Dear Mr. SolarPrestige
Q. " ....Looking at the attached photos, what's your first thought about what has failed? ...."
A. I looked into various invaluable opinions by regular learned contributors and would like to added the following.
1. Most likely due to loose connection, poor workmanship, dirty surfaces or tightened to lower than the recommended tightening torque.
2. The insulation is damaged by the heat generated likely > 100deg C at the poor contact point.
3. From the photos it appear:
a) that the hole size is rather large in comparison to the palm area. (Noted, that it is the standard type tested? product by the manufacturer).
b) it is evident that good electrical contact is limited to under the bolt head or nut, around the hole shown as a ring. Large area of the palm which is NOT making any electrical contact (air-gap) but over-heated shown oxidized, appeared in different colours.
3. Proposal:
a) chose the biggest bolt size suitable for the hole. Use grade 8.8 or higher bolts and grade 8 or higher nuts,
b) use bigger sized, thick washers under the bolt head and nut.
c) check the correct tightening torque recommended for the size of the bolt.
Che Kuan Yau (Singapore)