Key Facts
• Solar power insurance premiums nearly doubled in five years, some tripling.
• Major insurers include Tokio Marine, Sompo Japan, Mitsui Sumitomo, and Aioi Nissay Dowa.
• Average premiums rose 1.8x by 2024; highest increase reached 2.8x.
• Insurance payouts surged from ¥294 billion in 2020 to ¥597 billion in 2023.
• Natural disasters caused 80% of payouts, with floods and snow accounting for 50%.
• Rising premiums also affect home and auto insurance due to climate change.
• Japan aims for net-zero emissions by 2050, with renewables at 40-50% by 2040.
• High premiums may hinder renewable energy adoption and new market entrants.
• Expert warns climate change will worsen, further driving up insurance costs.
Summary
Insurance premiums for solar power systems in Japan have nearly doubled since 2020, with some insurers reporting increases of up to 2.8 times. This surge is driven by rising claims due to natural disasters and thefts, with payouts exceeding ¥597 billion in 2023. Major insurers like Tokio Marine and Mitsui Sumitomo are affected, as 80% of claims stem from disasters, particularly floods and snow. The trend mirrors broader challenges in home and auto insurance linked to climate change. Japan’s government aims to expand renewable energy to 40-50% of its energy mix by 2040, but escalating premiums could deter new entrants and slow progress. Experts predict worsening climate impacts will further inflate costs, complicating efforts to meet sustainability goals.
