For the first time in France, Munich Re guarantees solar modules performance
Munich Re, industrial insurance broker Filhet-Allard and solar manufacturer Solairedirect have jointly launched a new insurance solution which covers the long-term performance technology risk of Solairedirect produced photovoltaic modules. This unique insurance solution, which is the first coverage of its kind on the French market, significantly increases project bankability and is a major-stepping stone in the financing of large-scale solar installations.
In the event of an unexpectedly large performance loss below guaranteed performance specification, Munich Re provides the cover to enable insured manufacturers to meet their performance warranty obligations for up to 25 years. For large-scale photovoltaic projects, additional insurance guarantees can be granted directly to the project company on an ad-hoc basis. Prior to the agreement being signed, Munich Re had conducted an in-depth review of the Solairedirect development and manufacturing processes.
By providing this insurance, Munich Re allows solar plant operators and investors greater planning security. The innovative insurance solution is thus an important milestone for the financing of photovoltaic projects, offering producers additional financial protection. Manufacturers of modules can take the long-term, technical guarantee risk off their balance sheet, thus easing the financial burden and giving their customers greater security. In order to realize the insurance solution Munich Re has brought in one of its specialty primary insurers.
Thierry Lepercq, CEO of Solairedirect, commented: “We are proud to be the first French PV company guaranteed by Munich Re. This brings a new proof of the seriousness, quality and creditworthiness of our worldwide projects and consolidates our image of being “The solar MWh Company” in France and abroad.”
Thomas Blunck, member of Munich Re’s Board of Management added: “We are delighted to have concluded the first contract of this kind on the French solar market with Solairedirect and to support them on their ambitious growth plan. With our expertise, we can assume very special renewable energy risks and thus help provide greater investment security.”
“We are proud to have had the opportunity to collaborate with Munich Re and Solairedirect on this inventive and unique coverage solution” said Grégory Allard, managing director at Filhet-Allard. “Both companies are leaders in innovation within their industries, and we expect this new kind of insurance cover to have a substantial impact on the continuing expansion and implementation of Solairedirect in France but also around the globe because it gives them a clear advantage with banks and credit institutions.”
In recent years, Munich Re has built up considerable expertise and conceived similar solutions for the wind and solar thermal industry in the renewable energies sector. The new covers fit into the course chosen by the company, which has declared climate change to be a strategic issue.
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.