June 2024

News

How Solar Panel Insurance Works

Photovoltaic energy is one of the most widespread sources of renewable electricity production in Italy and worldwide. Installing a photovoltaic system allows for the production of energy from a sustainable and inexhaustible source like the sun, enhancing the roof space available to businesses and families. Like any investment, there are various options and methods to protect the system from potential mishaps or damage. As reiterated in a previous article, the primary protection of our investment lies in the solid installation of the system and proper maintenance carried out by industry experts. These elements play a crucial role in ensuring the adequate lifecycle of photovoltaic panels. Unforeseen elements, beyond our control, must also be considered, as they can impact our investment. For example, extreme weather events, such as the severe hailstorms that have primarily affected the central-northern regions of Italy in recent years. Usually, photovoltaic panels are equipped with cells protected by a tempered glass sheet at least 3.2 millimeters thick, as stipulated by the CEI 61215 standard (Italian Electrotechnical Committee). This standard requires the sheet to withstand hailstones with a diameter of 2.5 centimeters falling at a speed of 80 kilometers per hour. Specific tests are performed to verify the resistance, simulating the impact of ice pieces with these characteristics on photovoltaic panels. However, recent weather events have shown their danger, making it reasonable to consider potential risks and decide to protect oneself.

What is Solar Panel Insurance?

Solar panel insurance is a type of policy specifically designed to protect systems from potential damage, such as accidental damage, theft, or malfunctions. This insurance provides financial coverage to repair or replace damaged panels and restore the system’s efficiency.

How Does Solar Panel Insurance Work?

Solar panel insurance works similarly to other insurance policies. Once the policy is taken out with the insurance company, the photovoltaic system is covered by a range of guarantees that vary based on the type of policy and the user’s needs. In case of damage or loss covered by the policy, the insured can file a claim with the insurance company. The company will assess the case and, if deemed valid, will provide the agreed compensation to cover the repair or replacement costs of the damaged panels.

Why Is It Important to Insure Solar Panels?

Insuring solar panels is important for several reasons:

Investment Protection

Insurance offers financial protection against potential damage or loss of the photovoltaic system, ensuring that the investment in solar energy is safeguarded against unforeseen events.

Operational Continuity Guarantee

In case of damage or malfunctions of the system, insurance allows for the quick restoration of the system’s efficiency, ensuring operational continuity and minimizing any interruptions in energy production.

Peace of Mind

By insuring their solar panels, users can enjoy greater peace of mind, knowing they are protected against potential issues or damage that may occur over time.

Damages Covered by Solar Panel Insurance

By taking out solar panel insurance, you will be protected against a wide range of damages of different natures, which can generally be classified as direct, indirect, and civil liability. Below are some illustrative examples.

Direct Damage to the System

Direct damage to the system includes:

Theft
Acts of vandalism
Damage caused by weather events
Damage due to natural disasters
Fires
Mechanical or electrical failures

Indirect Damage

Indirect damage refers to those resulting from the suboptimal functioning of the system, such as loss of profit due to the lack or reduced production of electricity following damage to the system.

Civil Liability

Some policies also include coverage for civil liability towards third parties caused directly by the activity of the photovoltaic system.

Customization of Insurance Coverage

When subscribing to insurance for the photovoltaic system, it is possible to specify the types of damage for which coverage is desired.

There are various types of insurance policies, including the All Risk formula, which is usually considered when financing the photovoltaic system. This formula offers comprehensive risk coverage, except for those expressly excluded. However, insurance policies can vary from company to company, so it is advisable to carefully check the clauses. In the event of damage to the photovoltaic system, in most cases, the insurance company will cover the costs for renewal, repair, or compensation for the damage, up to the maximum amount specified in the contract. After an inspection by specialized technicians, the insurance company will ensure prompt intervention to restore the system’s efficiency.

The Choice of Photovoltaic Modules

At our company, we are committed to using high-quality components produced by technical partners selected according to the Bloomberg New Energy Finance Corporation TIER 1 classification. This classification aims to catalog photovoltaic module manufacturers in terms of financial stability and the ability to offer quality products in the long term. In other words, manufacturers of photovoltaic panels designed to efficiently produce energy throughout the product’s lifecycle. Bloomberg criteria define Tier-1 modules as products from manufacturers that:

Manufacture the entire production process in-house;
Invest in research and development to facilitate new technical solutions;
Use innovative technologies for production automation;
Have more than five years of production experience.

Among the TIER 1 manufacturers selected by Southenergy, there are photovoltaic modules renowned for their superior performance and robustness. The photovoltaic modules we have chosen offer high energy efficiency and resistance to weather conditions and adverse environmental conditions. Additionally, they come with a manufacturer’s warranty, providing additional protection to buyers in the event of manufacturing defects.

However, although photovoltaic modules are designed to last over time, unforeseen situations may occur that can damage or compromise the functioning of the system. Therefore, solar panel insurance can be considered an additional measure to protect the investment made. Even if the modules are covered by the manufacturer’s warranty, insurance offers broader coverage and can provide greater peace of mind in case of accidents or unforeseen damage.

Conclusions

Solar panel insurance offers financial coverage against damage, theft, or malfunctions of the system, ensuring operational continuity and user peace of mind. Before installing a photovoltaic system, it is advisable to evaluate the available insurance options to best protect your investment.

Since 2008, Southenergy has been providing personalized solutions aimed at enhancing renewable energy sources, offering its clients a tailored consultancy path. The specialization in the sector, the physical presence in the territory, an organizational structure that benefits from highly qualified internal staff and proprietary equipment and means to manage the entire value chain in energy construction and management promptly are the real strengths of Southenergy. Discover the efficiency of our photovoltaic systems and the turnkey solutions we have reserved for those who have already chosen us: visit the section of our website dedicated to some of the projects we have completed. If you wish to request a free technical consultation, contact us by filling out the following form. We will help you find the solution to your energy problem. ‍

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