HSB Energy Shortfall insurance addresses the new risks of the renewable and distributed energy market with its innovative coverage solutions. Originally designed for photovoltaic installations, our coverage has expanded to include different applications.

Investors or developers specializing in energy technology products assume great risks, such as determining whether or not the system will perform to their projected expectations. To alleviate potential exposure from an investor's or developer’s balance sheet and facilitate these projects to operation, we offer HSB Energy Shortfall coverage.

HSB Energy Shortfall insurance helps facilitate financing for distributed generation projects by assuming the risk of technological underperformance from the developer, financier, or investor. Energy Shortfall coverage enhances the credit worthiness of projects, and supports more favorable financing terms from lenders, resulting in the premium being offset by the savings from lower debt costs.

Solar Shortfall coverage includes the following causes of loss

  • Lower than normal solar radiation
  • Unintentional error in calculations of the projected performance
  • Improper installation of the solar plant
  • Defect or underperformance of the solar installation

Energy Shortfall coverage includes the following causes of loss

  • Unintentional error in calculations of the projected performance
  • Improper installation of the power generation equipment
  • Defect or underperformance of the installation

Energy Efficiency coverage includes the following causes of loss

  • Unintentional error in calculations of the projected performance
  • Improper installation or measurement of the project
  • Defect or underperformance of the energy conservation measures

Coverage responds when actual annual performance falls below a specified retention level and then pays a percentage of the amount short of projected yield. Performance projections are based upon design yield reports or project acceptance reports.

Coverage is typically offered up to a 5 year term with losses calculated on each anniversary of the commissioning date. Specific exclusions may apply based on the insured technology.

Coverages are subject to terms, conditions, exclusions and limitations. Please refer to the actual policy terms for applicable coverages. Not all coverages available in all states.

 

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