We’ve seen that insurance costs have hit wind projects, both on- and off-shore. Solar is not immune.
Since 2018, severe weather events in areas with substantial solar deployment such as the northeastern U.S., California and Texas, have prompted insurers to tighten terms and conditions. The result has been sizable increases in insurance premiums, sometimes by as much as 400%, accompanied by deductible requirements of up to $1 million or 15% of the physical damage limit.
More critically, insurance coverages for hail damage have been capped between $15 million and $40 million regardless of project size. Consequently, for large renewable assets with capital expenditures exceeding $200 million, the insured value only represents a fraction of the potential loss.
In addition, natural catastrophe (NatCat) coverages now often include exclusions like microcracking in PV modules. These changes are forcing the solar industry to confront a new reality where obtaining adequate insurance coverage presents a significant obstacle to project viability…
This page is very old, likely out of date. It was part of the Bahia Redonda Marina website:
Hurricane Zone: Most insurance companies use the following definition: Where? From (12º 40’ N) 10º 50’ N to 23º 30’ N and from 55º W to 85º W. When? From July 1 to November 30 inclusive.
After hurricanes Ivan (2004) and Emily (2005) devastated Grenada, insurance companies moved the southern limit of the hurricane zone to 10º 50’ N which excludes Grenada, Tobago, Margarita and the ABC islands from coverage. That leaves the coast of Venezuela and the island of Trinidad as your safe havens to the south. Latitude 23º 30’ North is, of course, the Tropic of Cancer which runs about 20 minutes of a degree north of Havana, Cuba and right through the southern part of Great Exuma in the Bahamas. Longitude 55º West is out in the Atlantic well east of Barbados, about 10 minutes of a degree east of Paramaribo, Suriname. Longitude 85º West is just west of Cuba and runs right through the middle of Nicaragua.
This “box” is where you don’t want to be during the Hurricane Season, from July 1 to November 30.
Depending on what actuaries find solar insurance might or might not be available.