Descartes Underwriting, a specialist in enterprise parametric re/insurance solutions for climate and emerging risks, and Nextpower™, a provider of solar and power technology solutions for utility-scale power plants, have partnered to launch a comprehensive parametric insurance solution for extreme wind conditions.
By leveraging in-situ wind data from Nextpower weather stations, the new product is designed to protect solar farm operators from the financial impact of straight-line wind (SLW) events, one of the most damaging and underinsured hazards facing the global solar industry.
The new SLW solution offers limits of up to $80 million per policy globally and up to $100 million in the United States.
Additionally, it can be bundled with Descartes satellite-based tornado and radar-based hail products to provide comprehensive protection against severe convective storm (SCS) events.
Insurance is available to eligible Nextpower customers worldwide through commercial re/insurance brokers.
Daniel Vetter, Head of Americas at Descartes, said: “We are excited to partner with Nextpower to bring next-generation SLW solutions to solar operators around the world. With the global solar PV market expected to reach a valuation of $700 billion by 2035, developers are increasingly building in areas where severe convective storms are frequent and intense.
“By combining our advanced parametric modeling capabilities with Nextpower’s in-situ wind data, we deliver coverage accuracy and responsiveness previously unattainable in the industry. This partnership exemplifies our commitment to supporting the resiliency of critical renewable infrastructure in the global energy transition economy.”
Descartes’ climate scientists and natural risk modelers use real-time wind speed data from Nextpower field weather stations to set parametric insurance triggers.
By fixing expenditures to protect solutions specific to site measurements, you reduce the underlying risk and help align it more closely with site wind conditions.
While Nextpower’s tracking systems provide world-class physical resilience against high winds, the Cartesian policy is designed to serve as a financial backstop for extreme weather events beyond normal operating conditions.
This novel integrated solution provides Nextpower system owners with significant financial security against damaging wind events. Its parametric structure ensures fast disbursement, allowing for faster rebuilding and business continuity after severe convective storm events.
In addition to physical repairs, the insurance can help operators manage financial obligations such as power purchase agreement commitments, debt service and tax equity stability.
Andrew Griffiths, Vice President of Asset Management at Nextpower, commented: “This partnership demonstrates our commitment to delivering smart solar infrastructure that not only operates on-site but also enhances the long-term resiliency of projects. As the risk of severe weather intensifies, solar operators need faster and more precise methods to protect project economics and keep critical clean energy assets online.
“By combining wind measurements from Nextpower onsite weather stations with Descartes’ parametric coverage, we are helping customers reduce uncertainty following straight-line wind events, gain liquidity, and accelerate their path to recovery.”
