ENERGY SHORTFALL INSURANCE
The policy has been designed to account “non-traditional,” nonphysical damage related risks that solar projects regularly face.
This protection supports the performance of the project at the system level to help sustain its intended revenue stream once that project becomes operational.
Defined coverage under policy:
Unintentional error in the calculation of the target production;
Defect of the insured energy installation; or
If actual solar radiation that is less than assumed in the target production calculation.
Multi-year basis – usually 5 years term, Premium prepaid at Inception.
Coverage is triggered when the annual output falls below a specified amount -typically 90% of projected output / yield
The policy covers up to a specified amount –typically an amount equivalent to 30% of the projected output / yield which is an Annual Limit
The projected yield figure is agreed at inception of the policy and adjusted annually using an agreed-upon degradation factor