As solar energy gains momentum, so do related construction-defect claims. Experts at the 2024 CLM Construction Conference discussed the legal, insurance, and safety challenges posed by solar panels. Rapid growth, including the fact that utility-scale solar accounted for over half of new electric capacity in 2023, is bringing new risks. From installation flaws to fire hazards and environmental impacts, solar energy systems create unique liability issues. Insurance coverage varies, depending on factors such as whether the panels are owned or leased. In states like California, Texas, and Arizona, insurance claims related to solar damage are on the rise, with fire and hail being common causes.
Furthermore, panelists highlighted concerns around moisture intrusion, structural failures, and the environmental impact of manufacturing and disposal. Industry leaders stressed the importance of code compliance, regular system inspections, and notifying insurers of new installations to avoid coverage gaps.