Non-life insurance provider HDFC ERGO General Insurance Company recently announced the launch of the solar energy shortfall insurance policy to account for non-traditional and non-physical damage related risks that solar projects regularly face.
The policy will cover utility-scale solar farms, green fields across India, portfolios of rooftop installations for commercial and residential builds, among others, the company said in a statement.
Under the policy the company will cover risks related to non-physical damage, such as insufficient amount of sunshine and its impact on the performance of the project. The cover also protects against a system being installed incorrectly in a way that was not intended in the design phase and the impact that has on the revenue models.
Additionally, the policy covers errors in the calculations of the projected yields that were created for projects before they turned operational.
According to PTI, noting that country’s solar energy sector represents huge potential for such insurance policies, HDFC ERGO General Insurance Company executive director Anuj Tyagi said, “We aim to indemnify any loss that may occur due to non-physical damage of the insured project resulting in Energy Shortfall during an Energy Shortfall Policy year”. A multi-year policy, the solar energy shortfall insurance would be issued up to a period of five years.