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StandardsInsurance backed guarantees: what they cover, and the failure they never cover
An insurance backed guarantee is the safety net under your installation team's workmanship promise. It is not a warranty on your hardware, and understanding the difference is worth more than any other paragraph on this site.
Updated 4 August 2026 · written by the Clearline guidance team
What an IBG actually is
An insurance backed guarantee is a regulated insurance policy that steps in to honour your installation team's written workmanship guarantee if that team ceases trading. That is the whole job. It does not extend the guarantee, it does not improve its terms, and it does not cover anything the original guarantee excluded.
Two consequences follow, and both bite in practice. An IBG can only ever be as good as the workmanship guarantee it sits behind, so a two year guarantee backed by insurance is still two years of cover. And no cover exists at all until the certificate is issued to you.
Workmanship, not hardware
If your installation team disappears and a roof penetration starts leaking, that is what an IBG is for. If a battery manufacturer collapses and its product warranty evaporates, an IBG does nothing for you. Different failure, different insurance, and nobody sells the second one to homeowners.
The five layers of protection, in order
A UK homeowner buying solar and battery storage ends up with up to five distinct layers of protection. They cover different failures, and only one of them is the IBG.
Statutory rights
The Consumer Rights Act 2015 sits under everything: goods must be of satisfactory quality, fit for purpose and as described, and services performed with reasonable care and skill. Cancellation rights come from the Consumer Contracts Regulations 2013, giving 14 days to change your mind.
Manufacturer warranties
Product and performance warranties from whoever made the panels, battery or inverter. These are claims against the manufacturer, not against your installation team. Terms differ by product and sometimes by market, so check the datasheet for the exact model quoted.
Installation team workmanship guarantee
Typically 2 to 10 years, promised in your contract. It covers the quality of the fitting rather than the kit, and it is worth exactly as much as the installation team's solvency.
Insurance backed guarantee
The regulated policy that honours layer three if the installation team ceases trading. Cover only exists once the IBG certificate is issued.
Deposit and stage payment protection
Insurance covering money paid before completion if the installation team fails. Up to 25 percent of contract value, capped at £5,000, for 120 days with HIES, and insurer dependent durations across RECC providers.
How you actually get one
Through a consumer code, usually. Under HIES, when the installation team registers the completion, HIES purchases the IBG on your behalf. The conditions are strict: the installation must be fully completed and free of defect, all payments must have been made to the installation team named on the certificate, and a valid contract and written workmanship guarantee must be in place.
Through RECC, the cover comes from a panel of member insurers, and it runs from 1 to 12 years depending on the provider. Ark offers up to 12 years. CPA, HIP, IWA, QANW and Qualitymark typically offer 2, 5 and 10 year products. Peacock covers 10 to 12 years. Defects typically must be reported within 30 days of discovery.
The 30 day reporting clause
This is the clause that quietly voids claims. Under the RECC member insurer products, a defect generally has to be reported within 30 days of you discovering it. Waiting until spring to mention something you noticed in November can cost you the claim. Report in writing, date it, keep the copy.
The gap: when the manufacturer fails
Every layer above assumes the installation team is the weak link. In 2026 the UK market got a very public lesson in the other failure mode.
GivEnergy was one of the best known British home battery names, selling hardware with a 12 year warranty. GivEnergy Ltd entered administration on 9 April 2026, ceased trading and made staff redundant. The administrator, CB Business Recovery, confirmed that no further hardware warranties will be honoured by GivEnergy Ltd, that software and user support had ended, and that consumers should approach their installation team in the first instance. Other entities in the wider group were not in administration.
No insurance backed guarantee helps there, because an IBG covers the installation team's workmanship guarantee, not a manufacturer's product warranty. If the installation team is still trading, its own contractual obligations and your statutory rights under the Consumer Rights Act are what you have. That is why the solvency and track record of the company selling you the kit matters as much as the number of years printed on the warranty.
A long warranty is a claim on a company, not a guarantee of years
Twelve years of warranty from a manufacturer that stops trading in year four is four years of warranty. When you compare quotes, weigh the size, age and market position of the manufacturer alongside the headline term, and keep the installation team relationship in good order, because they are your first port of call either way.
What changed under the redeveloped MCS scheme
The 2026 MCS installer scheme redevelopment tightened the financial side. MCS certified installers must now provide eligible customers with an MCS approved Financial Protection Product. Cover begins when the contract is signed and continues for six years after the installation is completed.
The product must come from a regulated provider, and protection holds if the installer ceases trading, if the installer fails to resolve issues, or if the insurer itself ceases trading. FSCS protection applies to regulated insurers, and insurance claim disputes escalate to the Financial Ombudsman Service. HIES is an approved provider of these products.
Want someone independent to check what your quote actually protects? The free remote design call does exactly that.
Get your free quote →The paperwork that proves you are covered
Cover is evidenced by certificates, not by conversations. After a compliant installation you should be holding all of the following.
- The MCS certificate for the installation
- Network operator notification or acceptance confirmation, G98 or G99
- The building regulations compliance certificate issued through a competent person scheme
- The electrical installation certificate
- The written workmanship guarantee
- The insurance backed guarantee certificate
- The deposit protection certificate
- Manufacturer warranty registrations for each item of hardware
- The handover pack including the system performance estimate
Clearline gives independent guidance and never installs. Installations are carried out by an MCS-certified installation team for your area, and we would rather talk you out of a weak contract than watch you sign it. For the technology decisions themselves, see battery storage and export tariffs, and the calculator on your county page for local numbers.
Scheme and insurer terms were checked against HIES, RECC and MCS documentation in August 2026. Administration details for GivEnergy Ltd are from the administrator statement published by the UK Energy Storage Association, April 2026.
Guarantee questions, answered
What is an insurance backed guarantee?
A regulated insurance policy that honours your installation team's written workmanship guarantee if the team ceases trading. It does not extend the guarantee or cover anything the guarantee excluded, and no cover exists until the IBG certificate has been issued to you.
Is an insurance backed guarantee the same as a manufacturer warranty?
No, and this is the most expensive misunderstanding in the sector. A manufacturer warranty is a claim against the company that made the panels, battery or inverter. An IBG covers the installation team's workmanship guarantee only, and it does nothing if a manufacturer fails.
My solar installation team went bust. Who honours my guarantee?
If an insurance backed guarantee was issued, the insurer named on that certificate does, within the terms of the original workmanship guarantee. Find the IBG certificate first, then the workmanship guarantee it references. If no IBG certificate exists, your remaining routes are your statutory rights and any manufacturer warranties held directly.
How long does an insurance backed guarantee last?
It mirrors the installation team's workmanship guarantee, which HIES notes typically runs 2 to 10 years. Through RECC member insurers the products run from 1 to 12 years depending on the provider, with Ark up to 12 years and Peacock covering 10 to 12 years.
What happens to my warranty if the battery manufacturer goes into administration?
The manufacturer's product warranty is a claim against that company, so it may be worth little or nothing once it ceases trading. Your first approach should be to the installation team, whose contractual obligations and your statutory rights under the Consumer Rights Act 2015 remain live. Insurance backed guarantees do not fill this gap.
Do I have to pay for an insurance backed guarantee?
Under HIES, the scheme purchases the IBG on your behalf when the installation team registers the completion, subject to the conditions being met. Under RECC, cover is arranged through the member's chosen insurer. In both cases you should receive a certificate, and if none arrives you should assume you are not covered.
How quickly must I report a defect?
Under the insurance backed guarantees available through RECC member insurers, defects typically must be reported within 30 days of discovery. Report in writing to both the installation team and the insurer named on the certificate, and keep the dated copy.
See the numbers next: Tesla Powerwall 3, installed, or the battery storage guide.
Figures and specifications in this guide are sourced below and were checked on the date shown. Rates and product specifications change; we confirm the current picture on your free design call.
Sources
- HIES, insurance backed guarantees: mechanics, conditions and typical 2 to 10 year guarantee periods hies.org.uk
- HIES, deposit and stage payment protection: 25 percent, £5,000 cap, 120 days hies.org.uk
- HIES, MCS approved financial protection: six year cover, FSCS and Financial Ombudsman routes hies.org.uk
- RECC, deposit and workmanship warranty protection: insurer IBG ranges and 30 day reporting recc.org.uk
- Consumer Rights Act 2015 legislation.gov.uk
- UK Energy Storage Association, GivEnergy updates: administrator statement, April 2026 esa-uk.org
- ESS News, GivEnergy enters administration and ESA guidance, 13 April 2026 ess-news.com
- MCS, redeveloped installer scheme: financial protection requirement mcscertified.com
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