The number of hailstorms has more than doubled in the past year – surging 104% to 11,808 storms according to figures from the European Severe Weather Database – and specialty re/insurance group Chaucer warns this is causing increased damage to solar energy installations.

It says hailstorms are the largest natural hazard to solar farms, substantially increasing costs for solar infrastructure in Europe. The storms can damage solar panels by cracking their protective glass, which is costly to repair and pushes up costs for solar farm owners.

The typical insurance policy for solar farms only covers between 10%-15% of total insurable value with additional insurance to fully protect solar panels being very expensive. Chaucer warns that, as a result, solar installations can be significantly underinsured for hail damage.
To obtain insurance, solar farms often have to show that the panels can be stowed at 70 degrees (in order to reduce the impact of hail) but it can be difficult to retrofit existing solar farms to enable them to be tilted remotely.

Alex Nelson, class underwriter at Chaucer, said: “Hailstorms are increasingly frequent and therefore increasingly damaging. With limited cover from standard policies, operators of solar installations often have to pick up a large percentage of the cost of damage by a hailstorm. That’s naturally going to slow the growth of solar energy production in those areas where hailstorms occur.”

Hailstorms in Europe have increased 267% in the past five years, potentially due to climate change, up from 3,217 hailstorms in 2019/20. This rise in the frequency of hailstorms is expected to continue as extreme weather events become more regular around the globe. Hailstorms are also increasingly severe across regions like North America and Europe. Hail Alley – stretching from Wyoming to Texas in the US – is known for producing particularly large hailstones, while European countries, including Italy and Germany, are also reporting larger hail stones up to 10cm in diameter.

New technology is being developed to protect solar panels including AI weather-monitoring systems and thicker tempered films that are crack resistant, but these are currently expensive solutions. Greater use of AI in weather forecasting should allow better prediction of hailstorms. Nelson added: “With the intensity and volume of hailstorms likely to continue increasing it is imperative solar farms invest in new technology and ensure they are financially protected from damage.”

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