The growing menu of insurance products tailored to
address specific risks associated with solar power projects suggests
that the solar power industry is maturing at a rapid clip.
SolarShield is the most recent solar insurance product to hit the market. The policy, which is the brainchild of San Francisco, CA-1.32% -based Walsh Carter & Associates Insurance Services, purports to be the first “true performance warranty” for investors in commercial solar projects.
More specifically, SolarShield guarantees that a solar project will
generate a specific amount of revenue for several years whether the sun
shines or doesn’t shine.
“Ours is a simple policy that acts as a backstop for financial
institutions that are concerned about system performance,” said David
Saisi, Vice President of Business Development within Walsh Carter's CRI+3.72%
solar practice. “Our policy will make up any lost revenue due to system
underperformance and it names the bank or financial backer as the loss
payee for any claims.”
Unlike other policies, SolarShield does not require proof of negligence or defectiveness to trigger coverage for revenue losses.
In addition, the insurance claims are paid out directly to financial institutions rather than the system or host site owner.
The warranty directly guarantees the backing financial entity
restitution and debt service payments when production falls as a result
of extended inclement weather, temporary sky obstructions such as smoke
from a forest fire and other issues.
Src : http://www.forbes.com/sites/williampentland/2013/08/24/new-insurance-offering-reduces-risk-for-investors-in-solar-power/
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