Glossary of Solar Panel Insurance Terms

Glossary of Solar Panel Insurance Terms

Understanding the glossary of solar panel insurance terms is essential for homeowners considering or already owning solar panel systems. Terms like “deductible,” “replacement cost value,” and “excluded perils” can help you make informed decisions when selecting a policy. Knowing these definitions ensures that you fully understand what is and isn’t covered, preventing unpleasant surprises during a claim. For example, if a storm damages your panels, familiarity with coverage limits and deductibles allows you to navigate the claims process with confidence and clarity.


For New Jersey homeowners, this knowledge is particularly valuable due to the state’s weather patterns and growing emphasis on renewable energy. Terms like “hail damage coverage” or “net metering” directly relate to risks and financial benefits tied to solar installations. By familiarizing yourself with these terms, you can better customize your policy to suit your specific needs, protecting your investment while supporting a greener future.

The depreciated value of solar panels, reflecting their age and wear.

A comprehensive policy covering a wide range of risks except exclusions.

Coverage for loss of income due to solar system failure caused by covered damages.

Protection against large-scale disasters like hurricanes or earthquakes.

A request made by the policyholder to the insurer to cover damages or losses.

Maximum amount the insurance company will pay under a policy.

The amount the policyholder must pay out of pocket before the insurance coverage kicks in.

Insurance covering losses due to the natural decline in solar panel efficiency over time.

An addition to an insurance policy that modifies or expands coverage, such as including solar panels.

Events or risks not covered under a solar insurance policy, such as wear and tear.

A manufacturer-provided plan that covers repairs or replacements beyond standard warranty terms.

Specialized policy that can cover damage to solar panels from floods.

Solar energy systems connected to the power grid, impacting insurance policies.

Specific coverage for damages caused by hail, common in certain regions.

Basic policy that might provide limited coverage for rooftop solar installations.

Protection if your solar system causes harm or damage to others.

Insurance that helps cover shared costs in communities or associations.

The person or entity receiving payment for an insurance claim.

Insurance covering only specifically listed risks.

A billing arrangement for solar power credits; indirectly linked to insured income protection.

Solar setups independent of utility grids with unique insurance requirements.

For businesses, protection against financial loss during system downtime.

A specific risk or event, such as fire or theft, covered or excluded by policies.

Damage to solar panels due to external forces, such as storms or accidents.

The individual or business that owns the insurance policy.

Regular payment made to maintain insurance coverage.

Coverage for manufacturers in case their solar panels fail or cause damages.

Compensation for new panels, without factoring in depreciation.

Evaluation of potential hazards to determine insurance premiums and coverage needs.

Panels installed on rooftops, sometimes covered differently than ground-mounted systems.

A smaller cap within the policy limit for specific types of claims, such as equipment theft.

Insurance for stolen solar panels or components.

Coverage if your solar installation causes damage to neighboring properties.

Insurance for damage from weather events like snowstorms or high winds.

A common policy term excluding damages caused by regular use or aging of equipment.

Coverage that fills the gap between the end of a manufacturer warranty and additional protection.

Specialized insurance for wind-related damage to solar systems.