Solar Panel Insurance: Is Your System Covered?

Yes, your solar panels and battery are almost always covered by a standard New Zealand home and contents policy, but only if you've told your insurer they exist and increased your sum insured to cover the cost of replacing them. A roof-mounted solar array becomes a permanent part of your home, so it falls under your house policy. The catch is that most policies in New Zealand are now sum insured rather than full replacement, which means you set a dollar figure and the insurer pays up to that figure and not a cent more. Bolting $15,000 to $30,000 of new gear onto your roof without lifting that number is the single most common and most expensive mistake homeowners make after an install.

Why this matters more than people think

Since the Canterbury earthquakes, almost every major insurer in New Zealand has moved away from open-ended "full replacement" cover to a sum-insured model. State, AA Insurance, Tower, AMI, FMG and the bank-branded policies all work this way now. You nominate a rebuild figure, and that figure is the absolute ceiling on what they'll pay if your house burns down or a quake brings it down.

Here's the problem. That rebuild figure was almost certainly calculated before you put solar on the roof. A typical 6.6kW system installed in 2025 runs roughly $11,000 to $16,000 fully fitted, and a battery can add $8,000 to $20,000 on top depending on size, going by current installer pricing across the country. If your sum insured doesn't account for that, you've got a five-figure gap sitting on your roof that nobody is covering.

Worse, in a total loss you don't just lose the panels. You lose the labour to remove the damaged array, the scaffolding, the new install, the inverter, the wiring, and the re-commissioning. Replacing a system after a fire is more expensive than the original install because the whole roof structure is being rebuilt around it.

How NZ insurers actually treat solar panels

The good news first: solar panels are not exotic to New Zealand insurers anymore. They're treated as a permanent fixture of the dwelling, the same way a heat pump, a deck or a woodburner is. You generally do not need a separate specialist policy for the panels themselves.

What you do need to do is two things:

• Tell your insurer you've installed solar. This is a material change to the property and most policies require you to disclose it. Failing to disclose changes can give an insurer grounds to decline or reduce a claim.
• Increase your sum insured to include the full installed cost of the system, including the labour and the gear, not just the panels.

Roof-mounted panels are covered under the house (building) section of your policy because they're fixed to the structure. This matters because the events covered are the building events: fire, storm, hail, earthquake, accidental damage, and so on. The standard exclusions still apply, so gradual wear, corrosion over time, and lack of maintenance are typically not covered.

Where batteries get murky

Batteries are where it pays to ask a direct question. A wall-mounted battery like a Tesla Powerwall or a BYD unit is usually treated as part of the building if it's hard-wired and permanently fixed, which most are. But some insurers, and some specific policies, may treat a battery as a high-value item that needs to be specifically noted. Don't assume. Ring them and get it in writing.

There's also a quieter issue with lithium batteries and fire risk. New Zealand insurers are increasingly alert to lithium battery fires (you'll have seen the coverage around e-scooters and the like). A properly installed, code-compliant home battery from a reputable installer is a different animal entirely, but it's worth confirming the battery is covered for fire and that your installer has used a certified electrician and supplied the compliance paperwork. Keep that paperwork. We talk more about the records you should hang onto in our wider rundown on living with a system over at https://nzsolaris.co.nz/your-solar-system-ownership-guide/.

The sum-insured trap, with real numbers

This is the bit installers almost never mention, because it isn't their job, and it's where people get burned.

Picture a 1990s brick-and-tile place in Rolleston, Canterbury, insured for a rebuild of $520,000. The owners put on an 8kW system with a 10kWh battery in 2024, all in for about $28,000. They never told their insurer and never touched the sum insured.

Two years later a significant fire guts the roof and upper structure. The actual cost to rebuild, including stripping and replacing the now-damaged solar system, comes to $548,000. The insurer pays the sum insured: $520,000. The owners are $28,000 short, which is, almost to the dollar, the cost of the solar they never declared. They effectively self-insured their entire system without realising it.

Now flip it. The same owners spend ten minutes on the phone, declare the install, and lift their sum insured to $548,000. Their annual premium rises by a relatively modest amount (solar adds value but not a huge amount of rebuild cost in percentage terms), and they're fully covered. That phone call is the highest-value thing you can do after your system goes live.

How to work out the right sum insured

Most insurers use an online rebuild calculator (the Cordell calculator is the common one in New Zealand) to estimate your sum insured. These calculators historically did not automatically include solar, so the figure they spit out can leave your system out entirely.

The fix is simple. Take your final installed invoice, the total figure including GST, labour and the battery, and add it on top of whatever the rebuild calculator gives you. Then add a sensible margin, because post-disaster rebuild costs run higher than a calm-day install due to demand, scaffolding and access. A practical rule of thumb is to add your full installed cost plus roughly 10 to 15 percent for the messier reality of a rebuild.

What's actually covered, and what isn't

Once you've declared the system and set the right sum insured, here's the realistic picture of what a standard NZ house policy will and won't do.

Typically covered:

• Storm and hail damage to panels. Genuine hail damage is rare in most of the country but real in parts of Canterbury, Otago and the central North Island.
• Fire, including electrical fire originating from the system if it was compliantly installed.
• Earthquake damage, with EQC's Toka Tu Ake cover applying to the building up to the cap and your private insurer covering above that.
• Accidental damage, for example a tree limb coming down on the array in a storm, or a tradesperson putting a foot through a panel.
• Theft of panels or a battery, though this is rare given how they're fixed.

Typically NOT covered:

• Gradual deterioration and the normal drop in panel output over the years. That slow decline is a product warranty matter, not an insurance one. If your output has dropped suddenly and you're not sure why, our walk-through on chasing that down is here: https://nzsolaris.co.nz/solar-output-dropped-troubleshooting-nz/.
• Manufacturing defects, which fall to the manufacturer's warranty and the workmanship warranty from your installer.
• Lost income from buy-back. If a fault stops you exporting power, your insurer won't reimburse the buy-back payments you miss.
• Poor or non-compliant installation. If the install wasn't done by a licensed electrician to code, a claim can be declined.
• Wear, rust and lack of maintenance. Keeping the system clean and in good nick is on you. We cover the realistic maintenance side over at https://nzsolaris.co.nz/cleaning-maintaining-solar-panels-nz/.

The warranty-versus-insurance confusion

People muddle these two constantly, and dodgy salespeople sometimes let them, so let's be clear.

Insurance covers sudden, accidental, external events: fire, storm, quake, someone's foot through a panel. Warranty covers the product and the workmanship: a panel that fails early, an inverter that dies, a dodgy connection.

A panel that quietly underperforms after eight years is a warranty issue, not an insurance claim. A panel smashed by a falling branch is an insurance claim, not a warranty issue. Knowing which is which saves you wasting time arguing with the wrong party. Keeping an eye on your system's output through your monitoring app is the easiest way to spot a problem early and work out which bucket it falls into; we run through the apps and what to watch for here: https://nzsolaris.co.nz/monitor-solar-production-nz/.

The warranty clause that quietly bites

Here's something the glossy brochures skip. Many panel and inverter warranties are conditional on the installer still being in business and on the system being maintained and registered. Workmanship warranties in particular often sit with the installation company, not the manufacturer. If that company folds (and the New Zealand solar industry has seen its share of operators come and go), your workmanship warranty can evaporate even while your panels are technically still under a manufacturer's product warranty.

Insurance does not fill that gap. A defective install that fails over time is not a sudden accidental event, so your house policy won't touch it. This is exactly why choosing an installer with a genuine track record matters more than shaving a few hundred dollars off the quote. It's also worth registering your product warranties directly with the manufacturer where you can, so you're not solely reliant on the installer's paperwork.

Will solar push your premium up?

A little, usually. You're adding value to the home and a bit more rebuild cost, so the premium typically nudges up rather than jumps. The increase reflects the higher sum insured more than any view that solar is "risky".

Don't let the prospect of a slightly higher premium tempt you into not declaring the system. The few dollars a month you'd save is nothing against a five-figure uninsured gap. And insurers genuinely do check: after a major loss, an assessor on the roof will see the array and the question of whether it was declared will come up.

It's worth folding this small ongoing cost into your overall sums when you're weighing up whether solar pays off for your place. If you want to model the full picture including the bits people forget, our calculator lets you play with the numbers: https://nzsolaris.co.nz/solar-roi-calculator/.

Renters and rentals: a quick note

If you own a rental and put solar on it, the panels go under your landlord building policy, and the same sum-insured rules apply. Tell your insurer and lift the figure.

If you're a tenant, you almost certainly won't be installing solar yourself, and your contents policy won't cover the building's fixtures. Solar generally only makes financial sense for people who own the roof, which is a fair chunk of why it doesn't stack up for renters.

What to do, step by step

Once your system is commissioned and you've got the final paperwork, work through this list. It takes about half an hour and it's the cheapest insurance review you'll ever do.

• Ring your insurer and declare the install. Get it noted on the policy and ask for written confirmation that the system is covered.
• Ask the direct battery question: "Is my hard-wired home battery covered under the building section, including fire?" Get the answer in writing.
• Recalculate your sum insured. Use the rebuild calculator, then add your full installed cost (panels, inverter, battery, labour, GST) plus 10 to 15 percent.
• Keep your compliance paperwork. The Certificate of Compliance from the electrician, the installer's documentation, and your warranty registrations. Store digital copies somewhere you won't lose them.
• Check the exclusions. Read the wording around gradual deterioration and maintenance so you know where insurance stops and warranty starts.
• Diarise an annual review. Costs creep, so revisit your sum insured each year at renewal, the same way you would for any major home addition.

Frequently Asked Questions

Do I need a special insurance policy for solar panels?

No. In nearly all cases your standard New Zealand home (building) policy covers roof-mounted panels as a permanent fixture, the same as a heat pump or deck. You just need to declare the install to your insurer and lift your sum insured to include the full installed cost.

What happens if I don't tell my insurer I've installed solar?

Failing to disclose a material change to your property can give an insurer grounds to decline or reduce a claim. Even if a claim is paid, a sum-insured policy will only pay up to your nominated figure, so an undeclared system is usually an uninsured one. A quick phone call after install is essential.

Is my home battery covered the same way as the panels?

Usually yes, if it's hard-wired and permanently fixed, but some insurers treat batteries differently or want them specifically noted. Because batteries are high-value and there's growing awareness around lithium fire risk, ask your insurer directly and get written confirmation that yours is covered, including for fire.

How much should I increase my sum insured by?

Add the full installed cost from your final invoice (panels, inverter, battery, labour and GST) on top of your existing rebuild figure, then add roughly 10 to 15 percent. Rebuild costs after a disaster run higher than a calm-day install because of demand, access and scaffolding.

Will solar increase my home insurance premium?

Typically a little, because you're raising your sum insured to reflect the added value. The rise is usually modest and reflects the higher rebuild figure rather than any view that solar itself is risky. It's a small ongoing cost worth factoring into your overall payback maths.

Does insurance cover my panels wearing out or producing less over time?

No. Gradual decline in output and normal wear are warranty matters, not insurance ones. Insurance is for sudden, accidental, external events like fire, storm, hail and earthquake. A panel that quietly underperforms is a warranty claim with the manufacturer or installer.

What if my installer goes out of business?

Your workmanship warranty often sits with the installer, so if they fold, that cover can disappear even though the manufacturer's product warranty on the panels may still stand. Insurance won't fill this gap, since a defective install isn't a sudden accidental event. Register your product warranties directly with the manufacturer where possible and choose an installer with a solid track record.

Does EQC cover solar panels in an earthquake?

EQC (Toka Tu Ake) cover applies to the building up to the statutory cap, and your private insurer covers the rebuild above that, provided your sum insured is set correctly. As panels are part of the dwelling, they're caught by this same building cover, which is another reason to make sure your sum insured includes them.

Are panels covered if the damage is from a storm?

Yes, genuine storm and accidental damage, such as a tree limb falling on the array, is covered under a standard building policy once the system is declared. What isn't covered is gradual deterioration or damage from poor maintenance, so keeping the system in good condition matters.

The bottom line

Solar is almost certainly covered by your existing home insurance, but only if you do two unglamorous things: tell your insurer it's there, and lift your sum insured to cover the full installed cost plus a margin. Skip those, and you've effectively self-insured a five-figure asset bolted to your roof without meaning to.

Treat the insurance call as the final step of your install, not an afterthought. It costs you half an hour and protects everything you've just spent. For the wider picture of looking after a system once it's up and running, from monitoring to maintenance to warranties, we've pulled it together over here: https://nzsolaris.co.nz/your-solar-system-ownership-guide/.