Solar panel insurance in Luxembourg: how to properly protect
Installing solar panels in Luxembourg is a worthwhile investment, but it involves a step that is often overlooked: informing your insurer about your installation. Without doing so, your system may not be covered in the event of a claim. In this article, we look at:
- What your home insurance covers (and what it does not cover)
- The specific risks associated with solar panels
- The steps to take when installing a system
The cost of a photovoltaic installation depends on a range of factors (roof pitch, installation complexity, available roof space, choice of inverter, addition of a battery, and more). However, estimates place the average cost at around €8,000 to €15,000 before subsidies. It is therefore important to safeguard this investment over the long term, particularly in the event of unexpected circumstances.
The risks your solar panels are exposed to
Solar panels are exposed to a variety of climatic and technical risks. Storms can throw debris onto the installation or tear away fixings. Hail can cause cracks or breakage during severe weather events. A fire triggered by an electrical surge or faulty wiring can damage the system. The weight of snow during winter or a falling tree during a storm can also result in significant material damage. Finally, theft and vandalism, while less common, remain possible, particularly if the panels are easily accessible.
What happens if there is damage and you are not insured?
Without suitable cover, you will have to bear the cost of replacing the modules, paying for a certified electrician and, where necessary, repairing the roof yourself. During this period, your installation will no longer generate electricity. If the damage is not covered, the financial impact can therefore be twofold: repair costs and lost electricity production. To learn more about the benefits and precautions to consider, read our article on "Solar panels: reduce your electricity bills while protecting the environment".
In Luxembourg, there is no legal requirement to take out specific insurance for solar panels. However, your existing home insurance policy may already provide partial cover for this type of installation.
It is therefore important to check exactly what your current policy includes. Some policies cover equipment permanently attached to the building, while others do not. You may need to take out additional cover, such as under our Home policy, where the “renewable energy” package must be added.
To avoid unpleasant surprises in the event of a claim, we recommend contacting your insurer to review your existing cover. You can also check our guide to home insurance in Luxembourg to better understand the scope of standard cover.
What does solar panel insurance cover?
Below are the key standard and optional covers to consider.
Protection against severe weather and material damage
Your solar panels are exposed to Luxembourg’s weather conditions throughout the year. Basic cover generally protects your installation against the following events:
- Storms and hail: damage caused by strong winds or hailstone impacts on the panels.
- Lightning: power surges and electrical damage resulting from thunderstorms.
- Snow load: structural damage caused by excessive snow accumulation on the roof.
- Other material damage: falling objects (branches, debris), vandalism and glass breakage.
These risks are often covered, provided the installation has been declared and the appropriate cover has been taken out. We recommend checking the compensation limits that apply.
Cover for breakdowns and technical faults
In addition to weather-related risks, solar panels can also experience technical failures. Depending on the policy, cover may include:
- Electrical surges: damage caused by sudden fluctuations in voltage within the electricity network.
- Manufacturing defects: failures linked to hidden defects or faulty equipment.
It is important to distinguish between the manufacturer’s warranty and insurance cover. The manufacturer’s warranty covers the performance and compliance of the solar panels (including a guaranteed minimum output). Insurance cover, on the other hand, protects against losses and material damage not covered by the manufacturer, such as fire, theft or weather-related damage. The two forms of protection complement each other but do not replace one another.
Additional cover worth considering
For more comprehensive protection, you may wish to take out additional options suited to your circumstances:
- Loss of income: compensation if electricity production stops following an insured event, particularly useful if you sell part of the electricity you generate.
- Theft of equipment: cover for replacing stolen solar panels or inverters.
- Battery storage systems: specific protection for energy storage systems, which are becoming increasingly common in modern installations.
At Baloise, the Renewable Energy Package included within Home insurance offers three levels of cover (€10,000, €20,000 and €30,000) to protect solar panels, batteries and other renewable energy equipment.
You can review your situation with an agent to ensure that your cover reflects both the value and the specific characteristics of your installation.
For a standard residential installation, costs typically range from €7,000 to €15,000, depending on the capacity selected (generally between 5 and 10 kWp). The final price depends on several factors: the installation’s capacity, the type of panels chosen, the complexity of the installation, whether a battery is added and the installer selected. Public subsidies can be deducted from this amount (up to €10,000 through the Klimabonus scheme for installations of up to 15 kWp, in addition to the reduced 3% VAT rate and any available municipal grants).
The Klimabonus 2026 programme helps finance photovoltaic installations through grants of up to €10,000. Additional support is also available for the installation of battery storage systems. Thanks to the pre-financing mechanism, this subsidy can be deducted directly from your invoice by the approved installer.
Yes. You should inform your insurer about any modification to your home, including the installation of photovoltaic panels. Without notification, there is a risk that compensation may be refused if damage occurs in connection with the panels, as they may not be covered under your policy. Installing solar panels changes the value of your property and may require additional cover or an adjustment to your home insurance policy. The simplest approach is to contact your insurance adviser and review the cover required together.
The public liability section included in your home insurance may respond if your solar panels cause damage to a third party. Examples include a panel falling onto a neighbouring property, a fire spreading to another building, or someone suffering an electric shock. This cover protects your liability towards others.
However, it does not cover damage to your own equipment, such as panels damaged by hail or electrical failures within the system. To protect the panels themselves, you will need material damage cover or a specific extension to your home insurance policy, such as the Renewable energy package.