The cost of insuring a solar plant has dropped by 50% since 2010 because of cheaper photovoltaic panels that lead to lower project costs and reduced premiums, according to Bloomberg.
Claims filed for projects reveal that few of the risks first feared such as module underperformance in hot climates, panel theft, and defunct warranties from manufacturer bankruptcies have been reported. Data compiled by Bloomberg also shows that the cost of crystalline silicon panels—the majority of a plant's costs—fell 67% since 2010.
The market for insuring renewable-energy projects is set to triple to $2.8 billion of premiums by 2020 as developers who seek money from new sources try to lure institutional investors such as pension funds, says a report by Bloomberg New Energy Finance funded by Swiss Re.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
