DAMAGES TO PHOTOVOLTAIC POWER PLANTS
The advent of rooftop photovoltaic power plants and the obligation to install them on every new building from 2029 brings with it a number of challenges. This primarily concerns the increased risk that these power plants entail. The rising number of solar panel incidents speaks volumes.
DAMAGES TO PHOTOVOLTAIC POWER PLANTS
Specifically, this involves a change in the insured risk of the property where the photovoltaic panels will be installed. As these are electrical devices under constant current, the risk is significantly amplified. However, the primary concern is not damage to the photovoltaic panels themselves, or their accompanying electronics and battery systems, but rather to the building on which the PV system is mounted.
Photovoltaic power plants are typically installed on the roofs of manufacturing facilities, warehouses, and, notably, residential homes.
In the event of a fire, firefighter intervention can be complicated for several reasons. These include the inability to shut down parts of the electrical distribution originating from the photovoltaic panels. PV panels are often located on burning structures where the upper roof system is highly flammable. Damage to the insulation of the PV system's wiring can electrify the entire metal roof structure. The unknown location of control (disconnecting) elements also poses a challenge. Furthermore, there is a significant risk of electric shock. These, among many other factors, can lead to total damage not only to the building itself but also to all movable property within it.
The primary challenge, therefore, remains the potential damage to the building itself, which can significantly outweigh the cost of the photovoltaic system or the property within the building. The value ratio of a rooftop photovoltaic power plant to the building it's installed on can be as high as 1:50. The importance of the building must also be considered from the perspective of business continuity, especially if it's a production hall, a material warehouse, or an archive.
Given these realities, the insurability of properties equipped with photovoltaic power plants becomes a critical question. Considering the value of the property, the lack of specific Czech legislation, and fire safety standards, insurability presents a complex challenge. Meanwhile, clients typically expect insurance payouts to cover damage to the photovoltaic system, the building itself, or business interruption costs.
Before installing a photovoltaic power plant, several parameters need to be considered:
The building and its contents.
Does the building house expensive technology or high-value inventory? Are these items susceptible to water damage? If so, we recommend carefully considering whether to install a PV system at all.
How critical are the operations within the building to your company's activities? What would be the impact if operations were interrupted due to a roof fire and subsequent firefighting efforts?
Cost versus Safety.
Uncertified panels and components will likely lead to increased costs and reduced returns in the long term (maintenance, service, more frequent replacement, etc.). Also, be wary of fraudulent certificates from disreputable manufacturers.
If you are seeking a partner to navigate photovoltaic power plant insurance, do not hesitate to contact Eurovalley. Our 30 years of experience are at your service.
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