Do Home Warranties Cover Solar Panels?

Home warranties are service contracts that help homeowners manage repair or replacement costs for major home systems and appliances due to normal wear and tear. With the increasing popularity of residential solar panel systems, many homeowners wonder how these additions fit into their home protection plans. This article clarifies how home warranties typically address coverage for solar panel systems.

Understanding Home Warranties

A home warranty provides financial protection against unexpected repair or replacement costs for covered home systems and appliances. These often include HVAC, plumbing, and electrical systems, as well as appliances like refrigerators and ovens. Its purpose is to mitigate the financial impact of mechanical breakdowns from regular use.

Home warranties are distinct from homeowner’s insurance. Homeowner’s insurance typically covers damage from sudden perils like fire, theft, or natural disasters, while a home warranty focuses on malfunctions from everyday use. Plans usually involve an annual premium, ranging from $350 to $900 per year, or $30 to $90 monthly.

Home warranty agreements typically include a service fee, sometimes called a deductible, which homeowners pay each time a technician visits for a covered repair. These fees generally range from $75 to $150 per claim. The specific components covered and any limitations on replacement costs are detailed within the policy agreement.

Home Warranty Coverage for Solar Panels

Standard home warranty plans generally do not include coverage for solar panel systems by default. These are often considered specialized equipment outside the scope of typical home systems and appliances. However, coverage might be available through optional add-ons or specialized plans from some providers.

When available, an expanded home warranty plan might cover specific solar energy system components, such as inverters, wiring, mounting hardware, and sometimes the panels themselves. Inverters, which convert DC to AC for household use, are a common point of failure and could be included. The scope of coverage varies significantly between providers and plans.

Even with an optional add-on, common exclusions and limitations typically apply to solar panel coverage. Damage from weather events like hail, high winds, or lightning is usually not covered by a home warranty, as these perils fall under homeowner’s insurance. Issues from improper installation or manufacturer defects are also often excluded; manufacturer defects are addressed by the original manufacturer’s warranty. Lack of routine maintenance can also void coverage.

Assessing Your Specific Policy

Homeowners should thoroughly review their home warranty contract or policy documents to determine if their solar panels are covered. These documents contain the precise terms, conditions, and exclusions. Look for sections mentioning “solar panels,” “renewable energy systems,” “green energy,” or “photovoltaic (PV) systems.” Pay close attention to language regarding optional coverage, as solar panel protection is usually an add-on.

If the policy language is unclear, contact the home warranty provider directly. Prepare specific questions to ensure all aspects of potential coverage are addressed.

Ask the provider if your solar panel system is covered under your current plan or if an optional add-on is available. Inquire about the exact components included or excluded, such as panels, inverters, and wiring. Clarify if there are separate service fees or coverage limits for solar panel claims. Understand what documentation, like proof of purchase or maintenance records, would be required to file a claim.

Alternative Solar Panel Protection

Beyond home warranties, other forms of protection are available for solar panel systems, each addressing different risks. Manufacturer warranties are a primary safeguard for solar panels and inverters. Solar panels typically come with a product warranty covering defects in materials or workmanship, often ranging from 10 to 25 years. Panels also carry a performance warranty, guaranteeing a certain energy output over time, commonly for 25 years. Solar inverters typically have separate warranties, with string inverters often covered for 10-12 years, and microinverters or power optimizers for 25 years.

Installer or workmanship warranties cover the quality of the installation work, addressing issues from improper setup for 1 to 10 years. Homeowner’s insurance policies also protect solar panel systems. Standard homeowner’s insurance generally covers solar panels as part of the home’s structure against perils like fire, theft, vandalism, or weather events like hail and wind damage. This coverage is for property damage from unforeseen incidents, not mechanical breakdown due to wear and tear.

For more comprehensive protection, specialized insurance policies or riders can specifically cover solar energy systems. These may include aspects not typically covered by standard homeowner’s insurance or manufacturer warranties, such as lost energy production due to system downtime.