Jordan Perry – Chief Underwriting Officer – Real Estate
From 27 August, plug-in solar panels can legally be bought and used across Great Britain, making solar energy more accessible to households that may not have been able to install traditional rooftop systems.
Unlike conventional solar installations, plug-in systems can be positioned on balconies, terraces, sheds and other suitable outdoor spaces, with electricity fed directly into the home through a mains connection.
The Government estimates that an eligible system could provide around 20% of an average home’s electricity and potentially save households around £110 a year.
From a sustainability and accessibility perspective, there is plenty to welcome.
But for property owners, landlords, managing agents and their insurance brokers, the introduction of this technology raises an important question:
How can these installations be introduced without creating uncontrolled risks for the wider building?
Why should brokers be paying attention?
For insurers, the concern is not simply the solar panel itself. It is how the installation interacts with the property around it.
This is particularly relevant in blocks of flats and other multi-occupancy buildings, where an individual resident’s decision can have implications for the wider building and its occupants.
A professionally managed residential block may already have carefully considered fire risk assessments, evacuation strategies, external wall systems, electrical installations and clearly defined escape routes.
Allowing residents to install electrical generation equipment without appropriate oversight can introduce another variable into that risk environment.
For brokers, this creates an opportunity to help property-owning clients get ahead of the issue.
Rather than waiting for installations to appear, brokers can encourage clients to establish clear processes around what is permitted, how installations are approved and when insurers should be notified.
The London Fire Brigade has highlighted the risks
Following the introduction of plug-in solar, the London Fire Brigade has issued safety guidance for residents, homeowners, landlords, freeholders and property managers.
The guidance highlights a number of important precautions, including obtaining permission before installation, purchasing equipment from reputable manufacturers and retailers, ensuring panels and associated equipment do not obstruct balconies, walkways, windows or escape routes, and following manufacturers’ installation and maintenance guidance.
It also advises against installations while cladding or remediation works are taking place.
For property owners and brokers, these considerations are particularly relevant because they can intersect with existing property risks and insurance arrangements.
The risk is about more than the panel
From an underwriting perspective, there are a number of questions that should be considered when plug-in solar installations are introduced.
Has permission been obtained?
Property owners should understand whether installations are permitted under leases, tenancy agreements, building rules or management arrangements.
Where is the equipment being installed?
The location of panels, cables and associated equipment matters. Installations should not interfere with communal areas, escape routes or access for emergency services.
What is the building constructed from?
External wall systems and balconies require particular consideration. The London Fire Brigade has advised against installing solar panels on combustible external wall systems or timber balconies.
Is the building undergoing remediation?
Where cladding or other remediation works are planned or underway, installations may need to be postponed and carefully coordinated with the wider works.
Has the electrical installation been appropriately considered?
Any electrical work should be undertaken by a competent person where required, with the manufacturer’s installation and maintenance requirements followed.
Does the insurer need to know?
Where a material change is being made to a building, particularly one involving electrical generation, external walls or communal areas, property owners should consider whether their broker and insurer need to be informed. The answer will depend on the individual circumstances and policy terms, but early disclosure allows the risk to be properly understood.
What should brokers be discussing with clients?
As plug-in solar becomes more widely available, brokers can add value by helping clients establish a clear approach before installations become widespread.
For property-owning clients, brokers should consider asking:
- Are residents permitted to install plug-in solar systems?
- Do leases, tenancy agreements or building rules address this?
- Is there a documented approval process?
- Are approved installations being recorded?
- Has the location of proposed installations been assessed?
- Could panels, cables or equipment affect communal areas or means of escape?
- Does the building have combustible external wall systems or timber balconies?
- Is the building subject to cladding or other remediation works?
- Has the impact on fire risk assessments and emergency plans been considered?
- Does the insurer need to be notified of any material changes?
- Where electrical work is required, has it been completed by a competent person?
These do not need to create an unnecessarily complicated process.
They are simply sensible risk-management controls that can help property owners demonstrate that they understand what is being installed within their buildings and are actively managing the associated risks.
Why management controls matter to underwriting
The insurance industry should not view emerging technology negatively simply because it is new.
Innovation in buildings is inevitable, and insurers need to evolve alongside it.
But insurance works best where there is transparency and effective risk management.
A compliant product, correctly installed in an appropriate location and properly managed should be viewed very differently from an unauthorised installation attached to a combustible external wall or obstructing a communal balcony.
Management controls matter.
From an underwriting perspective, a property owner who understands what is installed within their building, maintains appropriate records, controls alterations and responds proactively to emerging risks will generally present a stronger underwriting proposition.
For brokers, this is an important part of the conversation. The role is not simply to identify whether a new technology presents a risk, but to help clients demonstrate how that risk is being managed.
A practical approach to emerging property risks
Plug-in solar is a good example of how risks within residential property continue to evolve.
The technology has the potential to make renewable energy accessible to more households, including those where conventional rooftop solar is not practical.
The challenge for property owners is ensuring that easier access to the technology does not mean less control over how it is introduced into a building.
For brokers, early conversations with clients can help ensure that appropriate permissions, risk controls and insurance considerations are addressed before installations take place.
And for insurers, good-quality information and effective management controls allow emerging risks to be assessed proportionately.
The message for property owners is therefore straightforward:
Embrace the technology, but stay in control of the risk.
Clear permissions, appropriate installation, good record keeping and communication with brokers and insurers can help property owners benefit from innovation without compromising the safety or insurability of their buildings.
Speak to Folgate’s Real Estate Team
At Folgate, our Real Estate team takes a practical underwriting approach to emerging risks and changes affecting the property market.
If your clients are considering how plug-in solar installations may affect their properties, our team can provide support around:
- Underwriting considerations
- Risk-management requirements
- Insurance and disclosure considerations
- Emerging risks within residential property
- Practical support for brokers navigating changes affecting their clients
- Terms and conditions as per policy will always apply.
Speak to your usual Folgate contact or our Real Estate team to discuss how these developments may affect your clients.