Solar Tier Insurance Requirements in Florida

Ready to make the switch to a cleaner, more efficient future by investing in solar panels for your Florida home? Any Florida homeowner who wants to install solar panels must hold an appropriate solar insurance policy. Currently, Florida utility companies separate solar systems into distinct tiers according to system size, measured in Kilowatts (kW). Here’s an introduction to the various tier requirements for solar in Florida, and the insurance requirements that accompany them.

Introduction to Solar Tiers

While the exact terms of your utility company’s Interconnection Agreement vary depending on the company you work with, there are three tiers that are generally recognized throughout Florida:

  • Tier 1: Systems less than or equal to 10 kW.
  • Tier 2: Systems larger than 10kW, up to 100kW.
  • Tier 3: Systems larger than 100kW.

Some homeowners can completely cover their energy needs with a Tier 1 system, but larger systems in Tier 2 are becoming increasingly common. Tier 2 systems need proof of Tier 2 insurance, which includes a Personal Liability Policy (PLP) that provides coverage of at least $1 million. You’ll also need to provide supporting documentation—including a financial statement—that outlines the value and size of your solar system and the insurance policy you hold.

What Is a PLP?

A PLP is commonly referred to as an “umbrella policy.” It provides homeowners with extra coverage that reaches beyond their typical home and auto insurance liability coverage limits. While there is no reason to believe your solar system is dangerous, a PLP covers damages if someone is injured or killed by the system.

Why Do I Need Solar Insurance?

While solar energy systems are incredibly safe, utility companies are looking to protect themselves from any risk. They require homeowners to hold a PLP to protect themselves from liability should a customer’s solar system cause injury or death. While there is some discussion and dispute throughout Florida about whether there’s even a need for tier solar insurance, for now, homeowners must comply with regulations and requirements—you must hold at least a $1 million PLP, or you forfeit your source of electricity.

How Affordable Is PLP Insurance?

Luckily, it doesn’t cost much to hold a valid PLP for Tier 2 solar insurance. Most policies are around $15 per month, and you’ll more than make up for the cost on your electricity bills. Plus, there is a big boost in your property value along with other benefits like Federal Tax Credits.

Make the Switch to Solar Today!

Still have questions about solar insurance? The solar experts at Solar Bear – Tampa are standing by to help! We’re ready to help you make the switch to solar, helping you save money on your energy bills and increase your property value in the process! Call us today at (727) 471-7442 to schedule your free estimate.