Solar Shortfall Coverage
HSB Solar Shortfall insurance is an example of HSB meeting new risk needs with innovative coverage solutions for the renewable energy market.
Investors who specialize in renewable energy technology products assume great risks, one of which is whether or not the system will perform to their projected expectations. To help alleviate some of this risk from an investor's balance sheet and facilitate these projects to operation, HSB offers Solar Shortfall coverage, designed especially for solar photovoltaic risks.
HSB Solar Shortfall insurance helps facilitate financing for solar photovoltaic projects by transferring the risk of technological underperformance off the balance sheet of the project financier or investor. Solar Shortfall coverage enhances the credit worthiness of the project in the eyes of the lender thus making it feasible for them to offer more favorable financing terms. As a result, the cost of Solar Shortfall coverage is offset by the savings that the owner can realize in lower debt costs.
Coverage applies in the event of any of three occurrences:
- Lower than normal solar radiation
- Unintentional error in calculations of the projection
- Defect or underperformance of the solar installation
Coverage triggered if actual annual output falls below a specified retention level and then pays a percentage of the amount short of projected yield.
Projections are based upon a standard design yield report and acceptance test report as basis for output projection.
Shortfall does not arise from a Property or Equipment Breakdown peril, these would be covered in the all-risk Operational Property policy.
Coverage excludes particulate events such as volcanic ash or meteor strike.
Loss calculated on an annual basis as of the first annual anniversary in the policy.
Coverage term typically offered up to 5 years.