How risky is onshore wind & solar PV investment?

Onshore wind and solar PV investment risk is studied in Germany, Italy and the UK. Investment risk and risk premiums have declined between 2009 and 2017. Policy and technology risks have become relatively less important. Curtailment and price risks have become relatively more important.

Is solar PV a risky investment?

[With solar PV, in contrast,] replacing one or two modules only leads to a row of modules not producing electricity”. In sum, risk premiums – measured with different indicators – and investment risk decreased substantially for solar PV and onshore wind in Germany, Italy and the UK between 2009 and 2017.

Do solar photovoltaics and onshore wind technologies have a declining investment risk?

We show that risk premiums and investment risk have declined for solar photovoltaics and onshore wind technologies in all three countries. Increasing technology reliability at a lower cost, data availability, better assessment tools and credible and stable policies were crucial elements of this declining investment risk.

Does solar PV reduce risk?

As experience (the technology's track record) and corresponding data availability are key drivers in reducing risk, the fast deployment of solar PV in the period under study contributed to this faster risk reduction.

What are the risks of building a solar farm?

Building on flood plains for example could mean that the solar farm is at risk of flooding or water damage. Building near archaeological sites also presents risks which would be reflected in higher insurance premiums. 5.

What factors affect the value of solar assets?

A robust and sustainable solar industry is dependent on solar projects achieving their anticipated return on investment. The primary input affecting the value of solar assets is modeled energy yield coupled to the corresponding uncertainty of achieving that yield over the system life.