Photovoltaic insurance protect companies from financial losses that can arise from damage to the PV system. They are not mandatory in Germany, but can be a sensible risk management tool for commercial and large-scale systems.
In this article, we explain,
- What damages do photovoltaic insurance policies typically cover,
- which components are insured,
- whether and when PV insurance is worthwhile for companies
- and what is important when choosing and concluding a contract.
What is photovoltaic insurance?
A photovoltaic insurance policy is a special insurance for commercial or large PV systems that covers damage to system components as well as downtime and operating costs. It is usually agreed upon as part of system financing or operator responsibility and can be voluntary or mandatory.
The goals of photovoltaic insurance are:
- Reducing financial risk in large-scale solar investments.
- Protection against high repair and restoration costs.
- Coverage of loss of earnings.
What damages are typically insured?
Photovoltaic insurance typically covers physical damage and technical malfunctions that can significantly affect the operation of the system.
Common types of insured damages are:
- Weather and natural events
Storm, hail, snow, lightning, flood. - Loss and damage
Vandalism, theft, animal damage, fire. - Technical damage
Short circuits, operator errors, failure of inverters, storage, control or measuring technology. - Construction and installation damage
Damage to the roof, facade, floor, pavement, scaffolding in connection with the installation or its repair.
Depending on the insurer, the list can be supplemented, for example, by catastrophe or business interruption insurance.
Which components of a solar power system are insured?
A modern photovoltaic insurance for commercial systems typically covers all essential components AB
- Solar modules and mounting system.
- Inverters, control and measuring technology.
- Cabling, Feed meters, fuses, and switchgear.
- Energy storage (Large-scale battery storage) and, if applicable, inpatient Charging infrastructure.
- Transformers, transformer stations, feed-in and handover points to the grid connection.
This secures the „module to grid“ system, so repair and replacement work for damages is comprehensively covered.
What is covered by earnings and business interruption?
For companies, lost revenue and business interruption are often the biggest risk factors for a solar power plant.
A modern photovoltaic insurance policy can cover the following aspects:
- Loss of earnings
Lost revenue due to lack of self-consumption or feed-in tariffs during repair or outage. - External flow costs
Additional costs for the procurement of external grid power during the repair or downtime phase. - Business interruption
Damage that significantly impairs the plant's operation (e.g., extended repairs, storage failures).
Additionally, costs for dismantling and reassembly, construction and roofing work, as well as fire-fighting, clean-up, and disposal measures are often covered.
High security with manageable contributions
Photovoltaic insurance is generally relatively inexpensive in relation to the investment sum and potential damages. The premiums are based on:
- System size (kWp).
- Plant and equipment (e.g., storage, charging infrastructure).
- Location and wind/snow load zone.
- Historical loss ratio and quality grade of the facility.
Higher technical standards and quality requirements (e.g. Insurance-compliant PV systemsreduce risks and can lower premiums. For companies with commercial or large installations, photovoltaic insurance is therefore often considered a sensible tool that offers high protection at manageable costs.
When is photovoltaic insurance worthwhile for businesses?
A photovoltaic insurance policy is particularly worthwhile if:
- The plant represents a larger investment (e.g., several 100 kWp or MW range).
- The operation of the plant influences economic return or critical operational processes.
- Companies with high self-consumption or an important feed-in tariff.
- Financing or insurance requirements exist (e.g., for loans or investors).
For smaller systems with a low financial impact, separate PV insurance may be less relevant.
Practical tips for choosing insurance
Before taking out photovoltaic insurance, a thorough review of the general conditions is recommended:
- Check scope
What damages, components, and risks of failure are covered by the insurance? - Clarify deductible
What is the deductible, and how is it applied in the event of a claim? - Provide documentation
Construction plans, structural calculations, execution proofs, and maintenance logs are relevant for insurance claims. - Interface to energy and insurance experts
Companies benefit when technical and actuarial aspects are closely coordinated.
Especially for larger projects, it is worthwhile to have a consultation with experts to plan the system in a way that is compliant with insurance regulations and economically viable.
CUBE CONCEPTS: Insurance-Compliant Implementation & Support
CUBE CONCEPTS realizes PV systems for commercial and industrial operators that are installed in full compliance with insurance regulations. The systems are designed to meet the requirements of insurers and financiers and to minimize risks during operation.
For companies, CUBE CONCEPTS offers:
- Insurance-compliant assembly and engineering
Plant design, execution, and documentation in compliance with insurance requirements. - Application support
Preparation and review of all documents required for the insurance application. - Long-term support
Review of maintenance records, documentation, and technical modifications during the plant's operational lifetime.
This ensures that your photovoltaic system is not only economically viable but also covered by insurance.
Frequently Asked Questions
Are photovoltaic insurances mandatory?
No, photovoltaic insurance is not legally required in Germany, but it is advisable for commercial or large installations.
What happens if a part of the facility is not fully insured?
If components are not covered by insurance, the insurance company will not cover the costs of their damage processing. It is important to fully document the system.
Can smaller systems also be insured?
Yes, smaller systems can be insured, but their economic relevance and premiums will then be lower.
What about damage to the roof and facade in connection with PV?
With plants built in compliance with insurance regulations, damage to the roof, facade, and infrastructure is often also covered in the event of damage, depending on the insurance terms and conditions.
What documents are important for the application?
Typical documents include: planning, execution records, structural analysis, test reports, maintenance records, and technical data.