically doesn’t include:

• Wear and tear or normal aging

• Maintenance issues

• Performance problems or energy production shortfalls

• Manufacturer defects (usually covered by equipment warranties instead)

Regional considerations

Where you live is a significant consideration when selecting the level of homeowners insurance you need and what is covered. For example:

• Southwest regions: Lower hail risk but higher exposure to extreme heat

• Midwest: Higher tornado and hail risk requiring adequate wind coverage

• Coastal areas: Hurricane and storm surge considerations

• Earthquake-prone regions: May need additional earthquake coverage for solar systems

Before installation:

1. Contact your insurance company to discuss your solar plans

2. Review your current coverage limits and dwelling coverage amount

3. Ask about any exclusions specific to solar panels

4. Get quotes for any necessary coverage adjustments

After installation:

1. Notify your insurer about the completed installation

2. Provide documentation of the system cost and installation details

3. Update your coverage limits if needed

4. Review your policy annually to ensure adequate protection

Solar panels generally require very little upkeep and maintenance. Panel manufacturers test their products in real-life conditions and verify they can withstand the usual wear and tear and more extreme weather events like high winds, hail, and heavy snow.

Your solar equipment should also come with warranties that range in terms and conditions; getting a strong solar panel warranty helps ensure that your system will produce clean, emissions-free electricity for decades.

Regardless of these warranties, at the end of the day, solar panels are usually covered by homeowners insurance, and any premium increases are usually modest compared to the long-term energy savings. The average U.S. homeowner saves between $37,000 and $154,000 over 25 years on electricity with solar. Even with potential insurance adjustments, solar remains an excellent investment. The key is communication with your insurance provider before installation to ensure you have adequate coverage and understand any policy changes.