Shedding Light on the Dark Side of Solar Panels

Where it all began

Despite being available to homes in the 1980s, the uptake of solar energy started slowly. Throughout the 80s and 90s, it remained a niche power supply, most often for the wealthy or Government institutions.

Throughout the 2000s, the Government tried to appeal to the public through grants and tax initiatives. These schemes were overpromised financially and quickly fizzled out, temporarily tarnishing solar energy’s reputation.

Over the last decade, the uptake of solar energy has increased dramatically, which is thought to be triggered by numerous factors, including the steep increase in energy prices from non-renewable sources such as coal, oil, and gas. Solar energy is now becoming commonplace across the UK. In 2022, the UK generated 22% of its renewable energy from solar and now, in 2024 this figure has already risen to 43% with 450 solar farms across the UK.

The dark side of solar

While these figures paint a positive light on the progression of solar power, that isn’t to say solar energy doesn’t come with some risks. Solar panels are exposed to the elements, making them vulnerable to natural hazards like snow, wind, hail and lightning. These harsh conditions don’t just have the potential to damage the solar panels, incurring costs within themselves, but can also cause arc faults and faulty wiring which increases the risk of fire.

Strong winds can also cause micro-cracking to the panels, letting in dust and debris and making them less effective at absorbing light and storing energy. Due to the materials of today’s panels and frequent weather damage, they are lasting much less than expected, at around 20 years compared to the expected 40-50 years.

There’s also the issue of the added weight on a roof. Solar panels, along with the cabling and mounting equipment add around 10-20kg of weight per square meter, causing additional strain on roofs. Not all roofs are built to withstand this extra weight which means that over time, the strain on the roof can lead to leaks, sagging or potentially a full collapse.

Another risk to consider is the threat from third parties. Solar panels are attractive to thieves, who either resell them or use them for their composite materials.

Rent a roof schemes

In 2010, ‘Rent a roof’ solar schemes became very popular, with the promise of free installation of the panels and significantly reduced energy bills. The scheme worked by asking the homeowners for permission to lease their roofs for a set number of years, usually up to 25. It initially seemed very attractive until homeowners realised they had to ask permission to alter or sell their homes – with many of their requests declined.

If the homeowner made any changes which resulted in lost output, even if it was to make vital repairs to the roof, some contracts enabled the company to charge the homeowner for lost revenue. Many of these contracts are still in place now.

Nowadays, ‘Rent a roof’ schemes are rarely seen, but even for those who do choose to fit solar panels onto their rooves, they are finding planning regulations difficult to navigate. Applications often take a long time to get approved and are subject to some strict criteria.

Insuring homes fitted with solar panels

With new solar technologies emerging, including floating solar panels which sit on the water avoiding taking up valuable land space, the future of solar is bright. However, those investing in these technologies should be careful and ensure their insurance hits the mark.

Your policy needs to consider where the panels are located, the risks that they face and the risks that they pose to your home. Most home insurance typically covers fitted solar panels as part of their standard wording which means you shouldn’t need standalone cover. However, not all do.

If your solar panels go over the single-item limit in your policy, you will need to discuss this with your broker to arrange cover for the correct amount. If you have a freestanding panel, this is likely not covered under your buildings cover as it’s not considered part of the structure of your home.

If you do install solar panels onto your property, it’s essential to let your insurer know, as with any major home renovations.

Home Insurance through Towergate

To find out more about how installing solar panels might affect your insurance, get in touch with the Towergate Home Insurance team. Click here to find out more.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

Sources:

https://solarfast.co.uk/blog/history-of-solar-energy/

About the author

Alison Wild BCom (Hons), FMAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has over 20 years' experience as a residential landlord.