RevoluSun Blog

How Insurance Coverage and Repair-vs-Replace Decisions Fit Together

Solar Systems are built to withstand weather events, but some things are beyond the capacity of a system to withstand extreme weather. When a major storm or heavy rain event hits and your commercial solar system takes damage, you’re dealing with more than broken panels. You’re suddenly facing safety concerns, roof integrity questions, interrupted operations, and an insurance claim that needs to be handled correctly.

One of the biggest decisions you’ll need to make is simple on the surface, but complex in practice:

Do we repair the existing solar system… or fully replace (RePower) it?

This piece walks through how storms and water typically affect commercial solar arrays, how insurance usually treats those losses, and a practical framework for deciding whether to repair or replace after storm damage.

Important: This is general information, not legal or insurance advice. Always confirm specifics with your insurance broker, carrier, attorney, and engineering/solar professionals.

How Storms and Water Damage Commercial Solar Systems

Commercial solar systems are engineered to withstand harsh weather, but extreme events, aging equipment, and pre-existing weaknesses can combine to create serious damage. Common storm and water related issues include:

• Wind damage
  
  • Panels torn from racking or shifted out of position
    
  • Racking rails bent, twisted, or loosened
    
  • Roof attachments stressed or pulled out
    
• Water intrusion
  
  • Cracked backsheets or broken glass allowing water into the module
    
  • Compromised junction boxes, conduit, or combiner boxes
    
  • Moisture ingress into inverters or switchgear
    
• Roof and structural damage
  
  • Membrane or shingle damage beneath the array
    
  • Leaks traveling along penetrations, conduits, or support structures
    
  • Pooled water that accelerates corrosion and mold issues
    
• Debris impact
  
  • Flying debris chipping, cracking, or shattering modules
    
  • Damage to conduit, disconnects, or rooftop equipment
    

Even if the system appears to power back on, hidden water damage and corrosion can create long-term safety risks and shortened equipment life. That’s why the first move after any major event should be a safety shutdown and professional assessment, not just “flip it back on and see what happens.”

Step One: Safety, Stabilization, and Documentation

Before worrying about repair estimates, start with three priorities:

1. Keep people safe
   
   • Restrict access to damaged roof areas and electrical rooms.
     
   • Treat exposed wiring, wet electrical equipment, and damaged metal structures as energized until proven otherwise by a qualified electrician.
     
2. Shut down and isolate as needed
   
   • Work with your facilities team, your solar provider, and (if necessary) your utility to safely shut down and isolate the solar system.
     
   • Confirm that lockout/tagout procedures are followed.
     
3. Document everything for insurance
   
   • Take time-stamped photos and videos of:
     
     • The array from multiple angles
       
     • Visible damage to modules, racking, and roof
       
     • Water intrusion inside the building and in electrical rooms
       
   • Save inverter and monitoring system alerts or error logs.
     
   • Note dates, times, storm type, and any immediate corrective actions.
     

That documentation will matter later, for both insurance coverage and any case you make for replacing rather than patching a heavily damaged system.

How Commercial Solar Typically Fits Into Insurance Coverage

Policies vary widely, but commercial solar systems usually fall under one or more of the following:

• Commercial property coverage
  
  • Solar modules, inverters, racking, and associated electrical gear are often treated like other building systems or scheduled equipment.
    
  • Storm, wind, hail, and water damage are often covered per the policy’s named perils and exclusions.
    
• Equipment breakdown coverage
  
  • May apply to non-storm-related failures (e.g., internal inverter failures).
    
  • Sometimes interacts with storm damage when surges or short circuits occur during the event.
    
• Business interruption coverage
  
  • If your operations are disrupted and you incur lost revenue, business interruption coverage may help.
    
  • In some cases, increased utility costs during solar downtime may be part of the financial picture.
    
• Special endorsements or schedules
  
  • Some organizations specifically list (“schedule”) their solar systems with defined limits and terms, including whether they are covered at replacement cost or actual cash value (ACV).
    

Because the details matter, your first insurance step after stabilizing the site should be:

• Call your broker or risk manager
  
• File a notice of loss or claim in a timely way
  
• Ask for clarification on how the solar asset is treated in your specific policy
  

Key Insurance Questions After Storm Damage

When you talk with your insurance team, these questions help frame both the coverage and the repair vs. replace decision:

1. Is the solar system covered at replacement cost or actual cash value (ACV)?
   
   • Replacement cost aims to cover what it costs to install a comparable new system (subject to limits, deductibles, and terms).
     
   • ACV generally considers depreciation, so payouts can be significantly lower on older systems.
     
2. Is storm/wind/water damage clearly a covered peril under the policy?
   
   • Ask how they treat wind, driving rain, flooding, and storm surge.
     
   • Clarify any special deductibles for named storms or wind events.
     
3. Are roof and solar considered together or separately?
   
   • Coverage for roof repairs may be handled under a different section or limit than the solar equipment.
     
   • This matters when you’re deciding whether to coordinate a new roof + new solar system together.
     
4. Does business interruption coverage apply to increased power costs or lost production?
   
   • Some policies may help with extra expenses, including higher utility bills during the outage/repair period.
     
5. What documentation will the carrier need to support a full replacement vs. partial repair?
   
   • Engineering reports
     
   • Safety concerns
     
   • Code-compliance issues
     
   • Evidence of pervasive water intrusion or corrosion
     

Having these answers early makes it much easier to align your solar strategy with your insurance reality.

Repair vs. Replace: How to Decide After Storm Damage

This is the heart of the decision. In many cases, you’ll get both a repair-to-restore option and a replace/repower option from your solar provider or engineer. Here’s how to think about it.

When It Makes Sense to Repair

Repair is often appropriate when:

• Damage is localized and clearly visible
  
  • A small number of cracked or shattered panels
    
  • Minor conduit damage
    
  • Limited roof damage confined to a specific area
    
• The rest of the system is relatively young
  
  • System age is under ~8–10 years
    
  • Inverters and monitoring are current and still under warranty
    
  • No history of recurring faults or production issues
    
• Water intrusion has been ruled out or contained
  
  • No evidence of water inside electrical enclosures
    
  • No moisture detected in combiner boxes, junction boxes, or inverter housings
    
  • Roof leaks have been addressed and sealed independently
    
• Electrical and structural inspections are clean
  
  • Racking and roof attachments pass structural inspection
    
  • Wiring insulation is intact, with no widespread corrosion or overheating signs
    

In these cases, replacing damaged components and re-commissioning the system can be the most cost-effective choice, especially if your policy is ACV and a full replacement payout would be modest.

When It Makes Sense to Replace (Repower) the System

Full or near-full replacement often makes better long-term sense when:

1. Water intrusion is widespread or uncertain
   
   • Moisture has entered modules, junction boxes, combiner boxes, or inverters.
     
   • Corrosion is present not just on the surface but inside terminations and conductors.
     
   • It’s difficult to guarantee long-term safety and reliability by replacing only a few parts.
     
2. Structural and roof conditions are compromised
   
   • Racking, rails, or supports are bent, twisted, or loosened across large sections.
     
   • The roof membrane or structure needs significant repair or full replacement anyway.
     
   • Future roof work would require removing and reinstalling the entire array.
     
3. The system is already near mid-life or end-of-life
   
   • Panels are 10–15+ years old with noticeable degradation.
     
   • Inverters are nearing the end of their service life or support.
     
   • Monitoring is outdated or non-existent, making long-term performance tracking difficult.
     
4. Building codes and standards have changed
   
   • New code requirements affect roof attachments, setbacks, or electrical design.
     
   • Repairing “like for like” would leave you with a non-optimal or non-compliant system.
     
   • A new design can optimize layout, safety, and compliance with current standards.
     
5. Insurance supports a replacement-level project
   
   • Your policy provides replacement-cost coverage for the solar asset.
     
   • Your team can demonstrate that partial repairs would leave a high risk of future failures.
     
   • Your finance team sees stronger long-term ROI in repowering with modern technology.
     

In these scenarios, trying to patch together a badly damaged, aging system can become a cycle of recurring problems and unplanned downtime. A full replacement—often designed with higher-efficiency modules and the option for battery storage—can reset your risk profile and improve your economics at the same time.

How Insurance and Engineering Support a Replacement Decision

If you believe a full replacement is the right call, the next step is building a clear, evidence-based case for your carrier. That typically includes:

• A detailed inspection report from a licensed engineer or qualified solar professional documenting:
  
  • Locations and types of visible damage
    
  • Evidence of water intrusion and corrosion
    
  • Structural and electrical safety concerns
    
• Test results (where applicable)
  
  • Insulation resistance testing
    
  • IV-curve tracing or other performance diagnostics
    
  • Moisture detection in key components
    
• A comparative scope:
  
  • Cost to repair and restore the existing system to safe operation
    
  • Cost to replace/repower with a new system (possibly with similar nameplate capacity but modern technology)
    
• Code and standards references
  
  • Any changes since the original installation that affect design or safety
    
  • Reasons why “repairing to past standards” would be inadequate or not allowed today
    

This isn’t about inflating claims; it’s about showing why limited repairs may not deliver safe, reliable performance over the remaining life of the system, while a well-designed replacement would.

Coordinating Roof, Solar, and Insurance Together

Storms that damage solar arrays often damage roofs too. Instead of treating these as two separate problems, it’s smart to coordinate:

• Roof repairs or replacement
  
  • Confirm what portion of roof work is covered under the property policy.
    
  • Work with your roofer and solar provider to sequence removal, roofing, and re-installation or replacement.
    
• Solar repower or reinstall
  
  • If the roof is being replaced anyway, it may be the ideal time to upgrade the solar design and hardware.
    
  • Align system layout with new roof penetrations, drains, and structural considerations.
    
• Insurance claim strategy
  
  • Present a coordinated plan showing how integrated roof + solar restoration improves durability and risk management, rather than short-term patchwork fixes.
    

This integrated approach usually leads to better long-term outcomes, fewer disruptions, and a cleaner story for both your executives and your insurer.

Putting It All Together: A Practical Path Forward

After water or storm damage to a commercial solar system, a solid path forward usually looks like this:

1. Protect people and stabilize the site.
   
2. Shut down and isolate the system safely.
   
3. Document damage thoroughly (photos, logs, reports).
   
4. Notify your insurer and clarify coverage details.
   
5. Engage a qualified solar/engineering team for a detailed assessment.
   
6. Compare a true “repair to safe operation” scope vs. a replacement/repower scope.
   
7. Align your decision with:
   
   • Safety and compliance
     
   • Long-term O&M risk
     
   • System age and technology
     
   • Insurance coverage type (ACV vs replacement cost)
     
   • Your organization’s sustainability and resilience goals
     

If the system is relatively young and damage is localized and well-understood, repairing may be the smart move. If damage is widespread, water intrusion is significant, or the system is already aging and underperforming, replacing or repowering can be the safer, more financially rational choice over the next 10–20 years.