HDFC ERGO General Insurance Company, India’s third largest non-life insurance provider in the private sector, is the first in India to announce the launch of the Solar Energy Shortfall Insurance Policy. This new policy is designed to account for non-traditional and non-physical damage related risks that solar projects regularly face. The policy will cover anything from utility-scale solar farms and green fields across India, to portfolios of rooftop installations for commercial and residential builds.
Under the Solar Energy Shortfall Insurance Policy, the company will cover risks related to non-physical damage, such as insufficient amount of sunshine and its impact on the performance of the project. The cover also protects against a system being installed incorrectly in a way that was not intended in the design phase and the impact that has on the revenue models. Additionally, the policy covers errors in the calculations of the projected yields that were created for projects before they turned operational.
Anuj Tyagi, Executive Director, HDFC ERGO General Insurance Company Ltd, said, “The capacity of generating solar power in India has quadrupled over the last three years to14 gigawatt (GW). Also, the government’s plan to raise the energy generation capacity of all renewable sources to 170 GW by 2022 poses a huge opportunity for such a product in our country. 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.”
