Shining a Light on Solar Insurance Misconceptions

When the CBC published an article suggesting that Canadian insurers are shying away from covering homes with solar panels, it sparked frustration across both the renewable energy and insurance industries. For Jen Aitchison, VP & Practice Leader, Renewable Energy at HUB International, the article struck a nerve. “We dealt with scepticism around rooftop residential in 2013, so to be dealing with it again in 2025 seems completely counterintuitive.”  

As Aitchison sees it, the problem isn’t a lack of coverage, it’s a breakdown in communication between brokers, underwriters and clients. For brokers, the key is education— understanding the technology, knowing what questions to ask and advocating confidently and consciously with markets. 

Solar Panels Aren’t the Risk, Bad Installations Are 
The vast majority of Canadian insurers do cover rooftop solar systems. “Most companies by 2013 were on board,” Aitchison says. “About 75% of the markets I work with have no issue insuring homes with solar.” Problems arise not from the presence of solar panels, but how they’re installed. “If someone installs panels themselves and it hasn’t been inspected by a certified electrician, that’s a legitimate underwriting concern. However, if an experienced solar installer does their own installation, the quality may be higher than most as their duty of care is expected to be higher. Regular visual inspections are also key, ensuring no vermin nesting under the array, as chewed wires lead to fires. How do we avoid? Make sure there’s critter guard around the array.”  

It’s not solar technology insurers are declining, it’s riskier practices that fall outside underwriting guidelines.

That distinction matters and brokers need to help clients understand the difference. When installation is professional and meets regulatory standards, the exposure is no greater than many other home upgrades and, in some cases, less. “You can’t tell me a gas boiler or propane tank is any less risky than professionally installed rooftop solar,” Aitchison says. 

Outdated Guidelines Still Haunt Us 
A lingering source of confusion stems from the now-defunct MicroFIT program under Ontario’s 2009 Green Energy Act, which capped residential systems at 10 kilowatts. “That number became baked into underwriting,” Aitchison explains. “But since MicroFIT ended, we’ve moved into net metering. Systems often range from 8 to 15 kilowatts, depending on the household’s energy use.” 

Unfortunately, some carriers never updated their internal documentation, and when a broker sees “10kW max” in the manual, they assume anything above that will be declined. But that’s not necessarily the case. “I’ve called underwriters at a number of insurers directly,” Aitchison says. “They do cover these systems, and in some instances, they even changed their guidelines after our conversation.” 

Brokers can’t rely on outdated PDFs. When in doubt, call the market. Ask the question. Advocate. “There are always going to be nuances,” Aitchison notes. “But we can’t just say no because the manual looks scary.” 

Better Brokering Starts with Better Questions 
One of the most important messages Aitchison has for brokers is simple—take the time to understand what your client is actually doing. “Ask them if they’ve installed solar. Ask if it’s leased or owned. Was it installed professionally? Do they have a certificate of insurance and WSIB coverage from the contractor?” 

Too often, clients are declined (or think they are declined) because no one took the time to get the full picture. “I’ve seen brokers list solar as the reason for a decline when it was actually an uncertified wood stove. But to the client, all they heard was ‘no because of solar.’ And then they call me in a panic.” 

That misinformation creates unnecessary stress and reputational damage for the industry. It’s also solvable. Aitchison recommends brokers familiarize themselves with their markets’ green endorsements, which come with built-in checklists. “Know what your markets will and won’t do,” she says. “And if you don’t know, pick up the phone—I'll help any broker, client or anybody interested in solar. If you're interested in a renewable energy, explore further. It's not going anywhere.”