How Much Does Home Insurance Go Up with Solar Panels?

There is a lot of debate surrounding the installation of solar panels on homes. Some people believe that it is a waste of money, while others see it as a way to save on energy costs in the long run. One thing that everyone can agree on, however, is that adding solar panels will cause your home insurance rates to go up. 

In this blog post, we will take a closer look at how much your rates are likely to increase and what you can do to offset those costs.

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Solar Panels Are Pricy to Install

Solar panels are a great way to save on energy costs, but they can also be a financial burden. One of the biggest reasons for this is the cost of installation. Solar panels can cost anywhere from $5,000 to $10,000, and that’s not including the cost of labor. That’s a lot of money upfront, and it can take years to recoup those costs through savings on your energy bill.

Home Insurance & Solar Panels

Another reason that solar panels can be a financial burden is the cost of home insurance. Most homeowners insurance policies will cover the cost of damage to your home, but they will not cover the cost of damage to your solar panels. That means you will need to purchase a separate policy to insure your investment. You can expect to pay higher premiums for solar panels since they are considered high-value items.

The Price Increase

So, how much does home insurance go up with solar panels? On average, homeowners see their rates increase by about 20% when they add solar panels to their homes. This may not seem like a lot, but it can add up to hundreds of dollars per year. And if you live in an area with a high rate of crime or natural disasters, your rates could increase even more.

Insuring Leased Solar Panels

Another option to benefit from solar panels without all the cost upfront is to lease them. In this case, you would not own the solar panels, but you would still be responsible for insuring them. And because leased solar panels aren’t considered “personal property,” they would not be covered by your homeowners insurance policy. That means you would need to purchase a separate policy to insure them.

Solar Panel Insurance Considerations

If you’re thinking about adding solar panels to your home, there are a few things you need to consider from an insurance standpoint.

First, you need to make sure that your homeowners insurance policy covers the cost of damage to your solar panels. If it doesn’t, you will need to purchase a separate policy. Second, you need to be prepared for the price increase. Your rates will go up, but you can offset some of those costs by shopping around and comparing rates from different insurers.

Adding solar panels to your home is a big decision, but it’s one that can save you money in the long run. Just be sure to consider the insurance implications before you make the leap.

Offsetting Costs

There are a few things you can do to offset the cost of higher home insurance premiums.

Increase Security

One option is to install security features, such as alarms or cameras. This will help deter criminals and lower your risk of theft or vandalism.

Get Hurricane Shutters And Reinforce Your Roof

You can also consider installing hurricane shutters or reinforcing your roof. These measures can help protect your home and solar panels from damage during a storm, which could lower your rates.

Shop Around

Of course, you should also shop around for the best home insurance rates. There are a variety of factors that go into calculating rates, so it’s important to compare quotes from multiple companies. Be sure to ask about discounts, such as those for installing security features or reinforcing your roof.


With everything said, you should now have a better understanding of how much home insurance rates will go up with the addition of owning solar panels. While it’s true that your rates will increase, there are ways to offset those costs. And in the long run, you will usually save money by installing solar panels. Just be sure to do your research and shop around for the best rates.

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