Sunlight is essential to Canada’s 2050 net-zero emissions goal. As part of the movement toward greener power, more and more Canadians are installing solar panels to generate electricity while reducing their power consumption and expenses.
Canada PV systems earned $2.4 billion in Q2 2024 by shipping 8.3 GW modules. This level of growth showcases the demand for solar energy systems. However, a surprising hurdle emerges: some homeowners face challenges with home insurance companies when they install solar panels.
While issues with providers may seem discouraging, there’s good news: local solar installers are stepping in to simplify the process. With the help of knowledgeable installers and brokers, you can navigate insurance and protect your transition to renewable energy.
The Growing Adoption of PV Panels and Green Technology in Canada
The Canadian Renewable Energy Association reports that more Canadians are installing rooftop PV systems to maximize energy usage and reduce environmental impact, such as greenhouse gas emissions. Many homeowners also install heat pumps, EV chargers, and solar panel systems to create a clean power system for heating, transportation, and electricity.
The motivation for going green was clear:
- Improving home’s value
- Benefiting the environment
- Gaining long-term financial advantages (significant savings from electricity bills)
The potential of these technologies will help Canada achieve its climate goals and reduce its household carbon footprint.
The Insurance Hurdle: Understanding the Risks and Concerns
Sun power and other green technologies have many benefits, and the insurance industry is adapting. Companies are wary of insuring homes with panels due to perceived risks, a lack of data, and uncertainties about future claims.
The Insurance Bureau of Canada (IBC) emphasizes two main concerns for insurers:
| The risks of altering a home’s existing electrical system | Modern homes may need 200 amps or more for new technology, while older homes have 100 amps. |
| The vulnerability to weather damage | Due to UV and other environmental factors, PV may lose 0.5%–1% efficiency annually. |
Some companies cover PV units but may charge extra premiums or require homeowners to buy an endorsement.
- This covers specific aspects not covered in a base policy.
- Due to limited claims experience, some insurers avoid solar-panel homes.
However, the perception that insurance companies won’t cover PV panels is inaccurate. In fact, most companies in Canada provide coverage—it’s just a matter of knowing the right questions to ask.
How Local Installers Simplify the Process
Local installers help homeowners understand policy requirements and risks to avoid issues. These experts install units and advise customers on coverage issues.
Comprehensive Pre-Installation Assessments
Professional solar panel installations by local installers begin with thorough site assessments to ensure compliance with local regulations and best practices. They provide safety and building code compliance by assessing the roof’s structural integrity, electrical wiring, and risks.
- This proactive approach addresses many coverage company concerns.
- Installers also provide system specifications, warranties, and professional certifications.
- Certified professionals use high-quality materials, which can reassure companies.
Partnering with Insurance Brokers
Many local companies work with renewable energy insurance brokers. These brokers help homeowners navigate policies.
For instance, Szabo and Kevin Cowie (Nova Scotian sun panel owner) secured policies from Pembridge Insurance Company. This provides policies that cover up to $60,000 for replacement costs.
Like Aviva Canada, which has been offering panel coverage as an add-on policy since 2011, it is revamping its base policy to include up to $100,000 in coverage without needing an add-on as of October 2024. A reliable solar panel installer refers clients to brokers, making protection easier.
Ensuring Proper Documentation
Documentation is key when working with insurers. Homeowners must provide detailed residential solar installation information to get coverage. Installers simplify this by preparing all paperwork, including:
- Proof of compliance with electrical and building codes
- Manufacturer warranties and certifications
- Technical specifications of solar PV systems, inverters, and mounting systems
- Inspection reports confirming that the installation meets safety standards
Educating Homeowners on Long-Term Maintenance and Safety
Insurers worry that storms can damage the units, especially if poorly installed. Faulty wiring and panels ripping off roofs also worry insurers.
- Installers follow strict safety standards to reduce these concerns.
- They properly install panels to withstand wind speeds of up to 225 km/h, equivalent to a Category 4 hurricane.
- They also teach how to maintain homes to prevent damage and claims.
Consulting on Policy Options and Shopping Around
The Insurance Bureau of Canada and installers advise against giving up if a company denies coverage. Green technology policies and experience vary by insurer. It is best to compare quotes to find the best fit.
Installers can recommend renewable energy-experienced brokers to simplify this process. These brokers understand panel coverage and can advise companies with suitable policies.
Prosumers and the Future of Energy
The rise of sun electricity is part of a trend in which homeowners produce and consume electricity. Consumers can reduce their energy bills by recharging the grid with excess electricity. However, technical challenges still exist.
- One-way electricity flow from power plants to homes is typical of local grids.
- Sun panels and alternative power systems require grid upgrades for two-way electrical flow.
- In Alberta and Ontario, residents can only sell a certain amount of output to the grid.
- These restrictions may reduce savings.
However, local installers work with utilities and policymakers to modernize the grid and integrate renewable power technologies. Using battery storage, owners can help build a more resilient grid that supports self-consumption and energy exports.
The Role of Battery Storage in Enhancing Coverage and Energy Security
Battery storage simplifies policy and improves electrical security. Installers recommend it as part of a complete package to save electricity and address concerns.
Energy Independence
Solar panel system owners often produce more output than they need, especially in summer. Battery storage lets them store excess power instead of feeding it back into the grid at a lower value (due to net metering limitations). It keeps the home powered during a blackout or grid failure, reducing the strain on local utility infrastructure.
- The growth of battery storage shows the growing interest in this technology.
- The Canadian e-STORAGE business shipped 1.7 GWh of battery storage in Q2 2024, demonstrating how essential these systems are in solar installations.
- It reduces power outages during extreme weather, which could lower homeowners’ premiums.
Addressing Insurer Concerns About Power Surges and Fire Hazards
Insurers worry about electrical surges and fires from a solar system. This risk increases if a home’s solar energy system is directly connected to the grid without safeguards. Battery storage systems reduce these risks by buffering the panels from the home’s electrical system.
- Power from the battery can be delivered steadily and safely to home circuits, reducing power surges.
- Modern batteries have fire-resistant casings and temperature control systems to reduce fire risk.
Installers stress the importance of using certified, safe battery storage solutions. They produce documentation for homeowners to show companies that the system was designed and installed to reduce risk. This reassures insurers and makes it easier for homeowners to get coverage.
Navigate Installation and Insurance with Confidence
Coverage issues aside, Canadians should feel confident that switching to renewable energy is possible with local installers. These experts handle installation and help with claims, protecting their homes without compromising their green energy goals.
We help homeowners avoid policy issues, get comprehensive coverage, and promote sustainability. Canadian homeowners like you can now confidently embrace clean energy and save money.
MAG Solar offers professional solar panel installation services to help homeowners and businesses harness renewable energy efficiently.
Frequently Asked Questions
Does home insurance cover solar power system maintenance?
No, most homeowner’s policies will not pay for regular repairs or maintenance. In most cases, the homeowner must perform routine maintenance tasks like cleaning and inspections. However, damages from insured events like a storm may be covered.
How do panel installation projects impact home appraisals for insurance purposes?
Installing panels on your home can raise its assessed value, which might necessitate changing your home coverage policy. It will be updated to reflect the increased value, protecting you from potential losses caused by damage or destruction.
Are ground-mounted panels insured differently than roof-mounted ones?
Yes, insurers may treat ground-mounted panels differently because they are considered separate structures, not part of the main dwelling. Extra coverage from a different part of your policy might be necessary in certain situations. Before installing any ground-mounted systems, discuss this with your provider.
