PV performance warranty insurance

An innovative insurance solution for investors and manufacturers of solar PV-installations

For PV manufacturers

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More liquidity with the PV Corporate Performance warranty Insurance

Our PV Corporate Cover supports panel manufacturers in the long term, in guaranteeing the capital guarantees issued by them – for periods of up to 25 years. The result: Manufacturers will have the liquidity they need to cope with unexpectedly high claims from performance warranties – for periods of up to 25 years. Your warranties are credible, your balance sheet protected.

Because of the market standard of 20- to 25-year warranties, manufacturers carry a significant financial burden on their balance sheets. Warranty issuers must honor their obligations and back them up with cash reserves. Manufacturers therefore set aside provisions in their balance sheets – tying up capital that cannot be deployed for other purposes. However, the provisions often cover only a fraction of the liabilities that may arise when a serial loss occurs. These losses may jeopardize a manufacturer’s market position or, in the worst case, its very existence.

 

STAY SOLVENT, INSURE WARRANTY OBLIGATIONS

Our PV Corporate Cover supports you as manufacturer in ensuring that module performance meets the guaranteed levels in the long term. It caters to current trends, as investors will be paying even greater attention to the financial solidity of the module manufacturer when investing in solar parks.

The PV Corporate Cover enables you to have the liquidity you need, even in the event of unexpectedly high claims from performance warranties – and for periods of up to 25 years. This increases not only the degree of certainty in your own planning, but ultimately also in that of end-user customers, including investors.

For PV investors

Solar certification

Superb investment protection with PV Park Performance Warranty Insurance

The PV Performance Warranty Insurance protects investors in PV systems against the insolvency of the manufacturer who supplied the modules for the PV-installation.

As investors you monitor the PV market closely and are keenly aware of the associated risks. Ultimately, the security of your investment is a major concern – and an even greater priority during the challenging stages of this industry’s development, in which fierce competition has led many manufacturers into insolvency.

 

Insured peril: faulty manufacturing, material defects & material aging

 

INSURE RISKS

This has left many investors in the position of no longer being able to transfer the technological risk of under-performing PV modules to the warranty provider; they have to carry the risks themselves. The resultant insecurity can threaten projected cash flows in a business plan.

Our PV Performance Warranty insurance can hedge that risk. If the manufacturer is insolvent and the modules under-perform, the insurer will pay financial compensation directly to the investor. Whilst an initial premium only needs to be paid once, the insurance is available for a period of 15 years. The solution is offered for new parks and can already be put in place in the financing phase, allowing preferential financing conditions. On the secondary market the PV Performance Warranty Insurance may lead to a higher prize.

Contact solarif

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Advantages of the PV performance warranty insurance

1

One on one backstop of supplier’s original performance warranty

2

Apply reinsurer’s financial rating instead of supplier’s non-investment grade

3

Underwritten on a single utility project or portfolio of project

4

Flexible structure in terms of deductibles and limits to meet individual requirements

5

Non-cancellable policy

MORE INFORMATION?

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