Considering solar power? We find out more about the commercial risks from an insurer’s perspective
As businesses strive to reduce costs and implement green initiatives, we spoke to the team at James & Lindsay Insurance Brokers to gain a better understanding the risks and further considerations required when installing Solar Power on your Commercial Property, and the importance of suitable insurance cover.
Why Invest in Solar Power?
Investing in solar panels offers businesses an opportunity to not only reduce their energy costs, but also to have a positive impact on the planet and limit their carbon footprint. With customers increasingly valuing sustainability as a top priority for the businesses they want to work with, this can also lead to increasing your green credentials and building customer loyalty and trust.
Main Risks of Solar Panels:
Poor installation, faulty equipment, or panel damage can cause fires
Risk increases with incorrect inverter installation and debris accumulation.
To mitigate: avoid combustible roofs, use fire-rated compartments, and ensure proper isolation switches.
Degradation and Efficiency Loss:
Panels can suffer from micro-cracking, reducing efficiency over time.
Regular maintenance and inspections are essential for longevity and preventing costly repairs.
Theft Risks:
High-value panels and cables are targets for thieves, especially in rural areas.
Invest in security measures like CCTV, alarms, fencing, and lighting to deter theft and lower insurance premiums.
Extreme Weather Damage:
Strong winds, hailstorms, and lightning can damage panels and electrical components.
Securely mount panels and inspect them regularly for weather protection.
Planning and Installation Challenges:
Navigating local regulations and terrain suitability can delay projects.
Conduct thorough risk assessments and check planning restrictions early in the process.
Emerging Technologies (e.g., Floating Solar Panels):
New innovations like floating solar panels introduce water-related risks and safety concerns.
Work with experienced providers and ensure regular maintenance for such installations.
Insurance Considerations:
As solar technology evolves, unique risks (e.g., weather damage, theft, and business interruption) emerge.
Tailor insurance policies to address specific risks associated with solar power.
Conclusion:
As solar technology quickly evolves, the potential for renewable energy seems boundless, but as with anything that has gained traction quickly – they come with their own unique set of risks, some of which haven’t been fully recognised yet. To ensure your business is protected when adopting solar technology, it’s essential to take a proactive approach to risk management.
Solar power offers environmental and financial benefits but comes with risks that need careful management. Regular maintenance, security, and appropriate insurance are key to minimising these risks.