Why is Photovoltaic Insurance Important?

Photovoltaic systems are a significant investment and offer a sustainable alternative to traditional energy sources. With the right insurance, you can protect your system from unexpected damages and losses, securing your long-term return on investment (ROI).

Return on Investment (ROI) of Photovoltaic Systems

Photovoltaic systems offer an excellent return on investment by generating clean energy and reducing energy costs. The average payback period for a photovoltaic system is between 5 and 10 years, depending on the size of the system and local energy prices.

Sample ROI Calculations

• Small residential system: A 5 kW system might cost around €7,000. If it generates 7,000 kWh per year and local electricity costs are €0.15 per kWh, the annual savings would be €1,050. The payback period would be about 6.7 years.
• Medium commercial system: A 50 kW system could cost €60,000. If it generates 70,000 kWh per year and local electricity costs are €0.15 per kWh, the annual savings would be €10,500. The payback period would be about 5.7 years.

These amounts do not consider government subsidies, which can significantly shorten the payback period.
Compared to traditional energy sources, the operational costs for photovoltaic systems are minimal as they do not require fuel and have low maintenance costs. These savings significantly contribute to improving the ROI.
However, without the correct insurance, this ROI is at risk, and you could even end up incurring losses.

Risks and Protection

Despite the many advantages, photovoltaic systems are not immune to risks. They can be damaged by extreme weather conditions, vandalism, theft, or technical disruptions. Such events can severely affect the expected return or even jeopardize the entire investment.
Comprehensive photovoltaic insurance protects your system against these risks and ensures you are financially secured in case of damage. This often includes the costs of repairs, spare parts, and income losses due to downtimes.

Benefits of Photovoltaic Insurance

• Protection against financial losses: Covers damage or theft of the photovoltaic system.
• Coverage for repairs and spare parts: Ensures the system is quickly repaired and operational again.
• Protection against income losses: Covers income losses due to downtimes and ensures stable financial returns.
• Long-term security: Provides you with the security to secure your investment and its returns over the years.

Weather-Related Damage in Different Regions of Spain

Northern Spain

Heavy rain and flooding: Common in regions like Galicia and the Basque Country, which can lead to water damage to photovoltaic modules and electrical components.

Central Spain

Hailstorms: Frequent in areas like Madrid and Castilla-La Mancha. Hail can physically damage modules, reducing their efficiency or rendering them unusable.

Southern Spain

Extreme heat and UV radiation: Regions like Andalusia experience high temperatures and intense sunlight, which can degrade photovoltaic cells over time if not properly maintained.

Coastal areas

Salt corrosion: Coastal regions like Valencia and Catalonia are at risk of salt corrosion due to their proximity to the sea. This can affect the metallic components of the system.

Islands

Strong winds, humidity, and salty air: The Balearic and Canary Islands are prone to humidity, strong winds, and salty air, which can physically damage, shift the photovoltaic modules, and corrode metallic parts.

Photovoltaic insurance gives you the peace of mind that your investment in renewable energy is protected and that you can continue to benefit from the financial advantages of your photovoltaic system.

Contact us about photovoltaic insurance.