Solar panels change the equipment and replacement cost attached to your home, and installation can create roof, electrical, liability and battery-storage questions. Coverage is not automatic across every policy or setup.
To prepare this guide, our editorial team reviewed the Electrical Safety Authority’s notification requirements for Ontario electrical work and the Insurance Bureau of Canada’s home coverage guide.
Does Home Insurance Cover Solar Panels?
Tell the insurer everything about your plans. They'll want technical specifics, including panels, rails, roof penetrations, inverters, wiring, storage batteries, outbuildings, utility hookup, and plans to sell excess power.
It's in everyone's interest to know up front how your insurance will treat your solar array. Find out about deductibles, limits, valuation, covered perils, and exclusions. Get everything in writing.
Insurers treat solar energy systems differently depending on the insurer, your policy, the particulars of your solar installation and the cause of loss. Although in many cases, a solar energy system you own and have installed on your roof may be included in a home or business owner's insurance policy, ground-mounted arrays, leased systems, arrays that generate income-producing power, or those that include batteries may be treated differently.
How Does Installing a Solar Panel Impact My Home Insurance?
Who is installing it, and what approvals and electrical certifications do they have? How old is your roof? What type of roofing is there? How will the panels be attached to your roof? What is the approximate cost of the system? Are batteries included? Will the owner sell power?
The answers do not necessarily mean the insurer will decline coverage, increase premiums or automatically include a rooftop installation, but replacement cost, premiums, deductibles, endorsements and other elements may change. Identical solar systems can be viewed differently by different insurance companies. Call your insurer before signing a solar energy system agreement.
Before the Installer Starts
Get photos of the roof and surroundings to avoid future issues with the roof or other damage.
Notify your insurer about solar; give them details about the equipment, ownership and total replacement cost. The insurer may have requirements, and a structural engineer may need to assess your home; they may want a roof inspection, have requirements for tradespeople, may not allow the battery in certain locations, etc. Insurers often ask for a copy of the Certificate of Acceptance (COA). A COA can help when selling your home.
Check if your installer is licensed in their trade, has a workers' compensation plan, and has a commercial liability insurance policy. Confirm the installer will be responsible for issues such as labour costs during warranty, roof leaks, roof damage and labour costs to remove or reinstall the panels for roof repairs.
Solar installations must comply with local utility interconnection procedures, provincial or territorial electrical regulations and local building codes. In Ontario, you must notify the Electrical Safety Authority before starting almost all electrical work.
Keep records, including photos of the installation, equipment serial numbers, commissioning documentation, permits, inspections and sign-offs.
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