Munich Re announced that it has agreed to guarantee the performance of solar modules in France for the first time. The reinsurer will be working with industrial insurance broker Filhet-Allard and solar manufacturer Solairedirect, who have “jointly launched a new insurance solution which covers the long-term performance technology risk of Solairedirect produced photovoltaic modules.”
Munich Re noted that the policy is unique, and is “the first coverage of its kind on the French market.” This kind of coverage “significantly increases project bankability and is a major-stepping stone in the financing of large-scale solar installations.”
The bulletin described the policy as taking effect “in the event of an unexpectedly large performance loss below guaranteed performance specification.” In that case Munich Re “provides the cover to enable insured manufacturers to meet their performance warranty obligations for up to 25 years.
“For large-scale photovoltaic projects, additional insurance guarantees can be granted directly to the project company on an ad-hoc basis. Prior to the agreement being signed, Munich Re had conducted an in-depth review of the Solairedirect development and manufacturing processes.”
The insurance “allows solar plant operators and investors greater planning security,” Munich Re explained, and “is thus an important milestone for the financing of photovoltaic projects, offering producers additional financial protection. Manufacturers of modules can take the long-term, technical guarantee risk off their balance sheet, thus easing the financial burden and giving their customers greater security. In order to realize the insurance solution Munich Re has brought in one of its specialty primary insurers.”
Thierry Lepercq, CEO of Solairedirect, commented: “We are proud to be the first French PV company guaranteed by Munich Re. This brings a new proof of the seriousness, quality and creditworthiness of our worldwide projects and consolidates our image of being ‘The solar MWh Company’ in France and abroad.”
Thomas Blunck, member of Munich Re’s Board of Management added: “We are delighted to have concluded the first contract of this kind on the French solar market with Solairedirect and to support them on their ambitious growth plan. With our expertise, we can assume very special renewable energy risks and thus help provide greater investment security.”
“We are proud to have had the opportunity to collaborate with Munich Re and Solairedirect on this inventive and unique coverage solution” said Grégory Allard, managing director at Filhet-Allard. “Both companies are leaders in innovation within their industries, and we expect this new kind of insurance cover to have a substantial impact on the continuing expansion and implementation of Solairedirect in France but also around the globe because it gives them a clear advantage with banks and credit institutions.”
Munich Re also pointed out that it “has built up considerable expertise and conceived similar solutions for the wind and solar thermal industry in the renewable energies sector. The new covers fit into the course chosen by the company, which has declared climate change to be a strategic issue.”
Source: Munich Re
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