Is There Any Special Insurance Required for Commercial Solar Installations?

Raj Singh
April 25, 2024

Are you considering a commercial solar installation for your business but are unsure about the insurance requirements? Solar energy offers significant environmental and economic benefits, yet it comes with its own set of risks and considerations, particularly when it comes to protecting your investment. 

In this blog, we will explain the types of insurance necessary for commercial solar installations and why securing the right coverage is important for the longevity and success of your project.

So, let’s get into it!

What Are the Key Components of Commercial Solar Installations?

The key components of commercial solar installations help in assessing both their complexity and their needs in terms of maintenance and insurance. A typical commercial solar installation includes several critical elements:

  • Solar Panels: The main component that captures sunlight and converts it into electricity.
  • Inverters: Devices that convert the direct current (DC) produced by solar panels into alternating current (AC), which is used by most business facilities.
  • Mounting Systems: Structures that hold solar panels in place, either on the roof or on the ground.
  • Connections: Wiring and other electrical components that connect solar panels and inverters to a business’s power system.

Commercial projects differ significantly from residential installations in both scale and complexity. They often require more panels and more organised management systems to handle larger power outputs and usage demands.

Why Insurance Matters for Commercial Solar Installations?

Commercial solar installations represent a significant investment for any business. Protecting this investment is crucial, as these systems can face various risks that might disrupt their operation:

  • Natural Disasters: Events like storms or earthquakes can cause physical damage to solar panels or supporting infrastructure.
  • Theft: The valuable components, particularly solar panels and inverters, can be targets for theft.
  • Technical Failures: Equipment malfunctions can lead to costly repairs and downtime.

Given these risks, insurance becomes essential not only for financial protection but also for peace of mind. It ensures that a business can recover from any such incidents without facing significant financial hurdles.

What Are the Types of Insurance for Commercial Solar Installations?

Securing the right types of insurance is key to protecting your investment in commercial solar technology. Here’s a breakdown of the essential coverage:

Property Insurance

Property insurance is fundamental for any commercial solar installation. This insurance covers the solar panels and related equipment against damage from causes like fires, storms, and vandalism. It helps ensure that the physical components of your solar setup can be repaired or replaced, minimising the financial impact on your business.

General Liability Insurance

General Liability Insurance is crucial as it addresses incidents involving third-party injuries and property damage. For instance, if a solar panel falls and damages a car or injures a passerby, this insurance can cover the legal fees and any settlements. It protects your business from the financial fallout of such claims, which are more common than you might think.

Professional Liability Insurance

During the installation of a solar system, there’s always a risk of errors that could lead to financial losses. Professional Liability Insurance helps cover the costs associated with these risks, especially if the installation leads to operational failures or under performance. It's essential for maintaining the credibility and financial stability of your installation business.

Business Interruption Insurance

If your solar power system fails, Business Interruption Insurance can be a lifesaver. This type of insurance compensates for lost income during times when the system is down due to covered damages, ensuring that your business can still meet its financial obligations like payroll and bills.

Each of these insurance types plays an important role in comprehensive risk management for commercial solar projects. As you consider these options, remember the importance of consulting with an insurance expert to tailor the coverage to your specific needs.

What Are the Additional Insurance Considerations?

When selecting insurance for commercial solar installations, there are more factors to consider beyond the basic types of coverage.

Government and Legal Requirements

It's essential to be aware of governmental and legal mandates regarding insurance for commercial solar installations. Different regions may have specific requirements that must be met to comply with local laws. For instance, some areas might mandate a minimum amount of liability insurance to cover potential damages or injuries. Knowing these requirements ensures that your coverage meets all legal standards, which is crucial for avoiding fines and ensuring operational legality.

Customising Insurance Policies

Not all commercial solar projects are the same, which means customising your insurance policy is critical. Tailoring your coverage to the specific needs and risks associated with your project protects against unique vulnerabilities. For example, a rooftop installation in a hurricane-prone area might need different coverage compared to a ground-mounted system in a less volatile region. Working with your insurer to customise your policies can lead to better protection and potentially lower insurance costs.

How to Choose the Right Insurance Provider?

Choosing the right insurance provider is as important as selecting the right types of insurance.

  1. Look for expertise in renewable energy: Providers with experience in the solar industry will better understand the unique risks and can offer more suitable coverage options.
  2. Evaluate their claim handling reputation: Check how efficiently and fairly the insurer handles claims. A provider with a reputation for quick and fair service can greatly reduce stress in case of a claim.
  3. Assess customer service: Strong customer service ensures that you can get help when you need it, whether it’s answering coverage questions or assisting with claim filings.
  4. Compare policies and rates: Don’t settle for the first quote you receive. Compare different policies and rates to find the best coverage for your needs at a reasonable price.

By considering these tips and carefully evaluating your options, you can select an insurance provider that not only meets your needs but also supports your business’s long-term success.


We have explored the crucial role of insurance in protecting commercial solar installations, detailing essential coverage types and the importance of customising policies. Understanding the specific components, risks, and legal requirements involved in solar projects is crucial for comprehensive protection.

Contact NuSolas for expert guidance on fitting solar PV panels tailored to your needs. Let NuSolas help you with the complexities of solar installation to ensure your investment is secure.

Need assisstance?

Contact NuSolas now and Get Free Advice & Quote Within Minutes!

Frequently Asked Questions

What types of insurance are necessary for commercial solar installations?

Commercial solar installations typically require property insurance, general liability insurance, professional liability insurance, and business interruption insurance to cover various risks associated with the systems.

Are there legal requirements for solar installation insurance?

Yes, some regions have specific legal mandates for insurance coverage on commercial solar installations. It's important to check local laws to ensure compliance and adequate coverage.

How does property insurance protect my commercial solar installation?

Property insurance covers damage to solar panels and related equipment from events like fire, storms, and vandalism, ensuring that physical components can be repaired or replaced.

What does general liability insurance cover in solar installations?

General liability insurance protects against third-party injuries and property damage that might occur during the operation of your solar installation, covering legal fees and settlements.

Can insurance policies for solar installations be customised?

Yes, insurance policies for solar installations can and should be customised to address the specific risks and needs of your project, providing optimal protection against potential issues.

Why is business interruption insurance important for solar installations?

Business interruption insurance is crucial as it compensates for lost income during periods when the solar system is non-operational due to covered damages, helping maintain financial stability.

Get a FREE Consultation & Quote

Fill out the form below to book a free consultation with one of our solar PV experts.

Valid number
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Please refresh and try again.
*FYI, parts of this blog post were drafted by artificial technlogy. But rest assured, it's been thoroughly researched, edited, reviewed and me & my team.
About Author
Raj Singh

A seasoned professional in the solar industry, Raj Singh is dedicated to illuminating Ireland with the power of the sun. His passion for renewable energy and commitment to sustainability shine through his work in the solar industry.