Commercial solar power and insurance: what business owners need to know

Solar panels fixed to a business building are generally covered as part of the building under a commercial property policy, but insurers still need to know about the system's design, installer credentials, compliance certificates, and ownership structure.

Before installing solar power on a commercial property, some things you might want to run past an appropriate solar installation expert are: confirming registration, obtaining a Certificate of Compliance and Electrical Safety Certificate, and verifying roof load capacity. You can also talk to your broker about how the array could affect your policy.

Why are commercial businesses installing solar?

Rising electricity costs and sustainability targets can be some of the reasons New Zealand businesses consider solar power.

Commercial solar systems generally differ from residential ones in scale, complexity, and risk profile. A business rooftop array may involve higher capacity inverters, battery storage, and sometimes third-party ownership arrangements — all of which can affect how your commercial insurance policy responds. For a breakdown of how these risks translate to households, see our Risk Profiler on Solar Power Systems.

Do you need to tell your insurer about solar power on a commercial building?

Yes. Any business installing solar power should notify their insurer or broker before — or immediately after — installation. This isn't just a formality; it can ensure  your sum insured reflects the system's replacement value and that the insurer can accurately assess the updated risk.

A broker conversation early in the project also surfaces questions you might not think to ask yourself, from inverter placement to battery storage requirements. See our infographic guide for what that discussion should might cover.

Who designed, installed and inspected the solar power system?

Insurers usually want to know the system was designed and installed by a professional registered with the Electrical Workers Registration Board (EWRB), and that the work has been independently inspected.

What compliance documents should a commercial client hold?

A commercial client should retain Certificate of Compliance, an Electrical Safety Certificate, and a Record of Inspection for the completed solar power installation. These documents can help to confirm the system meets New Zealand electrical safety standards and give your insurer the evidence needed to assess risk accurately.

Keep these documents on file and share them with your broker when you notify them of the installation — they're often requested during underwriting or at claim time.

Has anyone confirmed the roof is suitable for solar?

Solar panels, mounting frames, and sometimes battery enclosures can add significant load to a commercial roof. Before installation, you may want to engage an appropriate expert to carry out a structural assessment to confirm the roof can safely support the additional weight, particularly on older buildings or those with existing wear.

This step can commonly be overlooked in the rush to get a solar power system installed, but it's one insurers increasingly ask about when assessing commercial property risk.

Where are the batteries and inverters?

The location and installation of batteries and inverters can affect the risks associated with a solar power system. An appropriate solar power expert can advise on suitable placement and check that applicable safety, regulatory and local approval requirements have been met.

You may also want to ask your installer to confirm which approvals are needed before the system is connected to the network.

Who owns what? Third-party and leased solar panel arrays

Many commercial solar power installations may involve third-party ownership or leasing arrangements, where a solar power provider owns and maintains the array, while the business hosts it on their roof. These arrangements can change who is responsible for insuring the equipment itself. If a third party owns the array, you can confirm they hold adequate liability insurance and have a documented maintenance programme in place.

Clarify ownership early: is the array covered under the building owner's policy, the solar provider's policy, or does it require its own cover? Getting this wrong can leave a gap neither party expects to find at claim time. Our Risk Profiler on Solar Power Systems provides similar ownership questions in a residential context.

Using Vero’s Risk Profiler

Vero's Risk Profiler is a useful starting point for commercial clients wanting to understand how solar power and other property changes affect their risk profile generally, before they talk to a broker.

Larger or more complex commercial solar power projects — multiple buildings, significant battery storage, or leased arrays — may benefit from a dedicated risk assessment.

Five questions to take into your next renewal

You may want to run these questions by an appropriate expert installer:

• Is the installer EWRB registered, and can they provide compliance certificates?
• Has an appropriate expert confirmed the roof can support the system?
• Where will batteries and inverters sit, and do they meet relevant NZ electrical standards?
• Who owns the array — you, or a third-party provider?
• Has your broker confirmed how the installation could affect your sum insured?

Frequently Asked Questions