Grid on Ship

I want a grid to cover my ship only and nothing else. Currently I’m using a plane for the textures (1x1 grid blocks tiled 40x40) but I can use a terrain, quad, or whatever is needed to make this work. Below is a visual description of what I need. Does anyone know a clean solution? Thanks many for the help.
alt text

Instantiate a quad on every position from a raycast.