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Tier 1 Solar Panels
- Most basic and least expensive.
- They may not work as well in certain conditions, like when it’s cloudy or hot outside.
- Systems less than or equal to 10 kW
Tier 2 Solar Panels
- Tier 2 solar panels are a step up from Tier 1.
- They are a bit more expensive, but they work better in different weather conditions.
- Most popular among Residential Homeowners.
- Larger than 10 kW up to 100 kW
Tier 3 Solar Panels
- Tier 3 solar panels are the best quality and most expensive.
- They are the most efficient at converting sunlight into electricity, and they work well in all weather conditions.
- Typically used in Commercial Building.
- Larger than 100kW
Most Commonly Used Solar Panel Tier
Tier 2 solar panels are most commonly used for residential homes. They provide a good balance between cost and performance. They are more efficient than Tier 1 panels and more affordable than Tier 3 panels. They can handle a wide range of weather conditions and are robust enough to last for many years. These are a popular choice among homeowners as they are considered to be a good investment and provides a good return on investment over time.
Tier 2 PLP Insurance Requirement:
It is becoming increasingly common for homeowners to install a Tier 2 solar system, which typically ranges from 10 kW and above, in order to meet their energy needs. However, to install a system of this size, it is typically required to provide proof of a Personal Liability Policy (PLP) that offers at least $1 million in coverage. Additionally, utility companies may also require financial statements and supporting documentation to verify the value and size of the proposed solar system and associated insurance.
What is PLP Insurance?
The insurance is called a Personal Liability Policy (PLP) and it costs about $200 annually. It’s like an extra insurance policy that covers more than just your house and car. If someone gets hurt or killed because of your solar system, this policy will help pay for it. The utility companies are worried that they will be blamed if something bad happens, so they want people to get this insurance. Furthermore, homeowners will still be able to save money on their electricity bills even with the PLP insurance from their Tier 2 system. Additionally, solar installers will enjoy vast property value booms amongst other benefits such as Federal Tax Credits.
Do I Need PLP Insurance?
The utility companies want to protect themselves from being blamed if something bad happens because of a customer’s solar system. They want people to get insurance that will help pay for any damage or injuries caused by the solar system. This is a controversial idea and some people think it’s not necessary. But in Florida, homeowners are required to get this insurance or they can’t use solar power.