Solar Panel Warranty Insurance Policy - Definition, Coverage, Exclusions, Sum Insured, Companies, Benefits, Quotes

What is Solar Panel Warranty Insurance Policy? - Definition

A Solar Panel Warranty Insurance Policy covers financial losses if the PV Modules fail to meet their Performance or Product Warranties offered by the manufacturer to the buyers. A Solar Panel Warranty Insurance Policy covers all the PV modules manufactured during a Policy Year and sold within an agreed time from the manufacturing date. This Policy protects the project owner or the manufacturer by covering costs if panels fail prematurely or if the manufacturer goes out of business.

What are the coverages under a Solar Panel Warranty Insurance Policy?

A Solar Panel Warranty Insurance Policy covers all the PV modules manufactured during a Policy Year and sold within an agreed time from the manufacturing date. The Policy covers losses sustained over a period of 20 to 25 years, which is similar to the standard performance guarantee offered by the Solar Module manufacturers. The Policy provides coverage for the 2 types of Warranties: Performance Warranty and Product Warranty as follows:

1. Performance Warranty

A Performance Warranty guarantees a certain level of Solar Panel Output over 20 to 25 years. A Solar Panel Warranty Insurance Policy covers a claim under the Performance Warranty directly resulting from an unforeseen decrease in power output of the Actual Module Performance below the Insured Module Performance level due to Faulty Manufacturing, Material Defect, or Material Aging.

2. Product Warranty

Product Warranty covers defects in Photovoltaic Modules. A Solar Panel Warranty Insurance Policy covers a claim under the Product Warranty directly resulting from defective PV Modules due to the Specified Defects. Manufacturer Insolvency: Some Insurance Companies offer a Package Policy where the Policy also covers the buyer of the Solar Module. The Buyer of the PV Module can claim from the Insurance Company in case of insolvency of the manufacturer.

How does a Solar Panel Warranty Insurance Policy work?

A Solar Panel Warranty Insurance Policy covers the cost of fulfilling the manufacturer’s obligations under the Product and Performance Warranties. The Insurance Company covers the loss directly resulting from the Breach of Warranty.

What are the exclusions under a Solar Panel Warranty Insurance Policy?

The exclusions under the Solar Panel Warranty Insurance Policy are as follows:

1. Any breach of Warranty due to known Risk is not covered by Solar Panel Warranty Insurance
2. Losses due to failure in quality control is not covered
3. Losses due to willful misconduct are not covered
4. Losses due to installation, dismantling, removal, transportation, reassembly or modification of Photovoltaic Module are not covered

What is the Policy Period for a Solar Panel Warranty Insurance Policy?

The Policy Period for a Solar Panel Warranty Insurance Policy is usually 1 year while the Indemnity Period is upto 25 years. The Indemnity Period is the date on which the Policy becomes effective. The Solar Panel Warranty Insurance Policy covers all the PV modules manufactured during a Policy Year and sold within an agreed time (for example: 6 months) from the manufacturing date. Thus, the Policy covers all losses sustained during the Indemnity Period of 20 to 25 years in relation to PV Modules manufactured during a Policy Year.

What is the Total Sum Insured for a Solar Panel Warranty Insurance Policy?

The Total Sum Insured for a Solar Panel Warranty Insurance Policy is the Sales Value of all PV Modules manufactured during the Policy Year. Sum Insured can be increased on payment of additional Premium.

Which Insurance Companies offer a Solar Panel Warranty Insurance Policy?

The Insurers which offer a Solar Panel Warranty Insurance Policy include:

1. HDFC Ergo General Insurance
2. Tata AIG General Insurance
3. ICICI Lombard General Insurance
4. Iffco Tokyo General Insurance
5. New India Assurance Company

Which are the features and benefits of a Solar Panel Warranty Insurance Policy?

The Features and Benefits of a Solar Panel Warranty Insurance Policy include:

1. A Solar Panel Warranty Insurance Policy protects the financial obligations of the manufacturers under the warranties they provide to their customers.
2. The Policy offers peace of mind to the buyers ensuring that their investment is protected even if the manufacturer goes insolvent.
3. A Solar Panel Warranty Insurance Policy is valuable for long-term solar projects, providing protection for a long indemnity Period of 20 to 25 years
4. A Solar Panel Warranty Insurance Policy increase the attractiveness of solar projects for lenders and investors.

Get Best Quotes for Solar Panel Warranty Insurance!

In India, several insurance companies like HDFC ERGO General Insurance Company Limited, ICICI Lombard General Insurance Company, Tata AIG General Insurance Company, IFFCO-Tokio General Insurance CoMPANY, and New India Assurance Company Limited offer Solar Panel Warranty Insurance. Qian is a leading Insurance Broker for Solar Power Plant Insurance Policies. The team of experts at Qian have wide experience in assisting clients across diverse industries for their Solar Power Plant Insurance requirements. If you wish to purchase a Solar Panel Warranty Insurance policy to secure your property, reach out to us at insurance@qian.co.in or 📞 022-35134695 . We would be glad to assist you!