First-of-its-kind risk mitigation and insurance program uses technical due diligence best practices to improve solar project economics for developers
BERKELEY, California, Dec. 4, 2019 /PRNewswire/ -- PV Evolution Labs (PVEL), Lloyd's of London syndicate Ariel Re (a member of Argo Group), and Beecher Carlson Insurance Services, LLC announced today the introduction of PV PlantProtect, an innovative new insurance program that integrates technical due diligence practices to reduce the financial risk for utility-scale solar project developers. PV PlantProtect enhances solar power plant reliability while providing developers with revenue certainty as they build financial models. It helps developers improve debt terms and project economics by guaranteeing revenue.
Offered for the duration of the revenue contract, PV PlantProtect is available for utility-scale solar power plants in any region, including systems with bifacial modules. The insurance policy covers revenue losses due to weather, component performance and availability, system design, soiling and operations and maintenance (O&M), and other insured causes of loss.
"Until now, gaps in traditional insurance and manufacturer warranties left developers and investors exposed to revenue risk," said Jenya Meydbray, CEO of PVEL. "PV PlantProtect combines technical due diligence and comprehensive insurance solutions to meet a need that the market has not addressed. It provides project financing benefits and reduces exposure to developers who follow industry-standard technical best practices that mitigate project risk."
Once developers sign on for PV PlantProtect, they gain insurance pricing visibility in the early stages of development. It adds value to the project as they are building their financial models, allowing them to take on more debt. PVEL coordinates, oversees and executes the following technical and diligence items:
- Resource measurement and site characterization
- Product Qualification Program (PQP) testing for modules and string inverters
- Equipment pre-production factory audit and production oversight
- Batch testing and factory acceptance test witness for key equipment
- Testing at commissioning, including cell microcrack baseline analysis
- Ongoing resource and performance monitoring
"The Ariel Re team not only underwrites tailored risk solutions that deliver commercial value but also turns around reliable pricing and terms quickly so that developers can readily integrate insurance into their strategies," said George Schulz, Vice President – Clean Energy of Argo Group US, writing on behalf of Ariel Re Syndicate 1910, a major provider of specialty insurance products for solar power plants. "Combining technical due diligence with our A-rated insurance will mitigate the volatility of solar production and enable confidence in investments and project planning."
"We are really excited to help our clients reduce risk on their solar projects with PV PlantProtect," said Sara Kane, Senior Vice President – Energy of Beecher Carlson, an insurance broker with significant experience in solar risk management. "We are working closely with PVEL and Argo to streamline the insurance policy structure and claims advocacy processes for these clients – and we have already had major developers express interest."
For more information on PV PlantProtect, contact Andrew Sundling, firstname.lastname@example.org.
About PV Evolution Labs (PVEL)
PVEL is the leading reliability and performance testing lab for downstream solar project developers, financiers, and asset owners and operators around the world. With nearly 10 years of experience and accumulated data, PVEL conducts testing that demonstrates solar technology bankability. Its trusted, independent reports replace assumptions about solar equipment performance with data-driven, quantifiable metrics that enable efficient solar project financing and development. The PVEL network connects all major PV and storage manufacturers with 300+ global downstream partners representing 30+ gigawatts of annual buying power. PVEL's mission is to support the worldwide PV downstream buyer community by generating data that accelerates adoption of solar technology. Learn more at pvel.com.
About Argo Group International Holdings, Ltd.
Argo Group International Holdings, Ltd. (NYSE: ARGO) is an international underwriter of specialty insurance and reinsurance products in the property and casualty market. Argo Group offers a full line of products and services designed to meet the unique coverage and claims handling needs of businesses in two primary segments: U.S. Operations and International Operations. Argo Group's insurance subsidiaries are A.M. Best-rated 'A' (Excellent), and Argo Group's U.S. insurance subsidiaries are Standard and Poor's-rated 'A-' (Strong). More information on Argo Group and its subsidiaries is available at www.argolimited.com.
About Beecher Carlson Insurance Services
Beecher Carlson is a large account risk management broker that values depth of industry and product knowledge. Operating as a single profit center organized by specialization allows your service team to be structured based on what is best for customer's business rather than geographic convenience. We go beyond one off transactions and utilize advanced analytics on every program. By quantifying the effects each decision will have on a company's risk profile, we take the mystery out of buying insurance. This allows us to manage the largest cost of risk – retained losses. Execution on analytical findings is our true differentiator in mitigating losses and affecting process changes. Our collective success is earned by creating the ideal risk management solution for our customers. For more information, go to www.beechercarlson.com. Beecher Carlson Insurance Services, LLC, is a subsidiary of Brown & Brown, Inc. (NYSE:BRO). Brown & Brown, Inc. provides risk management solutions to help protect what our customers value most. Our four business segments offer insurance products and services to individuals and businesses. With a longstanding history of proven success, Brown & Brown is one of the insurance industry's most powerful and influential leaders. For more information, please visit bbinsurance.com.
Tori Clifford, Head of Marketing
Senior Vice President, Group Communications
SOURCE PV Evolution Labs (PVEL)