Solar Energy

Be ready when life happens. These solar energy situations illustrate the variety of environmental exposures that could affect your customer!


rainstorm

Improper Stormwater Controls Cause Sediment Runoff

A solar developer begins construction of a 50-acre ground-mounted solar facility on agricultural land. Although the project requires erosion and sediment controls under its stormwater management plan, several controls are either inadequately installed or not maintained following heavy rainfall. During a series of storms, sediment-laden runoff leaves the construction site and enters a neighboring creek and adjacent properties. Local environmental regulators investigate after complaints from downstream landowners about muddy water and impacts to aquatic habitat. The developer faces costs associated with cleanup, regulatory response, environmental monitoring, and third-party property damage claims.


house fire

Design Error Leads to Battery Thermal Runaway Event

An engineering firm designs a commercial battery energy storage system (BESS) to accompany a large solar installation. Due to a design error involving battery spacing and ventilation requirements, a thermal runaway event occurs within one of the battery containers several months after commissioning. The resulting fire releases hazardous smoke and combustion byproducts into the surrounding area, prompting emergency response measures and concerns from neighboring businesses. Environmental consultants are retained to evaluate potential contamination from firefighting water runoff and battery-related pollutants. The engineering firm faces professional liability allegations related to the system design, along with environmental response and remediation expenses.


broken pipe

Trenching Damages Sewer Force Main

While installing underground conduit for a utility-scale solar project, a contractor accidentally strikes a buried sewer force main after relying on incomplete utility information. The damaged line releases untreated wastewater that flows onto neighboring properties and into a nearby drainage ditch. Local authorities require immediate containment and cleanup measures, while nearby property owners seek compensation for impacts to their land. The contractor faces pollution-related claims involving emergency response costs, environmental remediation, regulatory scrutiny, and third-party damages.


electrical plug

Transformer Oil Release During Solar Facility Operations

A large commercial solar facility experiences a failure of an electrical transformer located within the project substation. The malfunction causes several hundred gallons of dielectric fluid to escape from the equipment and migrate into surrounding soil and a nearby stormwater conveyance system. Environmental consultants are hired to investigate the extent of contamination and oversee cleanup activities. Regulators require soil removal, confirmation sampling, and reporting. The facility owner incurs substantial costs associated with environmental remediation, disposal of impacted materials, and third-party claims related to the release.


lithium ion battery

Lithium-Ion Battery Leak at Energy Storage Facility

A battery energy storage facility supporting a renewable energy project experiences a failure within multiple lithium-ion battery modules. Damaged units release electrolyte and other hazardous constituents within the storage enclosure. Although the release is initially contained on-site, subsequent rainfall causes contaminants to migrate beyond secondary containment areas and into surrounding soil. Regulators require investigation and corrective action, while neighboring property owners raise concerns about potential environmental impacts. The facility operator incurs significant costs related to environmental cleanup, testing, and regulatory compliance.


solar panel

Solar Panel Recycling Contractor Improperly Handles Waste

A contractor engaged to remove and recycle end-of-life solar panels from several commercial installations improperly stores damaged panels awaiting transport. Exposure to weather conditions causes leachate containing metals and other contaminants to escape from the storage area and impact adjacent property. Environmental agencies require cleanup and waste characterization activities, while neighboring businesses pursue claims for property impacts. The contractor faces pollution liability arising from the improper handling and storage of solar waste materials.


  Download the Solar Energy Claim Scenarios

Our team of experienced underwriters, dedicated claims handling unit and technical support staff understands the unique environmental exposures depicted above and can help tailor a policy to find acceptable coverage and claim solutions for your clients!

The claim scenarios in this newsletter are provided to illustrate the variety of environmental exposures faced by your clients. The facts of any situation which may actually arise and the terms, conditions, exclusions, and limitations in any policy in effect at that time are unique. Thus, no representation is made that any specific insurance coverage applies to the above claim scenarios. The liability of Great American Insurance Company and its affiliated insurers is limited to the terms, limits and conditions of the insurance policies underwritten by any of them.

Login Icon

Environmental Insider

Environmental Insider was created for brokers like you, as a source of ideas and innovations to help you grow your business.

Start receiving the Environmental Insider newsletter by completing the form linked below.

Contact Icon

Social Media

To stay updated on our corporate news follow Great American Insurance Group on LinkedIn and Facebook.