The annual report includes contributions from leaders in the solar energy industry spanning technology, financing, and insurance. This year’s report saw a continued growth trajectory as the Inflation Reduction Act has increased American demand for clean energy. The 2024 report also included analysis which included Battery Energy Storage Systems (BESS), recognising the increasingly critical role that storage plays in the renewable energy ecosystem.
Jason Kaminsky, CEO at kWh, commented on the report: “We’re seeing burgeoning growth in solar, wind, and battery storage. However, to meet renewable energy deployment goals, the focus needs to be on smart growth – relying on data to inform decisions and utilising resilience measures to protect assets. We are grateful for the collaboration of the solar, BESS and renewable insurance thought leaders included in this year’s report, recognising that the clean energy future requires mutual understanding between operators protecting assets and underwriters pricing risks.”
The 2024 report offers detailed research on top risks including extreme weather, operational risks, and battery risks to help industry organisations overcome market hurdles and expand lines of business. Top 14 risk findings include:
Extreme Weather Risk
- kWh Analytics: Industry standard modelling assumptions can underestimate solar project losses from weather-related physical damage by 300+%
- Kiwa PVEL: No modern module will experience power loss >3% when the cells are severely damaged by hail
- Waaree: During hail testing, positioning glass/glass modules in hail stow mode resulted in only a 0.8% power loss, well below the 5% threshold permitted by IEC guidelines
- Alliant Power: Renewable energy project owners can reduce insurance costs by up to 50% in high-risk zones by investing in resilient solar site design and maintenance
- Longroad Energy and Nextracker: 75 Degree Tilt Can Decrease PV Asset Damage Probability by 87%
Operational Risk
- kWh Analytics: Aggregating portfolios of 4 or more sites can cut the risk of extreme downside scenarios by 50%
- Solarlytics: Voltage Collapse Can Reduce Production by More Than 20%
- Univers: O&M corrective action statistics show a 14% surge in winter compared to summer in 2023
- SolarGrade: Safety problems requiring partial or total de-energization found in 11% of PV systems inspected by auditors
- Clean Power Research: Unmitigated soiling of PV systems can reduce annual energy production by 50%
- kWh Analytics: Inverters cause 59% of lost energy, but DC distribution issues last 2.2x longer than they’re worth
Battery Risk
- Lloyd’s: Global role of Battery Energy Storage Systems poised for 13x growth
- Powin: Conventional State of Charge measurements are error-prone and can result in an average error of 7% in estimation of energy available for dispatch
- SEVO IFP: 26% of Energy Storage Systems Face Fire-Detection and Fire-Suppression Challenges
Isaac McLean, Chief Underwriting Officer at kWh Analytics, reflected: “Overcoming these challenges will require ongoing collaboration and innovation among industry leaders, in this dynamic landscape, asset owners play a critical role in protecting renewable energy investments by securing comprehensive insurance coverage and seeking multiple quotes from brokers to ensure accurate protection.”
The full report can be found here.
