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.

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.

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.

Are solar projects at risk?

For stakeholders that need to forecast solar yield and asset value, observations from recent years provide new information on the risks to solar projects. First, some locations will be more impacted by smoke than others. Intuitively, proximity to wildfire fuel increases risk.

What are the top risk factors for energy investments?

The first two relate to country-wide issues, which apply for energy investments and beyond, while the latter three correspond to sector-specific risks. Other risks mentioned include sovereign risk and concerns around land rights. The ranking of top risks also varies a bit by country. Top risk 1 Top risk 2 Top risk 3

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.