Insights
Usually the insurance premium does not increase, but keep these things in mind.
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There is an increased demand for self-produced green energy from owners of commercial buildings throughout the country. Tenants are making stricter requirements for green buildings, and more and more are seeing the benefits of using roof space to produce solar energy. What does it have to do with the insurance of the building?
Geir Otto Skjervheim, advisor and partner in the insurance brokerage company Kaman AS, has extensive experience in risk assessments and insurance related to the installation of solar photovoltaic systems on roofs and fields both in Norway and the rest of the world.
“Insurance of photovoltaic systems on commercial buildings is neither expensive nor difficult, as long as you use the precautionary principle and have a dialogue with your insurance company.
Here is Skjervheim's most important advice on insurance before and after installation.
Dialogue with the insurance company
— Regardless of whether you own the plant yourself or rent the roof to a photovoltaic company, you must inform the insurance company about the change. Rooftop solar cells are a new element that has been planned retrospectively and that involves a risk change. The policy needs to be updated to cover this risk,” Skjervheim says.
Sunday Power has asset and liability insurance on the solar installations they own.
However, it is important that you inform the insurance company about the change to your building.
Does that mean an increase in the insurance premium?
“No, almost never, and if so, it's marginal. But the insurance company must still know that a new element has arrived on the building,” says Skjervheim. He is supported by the general manager of Sunday Power, Jonas Ibsen Brynildsrud.
“Our solar as a service customers tell us that the solar system has not triggered a higher insurance premium, but that the insurance companies want some details about the plant to be able to give a sure answer. Of course, we help our customers with this.
However, if you own the plant yourself, you must also insure it.
— You can usually update the insurance you already have on the building. What you then have to make sure is that the insurance also covers a possible loss of the plant,” Skjervheim explains.
Three checkpoints, and you're in the finish
Skjervheim recommends three final checkpoints related to insurance.
“It may be useful to use a Norsk Standard (NS) contract to clarify the responsibilities between the parties before the plant is fully installed and handed over. The building owner shall not take over the responsibility until the plant has been tested and formally handed over.
This is according to Sunday Power's practice. The company assumes all responsibility until the plant is installed and operational. This is relevant only for those who themselves take the financing of the plant.
Consider whether you should insure against loss of income if your plant cannot produce electricity for an extended period of time.
“For example, if something happens to the roof and you have budgeted with a significant income from the sale of self-generated electricity, consider insuring against the loss of income as well,” says Skjervheim.
This is also relevant only for those who finance the plant themselves.
Buildings constructed after 2003 and in accordance with TEK17 must, as a general rule, withstand the additional weight of a solar installation, which normally accounts for only a few percent of the total bearing capacity of the building.
“For older buildings, I would recommend an assessment of the building construction, carried out by an independent third party, to be on the safe side,” concludes Skjervheim.
Read also: Negative electricity prices - what does it mean for solar owners?
