Hail causes 73% of financial losses in solar projects in the United States

Despite accounting for only 6% of recorded incidents, hail is responsible for 73% of financial losses in solar energy projects in the United States. 

This is what the new report prepared by the American company reveals. kWh Analytics, specialized in climate insurance.

According to the survey, the damage caused by hailstorms is disproportionately severe, mainly affecting the glass of photovoltaic modules.

The analysis draws attention to one detail: 99% of North American solar plants have a 10% chance of being hit by hailstones larger than 5 cm in diameter each year.

In this sense, the research indicates that practically all American photovoltaic plants face events of this type throughout their 25-year useful life. 

The report also points out that many manufacturers have been reducing module quality to maintain profit margins amid falling selling prices.

A kWh Analytics It also highlights that the appropriate choice of modules by installation companies and consumers is one of the key factors in mitigating losses, indicating that models with thicker tempered glass are more resistant to severe impacts.

Solutions to mitigate risks

Among the recommended strategies, the technique known as “stowing” — which consists of storing or changing the inclination of the panels during storms, reducing direct exposure to hail and intense winds. 

An example cited in the report is the solar project Fighting Jays, in Texas, was severely damaged in 2023, while other parks in the region escaped unharmed precisely because they implemented this measure.

Learn more:

• Solar tracking solutions tackle hail and undulating terrain;
• How can heavy rains impact the photovoltaic system?;
• Photovoltaic module manufacturers face record failures in laboratory tests. 

In kWh Analytic’s view, as renewable energy becomes a backbone of the electricity grid, ensuring system resilience is no longer optional — it’s essential; and that this requires collaboration between operators, investors, insurers and manufacturers.

Smoke also threatens performance

In addition to hail, the study reveals that smoke from wildfires can reduce the annual return of solar plants by up to 6% — even when the fires occur hundreds of kilometers away. 

In 2023, the United States recorded almost 700 forest fires, according to an article published by 60Hertz Energy. From this data, the study of kWh Analytics reinforces the need for greater climate planning, technological innovation and large-scale prevention protocols to protect solar assets. 

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