A roof-mounted solar photovoltaic (PV) system can be a great wayfor a business to save money on its power bill and show acommitment to a cleaner, more sustainable environment. But thebenefits are not without risk.

Helping property owners understand the potential risk of thesesystems and how to manage them is a great way for insurance agentsand brokers to add value for their clients. And insurance companiescan be a great source of information on this topic.

While solar power technology has been around for decades, thepotential risks are not well-understood. Given increasing demandfor such systems, now is the time for agents, brokers and insurersto help clients understand the challenges of such systems and whatcan be done to safely reap the benefits.

So what are the risks?

First, the potential for fire must be top-of-mind wheninstalling a roof-top mounted PV system. Early failure ofcomponents like electrical wiring is the leading cause of fires.The lack of clear electrical codes governing solar equipment, useof non-commercial-grade equipment and poor installation may furtherincrease the risk.

The “blind spot” is another issue that can arise when a groundfault affects the grounded current-carrying conductor and safetydevices fail to detect the problem. With a second ground event, theenergy flows through the short, which may cause electrical shock orfire.

PV systems can also make a roof fire worse and more difficultfor firefighters to extinguish. The gap between PV panels and theroof can trap heat, allowing a fire to spread quickly. Solar arraypanel configuration and spacing is critical as roofing materialheat levels can vary depending upon the size of the gap.

A PV array can cause a range of complications if firefightersrequire roof access — from an increased chance of slips and fallsto a heightened risk of shock. In some cases, an entire roof canbecome electrified, preventing access altogether.

A PV system can also add significant weight to a roof, which, ifthe roof is not designed to handle the load, may cause damage orstructural degradation over time. The extra weight of snow and raincan make this situation even worse.

Mitigating risk

The good news is that it is possible to manage and mitigatethese risks. It all starts with proper installation andwell-secured systems.

Because the concept of solar power has become so mainstream,business owners may assume that PV system installation andmaintenance are well regulated. However there are few establishedstandards. Further, installation crews may lack experience.

Before installation, business owners should ensure a roof canstructurally hold a PV system, or find a location other than theroof on which to install the system. They should also consult withindependent experts to test and approve the panels to be installed.Roof panel placement should leave plenty of clear exits andpathways for maintenance crews and firefighters.

Business owners should also discuss their plans to installroof-top mounted solar equipment with the local fire department.Once the systems are installed, owners should familiarizefirefighters and each shift's fire captain (most urban departmentshave three shifts within a 24-hour period) with their operationsand proposed solar panel system. After installation, businessowners should inspect the system with an independent expert. Payspecial attention to wire management, and make sure panels aresecure to minimize wind lift.

Owners should also have qualified contractors inspect thesystems and provide preventive maintenance at least annually andafter major weather events.

Agents and brokers — working with insurers — have a greatopportunity to add value for commercial property owners by helpingthem mitigate the risks of roof-top mounted solar equipment.