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Safeguarding Your Renewable Energy Investment in the Garden State

Why Insure Solar Panels 

Solar Panels Are an Investment Worth Protecting

New Jersey ranks among the top U.S. states for solar adoption, with over 200,000 installations powering homes and businesses. While solar panels reduce energy bills and carbon footprints, they also represent significant financial investments $15,000 to $30,000+ for the average NJ household. From coastal nor’easters to equipment malfunctions, unexpected risks can jeopardize both your energy savings and property value. Insuring solar panels isn’t just about compliance; it’s about protecting your contribution to NJ’s clean energy future while avoiding costly setbacks.  


Why Solar Panel Insurance Matters in New Jersey

Solar panels face unique risks that standard homeowners insurance often overlooks. Here’s four reasons why NJ homeowners need specialized coverage:  

1. Weather Vulnerabilities:  

     NJ’s climate poses year-round threats:  

     - Nor’easters: High winds can dislodge panels (avg. repair cost: $1,500 to $5,000).  

     - Hailstorms: Damaged cells reduce efficiency by 15 to 30%.  

     - Flooding: 230,000+ NJ homes are in flood zones standard policies exclude water damage.  


2. Equipment Failures:  

   - Inverters and batteries have 10 to 15 year lifespans. Replacement costs ($3,000 to $10,000) can negate energy savings.  


3. Liability Risks:  

   - A loose panel could injure a neighbor or damage property, leading to lawsuits (avg. NJ liability claim: $30,000+).  


4. SREC Income Protection:  

   - NJ’s Solar Renewable Energy Certificate (SREC) program generates $1,500 to $3,000 annually for most homeowners. Insurance covers lost income during repairs.  


NJ-Specific Gap: Most standard policies cap solar coverage at $5,000 to $10,000 far below replacement costs. Specialized endorsements or standalone solar insurance ensure full protection.  


Solar Panel Insurance Q&A: NJ Homeowners’ Top Concerns

Q: Does my NJ homeowners insurance automatically cover solar panels? 

A: Partial coverage. Most policies include panels under "dwelling protection" but exclude ground-mounted systems, leased equipment, and consequential damage (e.g., roof leaks from installation errors).  

Q: How does NJ’s weather impact premiums?  

A: Coastal areas (e.g., Cape May) pay 10 - 15% more due to hurricane risks. Discounts apply for storm-resistant mounts or UL-certified panels.  

Q: Are leased solar panels covered?  

A: No leasing companies typically insure panels, but NJ law holds homeowners liable for property damage/injuries caused by leased systems. Verify your contract.  

Q: What about SREC income loss? 

A: Add Loss of Income Coverag (avg. $50 per year) to your policy. It reimburses lost SRECs during repairs (e.g., $2,200 for a 10 day outage producing 10 SRECs monthly).  

Q: Can I reduce premiums?  

A: Yes! NJ offers:  

- 10% discounts for impact-resistant panels.  

- 5% savings for bundling home and solar insurance.  

- NJ Clean Energy Program rebates for safety upgrades.  

Q: What’s excluded from coverage?  

A: Gradual wear and tear, DIY installation errors, and damage from unpermitted modifications. Always use NJ-licensed installers.  


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