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Solar Electric Power Generation Business Guide

11Documented Cases
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All 11 Documented Cases

Misaligned design and insurance decisions due to poor visibility into weather‑risk losses

One insurer reported $342M in global hail claims across 1.3M modules and 2.7 GW from 2019–2025, while a single West Texas hailstorm generated the largest claim in solar history; these losses could often have been materially mitigated by different design and insurance decisions.

Industry data show that a small share of weather perils (notably hail) account for a majority of insured solar losses, yet many projects are still planned without appropriate hail‑stow capabilities, structural reinforcements, or parametric cover. This indicates systematic underestimation of specific weather risks and mis‑specification of both technical and insurance strategies.

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Extended generation capacity loss from preventable extreme‑weather damage

GCube data cited by industry media show hail made up just 1.4% of US solar insurance claims by count but 54% of total losses, with one insurer reporting $342M in hail claims across 1.3M modules and 2.7 GW of capacity between 2019–2025.

Hail, high winds, and snow are now leading causes of insured losses on solar assets, with severe hail identified as the single largest contributor worldwide. Because many projects still lack effective hail‑stow strategies and robust design for local weather risk, farms can lose a large fraction of capacity for prolonged periods after storms.

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Under‑recovered revenue from production downtime after weather events

Industry analyses cite a single hailstorm in West Texas causing roughly $300M of losses, much of which related to lost production and business interruption; recurring hail‑driven losses globally are in the hundreds of millions of dollars over multi‑year periods.

Severe weather (hail, wind, snow) regularly takes solar farms partially or fully offline, but traditional property policies often only cover physical damage and not all energy production losses. This leaves operators with uncovered revenue shortfalls even when claims for physical damage are paid.

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Escalating repair and soft costs from large weather‑damage claims

Industry consultants report solar farm hail claims in the $5M–$80M range per site, and one widely publicized West Texas hailstorm damaged about 400,000 modules and produced the largest single solar insurance claim to date (on the order of hundreds of millions of dollars).

Extreme weather damage to solar farms drives very large repair scopes, with project‑level hail claims frequently ranging from $5M to $80M and some single storms damaging hundreds of thousands of modules. Soft costs such as engineering studies, re‑inspections, temporary repairs, and repeated documentation rounds for insurers add substantial unbudgeted expense.

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