Lifecycle
From the moment the equipment leaves the factory, during transportation, throughout installation, during operation and right through decommission, AXIS covers the entire project lifecycle.
Solar energy is taking off. Don’t let the risks hold your clients down.
According to the International Energy Agency (IEA), solar will lead the way for renewable energy sources and ‘set new records for deployment every year after 2022’1
The severity of natural catastrophes is increasing
As the impact of extreme weather events continues to increase, the associated risks of hurricanes, hail and wildfires – amongst others – need to be factored into the design and maintenance of solar projects. In addition, developers should take into account possible changes in weather events for the lifetime of the project.
Since 1980 the U.S. has sustained 341 $1B+ weather/climate disasters (including CPI adjustment to 2022).
The total cost of these 341 events exceeds $2.475 trillion2.
Risk factor #1
Windstorm
Hurricanes, Typhoons and Cyclones are among the costliest of the natural hazards and this continues to trend upwards. Of the 10 costliest hurricanes in U.S. history, nine have occurred in the last 20 years, with four occurring in the last five years. As weather conditions create more severe hurricane seasons, factors such as population growth, suggest the high cost of wind related damage is set to continue.
2021 trails only 2020 with 30 named storms and 2005 with 28 named storms for most named storms in a single season.3
Risk factor #2
Flood
While solar projects are constructed to withstand the elements, carefully locating solar energy projects away from flood plains, river beds and other flood-prone areas can help mitigate risks. Where projects are in areas liable to flood, a Flood Risk Assessment should inform the project design and take into account all necessary mitigations in both the construction and operational stages of the project.
Flooding accounts for 40% ofall loss-related natural catastrophes since 1980, with US$1T losses worldwide. Only 12% of these losses were insured.4
Risk factor #3
Wildfire
The conditions leading to wildfires are becoming more prevalent. In 2021 California, Nevada, and Oregon experienced their hottest summers ever. Washington and Arizona had their second hottest summers.
18 of the 20 largest wildfires in California’s history have occurred since 2003.5
Risk factor #4
Hail
Hail is becoming an increasing problem for renewable energy projects. As the number of possible project sites is reduced, projects are being built in locations that may be more prone to weather risks. Hail can cause complete damage to solar modules, requiring them to be replaced or can cause microcracking, causing loss of power over time.
In 2008 hail losses in the United States jumped from the norm of $8-$12B to $19B. Since then the norm has stayed close to or been higher than $19B.6
US states in top 10 for both solar capacity and incidence of weather peril
| State Rank | Fire | Wind (Hurricane and Tornado) | Flood | Hail |
|---|---|---|---|---|
CA | ||||
NC | ||||
FL | ||||
TX | ||||
AZ | ||||
NJ | ||||
GA | ||||
NY |
Disclaimer. This information is for illustrative purposes only. The fact that a peril is not highlighted in a particular state, does not mean they peril does not occur in that state.
https://www.seia.org/research-resources/top-10-solar-states-0
https://www.iii.org/fact-statistic/facts-statistics-wildfires
https://www.iii.org/fact-statistic/facts-statistics-tornadoes-and-thunderstorms
https://www.iii.org/fact-statistic/facts-statistics-hurricanes
https://www.iii.org/fact-statistic/facts-statistics-flood-insurance
Resources
Wildfire, hail and floods The top three secondary perils to consider when future-proofing a project
Whitepapers
Whitepaper
Tropical Storm Preparedness Whitepaper
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Explore the lifecycle of your renewable energy project from pre-construction through decommission.
1 https://www.iea.org/reports/world-energy-outlook-2021
2 https://www.ncei.noaa.gov/access/billions/
3 https://www.iii.org/fact-statistic/facts-statistics-hurricanes
4 https://www.munichre.com/en/risks/natural-disasters-losses-are-trending-upwards/floods-and-flash-floods-underestimated-natural-hazards.html#-24989000
5 https://www.fire.ca.gov/media/4jandlhh/top20_acres.pdf
6 https://www.carriermanagement.com/news/2019/06/18/194563.htm
