kWh Analytics, a leader in Climate Insurance, has released its 6th annual Solar Risk Assessment report. This report provides a data-driven evaluation of solar energy risks, incorporating insights from technology, financing, and insurance leaders in the solar energy industry.

Solar Industry Growth and the Role of Battery Storage

In 2024, the solar energy market continued its rapid expansion, driven by the Inflation Reduction Act and the rising demand for clean energy. The latest report includes an analysis of Battery Energy Storage Systems (BESS), highlighting their crucial role in the renewable energy ecosystem.

Jason Kaminsky, CEO of kWh Analytics, stated, “We’re seeing burgeoning growth in solar, wind, and battery storage. To meet renewable energy goals, we must focus on smart growth, informed by data, and resilience measures to protect assets.”

The 2024 report identifies the top risks impacting the solar energy market, including extreme weather, operational risks, and battery risks. These findings aim to help industry organizations overcome market hurdles and expand their business lines.

Extreme Weather Risk

1. kWh Analytics: Standard modeling can underestimate solar project losses from weather-related damage by over 300%.
2. Kiwa PVEL: Modern modules won’t lose more than 3% power even with severe hail damage.
3. Waaree: Glass/glass modules in hail stow mode result in only 0.8% power loss, below the IEC’s 5% threshold.
4. Alliant Power: Resilient solar site design can cut insurance costs by up to 50% in high-risk zones.
5. Longroad Energy and Nextracker: A 75-degree tilt can reduce PV asset damage probability by 87%.

Operational Risk

6. kWh Analytics: Aggregating four or more sites can cut extreme downside risk by 50%.
7. Solarlytics: Voltage collapse can reduce production by over 20%.
8. Univers: O&M corrective action surges 14% in winter compared to summer.
9. SolarGrade: Safety issues requiring de-energization found in 11% of inspected PV systems.
10. Clean Power Research: Unmitigated soiling of PV systems can cut annual energy production by 50%.
11. kWh Analytics: Inverters cause 59% of lost energy, with DC distribution issues lasting 2.2 times longer.

Battery Risk

12. Lloyd’s: BESS role is poised for 13x growth globally.
13. Powin: State of Charge measurements can have a 7% error in energy estimation.
14. SEVO IFP: 26% of Energy Storage Systems face fire-detection and suppression challenges.

Industry Collaboration and Innovation

Isaac McLean, Chief Underwriting Officer at kWh Analytics, emphasized the importance of collaboration, stating, “Overcoming these challenges requires ongoing innovation among industry leaders. Asset owners must secure comprehensive insurance coverage and seek multiple quotes to ensure accurate protection.”

kWh Analytics utilizes a proprietary database of over 300,000 renewable energy assets to underwrite unique risk transfer products. Recognized on FinTech Global’s ESGFinTech100 list, their insurance offerings, including Property Insurance and Solar Revenue Put, have insured over $27 billion in assets, supporting their mission to provide best-in-class insurance for climate resilience.

By addressing these risk management challenges, the solar energy market can continue to grow sustainably, contributing to global clean energy goals.

Source：businesswire.com