Climate insurance provider kWh Analytics expanded its coverage, adding a new Excess Natural Catastrophe insurance policy for solar projects.
The Excess Natural Catastrophe layer provides up to $20 million in additional capacity, covering severe convective storms and named windstorms in non-coastal regions.
The company said its loss database shows that hail accounts for 73% of total solar industry losses by damage amount. Technical due-diligence and risk-mitigation service provider VDE said industry hail damage insurance claims represent only 2% of all claims filed but comprise over 50% of the total costs. The coverage is intended to provide higher insurance limits for catastrophic events like hail or wind damage.
“As renewable projects grow in size and tax-equity investors and lenders require higher insurance limits, we’re addressing a critical market gap with this specialized excess layer solution,” said Jason Kaminsky, chief executive officer, kWh Analytics.
kWh Analytics approach to underwriting focuses on rewarding projects that invest in resilience. Projects that implement protective measures such as hail stow capabilities, reinforced module characteristics including glass thickness, and O&M protocols benefit from better terms.
(Read: “Actionable insights to safeguard solar projects from hail damage”)
VDE said insurance claims for utility-scale solar projects damaged by hail average roughly $58 million per claim. However, there are many ways to invest in the resilience of a solar project.
To provide a standardized framework for evaluating hail resilience and offer insurance credit for protective measures, kWh Analytics and VDE Americas developed the Hail Stow and Risk Evaluation tool. This assessment examines important factors, including panel specifications, tracker stow angles, forecasting systems and testing protocols. Projects demonstrating hail-defense strategies through this evaluation can secure more favorable terms, even in the excess layer, said kWh Analytics.

Source: VDE Americas
“Resilience should be rewarded at every level of coverage,” said Isaac McLean, chief underwriting officer at kWh Analytics. “Our Excess Natural Catastrophe offering evaluates the same resilience factors we consider in primary coverage, and we request asset owners and sponsors provide us details of their hardening strategies so we can appropriately credit their risk mitigation efforts.”
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