Solar Panels and Homeowners Insurance in Arizona

Updated: July 9, 2025

A Solar system protected by homeowners’ insurance is a great investment for your house. Solar can increase the value of your home, save you substantially on your utility bills, and provide the energy independence you deserve. However, one of the most important things to consider is how you will protect your investment.  Although Solar Topps prides itself on using premium products backed by premium warranties, it’s important to consider how you can have your system covered by your insurance policy. Remember that we service the entire state of Arizona, as we are located in Downtown Phoenix. 

A Quick Review of Solar Warranties for your Arizona Home

There are different warranties to consider for your home: Product Warranty, Performance Warranties, and Installer Warranties.  

Product Warranty 

This warranty will cover any defects in materials or workmanship by the manufacturer. Different manufacturers will have different warranties on their panels. It is important to check and see how long they offer coverage for their products. To get the most out of your investment, consider a solar panel with longer-lasting warranties. Some manufacturers will only cover their product for 5 years, while others will cover it for 25 years.

Performance Warranty

To best understand solar panels, one should consider the amount of energy they produce over time. This covers the performance of your panels. Solar Panels go through a process called degradation which means they will produce less energy over time. Things to consider with a performance warranty are: 

1) How much energy the panel will lose in its first year (most panels lose between 2 – 3%)? 

2) How much energy will the panels lose each year thereafter (up to 25 years)? 

3) In year 25, what percentage of the initial wattage rating will the panel be producing?

Installer Warranty

A solar panel installer warranty guarantees the quality of the installation, covering issues like improper panel placement, wiring errors, or structural defects. Typically lasting 5 to 10 years, it ensures professional support for installation-related problems. While we at Solar Topps have a warranty of 25 years. Unlike manufacturer warranties, which cover defects in system components, this warranty focuses solely on installation workmanship. Homeowners should review the terms carefully to protect their investment.

Solar Installers have their types of warranties for their projects: Understanding Your Warranty

Workmanship Warranty and Solar Panels

A Workmanship Warranty covers the performance of the solar panels. These warranties can range from 2 – 25 years. Check the warranty to ensure that it covers you in case something goes wrong.

Roof Penetration Warranty with Solar Energy

A Roof Penetration Warranty will cover the section of the roof where your installation will go. If you need to repair your roof before going solar, you can always include the cost of this in your system’s price and take advantage of available credits and incentives.

How does a warranty differ from Homeowners’ insurance for Solar Systems?

You may be asking, “Do I need a specific homeowners insurance if I have a warranty on my solar system?” It’s important to know when your warranty may or may not cover certain instances. The warranty may not cover damage caused by a golf ball. However, your home/roof insurance may provide coverage based on the type of coverage your home has. Having total coverage means less money out of your pocket if an issue arises. Therefore, although this is a personal decision for you to make, we think it is advisable to double-check with your current home insurance policy and see if it makes sense. 

Most homeowner insurance policies cover solar panels since they recognize your system as a permanent addition to your home. However, you may need to purchase more coverage in the event of a natural disaster. It’s important to review your policy and make sure it includes coverage for your solar panels. Don’t wait until it’s too late, protect your investment today.

Do Solar Panels Increase Homeowners’ Insurance? 

At Solar Topps, we understand the importance of protecting your home and everything in it. That’s why we offer comprehensive homeowners insurance for solar systems policies that not only cover the structure of your home but also any permanent additions such as solar panels.

We know that investing in solar panels is a big decision and can greatly benefit both the environment and your wallet. That’s why we want to make sure you have peace of mind knowing that your solar panels are protected in case of unexpected events.

Check your Existing Homeowners’ Insurance Policy

Many homeowners mistakenly assume that their existing homeowner insurance policy will automatically cover their solar panels. However, this is not always the case. It’s important to carefully review your policy and make sure that solar panels are included in your coverage.

If your current policy does not cover solar panels, don’t worry – there are options available for you. You can add a rider or endorsement to your existing policy to specifically cover your solar panels. This will protect against events such as theft, damage from severe weather, and even normal wear and tear.

It’s also important to note that the value of your solar panels may not be fully covered by your homeowner insurance policy alone. In this case, you may want to consider purchasing separate solar panel insurance which can provide coverage for the full replacement cost of your panels.

How Much Does Home Insurance Go Up with Solar Panels?

The impact of solar panels on home insurance premiums can vary based on factors such as the panels’ value, your location, and your insurer’s policies. On average, homeowners might experience an annual premium increase of $30 to $100 to account for the added replacement cost of the solar energy system. However, some insurers may not charge extra if the panels are roof-mounted and considered part of the home’s primary structure, as they might already fall under dwelling coverage. To fully understand how solar panels will affect your specific policy and premiums, it’s always best to consult your insurance provider directly

Location of your Solar Panels on an Arizona Roof

When considering extra insurance for your home, think about a few things. One important factor is the direction of solar panel placement on your roof. Also, check if the panels are attached to the roof. If your solar panels are on a Casita, workshop, or RV Barn that is detached from your home, you may require an upgraded insurance policy.

Supplemental Policy or Insurance Upgrades

Some homeowners’ insurance policies are designed to cover your home in the event of a natural disaster. While your homeowner’s insurance may cover your home, it may not provide complete coverage for your solar panels. If this were to happen, you would require a supplemental policy to offer additional protection to your belongings beyond what your standard policy covers. Another option is to get a more comprehensive plan for your home. The best way to make that decision is to get in touch with your insurance agent and work through the details. Remember that we service the entire state of Arizona. We service cities like Scottsdale, Fountain Hills, Phoenix, Gilbert, Buckeye and many more!

Main Takeaway: A Comprehensive Approach to Homeowners’ Insurance and Solar Systems

There are major benefits to doing research that can save you thousands of dollars on your system. Partnering with the right installer will prepare you for any situation. Get the best coverage with the right warranty and the right homeowners insurance coverage for you and your solar system. A good rule of thumb: if you’re not sure, consult with an expert! If you want a quotation for your Residential Home, please reach out to us. 

Solar Topps is always here to help you with your installation and makes your system. We believe premium products offer the best performance for every installation, not only because of their performance but also because they come with premium warranties that give you the peace of mind you deserve.