Home Insurer Revises Policy on Residential Solar Panels

[JSchnee21]

Obviously regulations vary by location and POCO, but in my locality (NJ), JCPL and PSEG won't accept an application for a residential PV system whose production is expected to exceed 100-105% of historical usage. Now as you pointed out, energy conservation efforts can reduce consumption and some systems may produce more than anticipated. Though unless you stopped using AC all together, replaced your electric baseboard heat with gas, or stopped charging your Tesla, you'd be hard pressed to be off by ~25%.

I don't understand why homeowner's policies don't have available riders for this type of thing yet. I can get a rider for everything else under the sun. Jewelry, art, musical instruments, trampolines, other structures, liability, mold, sewage backup, etc.

But I agree, it seems like a poor and somewhat arbitrary way to write an insurance policy. You would think that if the POCO accepted your application to be a residential generator that the insurance company would have to as well.

[bcroe]

I see that there is a new exclusion mentioned in the fine print.

Excluded from any loss coverage.

"Systems and equipment used to generate electrical power exceeding 125% of the actual
electrical power usage by the residence premises in the 12-month period prior to the date of loss."

So I will lose insurance coverage if I make more than 125% of what I use (never mind that the excess
has little financial reward) but I would maintain coverage IF I leave all the lights on, run the pool pump
extra hours or set the A/C lower during the hot summer months. Basically, if I've remembered to waste
electricity in the 12 months before a loss, I will have coverage. If I have conserved energy, I could be
screwed.

So what does that mean? Your solar equipment is not insured against
damage, theft or fire if you are selling electricity? Ask for an explanation.

I worry little about stuff happening to my solar. It is located far from the house, much is
underground, the rest is securely bolted down over a rather large area. About the worse
that could happen is a storm breaks half the panels, not very difficult to fix.

Anyway, who is even going to know if you generated more than you use, or how much more,
unless its on your PoCo billing statements? Its not hard to knock off a few excess percent if
that far over (I am not). I could just switch on the resistance heater instead of the heat pump,
could leave the electric heat set higher in another normally very cold building.

In a bit of the most severe cold weather, I have been known to leave every light in the house
on 24/7. I take out the LEDs and put in incandescents. Running the electric stove is effective.

Bruce Roe

[jflorey2]

Excluded from any loss coverage.

"Systems and equipment used to generate electrical power exceeding 125% of the actual electrical power usage by the residence premises in the 12-month period prior to the date of loss."

It would be interesting to find out what their thought process was here. Also seems pretty easy to defeat in court if needed - "we made our best efforts to comply with the requirement, but our new refrigerator, unbeknownst to us, was more efficient." But as that exclusion only covers the system itself, such a court case probably wouldn't be worth it.

[azdave]

My homeowner's policy is due for renewal and they sent one of those flimsy little tissue paper pamphlets that most people never read. I see that there is a new exclusion mentioned in the fine print.

Excluded from any loss coverage.

"Systems and equipment used to generate electrical power exceeding 125% of the actual electrical power usage by the residence premises in the 12-month period prior to the date of loss."


So I will lose insurance coverage if I make more than 125% of what I use (never mind that the excess has little financial reward) but I would maintain coverage IF I leave all the lights on, run the pool pump extra hours or set the A/C lower during the hot summer months. Basically, if I've remembered to waste electricity in the 12 months before a loss, I will have coverage. If I have conserved energy, I could be screwed.

Hey kids! Don't turn off the lights when you leave a room and please leave the patio door open when you go out for a swim.