Slide 1: The Emerging Risks of Solar Panels
The Emerging Risks of Solar Panels An Emerging Issues Presentation © Verisk Analytics, Inc. All rights reserved. 1
Slide 2: Today's Presenter
Today’s Presenter Greg Scoblete Principal Emerging Issues © Verisk Analytics, Inc. All rights reserved. 2
Slide 3: Today's Agenda
Today’s Agenda o Solar panel adoption across the United States o Solar panels and fire risk o The risk of solar panels starting fires o Solar panels damaged by fires o The potential for panels to impede fire fighting o Solar panels and hail: climate considerations? © Verisk Analytics, Inc. All right
Slide 4: Emerging Issues Framework & Solar
Emerging Issues Framework & Solar Research Identify and Socialize with Validate Insurance Productize Monitoring Prioritize Stakeholders Impact © Verisk Analytics, Inc. All rights reserved. 4
Slide 5: The Sun Is Shining on Solar Energy Growth
The Sun Is Shining on Solar Energy Growth Small-Scale Solar Generating Capacity & Forecasted Growth 70.0 60.0 50.0 Capacity in MW 40.0 30.0 20.0 10.0 0.0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 Year Series1 Series2 Data: U.S. Energy I
Slide 6: Home Construction Permits Increased 20% in the Last Five Years
Home Construction Permits Increased 20% in the Last Five Years Percentage Change By Renovation Type in the Last Five Years Eco-conscious solar panel 1 3% installations increased 466% in the Midwest and 99% in Western states 2 15% Homeowners embark 3 12% on a renovation project every 4.1 years on ave
Slide 7: Solar by Region and In Context
Solar by Region and In Context Top five renovation permit types per geographic location Midwest Northeast South West West Midwest Northeast Secondary Secondary Bath Solar panel structures structures Bath Kitchen Addition Addition Secondary Addition Solar panel Pool structures Kitchen Addition Solar
Slide 8: Solar Panels and Fires: Interconnected Concerns
Solar Panels and Fires: Interconnected Concerns Solar Panels Solar Panels Solar Panels Damaged by Impeding Fire Starting Fires Fires Suppression © Verisk Analytics, Inc. All rights reserved. 8
Slide 9: Solar Panel Fire Risk: What the Data Says
Solar Panel Fire Risk: What the Data Says ➢ Residential fires declining even as solar capacity increasing. ➢ Journal of Building Engineering study: 0.0289 fires estimated per megawatt of solar capacity ➢ Australia study: 1 fire per 10,000 units ➢ Germany: 0.016 percent of solar systems linked to fir
Slide 10: Solar Panel Fire Risk: Possible Causes
Solar Panel Fire Risk: Possible Causes ➢ Faulty Installations ➢ Presence of Flammable Vegetation ➢ Panel Component Failures ➢ System Age ➢ Use of Panels as Architectural Components Solar Panels Starting Fires Solar Panels Damaged by Fires Solar Panels Impeding Fire Suppression © Verisk Analytics, In
Slide 11: The Other Solar Story: The Rise of Battery Energy Storage Systems
The Other Solar Story: The Rise of Battery Energy Storage Systems The Why: Use Cases The What: Battery Energy Storage Systems (BESS) Residential: Solar storage, backup power Lithium-ion batteries (generally) Commercial: Solar storage, backup power 13% of U.S. solar installations include battery stor
Slide 12: BESS Fires: An Extension of the Solar Fire Risk?
BESS Fires: An Extension of the Solar Fire Risk? Residential ~60 incidents (globally) vs. Commercial/Utility ~82 incidents (globally) How can they start? Burn hotter Reignition Toxins Accidents/malfunctions 1,000+ degrees Days to weeks after Batteries can leak extinguished chemicals and fumes During
Slide 13: Solar Panel Fire Risk: Costs
Solar Panel Fire Risk: Costs ➢ Verisk claims data: Avg. cost of solar fire loss $9,154 ➢ Fire: ~3.8% of solar claims in 2024 ➢ Top three states for fire solar panel claims: CA, TX, FL Solar Panels Starting Fires Solar Panels Damaged by Fires Solar Panels Impeding Fire Suppression © Verisk Analytics,
Slide 14: How Solar Panels May Impact Fire Fighting
How Solar Panels May Impact Fire Fighting •Location of solar panels and percentage of roof covered by them •Impacts the heat and fire spread from gaps between solar panels and roofing materials •Roof access for firefighting •Provisions to shut off electrical connections when necessary •Structural, e
Slide 15: Solar and Hail: A Growing Threat
Solar and Hail: A Growing Threat • Verisk: Hail/wind represents 87% of solar panel damage claims • Vrije Universiteit Amsterdam: 1.18-inch hail and higher pose most risk • Panels may be tested to endure 1.375-inch stones • Verisk: Number of days with 2-inch+ hail storms rising—particularly in Northe
Slide 16: Don't miss the latest from Emerging Issues
Don’t miss the latest from Emerging Issues Use the QR code to sign up for our newsletter ❖ Original research ❖ News updates ❖ Webinar & event alerts ❖ Curated newsfeeds emergingissues@verisk.com © Verisk Analytics, Inc. All rights reserved. 16
Slide 17: Appendix: Sources and Resources
Appendix: Sources and Resources © Verisk Analytics, Inc. All rights reserved. 17
Slide 18: Emerging Issues Resources
Emerging Issues Resources ❑ Are Solar Panels an Emerging Fire Risk? ❑ Solar Panels at Risk as Hail Grows Larger ❑ Shining a Light on Solar Panels and Homeowners Insurance Recent Research on Battery Energy Storage core.verisk.com/ei Systems • Weekly research articles • Weekly newsletter ❑ Residential
Slide 19: Sources
Sources AI Uptake Some Known Potential Flaws in GenAI Outputs "Insurance CEOs Talk Gen AI, Growth, Workforce Strategies," Insurance Journal, September 2024. “Survey of Hallucination in Natural Language Generation,” arXiv. https://arxiv.org/abs/2202.03629 https://www.insurancejournal.com/news/nationa
Slide 20: Sources, Cont.
Sources, Cont. Data Privacy & Cyber Concerns Claims Fraud IDENTIFYING AND MITIGATING PRIVACY RISKS STEMMING FROM LANGUAGE MODELS: A SURVEY, "Viewpoint: Deepfake Fraud Is On the Rise. Here’s How Insurers Can Respond," Insurance Journal, July 2024. ArXiv, September 2023. https://www.insurancejournal.c
Slide 21: Sources, Cont.
Sources, Cont. “Survey: 18% US homes have 6 or more smart devices,” Parks Associates, April 2024. https://www.parksassociates.com/blogs/in-the-news/survey-18-us-homes-have-6-or-more- smart-devices Ibid “Securing the Smart Home Network: The Risks of the IoT,” CEPro, June 2023. https://www.cepro.com/n
Slide 22: Sources: Solar
Sources: Solar California Energy Storage System Survey,” California Energy Commission. https://www.energy.ca.gov/data-reports/energy-almanac/california-electricity- data/california-energy-storage-system-survey “Battery Storage in the United States: An Update on Market Trends,” U.S. Energy Informatio
Slide 23: Sources: Solar
Sources: Solar “Short-term Energy Outlook 2025,” U.S. Energy Information Administration, February 2025. https://www.eia.gov/outlooks/steo/pdf/steo_full.pdf BESS Failure Event Database.” (2024, February 27). EPRI, Program 94. Retrieved 17:20, March 20, 2024 from https://storagewiki.epri.com/index.php
Slide 24: Thank you!
Thank you! This material was used exclusively as an exhibit to an oral presentation. It may not be, nor should it be, relied on as reflecting, a complete record of the discussion. No part of this presentation should be copied or distributed without prior written consent of Verisk Analytics, Inc. © V