What Is Solar Energy Insurance?
Solar energy insurance is the general name for insurance solutions that address property damage, machinery breakdown, loss of income and third-party liability risks of photovoltaic (PV) and other solar energy facilities during construction, erection, commissioning and operation. It is not a single standard policy: Construction All Risks (CAR) or Erection All Risks (EAR) during construction and erection, and Operational All Risks / Property Damage (OAR/PD), Machinery Breakdown (MB) and Business Interruption (BI) during operation are combined according to the structure of the facility.
This page focuses on the insurance risks that differ by type of solar facility. For the general coverage structure and concepts such as PML/EML and waiting period, see the Energy Insurance page. This page is general information; it does not imply the capacity of any particular insurer, acceptance of cover, price or any commitment to pay.
Risk Focus by Facility Type
Facilities under the same "solar PV" label differ markedly from an insurance point of view. The table below summarises the topics that stand out in underwriting; details follow in the sections below.
Scroll the table horizontally to see all columns.
| Main risk focus | Questions asked in underwriting | |
|---|---|---|
| Ground-mounted PV | Hail, wind, flood, vegetation fire, theft, ground movement | Module hail rating, tracker wind-stow mode, drainage, perimeter security |
| Rooftop PV | Building structure, roof membrane, DC arc fire, fire spread to the building | Roof load capacity, coordination with the building policy, cable and connector quality |
| Floating PV | Float and mooring system, water level variation, wave and wind load, over-water cables | Mooring and anchoring design, reservoir level range, access and rescue plan |
| Hybrid PV | Shared grid connection, shared transformer and control system, loss spread between components | Value allocation by component, BI trigger, single or separate policy structure |
| Agri-PV | Elevated structure, farm machinery impact, third-party claims linked to farming | Structure height and spacing, land-use agreement, separate insurance of agricultural production |
| Solar carport | Vehicles underneath, impact, fire spreading to vehicles, publicly accessible area | Structural design, fire measures where EV charging is connected, third-party limit |
Ground-Mounted PV
In ground-mounted plants, weather events (hail, storm, flood) and equipment defects arising from series production are among the significant causes of loss; frequency and amount vary with the plant and its location.
- Hail and storm: Module glass breakage can affect many modules in a single event; module hail rating and whether trackers move to a safe position in adverse weather are assessed.
- Flood and inundation: Low-lying sites, drainage, and the elevation of inverters and transformer stations; a sublimit may apply to flood losses.
- Fire: DC cable and connector faults, inverter fire, vegetation on site; vegetation management and fire breaks are queried.
- Theft and vandalism: Copper cable and module theft; perimeter security and monitoring are underwriting topics.
- Serial loss: A common defect in the same module or inverter model can affect many units; serial loss and defective design clauses in the policy should be read separately.
- Natural catastrophe: The sublimit and deductible structure for perils such as earthquake and flood depends on the policy.
Rooftop PV
A rooftop installation concerns both the PV asset and the building it sits on. The main question is therefore whether the cover sits in a PV policy or in the existing policy of the building, and how the two are coordinated.
- Building structure: The roof's capacity to carry the additional load, wind uplift and snow load; structural assessment documents may be requested.
- Roof penetrations and water ingress: Damage to the roof membrane during installation and water ingress damage that emerges later.
- DC arc fire: Fire arising from connectors, cables and inverters can spread to the building and its contents, which may become a third-party or building-owner claim.
- Coordination with the building policy: Notification of the PV addition to the insurer of the existing fire/commercial property policy (and, where the policyholder and the building owner differ, informing both), and which policy responds in the event of a loss, should be clarified. See Property & Fire Insurance.
- Installation period: Work-at-height accidents during installation are assessed separately under Construction & Erection Insurance and employers' liability.
Floating (Water-Surface) PV
Floating PV places modules on float structures on the water surface, typically on reservoirs, irrigation basins or industrial ponds. Unlike land-based plants, the behaviour of the structure on the water shapes the risk profile.
- Mooring and anchoring system: The anchors, lines and bottom connections that hold the float array in position; if they fail, the array may drift or collide.
- Water level variation: Seasonal or operational changes in reservoir level stress the mooring system and cables; the level range should be clear in the design file.
- Wave, wind and ice load: Wind and wave action on the water surface creates mechanical loads different from a land plant; icing is also considered depending on site conditions.
- Over-water and subsurface cables: Moving cable connections between floats and the cable route to shore; fatigue and water ingress risks.
- Access and response: Access to the plant is difficult in a fire or fault, which may affect loss escalation and repair time.
- Shared water body: Where the water body is shared with a hydropower reservoir or similar facility, liability boundaries and operational coordination should be arranged separately. See Renewable Energy Insurance.
- Environment and third parties: Interaction with water quality, fishing or navigation; environmental liability may require separate cover. See Environmental Impairment Liability.
Loss experience and market practice for floating PV are more limited than for land plants; underwriting therefore generally relies on a project-specific technical file, and acceptance terms vary between insurers.
Hybrid PV (PV + Storage or Other Generation)
A hybrid plant combines solar with battery storage, wind or another generation technology at a shared grid connection point. The key insurance question is how shared infrastructure (transformer, switchgear, SCADA, connection line) links a loss in one component to the output of the other.
- Value allocation: How the sum insured is distributed between PV, storage and shared infrastructure affects loss adjustment.
- BI trigger: Where damage to one component stops the output of another, the policy should be clear on which cover pays the loss of income.
- Fire spread: Battery container fire risk creates a neighbouring exposure for the adjacent PV field; see the Battery Energy Storage Insurance page for details.
- Policy structure: It can be arranged as sections of one policy or as separate policies by component; each approach carries risks of coverage gaps and double insurance.
Agricultural PV (Agri-PV)
Agri-PV combines electricity and agricultural production on the same land; modules are typically placed on elevated structures above the crop or in the spacing between crop rows.
- Structural design: Elevated structures are more exposed to wind and snow load; height and spacing also determine the passage of farm machinery.
- Farm machinery impact: Tractors and harvesters damaging the structure or cables.
- Third-party claims: Land lease relationship, and the presence of farmers and workers on site.
- Agricultural production: Loss to the crop or livestock activity underneath is not the subject of the power-generation policy; agricultural insurance is a separate structure.
Solar Carport
Canopy structures over car parks generate energy while shading vehicles and protecting them from hail. The presence of vehicles underneath and of a publicly accessible area brings liability and fire risk to the front.
- Vehicles underneath: In events such as falling parts or fire spreading to vehicles, claims by vehicle owners depend on the operator's legal liability (fault, duty of care and supervision) and may be assessed under a third-party liability policy; policy exclusions (for example property in the insured's care, custody or control) should be examined separately. Natural events such as hail do not in themselves create liability for the operator; damage to the vehicle may fall under the vehicle's own insurance.
- Impact and structural load: Vehicle impact, wind and snow load.
- EV charging infrastructure: Where charging stations are connected to a solar carport, electrical fire and high-power connection risks are assessed separately. See the EV charging section of the Energy Insurance page.
CSP, Solar Thermal and Solar Industrial Heat/Steam
Concentrated solar power (CSP) and solar thermal systems convert sunlight into heat instead of directly into electricity. Their risk profile is therefore closer to thermal power plants and process facilities than to PV plants.
- CSP (trough, tower): Heat transfer fluid (synthetic oil or molten salt) leakage, fire and freezing; hail and wind for the mirror/heliostat field; MB and pressure-equipment risks for the steam turbine and thermal storage.
- Solar thermal collector systems: Overheating, stagnation and freezing damage, leakage.
- Solar process heat and steam generation: A solar field is combined with a heat exchanger, steam boiler or pressure vessel; this part is close to boiler and machinery risks. See Engineering Insurance.
Insurance capacity and policy structure for these technologies are project-specific and may be assessed by a limited number of insurers compared with PV plants; every statement is subject to the policy wording and the insurer's assessment.
Policy Structure: Which Cover Applies When?
Scroll the table horizontally to see all columns.
| Phase | Used for | Point to note | |
|---|---|---|---|
| CAR / EAR | Construction and erection | Property damage during installation, testing and commissioning | Transit requires separate cargo and project cargo arrangements |
| DSU / ALOP | Construction | Loss of income from delayed start-up caused by a covered loss | Contingent on a CAR/EAR loss; not triggered independently. See Construction & Erection Insurance |
| OAR / PD | Operation | Sudden and unforeseen physical damage to the plant | Natural catastrophe sublimits, defective design and serial loss clauses depend on the policy |
| MB | Operation | Internal breakdown of machinery and electrical equipment such as inverters and transformers | Relationship with the manufacturer warranty should be clarified |
| BI / MLOP | Operation | Production and revenue loss caused by a covered loss | Waiting period and indemnity period; irradiation or grid outage alone is not a trigger |
| TPL / EIL | Construction and operation | Third-party damage and environmental liability | May be a separate policy or section; see Environmental Impairment Liability |
| Cyber / OT | Operation | SCADA, inverter management and monitoring systems | To be read together with the cyber exclusion of the physical damage policy. See Cyber Insurance |
Matters Generally Excluded or Assessed Separately
- Solar irradiation (resource) risk: Lower revenue caused by lower-than-expected irradiation is not the subject of BI cover that depends on physical damage; parametric structures may be explored separately for this kind of revenue risk. See Parametric Insurance.
- Efficiency loss and ageing: Performance decline of modules over time, soiling and normal wear are not covered as property damage.
- Performance and yield guarantees: Power and performance guarantees given by manufacturers or contractors are contractual matters; they should not be assumed to fall within insurance cover.
- Defective design and serial loss: Provisions vary between policies; the replacement cost of the defective part itself and the resulting damage are treated separately.
- Grid outage: Outages caused by the grid operator are generally excluded from standard policies; any extensions should be confirmed separately.
This list is illustrative; the exact scope depends on the policy wording.
Licensing and Insurance in Türkiye
Electricity generation in Türkiye is within the regulatory and licensing framework of EPDK (the Energy Market Regulatory Authority); the distinction between licensed and unlicensed generation, project finance and loan agreements may affect insurance requirements. A licence, an administrative or financial guarantee, a financing-agreement requirement and an insurance-policy obligation are separate concepts; this page neither asserts that a licence or guarantee in itself creates an insurance obligation nor states categorically that it does not. Insurance provisions in the relevant licence, permit and contract texts should be examined separately. Financing institutions generally require specific insurance covers in their agreements.
What Information Is Requested for a Quotation?
- Facility type (ground-mounted, rooftop, floating, hybrid, Agri-PV, carport, CSP), location and installed capacity (MWp/MWe)
- Manufacturers and models of modules, inverters, trackers and transformers; certificates and test documents
- Contractor (EPC) and operation and maintenance (O&M) agreements; scope of warranties
- Project value, allocation of the sum insured and the requested BI/MLOP indemnity period
- Natural catastrophe exposure: hail, flood, earthquake, fire; site security and monitoring
- For floating plants, mooring design and water level range; for rooftop plants, the structural report
- Insurance requirements of the financing institution
- Loss record and experience with similar facilities
This list is illustrative; the information and documents requested vary by insurer and policy structure.
Frequently Asked Questions
What is solar energy insurance?
Is my building policy enough for a rooftop PV system?
Is floating PV insured in the same way as a land plant?
Is lost income covered when solar irradiation is low?
Are module performance degradation or yield guarantees insured?
Are CSP or solar steam generation assessed in the same way as PV?
Is solar plant insurance compulsory in Türkiye?
What information is needed for a quotation?
Neolife's Role
Neolife Group can assess the relevant information and contracts, explore suitable local insurance and reinsurance solutions, carry out placement work and compare the quotations received. This does not imply the capacity of any particular insurer or reinsurer, acceptance of cover, price or any commitment to pay; these are subject to the rules of the relevant insurer, to legislation and to the policy terms.