Photovoltaic Insurance: When It Makes Sense and What You Need to Consider

A photovoltaic insurance policy protects your PV system against the financial consequences of storms, hail, lightning strikes, power surges, theft, and animal damage. While there is no legal requirement to take out such insurance, it usually makes sense for a system with acquisition costs in the five-figure range. Most residential building insurance policies do not cover a new system automatically, and where it is included, cover is often limited to the classic perils of fire, storm, and hail. There is also one crucial aspect that many people overlook: many insurers require the system to be installed by a specialist installer. Self-installed systems are excluded by many policies.

Disclaimer: This article is intended solely for general informational purposes (as of November 2026) and does not constitute insurance advice or insurance brokerage services. PVPro Solar is a specialist solar installation company and not an insurance intermediary. For recommendations tailored to your specific system, please consult a licensed insurance advisor, insurance broker, or your insurer.

Why a PV System Should Be Insured

A photovoltaic system represents an investment of several thousand euros, often well over ten thousand euros. A 10 kWp system costs around €14,500–17,500 without storage, and considerably more with a battery. At the same time, it is largely exposed on the roof, vulnerable to the elements. Storms can loosen modules, hailstones can damage the glass surfaces of solar panels, and a lightning strike nearby can cause a power surge that destroys the inverter.

If property damage is compounded by a loss of income, the costs can escalate quickly. While the system is out of operation, it generates no electricity: you lose both self-consumption savings and feed-in revenue while still facing repair expenses. A comprehensive photovoltaic insurance policy is designed to absorb precisely this double financial burden.

What Photovoltaic Insurance Covers

Comprehensive PV insurance is often offered as an all-risk policy, meaning it generally covers all types of damage that are not explicitly excluded under the terms of the contract. Coverage typically extends to all components of the system, including solar modules, inverters, cabling, mounting structures, and, in most cases, a connected battery storage system.

Photovoltaic insurance on an all-risk basis: typical perils

The risks usually covered under a comprehensive policy include:

• Fire, lightning strikes, power surges, and short circuits
• Storm and hail
• Snow load and, depending on the policy, flooding and sewer backup
• Water damage from pipes, moisture, and frost
• Theft and vandalism
• Animal damage, for example martens biting through cables
• Operating errors as well as design, material, and workmanship defects
• Depending on the policy, damage caused through gross negligence

Which of these your policy actually includes is set out in its terms and conditions. Theft, animal damage, and operating errors are often optional add-ons. Internal defects without an external cause, such as an inverter failing due to a short circuit or overcurrent, are usually only covered by all-risk or electronics cover, not by a named-perils policy. While a defect is still under warranty or guarantee, the manufacturer or installer is responsible first. See our guide on what to do when the inverter is faulty.

In addition to covering repair or replacement costs, a good policy also reimburses related expenses such as debris removal and disposal costs, scaffolding expenses, damage-related roof work, and additional costs arising from regulatory requirements. Wear and ageing are not covered.

Loss of Income: The Aspect Many People Underestimate

If your system temporarily stops generating electricity following an insured event, loss-of-income cover compensates for the lost feed-in revenue and, depending on the policy, the extra cost of buying electricity from the grid. This protection is limited in time, often to a period of several months up to one year from the date of the loss.

The length of this indemnity period is one of the key differences between policies and is particularly relevant because obtaining replacement modules or inverters can sometimes take considerable time. As an example, a 10 kWp south-facing system in Hannover produces around 1,269 kWh in June according to PVGIS. If it is down for that whole month, the loss is roughly €190 at 30 % self-consumption (assumed electricity price €0.32/kWh, feed-in tariff 7.70 ct for the rest), or roughly €280 with storage and 60 % self-consumption. Building insurance usually only pays for the physical damage, not for the lost yield.

Separate Policy or Coverage Through Building Insurance?

There are essentially two ways to insure a photovoltaic system:

1. Coverage Through Your Building Insurance

Many building insurers offer an add-on that includes the PV system in your existing residential building insurance policy.

The main advantage is that if a claim affects both the building and the PV system, for example in the event of a fire, you only have one insurer to deal with, avoiding disputes over responsibility. The drawback is that standard building insurance usually only covers fire (including lightning), water from pipes, and storm and hail. Flooding, sewer backup, and snow load are natural hazards that need a separate natural-hazards add-on, and theft, animal damage, operating errors, and loss of income are often missing. Some policies also limit cover to a certain system size or sum insured.

It is essential to notify your insurer, ideally before the system is delivered and installed. In many cases, an email stating the system capacity (kWp), any storage, and the purchase value is sufficient. Depending on the policy, a new PV system can count as an increase in risk, which under § 23 of the German Insurance Contract Act (VVG) you must not make without the insurer’s consent or must report without delay. If you breach this duty, the insurer may reduce or refuse payment depending on the degree of fault, provided the increase in risk contributed to the loss (§ 26 VVG). In addition, if the system is not reflected in the sum insured, you risk being underinsured, and the insurer will then pay only a proportion of the loss.

2. A Standalone Photovoltaic Insurance Policy

A separate policy generally offers broader coverage and more reliably includes risks such as theft, short circuits, and loss of income.

In practice, standalone policies are often chosen for larger and more expensive systems, systems with battery storage, or where the building insurer either limits coverage or does not cover PV systems at all. If a loss affects both the house and the system, you will then deal with two insurers.

Liability, storage, wallbox, and installation phase

If a module comes loose and damages a car or injures someone, you are liable as the operator. For a system on your own owner-occupied home, this is often covered by your personal liability insurance, but check that PV systems and feed-in are named in your policy. For rented or multi-family buildings, landlord and property owner’s liability is usually the right place; for systems on someone else’s roof or commercial operation, a separate operator’s liability policy is usually needed.

A battery storage unit is usually included in standalone PV policies if it is connected to the system; make sure it is named in the contract and its value is in the sum insured. A permanently installed wallbox is treated as part of the building by many insurers or must be included separately; it is not automatically part of a PV policy. Until acceptance of the work, the installing company generally bears the risk for its work (§ 644 of the German Civil Code, BGB), so separate installation insurance is mainly relevant for self-installation.

Our practical recommendation: Address insurance considerations during the planning phase of your system, not after commissioning. This helps prevent coverage gaps from the outset.

What Does Photovoltaic Insurance Cost?

Premiums depend on factors such as location, system size and value, deductible, and the desired scope of coverage. The following figures come from the comparison by the German consumer organisation Stiftung Warentest (Finanztest, published 4 April 2025) and may have changed since.

Actual costs can vary significantly depending on the insurer and the specific installation. According to a note in the test, some premiums are quoted without insurance tax. Individual quotations can only be obtained directly from an insurance provider.

For privately used systems, separate operator’s liability insurance is often unnecessary if your personal liability policy already includes the PV system. Check your policy wording.

The Decisive Factor: Professional Installation Safeguards Your Insurance Coverage

This is where an aspect often overlooked in many guides becomes critically important for maintaining insurance protection:

Many photovoltaic insurers require the system to be installed by a specialist installer in accordance with recognised engineering standards. Self-installed PV systems are excluded by many policies or only insurable after acceptance by a specialist installer. Moreover, if a system has been installed improperly, insurers may reduce benefits or deny coverage altogether, for example if damage results from faulty electrical wiring.

In other words, even the best insurance policy is of little value if the installation itself provides grounds for denying a claim. Professional installation and compliant electrical connection, documented and carried out in accordance with the applicable Technical Connection Conditions (TAB) and VDE standards, are prerequisites for ensuring that your insurance coverage remains valid when you need it most. This also includes lightning and surge protection and the fire separation rules in Lower Saxony, which insurers sometimes apply more strictly than building law on commercial roofs.

This is precisely where PVPro Solar comes in. As a specialist installation company with its own certified installers, we plan and install your photovoltaic system in full compliance with applicable standards and provide complete documentation, from module installation and battery storage integration to final grid connection.

This ensures that your system remains not only technically safe but also secure from an insurance perspective.

If a loss occurs: what to do

1. Safety first. Do not climb onto the roof or touch damaged modules or cables; the DC side is live in daylight even if the inverter is off.
2. Report the loss without delay once you become aware of it (§ 30 VVG). In case of theft or vandalism, also inform the police.
3. Limit the damage as far as reasonable and follow the insurer’s instructions (§ 82 VVG).
4. Document with photos, keep damaged parts, and save monitoring data to prove the loss of yield.
5. Have a specialist electrical company check the damage, and agree the repair with the insurer first.

Conclusion

Although photovoltaic insurance is not legally mandatory, it is strongly recommended given the scale of the investment involved. Whether you choose to include the system under your building insurance policy or take out a standalone policy depends on the size of the installation, how it is used, and the extent of coverage you require.

More important than any individual policy decision, however, is the foundation on which your protection rests: a professionally installed system is essential to ensuring that your insurance coverage actually applies when a loss occurs.

Are you planning a new PV installation? Request your free, no-obligation quote. You can also call us on 0511 3360603 or message us on WhatsApp at +49 176 2399 8536.

Sources: Stiftung Warentest (04.04.2025); GDV: Photovoltaikversicherung; Verbraucherzentrale: Elementarschäden; § 23, § 26, § 30, § 82 VVG; § 644 BGB; PVGIS.