A new report from AXIS Capital Holdings Limited reveals that hail accounts for a significant 55% of total gross claims related to natural catastrophes and extreme weather for solar photovoltaics (PV) in the United States and Canada. This finding underscores a critical vulnerability for the rapidly expanding North American solar market, prompting a deeper examination of risk mitigation strategies for utility-scale assets.

The report, titled “Solar vs. Hail Pivoting Away From Danger” and compiled by AXIS’s Global Energy team, analyzed five years of the firm’s global hail damage claims data. It highlights that while hail events have a low frequency, they represent the second most costly natural catastrophe and weather-related claims globally, trailing only strong winds. A key finding indicates that tracker systems, when failing to successfully stow during hail events, incurred average losses of $380,000 per megawatt (MW), notably higher than fixed-tilt systems at $340,000/MW. Conversely, successful stow deployments dramatically reduced average claims to $150,000/MW, emphasizing the paramount importance of early weather forecasts, robust operational procedures, and rigorous testing of tracker systems.

Beyond direct financial costs, the report also detailed the operational impact of extreme weather. Natural catastrophes and extreme weather events result in the longest ground-up downtime for solar PV claims, averaging 240 days. This contrasts sharply with 136 days for mechanical and electrical breakdowns and 78 days for theft and vandalism, highlighting the protracted recovery periods associated with severe weather damage. Additionally, the analysis indicated that PV modules utilizing heat-strengthened glass exhibited a higher average gross claim amount of $50,000/MW compared to those with fully tempered glass.

Richard Carroll, Global Head of Energy at AXIS, commented on the collaborative nature of the report, stating, “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.” He further emphasized that by integrating insights from engineering, underwriting, and claims specialists, the report aims to build a comprehensive view of hail risk, featuring contributions from partners like Nextracker and Vaisala Xweather.

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.” Greg Beardsworth, Senior Director of Product Marketing at Nextracker, reinforced this, noting that intelligent tracking systems with automated weather-response software and steep stow angles exceeding 60 degrees are becoming an increasingly vital component in combating hail risk. Scott Mackaro, Director of Innovation & Xweather Forecasting at Vaisala, underscored the localized nature of hail risk, stressing that “advances in the use of observational data and machine learning are now bringing greater clarity to where and when that risk emerges.” These insights collectively underscore the industry’s imperative to adopt proactive measures and advanced technological solutions to safeguard solar assets against increasingly volatile weather patterns, ensuring the long-term viability of renewable energy investments.