Solar Energy Insurance

[GBimla]

Is there any Insurance Available for Solar Energy Shortfall?

[Shwetha Padmashali]

Yeah, a few months back HDFC ERGO launched this new Portfolio.  

Solar Energy Shortfall Insurance Policy

Coverage: Presence of this policy not only caps downside risk of business due to energy shortfall but also helps in getting the lower interest rate on the loan from the lender and ensure a higher rate of return for an investor.
Damages which are not related to physical damage as the sun not shining, and the impact that would have on the performance of the project.
It also protects against a system being installed in a way that was not intended in the design phase and the impact that has on the revenue models.
It can even cover errors in the calculations of the projected yields that were created for projects before they become operational.
Unintentional error in the calculation of the target production;
Defect of the insured energy installation;
If the insured energy installation is solar, actual solar radiation that is less than assumed in the target production calculation.
Region: Cover anything from utility-scale solar farms and green fields across India to portfolios of Rooftop installations for commercial and residential builds.

Benefit Offered:

The policy pays for energy shortfall during an energy shortfall policy year.
Energy Shortfall means the amount by which the actual energy yield for the applicable energy shortfall policy year is less than the insured energy yield projection for that same period times the agreed rate.
Energy shortfall does not include any reduction in actual energy yield arising from an excluded cause of loss.
Major Exclusions:
Direct Physical Loss
Discrepancy from Specifications
Failure or break down of the electricity feed or utility meter
Any external obstruction not present at the inception of the policy period.
Failure to Follow Operating Instructions.
Unauthorized Modification.
Nuclear, Biological, Chemical or Radioactive (NBCR) Materials.
War, Military Action, War like situation.
The voluntary choice not to operate due to lack of load or demand.
The inability for any reason of the local utility system to provide or receive electrical power.

[N.Kumari · Accepted solution]

Hi

Yes.We do provide solar energy shortfall insurance.

Solar energy shortfall  policy is designed to account for non-traditional and non-physical damage related risks that
solar projects regularly face. The policy will cover anything from utility-scale solar farms and green fields across
India, to portfolios of rooftop installations for commercial and residential builds 

This policy provides insurance for a Covered Cause of Loss:

a. Unintentional error in the calculation of the “target production”;
b. Defect of the “insured energy installation”; or
c. If the “insured energy installation” is solar, actual solar radiation that is less than assumed in the
“target production” calculation.
The “energy shortfall” must arise solely from one or more of these causes. A Covered Cause of Loss
does not include any portion of “energy shortfall” arising from any excluded cause of loss.

Coverage Provided:
We will pay your “energy shortfall” during a “energy shortfall policy year” provided that such
“energy shortfall” is reported to us within forty-five (45) days of the end of the applicable “energy
shortfall policy year.

Exclusions :

We will not pay for “energy shortfall” caused directly or indirectly by any of the following.

1. Direct Physical Loss
2. Discrepancy from Specifications
3. Electricity Feed or Utility Meter Failure or breakdown of the electricity feed or utility meter.
4. External Obstruction
5. Failure to Follow Operating Instructions
6. Fines
7. Infidelity
8. Inspection or Maintenance
9. Lack of Load or Demand
10. Local Utility System Failure
11. Nuclear, Biological, Chemical or Radioactive (NBCR) Materials.
12. Nuclear Hazard
13. Ordinance or Law
14. Unauthorized Modification
15. Volcanic, Meteor or Asteroid Action
16. War and Military Action