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 285 $1B+ weather/climate disasters. The cost of these events exceeds $1.875 T2.
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.
2020 is only the second time that the official alphabetical list of hurricane names has been used up, meaning forecasters have had to move to the list of Greek letter names.
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
Extreme wildfire seasons have caught global attention in the last few years. The 2020 Australian fire season is expected to cost insurers A$2.33 billion4, whilst 2020 saw the first ever ‘Gigafire’ in modern history - a fire spanning 1 million acres. At 1.03m acres5, the August Complex fire in Northern California was larger than the state of Rhode Island and raged across seven counties, according to fire agency Cal Fire6
In
2018
insurers paid out a total of $18B in wildfire losses.7
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.8
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
Questions? Contact us.
Learn More about how AXIS can help you with all of your solar project needs.
Peter Fitzsimmons
Head of Onshore Renewable Energy
Insurance
London, UK
Explore the lifecycle of your renewable energy project from pre-construction through decommission.
1 https://www.iea.org/news/world-energy-outlook-2020-shows-how-the-response-to-the-covid-crisis-can-reshape-the-future-of-energy
2 https://www.ncdc.noaa.gov/billions/
3 https://www.munichre.com/en/risks/natural-disasters-losses-are-trending-upwards/floods-and-flash-floods-underestimated-natural-hazards.html#-24989000
4 Informa Insurance News 24 28 August 2020
5 https://www.fire.ca.gov/incidents/2020/8/16/august-complex-includes-doe-fire/
6 https://www.theguardian.com/us-news/2020/oct/06/california-wildfires-gigafire-first
7 https://www.munichre.com/en/risks/natural-disasters-losses-are-trending-upwards/wildfires-as-the-climate-changes-so-do-the-risks.html#186619236
8 https://www.carriermanagement.com/news/2019/06/18/194563.htm
