The Ministry of New and Renewable Energy (MNRE), after consulting with the Department of Financial Services (DFS) and the Insurance Regulatory and Development Authority of India (IRDAI), initially released a list of insurers offering products covering risks associated with solar power plants through Circular No. 283/72/2019-GRID SOLAR on 07.01.2020. Subsequently, upon receiving representations to update this list, MNRE collaborated with IRDAI to provide an updated list of insurers currently offering such products.
This initiative by MNRE aims to enhance financial security and support within the solar sector, promoting growth while mitigating significant financial and operational risks.
Here are the key highlights from the “Summary of Coverage Offered” by different Insurance Providers.
- New India Solar Energy Insurance Policy:
- Packaged protection for both sellers and buyers, offering a competitive advantage for PV module manufacturers.
- Sales cover tailored to specific Sales Contracts chosen by manufacturers, ensuring comprehensive protection for PV modules.
- Buyers Cover enables PV module buyers to claim from the insurer in the event of manufacturer insolvency, with clearly assigned limits and deductibles enhancing project bankability.
- Tata AIG Weather Insurance Policy & Solar Module Warranty Insurance:
- Coverage against losses resulting from deviations in observed Weather Index.
- Premiums paid for one year of production with coverage extending for 25 years of warranty.
- Section A covers manufacturers’ contractual liabilities for long-term performance and product warranties provided for PV modules sold internationally.
- Section B provides financial protection to PV module buyers in case of manufacturer insolvency.
- HDFC ERGO Solar Panel Warranty Insurance:
- Designed to safeguard the balance sheets of solar module manufacturers and investments of buyers or sellers of solar panels.
- Covers losses related to performance and product warranty offered by manufacturers to buyers, as well as insolvency risks.
- Section 1 indemnifies the insured for losses resulting from breaches in product or performance warranty during the indemnity period.
- Section 2 indemnifies beneficiaries for losses resulting from breaches in product or performance warranty, subject to insured non-compliance due to insolvency.
- ICICI Lombard Photovoltaic Panel Warranty Insurance:
- Covers 10-12 years of product warranty and 25-30 years of performance warranty, addressing various perils including faulty manufacturing and material defects.
- IFFCO-Tokio Photovoltaic Sales Policy:
- Covers both performance and product warranties issued by manufacturers.
- Extended coverage for buyers of Photovoltaic modules in case of manufacturer insolvency, with the option for a top-up cover.
- Insolvency of the manufacturer/insured allows recovery only under Photovoltaic Buyers policy.
- Cholamandalam MS Chola Solar Plant Protect Policy:
- Provides coverage for shortfalls in deemed energy production due to insufficient solar irradiation.
For detailed notification, users are encouraged to visit the official website of MNRE where the comprehensive notification is available. Additionally, users can directly contact the respective insurance providers for further details on their policies.
