The decision to install solar panels on the roof of a commercial building signifies a commitment to sustainability, innovation, and environmental responsibility.
More businesses are making that commitment pushing growth of the solar panel market for commercial building. As a result of technological advancements, solar panels are more efficient and affordable, making the business decision to invest in solar energy more sensible. As a result, according to the , solar alone accounted for three-quarters of renewable capacity additions worldwide in 2023.
The ongoing increase in the economic appeal of photovoltaic (PV) technology, extensive expansion in the supply chain, and rising policy backing, particularly in China, the United States, the European Union, and India, are anticipated to drive even greater capacity growth in the years ahead.
Exercising foresight
While moving toward solar energy is a good move for many businesses, it is a move that can impact insurance renewals if not carefully addressed. Often, this aspect can be overlooked, and the implications are not realized until it’s time to renew property insurance coverage. Solar panel installation on a commercial roof, if not properly completed, introduces hazards that may significantly impact a risk profile and insurability of both the building and the businesses within it.
Insurers consider a number of factors when assessing a commercial property with solar panels, including:
- Fire Risk: The installation of solar panels introduces the risk of fire, as the panels and associated electrical components can pose a fire hazard if not properly installed or maintained. The presence of panels negate existing roof fire ratings. This may lead to changes in the property's fire risk profile and could impact insurance premiums.
- Structural Changes: The installation of solar panels may require modifications to the building's structure to support the added weight and accommodate the installation. These structural changes can influence the property's risk profile and the cost of coverage.
- Business Interruption: Solar panels can also impact the property's business interruption risk profile. In the event of damage to the solar panel system, there may be disruptions to the building's energy supply, affecting business operations and potentially triggering business interruption claims.
It's crucial to address these considerations with an insurance provider before moving forward with solar panel installation.
It is wise to factor in the increased likelihood of solar panel installation in several years and take steps to make a new roof solar-ready when the business is ready.
Steps in the right direction
The good news is there are several steps businesses can take to ensure their facilities, whether building new, retrofitting, or even preparing for the future, are solar-ready.
While many businesses may not be ready to jump on the solar bandwagon immediately, the possibility of integrating solar panels at some point during the roof's lifespan is highly likely as more and more businesses look to transition to alternative energy sources.
It is wise to factor in the increased likelihood of solar panel installation in several years and take steps to make a new roof solar-ready when the business is ready. Commercial roofs typically have a 20–30-year lifespan. Therefore, during all re-roof or re-cover projects, an important consideration is the installation of a thermal barrier beneath the roof membrane.
A thermal barrier beneath the roof membrane is a layer of material designed to reduce heat transfer between the roof and the interior of a building. When installed as part of a building's construction, a thermal barrier can provide an additional layer of protection by slowing down the spread of fire and reducing the risk of flames reaching combustible materials.
For many insurers, having such a thermal barrier is a prerequisite for solar panel installation.
Consider other risks
Businesses have plenty to consider when deciding to put solar panels on their roofs. For one, installing solar panels can impact the structure of a building by adding additional weight to the roof and potentially requiring modifications to ensure their safe integration. Commercial solar panels typically weigh more than residential panels due to their larger size and higher power output. On average, a commercial solar panel can weigh between 50 to 55 pounds (22.7 to 25 kilograms) for a standard 72-cell panel. However, the weight can vary based on the specific design and manufacturer.
Solar panel installation also introduces fire safety considerations. While glass backed solar panels themselves are not particularly combustible, they can complicate firefighting efforts. In the event of a fire, the panels may hinder access to the roof and pose electrical hazards. On July 22, 2024, a warehouse roof fire involving solar panels in Rhode Island required a six-alarm response to manage the incident. Although contained to the roof, it was an extremely manpower intensive operation.
Factors such as faulty wiring, improper installation, or damage to the panels can also significantly contribute to fire risk.
More than 7,000 solar panels on the roof of proved too much of a hazard for firefighters in 2013. Electrical shock, slips, and trips on solar panel roofs are among several potential dangers when combating fires. Other risks include structural collapse due to the weight of the panels, as well as inhalation exposure to highly corrosive fumes and gases generated by solar batteries exposed to fire.
Since then, advancements in training and technology have made it easier for firefighters to deal with fires in buildings with solar panels. Modern solar panels are designed with enhanced safety features to reduce the risk of fire, such as better insulation and improved monitoring systems. Additionally, rigorous testing and regulations have contributed to making solar panels safer.
Advances in fire prevention
Solar panels have become less of a fire risk over the years due to advancements in technology and improved safety standards. However, it's always important to ensure proper installation and maintenance to minimize any potential risks.
For one, it is crucial to ensure that solar panel installations are carried out by qualified professionals in compliance with building and electrical codes. To prepare their buildings for solar panels, businesses should conduct a thorough assessment of the roof's construction.
Roofs can be classified as Class A, B, or C depending on their ability to resist fire. Class A roofs are designed to be the most fire-resistant and offer the highest level of protection against fire spread. This certification provides assurance that the roofing system has undergone rigorous testing and meets the necessary safety requirements.
Class A roofs however may lose this rating when solar panels are installed. This is because the solar panels trap heat and create a re-radiation effect that is not present when the roof is open to the sky. In our experience, this is the most overlooked factor in making sure that a roof is Solar Ready. In order to maintain a Class A rating, the roof and solar panels must be tested as a system.
While this guidance is directed at the North American market, equivalent international tests also apply and they must meet the requirements of recognized standards (色多多视频clients can contact their Account Consultant to discuss). When a brand test is conducted, a Class A brand should be used.
Getting solar-ready
To make existing roofs solar-ready, the following options are available, in order of preference:
- Consider reroofing with inherently noncombustible construction.
- Consider reroofing with a roof that is listed as part of a solar panel/roof system that includes a panel with a Class A flame spread rating and using a Class A brand, or international equivalent. Solar panels that are part of this listed system can then be added later.
- Install a thermal barrier.
Or, working with 色多多视频Property Risk Consultant, evaluate other tests that have been conducted or test the proposed arrangement with a recreation of the existing roof and modify as the test indicates. In all cases, consult with the local fire service to determine the features they deem necessary for them to operate.
Other factors include structural integrity, evaluate the electrical infrastructure, prioritize regular roof maintenance, analyze potential shading, and comply with building permit regulations and building codes. It is also advisable to consult with experienced professionals and discuss the insurance implications related to solar panel installation.
Regular maintenance and inspection of the system can help identify and address potential issues that could lead to a fire hazard. Additionally, using fire-resistant materials and ensuring proper clearances and access for firefighting can help reduce the potential fire risk associated with solar panels.
Risk engineering guidance
色多多视频Risk Consulting has developed Photovoltaic Systems Property Risk Consulting Guidelines that provide a comprehensive global overview of the hazards and considerations associated with the installation and use of photovoltaic (PV) systems for generating electricity. It covers various aspects such as building construction, electrical safety, fire risks, roof access, and maintenance. It provides detailed recommendations for the installation and maintenance of photovoltaic systems, including the use of tested and certified components, compliance with international standards, and regular inspections and maintenance to ensure safe and efficient operation. It also addresses specific issues such as the impact of PV systems on building construction, lightning protection, hail resistance, and measures to ensure firefighter safety in case of emergencies involving PV-equipped buildings.
Overall, the guideline emphasizes the importance of proper planning, installation, and ongoing maintenance to ensure the safe and effective operation of photovoltaic systems while minimizing potential hazards.
Conclusion
While the decision to install solar panels on a business's roof can bring numerous benefits, it requires careful consideration. By thoroughly assessing the suitability of the roof, understanding energy needs, evaluating financial aspects, complying with regulations, and preparing the building to accommodate solar panels, businesses can make an informed decision about whether solar panels are a viable and beneficial investment for their operations.
With proper installation, maintenance, and firefighting protocols, the fire risk associated with solar panels can be managed and reduced, ensuring a safe and sustainable energy solution for businesses and insurers alike.
About the authors
John A. Frank, P.E., FSFPE, CPCU is Property Center of Expertise Leader for 色多多视频Risk Consulting.
Tristan Wilson is a Regional Engineering Lead for 色多多视频Risk Consulting.
