Solar farms hit by hailstorms face losses of up to $380,000 per megawatt, according to a special report by Bermudian-based Axis Capital Holdings.

The report, “Solar vs. Hail: Pivoting Away From Danger”, shines a light on the growing risks that extreme weather, especially hail, poses to solar energy projects in the US, Canada and globally. Drawing on five years of claims data from Axis’s global renewables portfolio, the insurer said hail alone accounts for 55 per cent of all natural catastrophe claims related to solar photovoltaic systems in North America.

"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 Nextracker, the solar tech firm which was a partner in the report.

Claims data showed that PV modules with heat-strengthened glass averaged $50,000 more per megawatt in losses than those with fully tempered glass. Tracker systems that failed to fold panels into protective positions saw the worst damage, averaging $380,000 per MW in claims. Properly deployed systems limited losses to $150,000 per MW.

Between 2019 and 2024, the total gross claim amount for solar PV hail was $340 million, according to Axis.

Richard Carroll, global head of energy at Axis, said the goal was to help the industry “advance understanding around solar technology and resilience”, adding that innovation in tracking systems and forecast-based stow responses are now critical.

The report also found that hail-related damage leads to longer downtime than other events, with an average of 240 days offline, nearly double that of mechanical or electrical failures.