Insurance issues to consider
The insurance market has hardened in recent years. Risks from solar panels have long been insufficiently understood, and damages are increasing in both size and number. Another change is the possible inclusion of the solar panel clause. Most policies include the solar panel clause as of Oct. 1, 2020.
The solar panel clause insures the solar installation on a fire insurance policy against damage due to fire, explosion, lightning, aerospace vehicles and storms. Excluded from coverage are faulty installation, construction defects and power loss. The clause also stipulates that a number of specific conditions (guarantees) must be met to minimize the risk of damage. If you do not meet the specified conditions, an increased deductible will apply in the event of a claim.
Inspections and investigations
Several organizations, including RIVM and TNO, are conducting research into the fire safety and insurability of solar panels on roofs, among other things. A fire testing program is part of this. Also in 2020, on the initiative of the Association of Insurers, Holland Solar and inspection companies (from the industry associations iKeur and Techniek Nederland) an inspection methodology was developed, the Scios Scope 12. This inspection has been added as scope 12 to the Electrical Equipment Subregulation and must be performed on every commercial property. Also, the inspection applies to all types of setups: rooftop, in-roof, field and water. But you can also request this inspection privately, so you can be sure that the solar panel installation has been done correctly. As of Jan. 1, 2023, the Scios Scope 12 inspection is mandatory.
Plan of action
Our advice is to make a plan of action in advance, taking into account the insurability of your premises. Ask us in advance about the (im)possibilities so we can provide you with advice. Steps we take include consulting with insurer(s) whether this risk is or remains insurable. It starts with having a structural engineer perform a roof load calculation. The roof may not be able to withstand the extra load with all its consequences. The type of roof insulation can also play an important role. Most insurers do not accept properties with solar panels on roofs with flammable insulation. And, of course, the installation must be done by a licensed and certified installer.
What does this mean for you?
Several insurance solutions are possible, such as insuring on the existing fire insurance policy or on a separate policy. Do you now have an insurance solution with the solar panel clause? If so, a structural calculation of the roof is mandatory as of Jan. 1, 2023. For solar installations installed before 2021, it could not be expected that all insureds would comply with the mandatory construction calculation in time. For this, a transitional arrangement has been established until Jan. 1, 2023, and paragraph 2c of the solar panel clause cannot be invoked in case of damage.
Depending on your situation, wishes, needs and current insurance solutions, we will be happy to provide you with appropriate advice.
If you are considering installing a solar panel installation, modifying existing installation, replacing, or expanding to an installation that has a capacity of 5kVA or more, this intention should be submitted to insurer(s). The installation of the solar panel system will not begin until the insurer(s) have agreed.
