Wit till they start including the insurance premiums for the consumer to cover.
Mother Nature Challenges Renewable Energy Insurance
Storm-related equipment damage and business disruption present major threats to energy conversion and reaching consensus sustainability goals.
For example, a 3,300-acre solar farm that serves more than 60,000 homes was caught in a March hailstorm that seriously damaged thousands of its photovoltaic (PV) panels. There was another hailstorm in 2019 in West Texas that cost insurers an estimated US$70 million to US$80 million in damage. There have been a number of other hail events costing insurers millions of dollars in several states.
Losses frequently outstrip insurance coverage, and total exposure is outstripping total insurance capacity. This trend is putting the renewable energy industry on an unsustainable path toward uninsurability. It’s a similar financial dynamic to the one prompting residential property insurers to pull out of wildfire- and hurricane-prone states.
