Indian general insurer HDFC ERGO has launched a solar energy shortfall insurance policy as renewable energy sources become more popular.
The multi-year policy, which is issued in periods up to five years, will cover various sizes of solar installations, including utility-scale solar farms and rooftop installations for commercial and residential buildings, a statement from the insurer said.
Risks insured include non-physical damage, such as insufficient sunshine leading to decreased power output. The policy also covers incorrect installation of solar energy equipment in a manner that was not intended in the design phase, and errors in calculation of the installation’s projected energy yields.
“We aim to indemnify any loss that may occur due to non-physical damage of the insured project resulting in energy shortfall during an energy shortfall policy year,” said Anuj Tyagi, executive director of HDFC ERGO General Insurance.
He added that India’s solar energy sector has great potential, and such insurance policies are needed to support its growth.
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