2023 Solar Risk Assessment Report highlights the need for robust strategies to ensure solar asset resilience, especially in extreme weather conditions
Realizing the full benefits of the Inflation Reduction Act will require dedicated efforts from stakeholders
San Francisco, CA (June 20, 2023) – kWh Analytics, the market leader in Climate Insurance, is pleased to announce the release of its 5th annual Solar Risk Assessment, a comprehensive report designed to provide an objective and data-driven evaluation of solar risk. Report contributors included leaders in the solar energy industry, such as NREL, EnergySage, RETC, Envision Digital, BloombergNEF, Clean Power Research, Raptor Maps, PVEL, ICF, and Wood Mackenzie.
While the Inflation Reduction Act, a freeze of potential tariffs, and more robust supply chains have helped the market grow, more frequent weather events and a lack of skilled labor still present challenges as the solar industry grows to meet the decarbonization targets.
The 2023 report offers detailed research on top risks including extreme weather, financial modeling, and operational risks to help the industry organizations overcome market hurdles and expand lines of business. Top 12 risk issues include:
Extreme Weather Risk
- Proactive hail stow program can reduce property insurance premiums.
- Modules made with tempered glass are approximately 2x as resilient to hail impacts as those with heat-strengthened glass.
- Glass/glass modules are more than twice as likely to break compared to glass/backsheet modules.
Financial Modeling Risk
- Underestimation of modeling uncertainty means PV projects experience P99scenarios once every 20 years.
- 99% availability is achievable, but not typical.
- Capital costs for DG solar will decline by 3% in 2023. Procurement lag and supply-chain delays keep utility-scale costs high.
- US module prices to plummet below $0.30 per watt once tariff dust settles.
- Uncertainty in degradation affects financial modelling results differently for ITC and PTC.
- In desert climates inverter efficiency derating can result in up to 2% production loss beyond expectation.
- Solar industry losing $2.5B annually from equipment underperformance.
- High-resolution solar resource data reduces clipping loss errors by more than 90%versus hourly data for high DC:AC scenarios.
- The biggest barrier to growth for solar companies? 44% of companies say a lack of trained labor.
“Managing solar asset risk requires a concerted industry effort to ensure sustainable growth and investment,” said Jason Kaminsky, CEO at kWh Analytics. “It is in our collective interest to address the evolving risks identified in the report and to collaborate on solutions. By doing so, we can ensure the long-term success and sustainability of the solar industry.”
To access the complete 2023 Solar Risk Assessment, please visit www.kwhanalytics.com/solar-risk-assessment.
About kWh Analytics
kWh Analytics is a leading provider of Climate Insurance for zero carbon assets. Utilizing their proprietary database of over 300,000 operating renewable energy assets, kWh Analytics uses real-world project performance data and decades of expertise to underwrite unique risk transfer products on behalf of insurance partners. kWh Analytics has recently been recognized on FinTech Global’s ESGFinTech100 list for their data and climate insurance innovations. The Solar Revenue Put production insurance protects against downside risk and unlocks preferred financing terms, and Property Insurance offers comprehensive coverage against physical loss. These offerings, which have insured over $4 billion of assets to date, aim to further kWh Analytics’ mission to provide best-in-class Insurance for our Climate. For more information, visit www.kwhanalytics.com.
SOURCE: kWh AnalyticsTags: climate change, kWh Analytics, severe weather