- 84% of PV fire events are linked to equipment driven brushfires rather than wildfires.
- Only 38% of developers feel fully prepared for new prohibited foreign entity rules taking effect in 2026.
- Inverter shutdowns account for 28% of recoverable solar performance risk across 6.5 GW of global assets.
kWh Analytics has released its eighth annual Solar Risk Assessment, highlighting growing operational, safety and regulatory challenges facing the global renewable energy and battery energy storage sectors as dependence on clean energy infrastructure accelerates.
The report, produced in collaboration with leaders from academia, technology, finance and insurance, provides a data driven analysis of resilience, reliability and emerging risks across solar, wind and battery energy storage systems across the USA.
According to kWh Analytics, the renewable energy sector is entering a critical phase as surging electricity demand increases reliance on solar, wind and storage assets, while the industry simultaneously faces mounting climate related threats, cybersecurity concerns and operational vulnerabilities.
Jason Kaminsky, CEO of kWh Analytics, said the sector must strengthen collaboration across the value chain to ensure renewable infrastructure remains reliable and bankable.
“Delivering durable, reliable, affordable renewable energy infrastructure requires the honest, data driven exchange this report is built on,” said Kaminsky.
The report found that hail remains the costliest insured loss event for the solar sector, although industry focus is increasingly shifting toward fire risk. kWh Analytics reported that 84% of photovoltaic fire events originate from equipment driven brushfires within solar plants rather than from external wildfires.
Researchers also identified a growing number of operational issues affecting asset performance and project revenues. These include tracker twist, fungal soiling, junction box failures and thermal anomalies, all of which are emerging as measurable risks to equipment lifespan and energy output.
Among the report’s key findings, thermal anomaly data from more than 3,000 assets showed solar degradation accelerating after year seven, while widespread fungal soiling was found to cause energy losses of up to 5% in humid subtropical regions of the United States.
Battery energy storage systems also face increasing scrutiny. The report found that 75% of BESS sites showed early HVAC related thermal risk signals, while inaccuracies in state of charge calculations could cost operators more than US$1 million per GWh annually.
The study further highlighted tightening financing and compliance requirements across the renewable energy industry. New prohibited foreign entity rules due to take effect in 2026 are creating uncertainty for developers, with only 38% of respondents indicating they feel fully prepared for compliance.
In addition, the report warned that non-compliance with heightened regulatory standards could expose renewable energy developers to penalties of up to US$1 million per day.
Cybersecurity also emerged as a growing concern, with the report noting that stronger security measures will be essential to avoid significant penalties linked to energy infrastructure compliance requirements.
The 2026 Solar Risk Assessment includes 19 articles contributed by global industry partners examining resilience, reliability and emerging risks across renewable energy technologies and infrastructure.
Link the full report HERE
Author: Bryan Groenendaal
