Solar Farm Copper Theft: Business Interruption Loss Analysis and Operational Impact

When a large solar power generation facility experienced a theft of copper wiring and electrical components, the visible damage initially appeared to be a straightforward property loss. However, the more significant exposure was operational — portions of the solar array were disabled, preventing the facility from operating at full generating capacity and producing electricity.

Rather than the replacement cost of stolen materials, the primary financial risk was lost revenue caused by the facility’s reduced ability to generate power during the outage period. Meaden & Moore was retained to independently evaluate how the incident affected operations and translate the disruption into a clear financial measurement stakeholders could rely upon. By combining operational understanding with forensic accounting analysis, the team provided clarity and helped stakeholders understand the true economic impact of the event.

In this success story, we go over:

• Operational Impact Evaluation: Reviewed system configuration, affected arrays, and operating performance to determine which portions of the solar facility were unable to generate electricity.

• Business Interruption Analysis: Modeled expected energy production during the outage period, compared it to actual output, and quantified the revenue impact associated with reduced generating capacity.

• Independent Financial Measurement: Applied forensic accounting methodologies to technical production data to develop a defensible and supportable loss calculation.

• Clear Stakeholder Communication: Presented findings in a straightforward format, helping claims professionals understand operational effects and facilitating productive claim discussions.

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