ICICI Lombard General Insurance announced that it now covers solar park developers by insuring the park owners.
A solar panel insurance product would help in covering the various risks associated with developing, building, operating, owning and investing in solar power projects. ICICI Lombard General Insurance said the standalone insurance product gives comfort to lenders and investors by supporting project finance.
India’s solar power generation capacity has increased from 2,650 MW in May 2014 to 12,288 MW in March 2017. India added 5,525 MW capacity during 2016-17.
In order to promote the solar industry, India Government has mandated all PSUs to consume 30 percent of power from solar energy.
“The viability of solar power projects depends largely on the performance of solar modules. Also the risks associated with this industry are different compared to the conventional power generation sources, such as thermal power plants,” said Alok Agarwal, executive director, ICICI Lombard General Insurance.
This is a long-term product in which solar park developer is protected for at least 15 years from the start date of commercial operation of solar parks. This will make the energy transition cheaper and generate more economic value.
The Solar Panel Warranty Insurance caters to solar park developers, with the park owner as the insured and sole beneficiary. The policy safeguards the insured against performance degradation of PV modules, under performance warranty due to hazards such as faulty manufacturing, material defects and material ageing.