By Richard Carroll, Global Head of Energy, AXIS —
The impact of extreme weather on solar photovoltaic (PV) assets is one of the main underwriting considerations for renewable energy insurers. Severe convective storms that are widespread and intense, and bring powerful winds and destructive hailstones, pose a particular challenge for the solar industry.
While once considered a rarity, giant hailstones capable of causing serious damages now pose significant threats to solar PV projects from Texas to South Africa. As hail damage to installations and unpredictable weather patterns increase, and as solar PV capacity is deployed at an incredible rate, elevating understanding of hail risk and implementing effective mitigation strategies are even more important.
At AXIS we are taking up this challenge, in close collaboration with our partners and customers across the solar industry. In this special report from AXIS Global Energy, we combine our latest claims analysis, risk insights developed over more than a decade of underwriting solar projects globally, and technical analysis by established industry experts to understand the hail threat and the mitigation strategies to protect solar assets against hail damage.
Hail is a weather risk that is expected to become more severe over time. Analysis of our data within this report shows total gross claim amount of $340million for reported solar PV hail claims to AXIS with dates of loss 2019-2024. We firmly believe that through sharing knowledge we can advance understanding of how to mitigate the financial and physical impact and build resiliency in solar.
The Threat of Severe Convective Storms
Severe storms with the potential for large and damaging hailstones are formed through a convective process as heat and moisture move vertically from strong updrafts in the atmosphere. Within the tall cumulonimbus clouds that form, raindrops can start to freeze higher in the atmosphere, growing into larger and larger hailstones until the updrafts can no longer support their weight and they fall to the ground.
Most hailstorms are made up of a mix of different sized hail. However, even a small percentage of damaging hailstones (we define as at least one inch/25mm), with their increased mass and higher terminal velocities, result in impacts with exponentially greater kinetic energy—often enough to substantially damage equipment and shatter glass.
Geographically, hail-producing cumulonimbus clouds are more likely to form and provide a larger volume of hailstones in areas that encourage these conditions, such as in areas adjacent to mountain ranges and continental interior plains like “hail alley” in Texas, and much of the US Midwest.
These open, sparsely populated spaces are often identified as ideal locations for solar farms. However, as developers have built increasingly vast projects in these areas, the true scale of the risk posed by hailstorms—often previously underreported in weather records—is now becoming clear. Now, acres of glass are effectively acting as hail datapoints, highlighting the devastating impacts for asset owners and stakeholders.
Climate instability and a changing atmosphere are increasing temperatures and humidity in parts of the world, fueling stronger storms and altering where damaging hailstorms form. Climate model studies project hailstone size to rise globally, hailstorm severity to increase in most regions, and storm frequency to upturn in Australia and Europe in particular.
One global estimate of one inch (25mm) hail probability indicates that hail exposure spreads far beyond North America, traditionally considered one of the greatest risk areas.
“This special report brings together expert analysis from the AXIS Global Energy team and the solar industry and reflects our shared commitment to elevating understanding around solar technology and resilience,” said Richard Carroll, Global Head of Energy, AXIS. “Our holistic approach to reviewing risk reflects the wide spectrum of deployed technology and the perils it must be designed to withstand. We prioritize building long-term partnerships that combine risk management and risk transfer, ensuring customers receive comprehensive, customized specialty insurance solutions that are responsive to the evolving risk landscape. Through collaboration with partners and policyholders, we gain essential insights into protecting the equipment installed and procedures employed by project owners against hailstorms and other forms of extreme weather.”
Read the full piece at Axis Capital for more on:
- Understanding why solar farms are vulnerable to damage from hail
- The extent of global locations with exposure to the threat of severe convective storms
- The benefits of stow strategies with tracker systems in reducing PV module breakage probability
- Claims insights from solar PV assets that have been damaged by extreme weather and hail
- Recommended pillars of best practice for hail-exposed solar PV projects
- The process of underwriting solar PV risks at AXIS and providing continuous support for customers in managing hail exposure
- The importance of collaborative effort between manufacturers, forecasters, owners, operators, and insurance in reducing the risk of hail damage
About AXIS
AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company has shareholders’ equity of $6.2 billion at June 30, 2025, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a financial strength rating of “A+” (“Strong”) by Standard & Poor’s and “A” (“Excellent”) by A.M. Best.
At AXIS, we strive to help people and organizations navigate and manage risk in an increasingly complex and uncertain world. We believe that climate-related risks are among the most serious issues facing the world today and that the (re)insurance industry has an important role to play in enabling the transition to a low carbon economy. AXIS continues to support the development of renewable energies and the transition to a low-carbon economy by offering comprehensive coverage and protection for renewable energy projects worldwide. For more information, please visit www.axiscapital.com.
SOURCE: AXIS Capital
