As America strives to achieve greater energy independence, moreindividuals, businesses and government groups are investing insolar energy.

In fact, the U.S. solar industry grew 67 percent from 2009 to 2010, making it thefastest-growing energy sector and one of the nation'sfastest-growing industries, according to the Solar EnergyIndustries Association.

Total market value increased from$3.6 billion to $6 billion in 2010, largely driven by taxincentives and lower technology costs. Sales of photovoltaic panels(PV), in particular, experienced extraordinary growth.

The upsides of solar-energy use are significant, but the costscan be as well—and those willing to make the financial investmentin these products should be educated on protecting theirinvestments.

The insurance needs of homeowners and businesses will evolve asthey upgrade their property with green technology. Agents who canposition themselves as knowledgeable on the topic, and who check inwith clients to discuss renewable-energy exposures, will beproviding a valuable service to customers—and giving themselves anopportunity to increase their book of business.

Here's an overview of what agents need to know to play this keyadvisory role in helping customers understand the risks that comewith installing and maintaining solar panels on their property.

STEALING THE SUN

Solar-panel theft has become a concern with the increase ininstallations. Home and business owners should consider thisexposure when investing in the panels.

In addition to the panels and wiring above and below ground,there are combiner boxes and inverters which contain parts andequipment attractive to thieves. Having a clear understanding ofwho is responsible for equipment leading to substations andtransmission lines is imperative to ensure that it is beingmonitored (and insured) appropriately.

In the event that a loss does occur, the customer should be ableto identify the panels. Identifying codes can be etched into everypanel, making it easier for the police to identify stolen ones.This also is helpful to claims adjusters, as they need to identifywhich panels are damaged in the event of a catastrophe. Laseretching is a vast improvement over easily removed bar-code stickersused to identify the majority of panels today.

INSTALLATION, MAINTENANCE

It's important to confirm that panels are properly installed—aseemingly simple concept, but one that can be tricky when takinginto account the “newness” of the industry as a whole.

Agents who have contractors among their clients can help thembecome aware of exposures related to installation:

• Increased risk of a roof collapse comes from the added weightof PV modules and support systems. The PV system also may alter thedrainage on the roof or create additional drifting of snow.
• Loose roofing panels create the potential for a “sail” or“pinwheel” effect from a panel or conduit flying off the roof.
• Temporary electrical installations and site work createadditional risk.
• The roof membrane could be damaged during panelinstallation.
• Agents also should talk to their business clients about takingsteps to reduce the risks associated with maintaining thesystem:
• Can a mechanic physically access panels for maintenance?
• Have electrical connections been kept tight? (Loosening maycause electrical equipment to break downsooner.)   
• What are inspection plans for combiner boxes?
• Are air filters properly changed to keep inverters cool andefficient? 
• If Mother Nature isn't keeping the panel clean, what is theplan to hose panels down?
• Are the panels protected from fire hazards, such as overgrowthof grass, and from rodents?
• Who has reviewed warranty agreements and other contracts foroperations and maintenance to know responsible parties?

PEACE OF MIND

Agents who are knowledgeable in the solar industry can make sureclients are both aware of the latest trends in risk management andthe coverage options available. Agents with the expertise todeliver this kind of service may see an increase in repeat businessand referrals in the burgeoning solar industry.