A few weeks ago, I read a short piece on solar panels and homeowners insurance: “Home Solar Panels: How Do They Affect Homeowners Insurance?” Granted, the article is published by a company selling (surprise, surprise) insurance-related services. But I found the author’s questions interesting, if only because they show the range of considerations that homeowners must consider when installing solar panels. Here:

1. Will home solar panels cause my homeowners insurance premium to skyrocket?

Not necessarily. Most insurance companies these days cover home solar panels. In fact, many carriers may offer a slightly lower rate because environmentally-friendly people are less likely to make an insurance claim (those who are concerned with saving the environment are not likely to be smokers and so are less likely to cause a house fire). Some insurance companies have even been known to offer a 2-3 percent discount for home solar panels.

However, some insurance companies will charge an exorbitant fee for the home solar panels, arguing that it an increased value to the home. Check with your insurance agent and make sure your carrier will insure your home solar panels and see if you can get a discount or low rate.

2. What about damage to my roof?

Make sure you find a professional installer to put your home solar panels in place. Professionals with experience in installing home solar panels know what they’re doing and how to install the panels without damage. But if you’re still worried, you can always mount your panels on the ground and eliminate risk to your roofing.

3. Will the home solar panels (and insurance costs) pay off in time?

Yes! Not only will you be saving a small fortune on electricity costs, but your insurance premium may not raise all that much, especially if you shop for homeowners insurance quotes. Also, governments (including the U.S.) around the world are offering incentives and tax breaks to homeowners who invest in solar energies. That’s a cash reward to responsible homeowners who install home solar panels!

A few comments:

First, I’m no insurance expert, so I can’t confirm the first answer. Do solar panels increase the value of your home? You bet. Will that value come through in increased property taxes? It depends on state and local laws, but property tax exemptions for solar panels and other renewable energy systems have pretty much become the norm. Will the added value impact your homeowners insurance premium? Judging from the article, the answer is no. Shop around and you should be able to find a policy that suits your needs — and, as the author points out, solar panels may even save you a few percent on your policy.

As for the second answer, the author should have also pointed out that, like other contractors, most solar panel installers are required to carry liability insurance. While such a consideration doesn’t eliminate the need for due diligence in selecting a qualified solar pro (which is part of what we do here at GetSolar), it should help allay basic concerns over “roof damage.”

Finally, the author’s third answer is, well, a generalization. Whether or not rooftop solar panels will “pay off” in a reasonable amount of time is largely determined by site-specific circumstances: the size and orientation of your roof; the availability of state- or utility-sponsored solar energy incentives; your average monthly electricity costs; etc. While I appreciate the article’s enthusiasm (with the author offering an unconditional “yes!”) experience shows that solar panels are not a cost-effective energy solution for everyone — at least not yet.

Interested in finding out whether solar panels makes sense for you? Start here.