Ariel Re, which is a member of Argo Group, PV Evolution Labs and Beecher Carlson Insurance Services, LLC have announced the launch of PV PlantProtect, an insurance program designed to reduce solar project financial risk.
The new solution is a first-of-its-kind risk mitigation and insurance program that leverages technical due diligence best practices to improve solar project economics for developers.
Effectively, the PV PlantProtect solution enhances solar power plant reliability while at the same time providing developers with revenue certainty as they build financial models. The solution is offered for the entire duration of the revenue contract, and is available for utility-scale solar power plants in any region.
According to an announcement on the launch of PV PlantProtect, the insurance policy covers revenue losses due to weather, component performance and availability, system design, soiling and operations and maintenance, as well as other insured causes of loss.
Chief Executive Officer (CEO) of PV Evolution Labs, Jenya Meydbray, said: “Until now, gaps in traditional insurance and manufacturer warranties left developers and investors exposed to revenue risk. PV PlantProtect combines technical due diligence and comprehensive insurance solutions to meet a need that the market has not addressed. It provides project financing benefits and reduces exposure to developers who follow industry-standard technical best practices that mitigate project risk.”
Once signed on for PV PlantProtect, developers obtain insurance pricing visibility during the early stages of development, adding value to the project as they build their financial models, ultimately enabling them to take on more debt.
George Schulz, Vice President, Clean Energy of Argo Group US, writing on behalf of Lloyd’s syndicate Ariel Re Syndicate 1910, commented: “The Ariel Re team not only underwrites tailored risk solutions that deliver commercial value but also turns around reliable pricing and terms quickly so that developers can readily integrate insurance into their strategies.
“Combining technical due diligence with our A-rated insurance will mitigate the volatility of solar production and enable confidence in investments and project planning.”
Sara Kane, Senior Vice President (SVP) – Energy at brokerage Beecher Carlson, said: “We are really excited to help our clients reduce risk on their solar projects with PV PlantProtect. We are working closely with PVEL and Argo to streamline the insurance policy structure and claims advocacy processes for these clients – and we have already had major developers express interest.”