Solar power plant insurance

How does insurance affect solar power projects?

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.

Are solar energy projects covered by insurance?

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.

Do solar energy systems need insurance?

Insurance Requirements from Requests for Proposals for Utility-Scale PV Systems Newer, innovative solar energy insurance products combine elements of insurance with financial hedging mechanisms. These include solar shortfall insurance, weather transfer risk, and equipment failure coverage.

What is a solar insurance policy & how does it work?

The policy safeguards revenue losses due to system underperformance for the duration of the revenue contract, which is typically 15 years. The specific coverage terms are negotiated on a project-by-project basis. The policy is brokered by Beecher Carlson, a leading insurance broker and risk management consultant for solar developers.

How much does solar insurance cost?

The website Solar Insure reports that property insurance premiums range from 0.15%–0.30% of installed cost, or approximately $4/kW/year–$10/kW/year (Solar Insure 2020).

Are solar panels covered by a home insurance policy?

Bradford has become known as something of an authority on solar panel coverage, partly because she had a system installed on her own home. She explained that for some customers to be covered for the liability, she’s had to max out their homeowner’s policy, then write an excess liability policy.