The risks and rewards of rooftop PV solar
As PV solar panels may be damaged from hailstones and severe winds, it will be important to ensure they are designed and installed accordingly, where these exposures exist.
However, rooftop solar increases the value at risk compared to ground mounted systems (see Figure 1). PV panels can cause property damage and in commercial buildings, can result in business interruption. Swiss Re constantly tracks the shifting risk landscape of energy transition, as detailed on our Renewable Energy Risks page.
The US Inflation Reduction Act has many incentives to expand the use of solar power. Under normal operating conditions, rooftop PV systems do not pose health, safety or environmental risks if properly designed, installed and maintained. However, rooftop solar increases the value at risk compared to ground mounted systems (see Figure 1).
Roof damage can result from excessive load of snow/rainwater combined with the weight of the PV system. PV systems can move in the event of seismic activity resulting in damage and the potential for fire. The installation of a PV system can introduce new components which may increase the likelihood or severity of a loss.
Meanwhile, an audit by Clean Energy Associates of more than 600 rooftop PV systems across 14 countries in 2023 reveals that 97% exhibited a defect of any kind. Poorly trained installers increase the likelihood of mismatched connectors, improper wiring and inadequate grounding.
As PV solar panels may be damaged from hailstones and severe winds, it will be important to ensure they are designed and installed accordingly, where these exposures exist.
Select PV modules that have the appropriate wind impact ratings and have passed tests that simulate impact by hail sizes expected of the location. It is suggested to avoid installation of
The demands of a solar-ready roof call for important material specifications to help mitigate long-term risks these installations create for waterproofing, insulation performance, fire
The US Inflation Reduction Act has many incentives to expand the use of solar power. Under normal operating conditions, rooftop PV systems do not pose health, safety or environmental
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