Descartes Underwriting, a specialist underwriter of parametric risk transfer opportunities, has partnered with Nextpower to launch an integrated parametric insurance solution that uses site-level wind data from Nextpower meteorological stations to protect solar power plant operators against the economic impact of straight-line wind (SLW) events.
According to the announcement, the newly introduced SLW parametric solution offers limits of up to $80 million in limits per policy on a global scale and up to $100 million within the United States.
Moreover, this solution can be combined with Descartes’ satellite-based tornado and radar-based hail products to provide extensive protection against severe convective storm (SCS) events.
Coverage is reportedly available through commercial re/insurance brokers for eligible Nextpower customers worldwide.
Descartes’ climate scientists and natural risk modelers will leverage real-time wind speed data captured directly by Nextpower’s integrated meteorological stations, installed across all Nextpower sites.
By linking parametric triggers to on-site measurements, this new solution aims to minimize basis risk and ensure that payouts are more closely aligned with site-level wind conditions. This collaboration between the two companies also illustrates the increasing importance of project-specific data in managing solar risks, thereby providing enhanced precision, transparency, and responsiveness for severe weather coverage.
“Nextpower tracking systems have demonstrated world-class wind resilience and durability across utility-scale solar deployments and are engineered to help projects withstand severe site conditions. The Descartes coverage is designed to complement that resilience by providing an additional financial backstop for covered SLW events that exceed expected operating conditions or create significant economic impact for project owners and operators,” both firms explained.
The companies also emphasised that through this integrated parametric solution, solar power plant owners and operators with Nextpower systems will gain a significant financial safeguard against damaging wind events.
The parametric structure will deliver swift payouts following covered events, which will help operators accelerate reconstruction and maintain business continuity following damaging SCS events.
Beyond physical repairs, the coverage is also designed to help operators manage broader financial pressures, including PPA obligations, debt servicing, and tax equity stability.
Daniel Vetter, Head of Americas at Descartes, commented: “We’re thrilled to partner with Nextpower to bring this next-generation SLW solution to solar operators around the world. As the global solar PV market accelerates toward an expected $700 billion valuation by 2035, developers are increasingly building in regions where severe convective storms are both frequent and intense.”
“By combining our advanced parametric modeling capabilities with Nextpower’s onsite wind data, we are delivering a level of coverage precision and responsiveness that the industry has not previously had access to. This partnership reflects our commitment to supporting the resilience of critical renewable infrastructure in the global energy transition economy,” Vetter continued.
Andrew Griffiths, Vice President, Asset Management at Nextpower, said: “This partnership reflects our commitment to delivering intelligent solar energy infrastructure that not only performs in the field, but also strengthens long-term project resilience.
“As severe weather risks intensify, solar operators need faster, more precise ways to protect project economics and keep critical clean energy assets online. By integrating wind measurements from Nextpower’s on-site meteorological stations with Descartes’ parametric coverage, we are helping customers reduce uncertainty after straight-line wind events, access liquidity, and accelerate the path to recovery.”
