Hail behind over half of solar panel damage claims, Axis says
Bermuda-based insurer Axis reports that hail is responsible for 55% of total gross claims tied to natural catastrophe and extreme weather damage in North America.
Hail damage can cause average losses of $380,000 per megawatt of installed capacity in solar photovoltaics (PV) projects.
Natural catastrophes and extreme weather contribute the greatest ground-up downtime to solar PV claims at an average of 240 days, compared to 136 days for mechanical and electrical breakdown and 78 days for theft and vandalism.
Globally, hail claims have been the second most costly of nat cat and weather-related claims after strong winds, despite having a low claims frequency, said the renewable energy insurer.
“As solar projects grow, so does the threat from extreme weather, especially hail,” said Daniel Stevens, head of engineering, global energy at Axis. “We’ve seen firsthand the impact hail can cause and the value of resilient, responsive technology to changing weather patterns.”
The Axis report, Solar vs Hail: Pivoting Away from Danger, underscores the importance of early forecasts, robust procedures, and regular tracker system testing.
Tracker systems often fail to stow during hail events, resulting in average losses of $380,000/MW, higher than fixed-tilt systems at $340,000/MW. In contrast, successful stow deployments reduced average claims to $150,000/MW.
And claims where the PV modules had heat-strengthened glass had an average claim amount (gross) $50,000/MW greater than those with fully tempered glass.
Increasing solar PV module hail-stow angles from 60 degrees to 75 degrees can reduce the breakage probability by nearly 50% based on lab and modelling tests, Axis reported.
“Severe hail can jeopardise solar project performance, long-term project viability, and insurability in severe convective storm-exposed regions,” said Greg Beardsworth, senior director of product marketing at solar tracker firm Nextracker. “Intelligent tracking systems with automated weather-response software and steep stow angles surpassing 60 degrees are becoming an increasingly important part of how the solar industry combats hail risk.”
Richard Carroll, global head of energy at Axis, said: “By analysing hail-related claims across our global renewables portfolio and integrating insights from engineering, underwriting, and claims specialists, we’ve aimed to build a comprehensive view of hail risk.”
Scott Mackaro, director of innovation & Xweather forecasting at Finnish weather monitoring service Vaisala, added: “Hail is a highly localised risk and one that can’t be generalised across regions or ignored in planning. Advances in the use of observational data and machine learning are now bringing greater clarity to where and when that risk emerges. As the energy transition accelerates, understanding this risk is no longer optional.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
