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 investment from unexpected damage and loss, ensuring your long-term return on investment (ROI).
Return on investment (ROI) of photovoltaic systems
Photovoltaic systems offer an excellent return on investment by producing 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.
Example ROI calculations
Small residential complex: A 5 kW system could cost around €7,000. If it produces 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 approximately 6.7 years.
Medium commercial system: A 50 kW system could cost €60,000. If it produces 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 approximately 5.7 years.
These amounts do not take into account government subsidies, which can significantly shorten the payback period.
Compared to traditional energy sources, the operating costs of photovoltaic systems are minimal as they do not require fuel and have low maintenance costs. These savings go a long way in improving ROI.
However, without the right insurance, this ROI is at risk and you could even end up making losses.
Risks and protection
Despite the many benefits, photovoltaic systems are not immune to risks. They can be damaged by extreme weather conditions, vandalism, theft or technical malfunctions. Such events can significantly affect the expected return or even jeopardize the entire investment.
Comprehensive photovoltaic insurance protects your system against these risks and ensures that you are financially protected in the event of damage. This often includes the costs of repairs, spare parts and loss of income due to downtime.
Benefits of photovoltaic insurance
Protection against financial losses: Covers damage or theft to the photovoltaic system.
Cover for repairs and spare parts: Ensures that the system is quickly repaired and operational again.
Protection against loss of income: Covers loss of income due to downtime and ensures stable financial returns.
Long-term security: Gives you the security of securing your investment and its returns over the years.
Weather-related damage in different regions of Spain
Northern Spain
Heavy rain and floods: Common in regions such as Galicia and the Basque Country, which can cause water damage to the photovoltaic panels and electrical components.
Central Spain
Hailstorms: Common in areas such as Madrid and Castilla-La Mancha. Hail can cause physical damage to the panels, reducing their efficiency or rendering them unusable.
Southern Spain
Extreme heat and UV radiation: Regions such as Andalusia experience high temperatures and intense sunlight, which can degrade the photovoltaic cells over time if they are not properly maintained.
Coastal areas
Salt corrosion: Coastal regions such as Valencia and Catalonia are at risk of salt corrosion because they are close to the sea. This can affect the metallic components of the installation.
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 the photovoltaic modules, shift them and corrode metallic parts.
Photovoltaic insurance gives you the security that your investment in renewable energy is protected and that you can continue to benefit from the financial advantages of your photovoltaic system.