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Does your model show a terrain layer in the layers inspector (generated by SketchUp’s Add Location)?
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To check whether the model has the correct geo-reference including altitude, you can use the extension Attribute Inspector.
When clicking in empty space (selecting the model), TheGeoReference
dictionary must display the keysUsesGeoReferencing
(true) andModelTranslationZ
.
See also: Astrodynamically Correct Shadows at Altitudes Much Greater than Z=0 - #3 by DanRathbun