Solar operational performance insurance

This insurance policy is specifically designed to provide comprehensive protection for assets installed, revenue generated, third party liability and shortfall in energy output.

This insurance policy can cover both new as well as installations already under operation and is available for periods of up to five years.


– Material damage: covers physical damage, including breakdown, to equipment forming the solar PV installation. Replacement of equipment is on a new for old basis.

– Business interruption: covers loss of gross revenue and increased cost of working following insured damage to equipment and installations. Revenue is any income received for the generation of electricity.

– Third party liability: covers your legal liabilities resulting from the operation of the solar PV installation.

– Solar shortfall: covers an annual shortfall in the output of the installation resulting from reduced solar irradiation, miscalculation of projected output or defective materials, workmanship, design, plan or specification. Damage does not need to occur to trigger this cover.

The solar shortfall coverage is designed to provide protection against some risks that can affect the production of solar PV installations, such us:

– Lack of sun: the output of a PV installation is entirely reliant on the light received. Any drop in solar irradiation will result in reduced performance. So, if an installation experiences an unexpectedly prolonged period of cloudy weather the electricity produced falls; as does the revenue earned by the investor.

– Miscalculation: calculating the projected output of a PV installation is a very complex affair. Numerous variables have to be taken into consideration such as the efficiency of the panels, ambient temperature, expected solar radiation, angle of panels, effect of tracking mechanisms, shading, maintenance, transmission losses and many others besides. One miscalculation can result in over optimistic predictions that are not realised during operation, which is bad news for investors and their funders.

– Defective equipment or installation: even if projections are accurately calculated, a poorly installed installation is still unlikely to perform as expected. Material defects can result in accelerated degradation in the performance of PV panels and a significant drop in output.

Benefits of solar operational performance insurance:


  • Equipment covered against damage and breakdown
  • Revenue protected following damage
  • Operational legal liability cover
  • Confidence of knowing that a shortfall in performance is insurance backed
  • Improved credit risk for the Project
  • Easier access to Project funding


  • Technical uncertainty removed from the Project
  • Improved credit worthiness of projects
  • Loan repayments protected


For more information please contact us or send us the enclosed questionnaire duly completed to receive an offer.

Operational Performance Questionnaire