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.
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
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.
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.
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.
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.
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.
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
From the moment the equipment leaves the factory, during transportation, throughout installation, during operation and right through decommission, AXIS covers the entire project lifecycle.
Wildfire, hail and floods The top three secondary perils to consider when future-proofing a project
Learn More about how AXIS can help you with all of your solar project needs.
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
This product information is for descriptive purposes only and does not provide a complete summary of coverage. Coverage may not be available in all jurisdictions and is subject to underwriting. Consult the applicable insurance policy for specific terms, conditions, limits, limitations, and exclusions. Coverage is underwritten by AXIS Reinsurance Company (Canadian Branch) or by AXIS Managing Agency Ltd (“AMAL”) on behalf of Syndicate 1686. The Branch is supervised by the Office of the Superintendent of Financial Institutions in Canada and licensed in all provinces and territories. It is operated by AXIS Reinsurance Company, licensed in all 50 of the United States and the District of Columbia. AMAL is registered in England (Company Number: 08702952) with a registered office at 52 Lime Street, London, EC3M 7AF. AMAL is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Firm Reference Number: 754962). AMAL manages Syndicate 1686 and is additionally subject to the supervision of the Society of Lloyd's. The Syndicate also benefits from the strength of the Lloyd's brand, its network of global licenses and the Lloyd's Chain of Security. More information about AXIS’ financial strength and individual insurance company ratings is available at https://www.axiscapital.com/who-we-are/financial-strength-ratings.