Short answer: Often yes, but usually only modestly — because your panels add to your home’s insured value, most insurers ask you to raise your dwelling coverage limit to match, which can nudge your premium up a bit. The exact effect depends on your insurer, your policy, and how your system is added to your coverage, so it’s worth confirming with your agent before installation.
Solar panels are a permanent addition to your home, so most insurers treat them the same way they’d treat a room addition or a new roof: they add to your home’s replacement value, and your dwelling coverage typically needs to reflect that. That’s a different question from whether panels themselves are “risky” — insurers aren’t penalizing you for going solar, they’re adjusting coverage to match a more valuable home.
What typically affects the outcome
- How your policy treats the panels. Some insurers automatically include roof-mounted solar under existing dwelling coverage up to a limit; others require a specific rider or endorsement, especially for ground-mounted systems or larger installations.
- Your system’s added value. A larger, more expensive system adds more to your home’s insured value, which can mean a bigger adjustment to your dwelling limit and premium than a smaller system would.
- Your insurer and state. Coverage rules and typical premium impact vary by carrier and by state — Missouri, Kansas, and Illinois policies aren’t identical, so what a neighbor’s insurer did isn’t a guarantee of what yours will do.
- Whether you notify your insurer at all. Not updating your policy after installing solar can leave the panels underinsured or excluded entirely if something happens to them — even though the premium change itself is usually small.
What homeowners often worry about (and what’s usually true)
It’s a common concern on homeowner forums that adding solar could get a policy dropped or cause a spike in cost. In practice, solar panels aren’t considered a high-risk addition by most insurers — the more common issue is a homeowner forgetting to notify their insurer at all, which is a coverage gap risk, not a premium one. Confirming the update with your agent is the simple fix either way.
How SunSent handles this
We can’t quote your insurance policy, but as a combined roofing and solar installer, we give you the documentation you need — system specs, valuation, and installation details — to bring to your insurance agent so your policy gets updated correctly the first time, without back-and-forth between separate companies.
FAQ
Will my insurance company drop me for installing solar panels?
It’s uncommon. Most insurers treat solar as a standard home addition rather than a risk factor — the bigger concern is leaving your policy un-updated, not the panels themselves. Confirm with your agent to be sure.
Do I have to tell my insurance company I’m installing solar?
Yes, it’s worth notifying your insurer once panels are installed, since your dwelling coverage often needs to reflect the added value — skipping this can leave the system underinsured if it’s ever damaged.
How much will my premium go up after installing solar?
It varies by insurer, system size, and state, so there’s no single typical number — check with your agent for a policy-specific estimate rather than relying on a general figure.