Solar Panels: Fire Hazards and Environmental Risks

The adoption of solar panels across the Netherlands has increased rapidly in recent years—an important step for sustainability. However, this shift also brings new risks, including a rising number of fires linked to solar panel installations. These fires not only damage buildings but can also lead to significant environmental contamination.

The Netherlands is one of Europe’s frontrunners in solar energy, with both private homeowners and businesses installing panels in large numbers. Unfortunately, not all installations are done properly. According to the Netherlands Institute for Public Safety (NIPV), there were 30 reported building fires involving solar panels in 2021. In just the first half of 2023, that number had already risen to 73.

The Spread of Hazardous Debris

When a fire breaks out involving solar panels, both the panels and the building itself can be severely damaged. While most property insurance policies cover the direct damage, the surrounding environment can also be affected.

Solar panels can burst during a fire due to intense heat, scattering tiny particles and soot across the area—a process known as "deposition." While such contamination is often limited to the immediate surroundings in residential fires, larger fires can cause widespread pollution with both burned and unburned debris.

Contamination on the Ground and in the Soil

Burning solar panels release fragments of solar cells, glass, metal, plastics, and organic materials. These particles can pose a health risk—especially to children and animals. If the fire originates on your roof, you could be held liable for environmental damage. Cleanup is relatively simple if the debris remains on the surface, but once it enters the soil or water, remediation costs can be substantial.

How to Protect Yourself

As the owner of solar panels, you may face liability for environmental damage and could be legally required to clean up contamination. Whether these costs are covered by your business liability insurance depends on your policy.

At Insurance Experts, we can help you determine whether an environmental liability insurance policy is the right solution for your situation. This type of policy can even cover cleanup costs if your property is affected by solar panel debris from a neighboring fire.

We’ll also advise you on other relevant insurance policies, including coverage conditions related to solar panel installation and inspection requirements.