Florida’s Tier 2 PLP Solar Insurance Explained

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Anyone looking to install solar panels in Florida with a Tier 2 system must have proof of Tier 2 insurance. This insurance policy (a Personal Liability Policy, or ‘PLP’) must have coverage of at least $1 million. This may come as news to the many Florida residents and business owners who are rapidly signing up for solar installations. Thousands of new solar-powered residences are being installed in our state every month. In South Miami, solar panels have become a requirement for new constructions.

What Is the Tier 2 Insurance Requirement?

The path to solar energy isn’t as complicated as many think. With the help of a local reputable solar company, you can get through the process without trouble or unforeseen hitches or broken promises. However, many potential new customers may be unaware of the exact terms of each utility company’s Interconnection Agreement. You must have sufficient liability insurance for your solar panels. Utilities separate solar systems into tiers, categorized by Kilowatt (kW) system size. Although these terms will vary with each company, the tiers are generally recognized throughout Florida as follows:
  • Tier 1: Systems less than or equal to 10 kW (or 11.7 kW DC)*
  • Tier 2: Larger than 10 kW up to 100 kW
  • Tier 3: Larger 100kW

What Tier Solar Insurance Do I Need?

Many homeowners can fulfill their energy needs with a Tier 1 solar system. But these days, it’s becoming increasingly popular to install a Tier 2 system of 10 kW or more. If you want a Tier 2 sized solar system, your utility company will require proof of a ‘Personal Liability Policy’ (PLP) that provides at least $1 million coverage. You will also need to provide a financial statement and supporting documentation that proves the value and size of your solar system and solar insurance.

Why Do I Need Tier 2 Solar Insurance?

The utility companies want to protect themselves from liability if a customer’s solar systems cause injury or death. Throughout the U.S., these demands are considered controversial. FPSC Board Member Max Vogel stated in 2020 that “there is no potential risk I can identify for you” to justify the demands of the utilities. There have been discussions and disputes throughout Florida about the need for these Tier solar insurance demands, but sadly right now Florida homeowners must comply. You must obtain the $1million PLP, or forfeit how you source your electricity.

Is PLP Insurance Affordable?

Thankfully, most PLPs are affordable (around $14 a month) and that allows homeowners to enjoy considerable savings on their electricity bills, even with the PLP insurance from their Tier 2 system. Plus, solar installers will enjoy vast property value booms amongst other benefits such as Federal Tax Credits.

What Is a Personal Liability Policy?

A Personal Liability Policy (PLP) is a type of insurance policy commonly known as an ‘umbrella policy’. PLPs provide you with an additional layer of coverage that reaches beyond your typical home and auto insurance liability coverage limits. If someone is injured or killed by your solar systemm then you would have enough insurance coverage. If the injured person’s losses exceed your policy’s liability limits, then you could personally be held liable. A liable party without enough insurance coverage can face garnished wages, retirement funds cut, liens against their property and judgments placed against them. Utility companies are scared that they’ll be liable in a disaster. So these demands remove their fear. However, as previously stated, there is no reason to believe your solar system is dangerous. These are extreme precautions placed on customers by utilities.

Your Insurance Agent May Seem Confused

Many customers report that insurance companies are unfamiliar with this requirement. Your insurance agent may seem confused when you tell them you want insurance for your solar panels for $1 million! If this happens, tell them you need a Personal Liability Policy (PLP) of $1 million due to utility requirements. If you have any questions, your Florida solar installer should also be able to provide some guidance as they have experience. Florida solar power services are always happy to help their customers with any questions they may have to make their installation as smooth as possible – from financing to tax credits.

Can I Save Money With Solar Federal Tax Credits?

Yes! Fear not. It’s not all expenses. Going solar is far more about the financial benefits. This year you can reduce your solar system installation costs by 26! If your installation is valued at $30,000, you could save $7,800 in 2022! But act now! From December 31st, 2022 those Federal Tax Credits will reduce by 4%! That could see you miss out on thousands of dollars worth of savings. It will only get lower and lower with each year. Act now to save 26%!

Solar Shortage Warnings

It’s also a good time to warn our potential customers about solar shortage warnings in late 2022. These warnings are hitting the entire industry, but we’re being honest about it. The solar supply chain is struggling and by the end of 2022, prices are likely to rise for raw materials and components. By acting now you can avoid these rising prices and any delays. ALL our quotes remain valid for seven days after issuance. Prices are being updated weekly. We speak to our manufacturers weekly to remain informed about the changes and protect our customers.

Get Grandfathered in for Net Metering!

Tier 1 and 2 solar owners can enjoy Florida’s net metering programs to sell excess solar energy back to the grid! This great system massively reduces bills, but is sadly set to change following 2022’s controversial bill.. You have until just July 2022 to get grandfathered into the existing net metering agreement! Act now! You must have your utility interconnection application submitted by June 30th!

Start Your Florida Solar Panel Installation Today!

If you’re interested in installing a solar system, whether it’s a Tier 1, 2 or 3, call us today. Florida Power Services “The Solar Power Company” is the Sunshine’s states leading solar power installer and would love to help you save thousands of dollars in 2022, through solar tax credits, high-quality designs and financing. With over 20 years of experience, we are regarded as one of the leading locally based solar companies in Florida.
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