Parametric Hail Insurance Protects Solar Investments

Solar plants across the US continue to take a hit from severe hail events

Across the United States, hailstorms are driving losses from South Dakota to Colorado. Meanwhile, solar plants are expanding rapidly in previously uninhabited parts of the country, particularly in hail-prone areas. This has led to a challenging insurance market, where reports of hail events in such locations have been largely insufficient for traditional underwriting. 

Texas leads the nation in terms of the number of solar farms per capita due to the number of days with sunlight and reduced project costs. As more developments occur in previously uninhabited areas, the solar industry in the state has been increasingly impacted by hail events, resulting in larger loss sums year after year. For example, a hailstorm that passed through West Texas in 2019 racked up to $70 million in losses alone. As climate change uncertainty rises and hail events intensify, these kinds of figures are expected to follow suit. 

Parametric insurance products are an innovative solution for solar plants seeking efficient, customized coverage that comes with a swift payout, enabling solar clients, developers and investors to bounce back faster after an event. 

Descartes’ Parametric Hail Insurance

Descartes offers parametric insurance against hail damage, presenting an innovative risk transfer solution for the solar industry. This approach can complement or replace traditional insurance coverage, providing a viable option for solar plant owners and stakeholders seeking comprehensive and responsive coverage.

Gain insights into how parametric hail insurance protects renewable infrastructure assets against the full spectrum of financial losses due to hail, including non-damage revenue losses. And explore tailored insurance options with increased capacity and rapid payouts that offer buyers the confidence that their coverage will respond as intended.

Interested in protecting your solar infrastructure? Discover the advantages of parametric hail insurance by downloading our latest case study.