There are three, cleverly named Tier 1, Tier 2, and Tier 3.
Tier 1 are systems that are less than or equal to 10kW (AC).
Tier 2 are systems that are larger than 10kW but less than 100 kW (AC).
Tier 3 are systems larger than 100 kW (AC).
We’ve never dealt with a 100 kW residential system, so we will ignore Tier 3. The majority of our installs for homeowners are on Tier 1 and Tier 2 systems. Tier 1 requires no additional insurance. We’ll ignore that too.
Tier is determined by the amount of Alternating Current your system produces. Your panels create Direct Current and need to be inverted to AC then sent though wires to your electricity using devices. Some is lost in the inversion process and in the lines. So, 11.6(ish) on the roof (DC) will be about 10 kW at the plugs. It’s the AC amount that determines Tier.
Tier 2 requires an addition Umbrella Personal Liability Policy (PLP) for $1M added to your homeowner’s insurance. This policy is above and beyond any liability coverage you currently carry. This is required by your power company in Florida. If you have solar, you are creating electricity, and in addition to drawing power from the grid, you are now feeding power into the grid too. Since electricity is traveling in both directions, it can put your power company’s employees at risk. Should something go wrong, your power company in Florida insists you carry this additional insurance to cover their people.
Fun Facts: Your insurance agent may have never heard of this. Florida is the only state in the Union that requires it. A claim has never been filed on one of these policies. Rightfully, the cost is typically a negligible amount.
Many solar customers want to keep all their insurance eggs in one basket and have their current insurance company/agent quote them on this additional insurance. Some, being unfamiliar with this process, will oppose and/or otherwise dig in their heels. No worries, here’s a list of insurance companies that know all about it and can help:
- Progressive: Explains how rooftop panels are covered under dwelling or other structures coverage; may require a rider for detached setups. Link
- American Integrity Insurance: Recognized in Florida for comprehensive rooftop solar coverage in standard homeowners policies. Link
- Citizens Property Insurance Corporation: Florida’s state-run insurer offers solar panel coverage—including hurricane-related damage after deductible. Link
- SageSure: Cited by FlaSEIA as a solar-friendly insurer; offers customized policies and likely discounts for efficient homes. SageSure is listed among solar-friendly carriers. Link
- TypTap Insurance: FlaSEIA identifies TypTap as solar-friendly; known for strong customer service in Florida. Link
- USAA: Typically covers rooftop solar under dwelling or other structures—coverage varies by policy, so agent review is advised. Link
- Universal Property & Casualty Insurance Company: Covers rooftop solar under dwelling if attached; additional endorsements may apply to detached systems. Link
- Florida Family Insurance: Listed by FlaSEIA among solar-friendly insurers willing to cover rooftop systems. Link
- Florida Peninsula Insurance: Also FlaSEIA-recognized as solar-friendly, typically provides rooftop coverage. Link
We hope that Florida power companies will soon end this requirement but apply that part of the Serenity Prayer where we accept the things we cannot change. For now, it’s a hoop that must be jumped through on grid-tied systems and hope to continue the there has never been a claim trend. I have heard of companies charging as little as $14 a month and as high as $50. If your insurance company is too fancy, shop around. Let’s not let the insurance companies get any more of your solar savings than necessary.
If there is more you need to know on this, we can’t think of it at the moment. As soon as the ink is dry on your contract, start shopping. If the insurance is not in place by the time the final inspection on your solar has passed, it can cause an unnecessary delay in firing up your system.
For those of you who have spoken to your financial advisors and have been advised that you are eligible for some or all of the federal solar tax incentive, you have 147 days left as of this writing before it goes away. That may sound like plenty of time, but supply issues, permitting delays, engineering delays, and not having Tier 2 in place when you need it can slow down the process. If your system isn’t completely up and producing by 12/31/2025 – no tax credit.
