Insurance Requirements for Tier 2 Solar Panel Utility Interconnections (FPL and LCEC)

If you are installing a Tier 2 solar photovoltaic system, you will need to provide evidence that you have $1 million of personal liability insurance. This is usually done through a homeowner’s insurance policy, or more often through an umbrella insurance policy.

In this video, we explain the who, what, where, why, and how insurance works when you are planning to install solar panels on your home or business. We also explain how some shady solar contractors are skirting the rules and lying to you about what the requirements really are.

An umbrella policy is cheap insurance and something virtually everyone can benefit from. But it is a requirement once your solar energy system gets over a certain size. The utility company will require evidence that you have insurance before you are able to interconnect your system and begin exporting excess power to the utility grid. You are also required to maintain this insurance for the duration of your interconnection agreement.

Your insurance declaration page simply needs to have your name and the address of the property listed on which you intend to install solar panels. If this is a secondary address for you, your insurer can add your additional insured property location, and there is typically no additional cost for this. During the interconnection paperwork process, we handle uploading your insurance declaration to FPL or LCEC on your behalf. We make it easy for you!

Sometimes, insurance agents are confused about what you are trying to accomplish. This is not insurance for your solar panels. This is liability insurance. In fact, solar panels have nothing to do with this requirement with respect to the insurance policy. You just need the $1 million of liability coverage. That does not mean that you shouldn’t insure your solar panels. That is done through your homeowner’s insurance policy, and that’s another topic on its own. Do not conflate the two. There is no requirement that your solar panels be insured at all from the utility company’s perspective.

If you have questions about insurance requirements for solar panel utility interconnections and want truthful answers, give us a call and we would be happy to help.


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