You may need a separate policy. Your home or business insurance policies may not provide coverage for loss or damage to a rooftop or ground-mounted solar panel, or loss of business income earned through the program. You may wish to purchase an extension to your current policy to cover your project. If you take part in Ontario’s renewable energy program you need appropriate coverage.
Thinking About Participating in microFIT?
You need to protect your investment. Get insurance coverage for the renewable energy installation itself and for your home or business. Talk to your broker or agent early in the process to obtain the right coverage. As a new program, not all insurance companies offer coverage so you may need to shop around.
Your insurance needs will depend on the way you participate and your electricity generation project – solar, wind or water. Each option has unique insurance considerations such as:
- Loss or damage to any solar panels or equipment on your property due to theft, fire, wind or other perils
- Loss of income due to the interruption of the generation and sale of energy caused by loss or damage to your property
- Liability for any potential loss or damage to a third party, such as a solar developer or renewable energy installer, or the local energy distribution company
How to Take Part in microFIT
There are several different ways to get involved, such as:
- Owning your own project
- Leasing your property1
- Leasing equipment
- Participating in a project
1 This arrangement is not currently permitted under the microFIT program. As of August 2010, the Ontario Power Authority created an advisory panel to develop a new program stream for those who wish to lease their property to a third-party solar developer.
What You Should Know
The microFIT project adds significant value to your property, which has additional insurance implications. Most comprehensive home or business insurance policies require you to report any renovations or upgrades that impact the value of your property. Speak to your broker or agent before construction begins to make sure you are adequately protected in the event that you suffer loss or damage to your home or business.
Community Project? You May Still Need Insurance.
If you choose to develop a microFIT project with members of your community, the organization that serves as the microFIT contract holder is responsible for obtaining insurance for the microFIT installation.
However, your insurance professional may recommend each person also carry insurance for any loss of income or damage to property that is held jointly.
Remember to Consider Your Liability Review all contract language carefully before entering into an agreement with a local energy distribution company, solar developer or renewable energy installer. You may also consider consulting with a lawyer. The specific sections of the contract related to liability may impact the responsibility you carry for any loss or damage to you or others resulting from your participation in the microFIT program.If you choose to work with a solar developer who can install and maintain your solar panel, make sure they have a minimum of $1,000,000 of commercial general liability insurance to cover any problems that might arise.Consider your liability for any potential loss or damage to a third party, such as a solar developer or renewable energy installer, or the local energy distribution company.Documentation to Share With Your Broker or AgentWhen you apply for insurance for any microFIT project, be ready to share documents that verify the safety and soundness of construction and to establish costs, such as:A conditional offer of microFIT contract and/or final microFIT contractLetter of authorization to connect from the Electrical Safety AuthorityA building permit or section report produced by the renewable energy installer (where one is involved)A connection agreement between you and the local distribution company and/or the contract between you and the renewable energy installer or solar developerAn invoice or purchase agreement outlining the total cost (including taxes) of panels, the installation of panels and the number of kilowatts generated (if applicable)