Solar panels are built to last at least 25 years, but a lot can happen within that time. This is where Solar Insure comes in.
You may have wondered what happens if you have an issue with your panels after the warranty is up or if you’re out of luck if your solar installer goes out of business. Although it’s rare, these scenarios have happened. Solar Insure’s mission is to provide solar homeowners with an added layer of protection for their panels with a third-party warranty backed by one of the globe’s largest insurance companies.
Installing a solar energy system is a big investment. And as with any investment, you want to do whatever you can to manage risks. From faulty equipment to issues that halt energy production, solar-related troubles can lead to higher energy bills. That’s why warranties and production guarantees are so important.
Warranties help protect your solar energy system from unexpected issues. By and large, the most common warranties are those offered by equipment manufacturers and solar installers.
Overview of Solar Insure
Solar Insure is a provider of solar monitoring and warranty protection services intended to offer protection plans to homeowners who install solar energy. The company’s insurance-backed product provides peace of mind for consumers transitioning their homes to renewable energy, enabling people to accelerate the world’s transition to renewable energies and smart energy homes.
The company was started in 2006 by Ara Agopian in Costa Mesa, California. Its vision is to provide those who invest in solar energy projects with peace of mind that they will always be covered if anything with their system fails or their installer goes out of business.
Solar Insure is backed by Zurich North America, a reputable insurance company. This way, homeowners can feel confident that their Solar Insure warranty will be honored. The company previously partnered with NABCEP, the leading solar industry certification non-profit.
You can purchase Solar Insure’s protection policy through your local installer when you install solar panels, so long as the installer is a Solar Insure partner. You’ll pay a one-time payment for the Solar Insure monitoring and warranty included in the total installation cost.
If there is an issue with your system, you can alert your solar installer, who will organize the necessary repairs. The installer will submit an invoice to Solar Insure for any balance not covered by the manufacturer. If your installer or the manufacturer is no longer in business, you can work with Solar Insure to get help from one of their partners.
In a nutshell, Solar Insure provides you with a 30-year policy for monitoring and warranty protection on your renewable energy project.
Features of Solar Insure protection
Solar Insure’s monitoring and warranty package includes:
- Monitoring system. Allows your installer to monitor the performance of your solar panels to identify potential problems or malfunctions
- Parts warranty. 30-year warranty for the panels, inverter, optimizers, and racking
- Labor warranty. Reimbursement rates for truck rolls and labor performed for replacements.
- Roof penetration warranty. 30-year warranty for any damage done to your roof as a result of your panels
- Zero deductibles. Homeowners don’t have to meet a deductible for covered claims
- Fast claims process. When you file a claim, the payout period is typically 7-10 days
Solar Insure’s warranty is longer than a typical 25-year solar panel warranty and covers additional costs, like replacement labor, that are typically outside the scope of a manufacturer’s warranty.
If you have a Solar Insure agreement, you also get protection if your solar installer goes out of business. You can contact Solar Insure directly and get help from one of their partner installers.
How much does Solar Insure cost?
Solar Insure costs roughly $0.10 per watt of solar installed, but the actual price may vary depending on your installer, the equipment used, and the coverage package. For average solar systems in the U.S., you’re looking at a cost ranging anywhere between $400 and $1,600 for Solar Insure coverage.
The total cost you can expect to pay varies with your system size and equipment, so your installer will let you know the full amount when you pay for your system. The price may also depend on if you opt for the extended battery warranty.
Solar Insure only requires a one-time payment that is included with your total system cost when you purchase through your installer. This way, there are no hidden fees in your total cost.
Solar Insure battery coverage
Solar Insure has a separate warranty offering for solar battery systems. Most battery manufacturers offer a warranty that guarantees the battery’s capacity will be no lower than 70% after 10 years or after a certain number of cycles.
Under Solar Insure’s third-party battery warranty and monitoring package, the battery is covered for 20 years for battery repairs, parts, and labor associated with covered repairs. It also covers a complete battery replacement if the capacity falls below 30% between years 11 and 20, which is affordable.
However, we don’t know the specifics of Solar Insure’s battery coverage and if it stipulates how the battery is charged or discharged.
Solar Insure’s warranty covers major batteries like the Tesla Powerwall, the Generac PWRcell, and Enphase’s battery system. You can see what battery systems are eligible on their approved vendor list.
Pros and cons of using Solar Insure
Adding the extra cost of purchasing Solar Insure can be conflicting, and you may ask yourself if you need it. Here are a few pros and cons of using Solar Insure that may help you make your decision:
Pros
- It’s easy to get. The cost for Solar Insure is included with your installation cost from your installer, so you don’t have to worry about shopping around for third-party coverage.
- Long warranty offer. The 30-year warranties and 30-year monitoring offered by Solar Insure will outlast many other warranty offers.
- Additional services covered. If a defect with your panels qualifies for a warranty claim, the manufacturer typically won’t cover the labor or delivery of the parts. Solar Insure does.
- Transferable ownership. If you end up selling your house, don’t worry! You can transfer ownership of this policy when you move, so it won’t put a strain on trying to sell your home.
- Protection if your installer goes out of business. Solar Insure will help you fix covered damages, even if your installer is no longer in business. The solar industry has had a few bad actors, with companies making a quick buck and exiting the industry, leaving homeowners stranded if there’s an issue with their system.
Cons
- An added expense. Solar Insure can cost you hundreds – even thousands of dollars more on your solar installation, depending on your system design.
- No production guarantee. Solar Insure doesn’t have a production guarantee, so if your panels don’t produce as much as your installer predicted they would, you won’t get any kind of refund.
- You may not need it. Solar equipment failure is rare and usually occurs within the first two years of ownership. This means you might never use Solar Insure benefits.
Is Solar Insure the same as a solar warranty?
Solar panels and other solar equipment come with their own warranty from the manufacturer. However, manufacturer warranties for panels, microinverters, and power optimizers only last 25 years. String inverters have a shorter warranty, usually between 10 to 12 years.
Solar Insure gives you additional years of protection beyond what the manufacturer provides. Solar Insure also covers things outside a typical manufacturer’s warranty scope, like the costs to install and deliver the replacement parts.
You can also go through Solar Insure to get replacement parts if the manufacturer goes out of business, and it will help you get repairs if your solar installation company goes out of business too. The company has partnerships with manufacturer brands on its approved vendor list.
Is Solar Insure worth it?
Buying solar for your home is a big investment that comes with a lot to think about. But how much protection do you really need?
When it comes to the equipment side of the Solar Insure warranty, the biggest benefit is that the company pays for some things the manufacturer won’t, like truck rolls and replacement labor. While it does offer a longer 30-year parts warranty, most equipment malfunctions will be detected within the first two years of operation, so you will likely still be covered by the manufacturer’s 25-year warranty when a failure occurs.
The battery warranty, however, is a little different. The lithium-ion residential battery market is still somewhat young, so it is uncertain how batteries will operate after their manufacturer warranties as we are with solar panels. The Solar Insure battery package could be a smart choice depending on the cost.
However, Solar Insure’s main benefit is the peace of mind it gives you in case your solar company goes out of business. The solar industry has had a fair share of shady companies, leaving many solar owners as “solar orphans”. They are unable to get help down the line as their company has up and vanished.
Therefore, in the end, Solar Insure isn’t a bad investment. Buying solar is a huge financial commitment, so it makes sense if you want to have extra protection. However, it isn’t totally necessary for everyone. You can avoid some potential issues by getting quotes from trusted local solar companies that use high-quality solar equipment.
You can think of Solar Insure as an extended warranty for your solar system.
Types of Solar Warranties
It is important to understand the different types of warranties and what each provides.
- Manufacturer Warranties: Offered and upheld by equipment manufacturers, these warranties protect the components of your solar system, like solar panels, inverters, and batteries. Pretty much every reputable solar equipment manufacturer offers it to some extent.
The warranty period varies with brand and equipment type. Solar panel product warranties are often 25-30 years warranties, whereas most inverters’ and batteries’ warranties last 10-15 years. Equipment warranties typically cover repair or replacement costs of the devices themselves but don’t always cover the labor costs required for the repair. - Installer Warranties: These are warranties from the company that installed your system. Most installers offer some type of warranty, though duration and breadth of coverage vary greatly.
Most installer warranties only cover their workmanship. In rare cases, installers also include production warranties, which guarantee your system produces at least as much electricity as they estimated it would. With this should come system monitoring services. - Third-Party Warranties: These warranties include third-party programs. For an added fee, they work with solar installers to protect your system, providing a stipend for maintenance costs and other issues for 30 years.
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