Solar Shortfall Insurance (USA only)
Solar Shortfall Insurance makes every solar project more bankable for every financial institution, bank or investor. REIB insurance product protects your installation from additional finance charges due to low performance of the solar project. It may arises from lower than normal sun radiation, unintentional error in calculation of the projected yield, defect or underperformance of the solar installation. Coverage is triggered if actual annual output falls below 90%.
REIB has established a partnership with a leading worldwide insurance companies in order to support our clients needs. Solar Shortfall Insurance coverage can saves millions of dollars of our clients - investors, developers and asset managers if the solar installation does not produce energy at the specified level of performance and the revenue requirements are not met.
Most of the solar insurance products traditionally covered All risks policy for Property Damage, Business Interruption, Loss of revenue, E&O, D&O, etc.
What we additionaly do is to cover losses of:
- Federal Investment Tax Credit (FITC);
- US Treasury Department Renewable Energy Cash Credit;
- Depreciation Tax Shield;
- Renewable Energy Credit (REC);
- Recipient Contingent Business Income (RCBI)
Also our special solar insurance product cover:
- System Revenue if Solar System under performance;
- Performance based incentives;
- Satisfies requirements of financial institutions;
- Satisfies requirements of board rating agencies;
- Defect of the instalation
Investors, developers, asset managers of solar power plants may have next problems if the solar installation underperformance due to lack of sun periodical:
- Lower end of year bonuses;
- Share price declines;
- Loan defaults;
- Lower investor confidence;
- Ratings downgrades;
- Worsened lending terms
Renewable Energy Insurance Broker solution is Solar Irradiation Cover - this provides compensation in periods of lack of sun (thereby smoothing project revenue streams). This compensation is paid whenever measured irradiance levels are below the trigger pre-agreed with the insured.
Extended Inverter warranty
We at Renewable Energy Insurance Broker strive to keep a constant connection with our customers. Our team try to get information about their problems, needs and specifics in their business. Thus we found a niche market - Extended inverter warranty.
When the manufacturer inverter warranty expired our client start trying to get in touch with someone from the big worldwide producer of inverters. Then most of them realised how slowly and sluggish is the communication with these enterprises. As investor or O&M company they see the disadvantages of the manufacturer warranty like:
- No warranty backup after bankruptcy
- Labor costs for exchange not included
- Time between failure and repair to long
- Difficult claim handling
Conclusion: Hidden costs for installers and operators of a plant.
That is why we at Renewable Energy Insurance Broker found a product which might cover the above mentioned points and even something more:
- Full cost recovery for inverter repairs and replacement;
- Simple claim settlement;
- Experienced service team;
- Secure of the investment;
- Coverage against bankruptcy;
- No provision for repairs necessary;
Conclusion: full warranty backup which includes all additional expenses.
The payment could be done on annual base and coverage could be extended up to 20 years.
All risk policy, Loss of Income and Reduced yield cover
Insured is the photovoltaic plant described in the insurance contract and all parts which belong to the PV plant, in particular also:
- Fences, cabling
- Devices which are for the purpose of infeed such as transformers, network infeed stations and underground cables
- Foundations, load-bearing constructions
- Operational buildings and containers on the plant
- Transmission equipment for monitoring
Special Agreement „Cover against reduced yields“
Insurer will compensate reduced yields, if the prognosticated energy return p.a. accordant with profit survey or profit expertise has fallen short about more than 10 %.
Insured reduced yields:
- a reduced global solar radiation in comparison with profit survey
- shortcomings of components
- inner operation damages of photovoltaic modules and electronic components
- above-average or excessive wear and contamination/ pollution of components
Agreed as scope is Europe (in the geographical sense).
Third Party Liability insurance
Liability insurance purchased by an investor from an insurer for protection against the claims of another third party. Example of claim case: If a module from your PV plant blows away and hits a third party property or a person.