6 August 2026 | See disclaimer
Before installing a solar panel system, you may want to ask your insurance provider: are solar panels covered by home insurance?
Around 30% of Australian households have rooftop solar panels installed, and solar PV systems generated approximately 10% of Australia’s electricity in 2020-21. [1]
Solar panels can be covered by Budget Direct Home insurance, if loss or damage is caused by an insured event such as fire, lightning, storms or damage from impact, such as a falling tree.
Here are the details when it comes to whether your solar panels and energy storage systems may be covered under your insurance policy.
Installing Solar Panels
In Australia, solar panels must be installed by a licensed rooftop solar installer who is accredited by the Solar Accreditation Australia (SAA). These installers also need to hold the right electrical license for the state where the panels are being installed. [2] This helps ensure the system is installed safely and meets Australian standards.
As part of your installation, it’s also a good idea to think about how to protect your home from extreme weather. Solar panels are built to handle outdoor conditions, but storms and hail can still cause damage. Preparing your property’s solar panels from loss or damage including events such as storms and hail can help reduce this risk.
For example, trim trees and branches that hang over your roof, and secure loose items that could become airborne during strong winds. Taking steps to prepare your home before storm season can help protect both your roof and your solar panels.
Looking for a home and contents insurance policy that covers damage to
solar panels?
Talk to a Budget Direct team member about our home and contents insurance.
Your home insurer will need to know if you have installed or are planning to install new solar panels. This is because solar panels are typically covered under a building insurance policy as a fixture of the home.
There are a few more details when it comes to rooftop solar.
Performance Warranties
If your solar panels have stopped working (after they’ve been installed) and this is not due to an insured event, your home insurance will not cover you when it comes time for an insurance claim. It would be best to contact your solar system provider and look into its performance warranties that might be available to you. This may also include your solar battery system.
Product Warranties
Generally, solar panels last for up to 25 years; [2] but any physical or electrical issues that cause the solar panels to fail or not perform will fall under coverage from the product warranty.
Home and Contents Insurance
Budget Direct’s Home and Contents Insurance covers loss or damage to energy storage systems and solar panels if the damage is caused by an insured event listed in the policy and happens during the period of insurance. You can find further information in our Home Insurance PDS.
In the policy, energy storage systems mean permanent devices such as home batteries, cabinets and control systems along with their parts. These systems must follow local laws and be installed by a licensed electrician or authorised installer to be covered.
How Do Solar Panels Affect Insurance?
Adding solar panels to your property is often a significant investment which should also be considered when determining the replacement cost of your home.
If your solar panels are covered by your insurance, this should also be reflected in your sum insured. The sum insured is the amount needed to repair or replace your home if you make a claim.
The cost of purchasing and installing solar panels can range from $4,000 up to $20,000. You may want to review your nominated sum insured to ensure it’s high enough to cover the full replacement costs of your home and to cover all the potential loss and damage in the aftermath of an insured event. [3]
With Budget Direct, you may also be able to add the optional Sum Insured Safeguard cover to your home insurance policy. This means that we’ll increase your sum insured amount by up to 25% if what you’ve nominated turns out to be not enough to repair or replace your home – including your solar panels.
Is accidental damage insurance worth it?
Accidental Damage is an optional cover that can be added to your Home Insurance policy, and it can be a worthwhile investment if you’re looking for additional cover outside the “ten insured events” included in a Home and Contents Insurance policy.
Hail Damage to Solar Panels
Solar panels installed in Australian households are subject to potential risks such as fire, rain, hail impact and storms.
Did you know?
As an existing customer with Budget Direct (for example, if you’re a Car Insurance customer with us), you’ll receive exclusive access to our hail warning system, Hail Hero, free of charge. Hail Hero can let you know when a hailstorm is nearby your address and give you ideally 10 minutes or more to get anything valuable undercover.
Solar Panel Insurance
With Budget Direct, solar panels can be covered by all of our Home Insurance products. Your solar panels can be covered by Home Building Insurance if an insured event results in loss or damage.
So, whether you’re a landlord with Home Building Insurance, or a homeowner with Combined Home and Contents Insurance with Budget Direct, you can protect your investment in solar panels by making sure they’re covered — and could reduce your electricity bill while you’re at it.
FAQs
Why are solar panels covered in glass?
Solar panels are covered in low-iron tempered glass (also known as safety glass) to withstand large hailstones or other large objects. In terms of insurance, solar panels are considered a part of your building and will therefore be covered by your home and contents insurance policy.
