Even as solar PV technology continues to evolve with innovations aimed at reliability and component efficiency, solar panels in the field remain at the mercy of extreme weather events. Among these, hail accounts for 73% of total losses by damage amount, even as it represents only 6% of loss incidents, according to kWh Analytics.
It thus represents one of the most severe financial risks, with the losses having gone up by 8% year-on-year (YoY). Central Michigan University believes 99.27% of PV plants have a 10% annual chance of seeing hail bigger than 2 inches in their close proximity.
Since hail causes most damage by the breakage of glass, analysts recommend using modules with thicker, tempered glass and advanced stow protocols for steeper tilt angles to minimize damage. GroundWork Renewables recommends using 3.2 mm/2 mm glass-glass modules,
Fire is the 2nd most costly risk for solar installations, and it is significantly driven by overgrown vegetation. Projects can experience a 6% annual loss in revenues from far-away wildfire smoke, says 60Hertz Energy. Strict vegetation management, proper wiring, and coordination with local fire departments can help mitigate the risks.
Climate insurance company kWh Analytics shares these observations in its 7th annual Solar Risk Assessment (SRA) report, which provides a data-driven evaluation of risks for solar and battery energy storage systems (BESS).
Apart from these weather-related risks, according to the report, solar installations are also impacted by increasing hot spot occurrences. Zeitview, another contributing author to this report, believes hot spot prevalence on sites increased from 0.24% in 2023 to 0.81% in 2024 in North America. The report writers count the highest hot spot rates in 2023 and 2024 for half-cut modules that also went up on a year-on-year (YoY) basis, attributing this to inconsistencies during manufacturing or string assembly.
An intriguing risk factor specified in the report is the increasing use of artificial intelligence (AI) to assess operational risks. Mike Mousou, kWh Analytics’ Data Engineer, says that AI models misclassify up to 20% of solar operational issues without domain-specific training.
“Implementing AI responsibly demands ongoing model validation, transparent application practices, and high-quality data curation to ensure these powerful tools deliver accurate and reliable benefits to the solar industry,” states Mousou.
Increased digitalization is also exposing solar and storage assets to the risk of cyberattacks owing to highly connected assets and the use of advanced monitoring systems that are aimed at improving efficiency. The future of the grid will depend not just on how much clean energy is deployed, but on how resilient and secure the infrastructure behind it remains, reads the report.
The complete report is available for free download on kWh Analytics’ website.
