Risk management in renewables

As renewable energy projects mature in scale and complexity, risk management has become a critical differentiator. Beyond technology selection and financing, businesses must ensure that their solar and battery assets perform over their 20-year life cycles.

This white paper explores the key risk factors facing renewable projects in Australia, the role of insurance and warranties, and practical steps businesses can take to safeguard long-term performance and returns.

The Evolving Risk Landscape in Renewables

• Performance risk: Will the system deliver the forecasted kWh over 10-20 years?

• Technology risk: Rapid innovation increases the risk of premature obsolescence.

• Grid risk: Export curtailment, dynamic operating envelopes, and evolving DNSP rules.

• Grid risk: Export curtailment, dynamic operating Climate risk: Harsher weather events-floods, hail, bushfires- threaten assets more than ever.

• Counterparty risk: EPCs, O&M providers, and even equipment manufacturers may not be around in 10 years.

Why it matters: Energy assets are only valuable if they generate and store power consistently. A single underperforming year can erode IRR and delay payback by several years.

Insurance in the Renewable Sector

Insurance isn't just a box to tick - it's your safety net.

• During build - Covers damage in delivery or installation delays.

• Once operational - Protects against storms, fires, floods, and lost generation revenue.

• New risks - Cyber cover for monitoring platforms and environmental liability for batteries are now common.

Agile Tip: Always check the fine print - many policies exclude common issues like "design defects" or cap payouts for weather damage.

Warranties: Know the Limits

Warranties sound reassuring, but they're not all equal.

• Panels - Usually 25 years for performance, but terms vary (linear vs. stepped coverage).

• Inverters - Often 5-10 years; these are the most common failure point.

• Batteries - Coverage based on cycles or years; must match your

usage.

• Workmanship - Covers how your system was installed.

‍Reality check: A warranty is only as strong as the company behind it. If the manufacturer disappears, the promise disappears too.

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Keeping Systems at Peak Performance

The best defence is active management:

• Independent engineering checks before construction.

• Performance guarantees written into contracts.

• Real-time monitoring to catch issues early.

• Regular cleaning, inspections, and updates.

• Partnering with a specialist to manage the asset long term.

How Agile Energy Protects Clients

At Agile Energy, risk management is built in from the start:

• Before build - Structural checks, grid connection due diligence, and only bankable technology.

• During build - Full insurance cover, warranties transferred directly to the client.

• In operation - 24/7 monitoring, routine maintenance, and two years of defect liability included.

• Beyond - Optional extended O&M packages, including cleaning and asset optimisation.

Solar and battery projects should be safe, predictable investments. But without the right insurance, warranties, and performance management, returns can quickly erode. By protecting your assets properly, renewables become what they should be: a reliable, long-term source of savings and resilience.

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