As energy rates continue to climb and more people are concernedabout climate change, adding solar energy to homes and businessesseems to be a more viable option. And technology has improved sothat you can still use the panels even if you don’t have a southernexposure, which is ideal. In some cases you may be able to installthe panels in your yard instead of on the roof.

But are there specific insurance issues that potential solarcustomers need to be aware of?

Check out the contractor

As you would with any major remodeling or renovation project, doyour homework and talk to more than one solar installationcontractor if you can. Try to get references from others whoseproperties are similar to yours so you have a basis of comparisonfor the work. Confirm whether your local zoning laws requirepermits or variances; the contractor should be responsible forobtaining these for you.

To work correctly, the federal Energy Department says, your solarelectric system or photovoltaic (PV) system needs to be sized,sited, installed, and maintained correctly. Make sure yourcontractor is properly licensed or certified to work with PVsystems, and check to see how many years of experience the companyhas. Ask whether the contractor also insures any subcontractors onthe job and whether all the employees are covered by workers comp.Agree on the condition of the premises before the contractor startswork so if damage occurs, you won’t find the installer claimingthat your roof was already in need of repair before the workersarrived.

What about warranties?

It’s also important to find out what kind of warranties areavailable for the work and for the equipment itself. You maypurchase the best equipment available but if it isn’t installedcorrectly, you won’t reap the benefit.

According to SolarEnergy.net, a website dedicatedto news and information about solar energy, “the key tounderstanding the warranty on your solar power system isconsidering each component separately, as well as recognizing thatthe installer’s work is also a separate matter.” The typical partsand labor warranty covers two years, in addition to the regularmanufacturer warranties on the individual solar components. A namebrand solar panel will have a 20- to 25-year warranty on the poweroutput.

Will my homeowners policy premium go up?

Although insurance carriers vary in the way they account forsolar panels in calculating premiums, most have some kind ofcoverage in place. However, you should talk to your agent todetermine whether adding solar panels will increase your premiumsor make you eligible for a discount. You and your agent shouldconsider:

• Is the solar energy system likely to suffer damage from treebranches or other objects striking the panels?
• Are lightning strikes, fire or high winds a potential hazard?How about hail, snow or torrential rains?
• Is the system likely to be vandalized or have partsstolen?
• Will your current carrier continue to insure your property ordo you need specialized insurance?

You may also be eligible for energy tax credits from your stateor local government as well as on your federal taxes. If you’rethinking about going green and switching to solar – let the sunshine!