Interconnection Agreement

Insurance Requirements for Tier 2 Solar Panel Utility Interconnections

If you are installing a Tier 2 solar photovoltaic system (Greater than 10 kW AC and Less than or Equal to 100kW AC), you will need to provide evidence of $1 million in personal liability insurance. This can be through a homeowner’s insurance policy or, more commonly, an umbrella insurance policy.

An umbrella policy is affordable and beneficial for virtually everyone, but it becomes mandatory by the utility company once your solar energy system exceeds a certain size (Greater than 10 kW AC). The utility company will require proof of insurance before you can interconnect your system and begin exporting excess power to the grid. You must also maintain this insurance for the duration of your interconnection agreement.

Your insurance declaration page simply needs to include your name and the address of the property where the solar panels will be installed. If this is a secondary address, your insurer can add it as an additional insured property at no extra cost. During the interconnection paperwork process, we handle uploading your insurance declaration to FPL or LCEC on your behalf, making the process easy for you! During our processes we will notify the customer on when we will be needing this proof of insurance so we can move the project forward. This is usually required after installation, ideally before inspections have been completed so we can move forward with interconnection as soon as inspections pass.

LCEC’s Tier 2 Interconnection Agreement states,

“For an RGS with a capability of greater than 10 kW AC and equal to or less than 100 kW AC, the Customer agrees to provide and maintain not less than one million dollars ($1,000,000) of Personal Injury and Property Damage Liability Insurance. Proof of said insurance shall be provided by the Customer and attached to this Interconnection Agreement, and all policy renewals shall be provided to LCEC.”

FPL’s Tier 2 Interconnection Agreement states,

“The Customer agrees to provide and maintain general liability insurance for personal and property damage, or sufficient guarantee and proof of self-insurance, in the amount of not less than $1 million during the entire period of this Interconnection Agreement, to the extent permitted by law. Initial proof of insurance shall be in the form of a copy of the policy or certificate of insurance attached to this Interconnection Agreement evidencing the Homeowner’s or other insurance policy in effect at the time of interconnection.”

Sometimes, insurance agents might be confused about what you need. This is not insurance for your solar panels; it is liability insurance. The solar panels themselves are not the focus of this requirement. You just need $1 million in liability coverage. However, it is still a good idea to insure your solar panels through your homeowner’s policy, which is a separate matter. Do not confuse the two. The utility company does not require insurance specifically for the solar panels.

If you have questions about the insurance requirements for solar panel utility interconnections, give us a call! We are happy to help!