In the push toward a greener future, solar panels have become a symbol of sustainable energy. However, a recent analysis reveals a troubling trend in the UK: rooftop fires linked to solar installations are rising faster than the panels themselves. This development is casting a shadow over Energy Secretary Ed Miliband’s ambitious plans to dramatically expand solar capacity. As homeowners globally weigh the benefits of solar and electric vehicles (EVs), insurance implications are emerging as a key concern, with potential premium hikes tied to added risks and property values.

The UK Fire Surge: A Warning Sign Amid Solar Expansion

UK fire services are now responding to a solar panel-related blaze roughly every two days, according to data compiled by insurance firm QBE from fire service records across the country.

In 2024 alone, 171 such incidents were recorded—a 60% jump over the past two years. This increase outpaces the growth in installations, which rose from 1.3 million panels in 2022 (with 107 fires) to 1.7 million in 2024.

The primary culprits? Faulty inverters, which convert solar energy into usable electricity but can overheat if poorly placed in confined spaces like lofts. Lithium-ion batteries, often paired with modern systems, add another layer of risk, as seen in an August fire in Wickford, Essex, that originated in a battery storage unit. Panels installed near skylights or windows exacerbate dangers, allowing flames to spread downward into homes or buildings.

High-profile incidents underscore the severity: A 2022 blaze in Church Crookham, Hampshire, damaged three flats, while an earlier 2025 fire at St Michael’s maternity hospital in Bristol forced the evacuation of pregnant women and infants. Though the annual fire risk per installation remains low, the potential for catastrophic damage is high.

These trends are fueling scrutiny of Miliband’s Solar Roadmap, which aims to boost UK solar capacity from 18 gigawatts to 85 gigawatts by 2035—a nearly fivefold increase. This includes fitting millions more rooftops with panels and easing planning rules for large solar farms in rural areas like Lincolnshire and Norfolk. Experts warn that without stricter regulations, better installer training, and mandatory maintenance, the rush could amplify safety issues.

Adrian Simmonds, a senior risk manager at QBE, emphasizes the need for balance: “Solar is vital for the clean energy transition, but rapid deployment is heightening risks.” Industry body Solar Energy UK counters that properly installed systems pose minimal fire threats and can slash household energy bills by £500 annually. The Department for Energy Security and Net Zero echoes this, noting low overall risks and recommending certified installers.

Global Insurance Ramifications: Solar Panels and Home Premiums

As solar adoption surges worldwide, homeowners are discovering that going green can come with a hidden cost: higher insurance premiums. Installing panels typically increases a property’s replacement value, prompting insurers to adjust coverage limits. This isn’t unique to the UK—similar patterns appear in other countries, though data on precise increases over the last decade is limited due to varying adoption rates and climate-driven overall premium hikes.In the US, where residential solar has grown rapidly (adding millions of installations since 2015), premiums may rise if the home’s rebuild cost exceeds existing limits. For a $35,000 system, the average annual increase across surveyed insurers is around $84, though many report no change.

Overall homeowners insurance has climbed 33% from 2020 to 2023, partly due to climate risks, but solar-specific bumps are often minor—$15 monthly or less for some.

In high-risk states like Florida and Texas, where solar is popular, premiums have spiked 22% in a single year (2023), amplifying any solar-related adjustments.

In the UK, adding panels can nudge premiums up slightly due to elevated rebuild costs, but the impact is often negligible—far outweighed by energy savings of 7-10 years’ payback.

Over the last decade, UK home insurance has risen amid broader trends, but solar-specific data shows minimal direct hikes, with panels lasting 25+ years under standard coverage.

Canada sees similar dynamics: Solar boosts home value, potentially increasing premiums, but no widespread data ties it to significant jumps over 10 years. General home insurance has trended upward with climate events.

Australia and Germany, leaders in solar per capita, report comparable effects. In Australia, premiums for solar-equipped homes may rise modestly due to replacement costs, especially in bushfire-prone areas, with overall insurance up 15-45% in renewable sectors since 2015.

Germany’s robust solar market (over 2 million installations) shows minor premium adjustments, offset by subsidies, amid a 20-40% rise in renewable energy insurance globally in recent years.