Under the collaboration, Solarvest will be able to take up, as well as provide its solar PV investors the all-new SolarPro Line-Stoppage insurance policy, a comprehensive general liability policy with consequential loss underwritten by QBE Malaysia, through Anora.
“This collaboration is another positive step for Solarvest as we will be the first solar company in Malaysia to offer the SolarPro Line-Stoppage insurance policy, enhancing our already comprehensive one-stop solar solution services. With this in place, we believe it will strengthen the value proposition of our engineering, procurement, construction, and commissioning work, and help us in further building our formidable unbilled orderbook of over RM600 million,” said Mr Davis Chong, Executive Director and Group Chief Executive Officer of Solarvest.
The need for SolarPro Line-Stoppage insurance
This product was designed and developed in response to the liberalisation of solar power distribution in Malaysia and the subsequent influx of power purchase agreements (PPA). These new regulations mean that PV investors can install PV systems and sell energy directly to private entities and this usually entails the installation of PV systems on the energy buyer’s properties.
Despite the growing market size of solar PV systems in Malaysia, there remains a gap in the market when it comes to a truly comprehensive insurance policy for solar PV investors. The SolarPro Line-Stoppage insurance therefore provides an added layer of protection and assurance for both PV investors and property owners through allowing for coverage of consequential loss, which is not covered by ordinary comprehensive general liability policies, due to accidents or damages to the property during and after the installation, erection or construction of the PV system. Mr Davis added that such comprehensive insurance coverage would markedly reduce the risk of solar PV system investments. This will encourage a greater flow of funds into the solar industry and in turn, enable even higher adoption of solar energy.
“The typical length of a power purchase agreement is 21 years, which means that solar PV investors face a real risk of claims from energy buyers for consequential losses – an area where existing policies currently do not offer protection against,” said Mr. Samuel Soon, Chief Executive Officer of Anora. “We saw how this partnership could bridge this gap in the market and offer more specific support to clients in this space, and we are eager to see more solar-related investments take form with this added assurance,” he added.
“As businesses and regulations turn more complex and distinct, we want to offer our customers and clients more specialised offerings and support, and give them the confidence to focus on maximising their returns and minimising liabilities as they invest in tangible efforts towards a greener and more sustainable future,” said Mr Sunther Kuppan, Chief Executive Officer of QBE Malaysia.