Our Guide to Florida Solar Insurance for Tier 2 Solar Systems

If you are planning to install solar panels in Central Florida with a Tier 2 system, you must have proof of Tier 2 insurance. This insurance policy, known as a Personal Liability Policy or PLP, must have coverage of at least $1 million.

This may come as a surprise to many Florida residents who are in the beginning stages of their solar installation, but it is an important requirement to be aware of.

Our pros at Solar Bear Orlando explain what you need to know!

What is the Tier System?

Utilities separate solar systems into tiers, categorized by Kilowatt (kW) system size. Although the exact terms will vary by company, the tiers that are generally recognized throughout Florida include:

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

Tier 2 Utility Connections

Tier 2 solar systems start at 11,765 watts and require a $400 one-time interconnection fee and $1 million of personal liability insurance whether on your homeowner’s insurance policy or as an umbrella policy.

Each utility company requires a specific type of disconnect switch that they have access to, and it generally must be near the utility meter. The interconnection of a Tier 2 system is the same, but some additional documentation is required.

The idea behind these Tier 2 requirements goes back to when solar equipment was new and could potentially back-feed power to the grid, endangering utility workers. These requirements are outdated and unnecessary, but they are part of the Net Metering law’s tier system and part of your utility company’s approved interconnection agreement.

Another factor to consider is how much power the utility company can accept from your system. They need to ensure that their transformers and transmission equipment can handle the amount of solar power produced by your system and other net metering customers in the area. Tier 2 interconnections require a bit more on the utility company’s part, justifying the extra costs to ensure the stability of the grid for all users.

Tier 2 Insurance Requirements

Many new solar customers are not aware of the exact terms of their utility company’s Interconnection Agreement. This agreement states that you must have sufficient liability insurance for your system.

Your insurance company might be unfamiliar with this requirement, and confusion can arise if you ask your insurance agent to “insure my solar panels for $1 million.” When discussing insurance for your Tier 2 system, communicate clearly that you need a Personal Liability Policy of $1 million and you should have no problems.

What Kind of Insurance Do I Need?

If you want to install a Tier 2-sized system, your utility company will require proof of a Personal Liability Policy that provides at least $1 million in coverage.

You will also need to provide a financial statement and documentation that proves the value and size of your solar system and insurance.

Why Do I Need Tier 2 Solar Insurance?

Your utility company wants to protect itself from liability if a customer’s solar system causes injury or death.

These insurance demands are quite controversial, and there have been several disputes throughout Florida about the need for these Tiered solar insurance demands, but unfortunately, Florida homeowners must comply.

Is PLP Insurance Expensive?

Thankfully, most PLPs are affordable at just around $14 a month which allows homeowners to enjoy considerable savings on their electric bills, even with the insurance needed for their Tier 2 system.

Central Florida Solar

Solar Bear has been a trusted guide for homeowners wishing to install solar for years and is an invaluable resource if you are looking to install a Tier 2 solar system.

Our personal approach to each customer’s unique situation, combined with an extensive understanding of the industry, make Solar Bear an ideal partner for anyone considering solar energy.

With competitive pricing and superior service, Solar Bear is the go-to provider for solar systems in Central Florida! Contact us today for a quote at (727) 471-7442!