In a recent report titled “Hail No! Defending Solar from nature’s cold assault,” GCube Insurance underscores the urgent need for practical solutions to the growing threat of hailstorms on the solar industry.
With climate change-induced hailstorms on the rise, the insurance market and the future viability of solar projects are facing serious challenges.
According to the report, hail claims now average around USD 58.4 million per claim, constituting 54.21% of the incurred costs of total solar loss claims.
This alarming trend is creating a significant gap between insurance requirements for solar projects and available market coverage, leading to project delays and cancellations.
The report identifies key factors contributing to solar project vulnerability, including inadequate hail risk models, ineffective mitigation strategies, limited and costly insurance coverage, and an uncertain funding landscape.
It also points out how solar manufacturers, in pursuit of reducing the Levelised Cost of Electricity (LCOE), have introduced larger but more fragile solar panels and chosen locations more susceptible to hail risk, jeopardising the financial viability of future projects.
Fraser McLachlan, Chief Executive Officer of GCube Insurance, emphasised the crucial role of the solar sector in the global energy transition and the need to address the hail damage challenge to maintain its prominence in clean energy solutions.
McLachlan highlighted the imperative for the industry to develop solutions to the hail risk issue and restore insurers’ ability to provide long-term risk underwriting.
To address the problem, the report introduces two patented technologies developed by Solar Defender Technologies. The Hail Strike Defender, a low-cost, CAPEX-neutral catchment net, protects single-axis tracked solar installations while maintaining optimal energy output.
The Solar Shield is designed to safeguard fixed-tilt solar panels on rooftops, providing a panel face protector that deflects the impact of hailstones. Both technologies offer substantial protection against hail of up to 250 joules.
McLachlan emphasised the need for quick action and innovation, calling for unity among manufacturers, developers, operators, and insurers to bridge the widening gap in insurance coverage.
Immediate action and innovation are deemed essential to ensure the success of the solar sector in navigating hail risks, paving the way for a cleaner, more sustainable future powered by solar energy.
