Solar energy projects are on the rise in Singapore, supported by incentives that are part of the government’s ten-year Green Energy Plan 2030. Solar capacity is expected to quadruple to 1.5 gigawatt-peak (GWp) between 2020 and 2025, and hit 2 GWp by 2030.
Meanwhile, the development of rooftop solar power facilities and its operations come with a prominent set of risks that calls for reliable and comprehensive insurance coverage. The most common risks include financial losses potentially arising from fire, lightning, natural perils, design defects and damage or injury to a third party.
Critical to the success of rooftop solar power projects in Singapore is the implementation of risk transfer solutions that reduce exposure to the spectrum of risks and their potential adverse impacts.
Managing solar power asset risks: the best practices
Building owners, developers, rooftop solar panel contractors and operators around the world have come to rely on material damage insurance to manage risk. The purchase of such an insurance policy, which covers the installation and operation of a solar panel system, is a prudent industry best practice and an economic solution for transferring risk tied to the value of the contract.
Furthermore, contractors and owners are aware that they may be heavily exposed to third party liability claims should the rooftop solar facility be the cause of commercial disruption, stock destruction and/or personal injury. Such claims arising from solar panel incidents have previously made headlines globally and third party liability insurance is an effective solution to close the exposure gap and transfer risk of third party damage and loss.
Typically, the responsibility for buying insurance is determined by contractual allocation. It will therefore either be procured by:
- An owner/developer who wishes to take responsibility for insuring against physical loss or damage.
- A contractor or operator who has been made contractually responsible by the owner/developer for procuring insurance.
Irrespective of the contractual allocation, both the owner/developer and the contractor or operator would be insured for their respective rights and interests against material damage and third party liability.
Challenges in obtaining insurance coverage for solar power facilities
While comprehensive insurance coverage for rooftop solar panel facilities is prudent and necessary, building owners, developers, rooftop solar panel contractors and operators alike have faced significant challenges in procuring the protection they need. This is because insurance policies in the market relating to rooftop solar assets are typically quoted in a bespoke manner that may be unfavorable for buyers.
Without a single insurer willing to provide capacity or coverage for single occupancy assets, the sourcing of multiple insurance quotations for a rooftop solar panel facility becomes a hefty administrative burden, with prolonged negotiations that could result in delays, contractual frustration, and financial opportunity costs for the parties involved.
If taking on policies with multiple insurers, insurance buyers also need to be mindful that insurers have differences in requirements relating to project information, varying attitudes on risk exposure, and conflicting response times. The resulting coverage is likely to be less cost-effective (in terms of premium pricing, limits and deductibles versus extent and depth of coverage). Also, a claims process involving multiple insurers is likely to be highly challenging.
Considering the above concerns, parties who wish to obtain reliable and comprehensive coverage can benefit from partnering with a trusted insurance broker that can deliver a single insurer solution backed by strong financial security and a robust track record of expedited claims settlement.
Introducing RoofSolarSecure: a reliable single insurer solution for rooftop solar power projects and facilities
Issued fully by QBE Insurance (Singapore) Pte Ltd, whose core operating insurance companies maintain financial strength ratings of ‘A’ from Standard & Poor’s, RoofSolarSecure is a single insurer insurance policy designed to provide reliable, cost-efficient and comprehensive coverage for rooftop solar power projects and facilities in Singapore.
RoofSolarSecure’s single insurer profile offers buyers two key benefits—speed of policy placement and a smoother claims process—on top of competitive terms and conditions:
- Globally accepted standard all-risks coverage
- Competitive insurance premium pricing
- Economical deductibles (a deductible is the first amount of loss not covered by insurance)
- 100% cost certainty through upfront agreement
QBE is an international insurance leader with technical expertise and upholds a global commitment to service and pay claims fairly and promptly, supported by Marsh’s claims handling expertise.
RoofSolarSecure’s insurance coverage is also specifically designed to offer buyers transparency, allowing them to see policy details immediately with maximum clarity. Prospective insurance buyers can expect upon submitting an enquiry:
- An instant insurance quote subject to the prospective insurance buyer providing certain basic information.
- If minimal information is available, an “indication” of potential premium cost will be provided within 1 working day
When it comes to insuring rooftop solar assets, the availability of immediate decisions by the insurer and quick cover confirmation can prove crucial, particularly for new projects. The combined attributes of RoofSolarSecure can help building owners, developers, rooftop solar panel contractors and operators maintain accurate ongoing cost projections and certainty of their bottom lines, while ensuring project timelines and milestones are unhindered by insurance concerns.
To find out more about how RoofSolarSecure can provide reliable cost-efficient coverage and risk mitigation for your rooftop solar power projects and facilities, submit the online form and our representatives will be in touch with you.