Insurance is based on statistics, which are not there yet. The only way for insurance companies to respond is to assign the highest possible risks to solar PV projects and charge for that accordingly. Solar panel project developers are already able to purchase PV insurance from several insurance companies.
Despite many years of commercial solar applications and an increasingly larger and international solar market, solar panel insurance products are not yet standardized or normalized in the insurance industry. A number of insurers offer solar panel insurance policies, however the premium can be still prohibitively high.
Property insurance typically covers solar system components beyond the terms of the manufacturer’s warranty. For example, if a PV module fails for reasons covered by and during the manufacturer’s warranty, the manufacturer is responsible for replacing it, not the insurer.
The video is not available. Check out in 140 seconds how you will benefit from our PV Warranty Insurance for up to 30 years. Our PV Warranty Insurance is straightforward and effective: manufacturers protect their ability to pay excessive warranty claims on modules for a period of 25 years (up to 30 years for glass-glass modules).
Credit: Nextracker Prior to 2019, there was an ample number of insurers willing to provide renewable energy insurance, leading to plentiful, affordable cover being available for solar power project finance transactions. However, with increased claims and risks, price rises and lower availability of cover is impacting the sector.
However, with increased claims and risks, price rises and lower availability of cover is impacting the sector. Duncan Gordon, head of Renewable Energy at specialist energy insurance brokerage and risk management firm Gallagher, provides an overview of how solar power project owners can navigate a challenging insurance market.
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