Extreme weather events in the South and the use of solar energy insurance 

Rio Grande do Sul leads Elétron's claims ranking, with more than R$2,2 million in compensation paid in the first half of 2024
Extreme weather events in Southern Brazil and the use of solar energy insurance
Image: Electron/Disclosure

In recent years, the southern region of Brazil has faced increasingly extreme weather events, such as storms, cyclones, hail and floods. 

These phenomena have caused significant losses in several areas, especially in the solar energy, which causes concerns among both consumers and integrators. 

Currently, the three states in the South region – Paraná (PR), Rio Grande do Sul (RS) and Santa Catarina (SC) – represent 85,13% of the cases of claims compensated by solar insurance through Elétron. 

Of this total, 74,07% of the losses were caused by gales, hail, atmospheric microexplosions, floods and inundations. 

Within this scenario, Rio Grande do Sul stands out as the state with the highest number of claims compensated, representing 55,45% of cases and totaling more than R$2,2 million in compensation paid by Miscellaneous Equipment Risk Insurance between January and July 2024.

The impact of climate change on photovoltaic systems 

Although solar energy equipment is resilient and efficient, it is not prepared for weather disasters as severe as those that have occurred. 

An example of this was the impact of flooding on photovoltaic systems after the tragedy in Rio Grande do Sul, already considered the biggest climate and political crisis in the state's history. 

The water that reached the roofs caused metal structures, cables and solar s to be damaged or even swept away by the flood. Another item that was severely affected were the inverters that remained submerged for days. 

Despite the seriousness of the incident, Elétron's insurance claims indicate that most cases involved partial losses, mainly related to inverters. However, there were also cases of plants that suffered total loss. 

New opportunities and adaptations in the solar energy sector 

While climate change poses a major challenge for the solar sector, it also highlights the urgency of market adaptations. 

Culturally, in Brazil, it is still common for many people to not recognize the importance of insurance. 

Rio Grande do Sul is a good example of this situation: data from the National Confederation of Insurers (CNseg) shows that most victims of the tragedy did not have coverage. Only 30% of those affected had some type of insurance, and among them, only 10% had specific policies for flooding and inundation

However, this perception is beginning to change, especially in light of recent extreme weather events. 

This gradual shift in awareness and behavior is already visible among some consumers and solar energy professionals, who are beginning to recognize insurance as an essential rather than a luxury item. 

Consequently, the increase in this demand encourages insurers to adapt to new climate realities, developing more specific coverage aligned with current needs. 

Conclusion 

With the intensification of extreme weather events, not only in the South region, but throughout the country, it is essential that consumers and solar energy integrators see insurance as an essential part of photovoltaic projects.

Protecting the system against potential climate damage not only safeguards the investment made, but also ensures the continuity of energy generation, which is crucial to the success of any solar project. 

Therefore, awareness of the risks and the importance of adequate protection are the first steps towards addressing growing climate uncertainties. 

Furthermore, by considering including solar insurance, integrators not only add value to their services, but also promote the safety and peace of mind of their customers. After all, in times of unpredictable weather, having specialized coverage makes all the difference. 

Don't miss any news from the electricity sector! Sign up to our Community by clicking here and get exclusive access to our content!

The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.

Photo by Mauro Filho
Mauro Filho
Founder and CEO of Elétron, the only insurtech in Brazil specialized in solar energy, with more than 400 thousand insured photovoltaic systems. Professor at the School of Business and Insurance and speaker.

Leave a comment

Your email address will not be published. Required fields are marked with *

Comments should be respectful and contribute to a healthy debate. Offensive comments may be removed. The opinions expressed here are those of the authors and do not necessarily reflect the views of the author. Canal Solar.

News from Canal Solar in your Email

Posts

Receive the latest news

Subscribe to our weekly newsletter

<
<
Canal Solar
Privacy

This website uses cookies so that we can provide you with the best experience possible. Cookie information is stored in your browser and performs functions such as recognizing you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.