Panel Degradation & Warranty Defaults
A key disaster scenario is underperformance of the PV Panels compounded by failure of the PV supplier to support their warranty. The main issue would be the loss of power arising from having to use the deficient arrays. Sciemus can examine, for a defined time period, different rates of degradation in excess of a reference rate. The losses are calculated on the basis of 100% of the Covered Revenue for loss of power in excess of the percentages defined in the panel supply agreement.
Having confidence about the warranty provider honouring their warranty is critical for mitigating large claims and is both the driver of the probable maximum loss and is the only credible major loss scenario. This becomes more important as the coverage period extends.
The analysis can be used to identify:
- The amount of risk retained on the balance sheet
- The attachment points and warranty coverages
- Anticipated coverage gaps and additional risk transfer needs
- Assist in planning cash reserves
Sciemus analysis can be used in the following commercial activities:
- Assist in operational management of solar assets in respect to panel management and replacement.
- Establish better relationships with warranty providers through better understanding on how the risk alters with specific panel degradation scenarios.
- Provide additional certainty to investors on investment returns and identify respective variability
Sciemus have drawn on multiple Solar datasets to create a single normalised dataset. Coupled to our powerful analysis tools, we can then model a variety of arrangements of PV Solar farms, critical to identifying risk exposures from not just the panels but racking structures, inverters, transformers and other transmission infrastructure. Where others can only examine panel degradation from engineering principles, Sciemus can couple this with in-the-field experience for a more complete understanding of performance issues.