As solar energy keeps growing in popularity across Ontario, homeowners are weighing the details of going solar—and one of the most common questions we get is, “How much does it cost to insure solar panels?” The good news? It’s pretty affordable.
The Average Cost of Solar Panel Insurance: $75 – $150 per year
After over 30,000 installations in Ontario, most insurance companies now get solar. They typically treat your solar setup like they would any other home upgrade—think hot tubs or a new kitchen. Our customers usually pay $75 to $150 extra per year to insure their solar equipment.
It’s worth checking with your insurance company, though. Some of our customers had to switch insurers to get fair rates a few years back, but nowadays, most providers are on board.
Key Factors That Determine Solar Panel Insurance Costs
Here are a few specific things that could affect how much it costs to insure your solar panels:
System Value: The more expensive your solar panel system, the more likely it’ll affect your insurance. If your system adds a significant chunk to your home’s value, your insurer may need to adjust your coverage, which can slightly raise your premium.
Type of Installation: Roof-mounted solar panels are usually the easiest (and cheapest) to insure since they’re considered part of the home. But if you’ve got ground-mounted panels or installed them on a separate structure (like a shed or garage), you might need separate coverage, which could cost a bit more.
Net Metering Participation: If you’re part of Ontario’s net metering program—sending excess electricity back to the grid for credits—it probably won’t affect your insurance costs. Just make sure you explain the setup properly to your insurer.
Insurance Provider: Not all insurers handle solar panels the same way. Some might include them automatically, while others could charge extra or require a specific endorsement. It pays to ask and, if needed, shop around for the best deal.
What Does Solar Panel Insurance Cover?
Most home insurance policies in Ontario will cover solar panels for common risks, including:
- Fire
- Hail and wind damage
- Theft
- Falling objects (think tree branches)
Always double-check the details of your policy to make sure you’re covered.
Extra Things to Keep in Mind
While the additional cost is usually pretty low, a few other things might impact your coverage or premium:
Increased Dwelling Coverage: Since solar panels increase the value of your home, you might need to adjust your dwelling coverage to reflect that. This is especially important if your system is on the larger or more high-end side.
Leasing Agreements: The leasing company often handles the insurance if you’re leasing your solar panels. To avoid any surprises, just be sure to clarify who’s responsible for what.
Professional Installation: Make sure your panels are professionally installed. This will ensure everything works properly, and some insurers may require it to provide coverage.
Regular Maintenance: Some policies might require regular maintenance or inspections to keep your coverage valid. Always check the fine print of your policy for any maintenance-related requirements.
Bottom Line on Solar Insurance
Adding solar panels to your Ontario home will probably increase your home insurance by anywhere from $75 to $150 a year. It varies based on your specific system and insurance provider, but in the long run, the savings from energy efficiency and the boost in your home’s value will far outweigh the small bump in insurance costs.
GET A FREE SOLAR PANEL CONSULTATION
Speak to Ontario’s solar panel experts, who have been installing residential and commercial solar since 1990.
