The coverage, devised by Munich Re, SolFocus and broker Woodruff-Sawyer & Co., focuses on concentrator photovoltaic (CPV) systems manufactured by SolFocus.
SolFocus reportedly provides all its customers worldwide with a warranty for its CPV systems of 25 years for power performance. It was added that if any product fails to meet the specifics of this warranty, then the Munich Re cover attaches.
Munich Re said that in order to realize the insurance solution, it brought in one of its specialty primary insurers. SolFocus has achieved similar breakthroughs in proving bankability for developers and investors by securing the first International Electrotechnical Commission (IEC) certification for performance and safety, commented Mark Crowley, CEO of SolFocus.
Prior to the agreement being signed, Munich Re said it conducted an in-depth review of the SolFocus development and manufacturing processes. Munich Re already makes its performance-warranty insurance available to several other manufacturers of photovoltaics cells based on other technologies, but it said this is the first CPV offering.
By providing this coverage, the insurance company says solar plant operators and investors have greater planning security. It went on to say that manufacturers of modules can take the long-term, technical guarantee risk off their balance sheet, thus easing the financial burden and giving customers greater security.
The performance and reliability of CPV has advanced to such a high level that a renowned insurer like Munich Re has offered an insurance policy, continued Crowley.
As the first CPV company that can provide an insured performance-warranty to its customers, we are proud to pave the way for this advanced solar technology to reach commercial status and become a trusted, bankable technology for developers, financial institutions and utilities. Providing such confidence and trust to the marketplace is critical for companies like SolFocus to deliver the capability of advanced solar technology.