Hail causes half of solar panel weather claims, AXIS report

A new insurance industry report has revealed that hail damage accounts for more than half of all weather-related claims for solar photovoltaic projects in the United States and Canada

AXIS Capital Holdings Limited released the findings Wednesday, after analysing five years of hail damage claims data from their renewable energy portfolio. The report, titled “Solar vs. Hail Pivoting Away from Danger,” uncovers that hail is responsible for 55% of the total gross claims amount for solar natural catastrophe and extreme weather claims in North America.

“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,” said Richard Carroll, global head of energy at AXIS.

The research found that natural catastrophes and extreme weather contribute the greatest ground-up downtime to solar claims, averaging 240 days compared to 136 days for mechanical and electrical breakdown and 78 days for theft and vandalism.

Globally, hail claims ranked as the second most costly weather-related claims after strong winds, despite having a low claims frequency.

Technology solutions show promise

The report identified significant differences in damage costs based on technology choices. Solar panels with heat strengthened glass experienced average claim amounts $50,000 per megawatt greater than those with fully tempered glass.

Tracker systems that failed to stow during hail events resulted in average losses of US$380,000 per megawatt, higher than fixed-tilt systems at US$340,000 per megawatt. However, successful stow deployments reduced average claims to $150,000 per megawatt.

Laboratory and modelling tests showed that increasing solar panel hail stow angles from 60 degrees to 75 degrees can reduce breakage probability by nearly 50%.

“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 report emphasizes three key pillars for risk mitigation: accurate forecasting, appropriate technology, and well-informed operations strategy.

AXIS Capital operates as a global specialty underwriter with shareholders’ equity of US$5.9 billion and maintains financial strength ratings of “A+” from Standard & Poor’s and “A” from AM Best.

How should the insurers adapt to the growing threat of hail damage? Share your thoughts in the comments.