Insurance broker and risk adviser Marsh has teamed with reinsurer Munich Re to launch a new product guarantee insurance solution tailored for the solar panel manufacturing sector in Asia. According to the companies, this product is the first of its kind in the region.
Taiwan-based solar manufacturer NexPower, a client of Marsh Taiwan, is the first company to purchase this solution.
The insurance product, underwritten by Munich Re's unit MARP, covers the warranties given by NexPower against the risk of performance deterioration in photovoltaic modules for a period of 25 years. The warranty guarantees that the modules will perform to at least 90% capacity in the first 10 years and to at least 80% in the remaining 15 years.
‘This solution offers solar module producers a greater degree of business certainty and allows operators of solar parks to finance photovoltaic installations more easily and with increased flexibility,’ states Huichih Ko, chairman of Marsh Taiwan.
‘The solar panel manufacturing sector in Asia is burgeoning, with Taiwan, China and Japan leading the way,’ Ko continues. ‘This insurance policy is designed specifically to meet the needs of this critical renewable energy sector and fills a much-needed gap in the regional marketplace.’