By David Zabrocki

How the move towards greener homes and buildings is changing risk

David Zabrocki, Home and Private Client Technical Underwriting Lead

Solar panels are becoming more common across both residential and commercial properties, supported by rising energy costs and a societal drive towards becoming net zero. UK government data shows a steady increase in small-scale and rooftop solar installations across homes and businesses.

These technologies bring clear long-term sustainability benefits whilst also changing the underlying risk profile of these buildings. Greener buildings introduce different things to consider when looking at risk, including valuation impact, fire risk, structural integrity and vulnerability to weather-related damage.

Solar adoption is reshaping property risk

The Department for Energy Security and Net Zero identifies rooftop solar panels as a key part of the UKs transition towards decentralised energy generation. As more people take these up, solar panels are no longer an optional upgrade but an integrated part of the property’s infrastructure. The updated Future Homes Standard, expected to take effect from March 2027 with full adoption by 2028, will require the majority of new homes in England to include rooftop solar generation as a core element of their energy performance.

Solar PV and energy storage systems have become specialist and high value assets. They materially change electrical load, increase construction complexity and introduce additional exposure to damage.

Fire, electrical and emergency access considerations

UK fire authorities highlight that rooftop solar installations can create additional complexity during fire incidents. The National Fire Chiefs Council has raised concerns around electrical isolation, restricted roof access and firefighter safety where solar panels are present.

Health and Safety Executive guidance makes it clear that poor installation or inadequate electrical design increases the likelihood of electrical faults and fire, particularly where systems are modified or extended over time. These factors can influence loss severity and complexity of reinstatement, particularly in older buildings or dense urban areas where access may be constrained.

Structural suitability and rebuild exposure

Solar panels and associated equipment add load to roof structures that may have not been designed to carry additional weight. Research from the Building Research Establishment (BRE) shows that structural capacity varies significantly across the UK building stock, with older and non-standard properties presenting greater uncertainty.

Where structural assessments are not undertaken prior to installation, insurers face increased exposure to roof damage, water ingress and extended repair times following storms or fires. This has direct implications for rebuild costs and the accuracy of declared sums insured, particularly where buildings have been upgraded incrementally over time.

Climate volatility is amplifying loss potential

UK climate data from the Met Office confirms an increase in the frequency and severity of extreme weather events, including heavier rainfall, stronger storms and more volatile seasonal conditions. Roof-mounted assets such as solar panels, cabling and inverters are directly exposed to these hazards.

Greener buildings often mean higher rebuild costs

Sustainable materials and low-carbon technologies typically increase rebuild values. The UK Green Building Council highlights that green construction methods and energy efficient systems generally cost more to reinstate than traditional materials.

Having an up-to-date rebuilding cost evaluation becomes increasingly important to ensure that these aspects are sufficiently catered for within the buildings sum insured as the average rates of index-linking could prove insufficient over a number of years.

Conclusion

Greener buildings place greater emphasis on proactive disclosure and advice. Conversations around notification of solar and battery installations, updated rebuild values, structural and electrical assessments, location specific climate exposure, and alignment between building design and policy cover.

The buildings cover section of our Executive Home and Plus policies includes an Environmental Home Upgrade benefit whereby in the event of damage by an insured cause to the buildings which also includes damage to the electrical, heating or water system, subject to our prior approval we will pay up to £10,000 Executive Home / £50,000 Executive Plus towards the cost of installing a solar, wind or other environmental home upgrade as part of the repairs to the electrical, heating or water system. To qualify for this benefit, the claim value before the upgrade must be greater than £20,000 (after deduction of any applicable excess) and such a device must not already be installed at the home.