The promise is that solar panels can help save money on your electricity bills. But how might getting solar panels impact your other bills - like homeowners’ insurance?
There are a lot of things to consider when shopping around for solar panels for your home.
What happens if the panels are damaged? Does your current homeowner’s insurance cover solar panels?
Gage Mueller with ADT Solar joined Amy Davis for an episode of Ask Amy to talk about what to ask before signing on the dotted line.
He said one thing people don’t think about is what it might mean for your homeowner’s insurance.
“So the solar panels are technically attached to your dwelling, right? Therefore, by being attached to your dwelling, they need to be included in your policy. But your homeowner’s insurance just needs to know that they’re there. I’ve had homeowners whose insurance premiums didn’t increase at all when they put solar panels on them. And in some, it’s increased tremendously,” said Mueller.
You may want to consider increasing the homeowner’s policy limit since adding solar panels increases the value of the home.
If you are leasing your solar panels, the leasing company may carry their own insurance for the panels.
Some insurance policies may not cover panels. If that’s the case, you can buy stand-alone solar insurance coverage to protect the panels.
RELATED: 4 things to consider before going solar
More people are considering going solar. There are a lot of other things to consider when shopping for solar panels. The Better Business Bureau has advice on what to consider before buying solar panels.
- Make sure the contract says what will happen if something breaks or if the manufacturer goes out of business
- Ask about warranties
- Consider the condition of your roof
- You should also call a tax professional to ask about potential tax credits
One thing often overlooked when people consider going solar is the roof
“If your roof is more than 10 years old, more than 12 years old, it’s approaching that 15-year mark. And you put these solar panels up there, that might be warranted for 25 years. You probably want to get the roof replaced first, right?” asks Amy Davis.
“Because when it does come time to really replace the roof, right now, those solar panels have to come off and there is a cost associated with that. And so what happens is a lot of times people buy solar on price, right? They don’t really do a lot of their homework and they’re digging. And now you’ve got solar panels on an older roof and the roof needs to be replaced. Well, now, who are you calling to take those panels off? And if anybody just comes over and starts touching those solar panels, well, that could negate your warranties. So, you know, and cost of replacing and reinstalling panels onto the roof, you know, you’re looking at anywhere from it could be $175 a panel to $350 a panel. And if you’ve got 50 panels up there, that could be a, you know, an expense that you weren’t expecting,” said Mueller.
Catch the full interview with Mueller to learn more about solar panels, including what to do if a solar panel company refuses to help a customer.
Amy has also covered the issues some people have with solar panel companies. You can see all of that content here.
If you have a question for Amy, email AskAmy@kprc.com.