MNRE Enlists 11 Companies Offering Solar Insurance To Cover Risks 

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The Ministry of New and Renewable Energy (MNRE) has updated its list of insurers covering risks for solar project developers. India’s Insurance Regulatory Development Authority (IRDAI), which offers solar insurance, forwarded the MNRE the approved list of 11 such players.

The ministry last published the list of solar insurance firms on February 26. It has now come out with its latest list of such insurers. The list mostly talks about the private insurers in the sector covering several risks to solar projects.

These included The New India Assurance Co Ltd, Tata AIG, HDFC ERGO, ICICI Lombard, IFFCO Tokio, Cholamandalam, and Reliance General Insurance, the MNRE list of solar insurers said.

The insurance policies offered by these firms included weather insurance, solar panel warranty insurance, PV sales insurance, plant protection insurance, and others. These different sets of policies offered by these firms often protect the solar developers and owners from damages caused by weather, damages to the solar panels and plants due to other risks, and much more, the MNRE list said. 

For example, a solar insurance policy offered by one of the firms allows the buyers to cover PV modules to claim to the insurer in the event of the manufacturer’s insolvency. Each Sales Contract, and therefore each Buyer, has a assigned limit and deductible, increasing the bankability of the project.

Another such solar insurance policy covers the contractual liabilities of manufacturers arising out of the long-term performance and product warranties provided for PV modules that are sold internationally, either to its local sales offices or directly to its
customers. It indemnifies the costs and expenses necessary to fulfill its obligations under the Warranty.

In the last few years, there have been increasing offerings from insurance firms for solar projects, with a rise in awareness and more thrust from the government. 

Similar is the fate of lending for solar projects. In the last two years, several banks and NBFCs have developed special packages to offer lending for solar and residential rooftop projects. Several fintech firms have also jumped onto the bandwagon to provide special short-term loans to make small solar projects more affordable for residential and C&I consumers.