Uncertainty in solar energy generation demotivates some people to install solar panels. In USA, solar panel requires high cost investment upfront ($15,000-$25,000). Average household uses 893 kWh per month, and a residential solar setup produces 350 - 850 kWh per month. The hours of direct sunlight determine the electricity generated. On cloudy days, they only produce 10-30% of the capacity. Unexpected weather conditions lead to less energy generated than expected.
Therefore, an insurance on the uncertainty of solar energy generation can boot the acceptance of solar panel and promote the green energy.
How does SolarSafe work? In the event of lower than expected energy generation due to sunlight. consumers receive partial or full refund on the extra utility bills. The insurance can be distributed either via the solar panel providers at the point of sale, or via the utility companies.
Collecting and analyzing data is essential at SolarSafe. Meteorological data is used to estimate the solar energy risk at insured location. Over long run, SolarSafe improves estimate on the effect of weather on solar energy generation by learning from the customer data, e.g. the location of the household, geospatial analysis. In addition, household utility meters provide the historical records of the solar panel energy generation, available for forecasting use case.
In summary, SolarSafe instills confidence of investing in alternative energy. It enables the solar panel providers and traditional utility companies to join the effort in the climate change, and leverages big data on emerging climate risk.