While the financial community is—rightfully—focused on newly emergent risks of this asset class, such as managing the merchant tail and basis risk, it’s important that the financial community remains vigilant on the question of solar production risk.
Building on flood plains for example could mean that the solar farm is at risk of flooding or water damage. Building near archaeological sites also presents risks which would be reflected in higher insurance premiums. 5.
The risks associated with the use of renewables are often overlooked and this poses serious problems for insurers. However, we are keen to support our customers and to provide guidance on how photovoltaic solar panel systems can be installed and used safely.
A robust and sustainable solar industry is dependent on solar projects achieving their anticipated return on investment. The primary input affecting the value of solar assets is modeled energy yield coupled to the corresponding uncertainty of achieving that yield over the system life.
As solar power gains prominence over the coming years it’s important that the standardisation of testing, energy conversion, use of materials, and health and safety practices are applied consistently across the sector if we want to reduce the risks involved in the harvesting of green energy, and see these installations achieve their full potential.
Panels are in danger of being smashed by falling debris that’s carried by the wind. If solar farms are struck by lightning it can result in damage to modules, cables and electrical equipment which can cost many thousands of pounds to repair or replace. 2. Maintenance problems