A new report from AXIS Capital Holdings Limited reveals that hail accounts for 55% of the total gross claims related to natural catastrophes and extreme weather for solar photovoltaics (PV) in the US and Canada.
AXIS’s Global Energy team has published a report, “Solar vs. Hail Pivoting Away From Danger”, to understand how to manage and mitigate hail risk to solar PV projects.
Globally, hail claims have reportedly been the second most costly of nat cat and weather-related claims after strong winds, despite having a low claims frequency.
For the compilation of this report, the team reviewed five years of AXIS’s hail damage claims data.
Claims revealed that tracker systems often failed to stow during hail events, causing on average losses of $380,000/MW, higher than fixed-tilt systems at $340,000/MW.
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In contrast, successful stow deployments reduced average claims to $150,000/MW, underscoring the importance of early forecasts, robust procedures, and regular tracker system testing, explained the report.
Richard Carroll, Global Head of Energy, AXIS, commented, “This special report brings together expert analysis from the AXIS Global Energy team and leading voices in the solar industry and reflects our shared commitment to advancing understanding around solar technology and resilience.
“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.
“With contributions from partners like Nextracker and Vaisala Xweather, this report also highlights how innovation, from stow angle optimisation to predictive hail forecasting, can play a critical role in protecting large-scale solar PV assets as the industry scales to meet ambitious global energy targets.”
The report found that natural catastrophes and extreme weather events result in the longest ground-up downtime for solar PV claims, averaging 240 days, compared to 136 days for mechanical and electrical breakdowns, and 78 days for theft and vandalism.
Additionally, claims involving PV modules with heat-strengthened glass had a higher average gross claim amount of $50,000 per megawatt (MW), exceeding those with fully tempered glass.
Daniel Stevens, Head of Engineering, Global Energy, AXIS, added, “As solar projects grow, so does the threat from extreme weather, especially hail. We’ve seen firsthand the impact hail can cause and the value of resilient, responsive technology to changing weather patterns. This report shares our insights to help partners strengthen solar projects against severe weather.”
Greg Beardsworth, Senior Director of Product Marketing, Nextracker, said, “Severe hail can jeopardise solar project performance, long-term project viability, and insurability in severe convective storm-exposed regions. The AXIS team highlights how 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.”
Scott Mackaro, Director of Innovation & Xweather Forecasting, 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.”
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