Solar Panel Tiers
- Least expensive option
- It will function and perform similarly to any other tier; however, if a homeowner prefers not to surpass tier 1, a tier 1 system might not fully offset their desired level of usage, depending on their typical consumption patterns.
- Tier 1 System: less than or equal to 10kW
- Slightly higher cost due to the need for additional panels.
- Will offset their typical energy usage allowing enough excess energy created to be fed back into the grid
- Tier 2 System: More than 10kW
- Typically used for commercial properties
- Larger than 100kW
Why does a homeowner
need this coverage limit?
Potential for High Liability Costs
Solar systems, especially larger or more complex ones like Tier 2 systems, can pose significant risks. If the system were to malfunction or cause damage, the resulting liability claims could be substantial. Injuries property damage, or worse can result in lawsuits with high compensation amounts. A $1 million policy ensures that you have adequate coverage to handle such claims
Protecting Personal Assets
In the event of a claim that exceeds the limits of standard homeowners insurance, without adequate personal liability insurance, your personal assets could be at risk. A $1 million policy adds an additional layer of financial protection.
Peace of Mind
Carrying a higher liability coverage gives homeowners peace of mind, knowing they are financially protected if their solar system unexpectedly becomes the source of a costly accident.
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 seek to shield themselves from liability in the event that a customer’s solar system is shown to be the cause of an unfortunate event. They advocate for consumers to purchase insurance to assist cover any harm or injuries brought on by the solar system. Some people disagree with this notion and believe it is unnecessary. But in Florida, homeowners must obtain this insurance in order to use solar energy.