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

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

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

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So what are the risks?

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

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