Over the past few years there has been rapid growth in solar power generation and associated technologies. The power generation projects are not only being undertaken by large organisations but consumers and small businesses are setting up their own energy sources to:
- cater for their own energy needs
- generate revenue by selling any surplus electricity to energy suppliers
The Governments Feed In Tariff scheme for solar energy has resulted in new companies being set up to place solar panels on and at third party premises. An increased number of these companies are bidding to rent roof space from Property Owners in order to install and operate solar (PV) panels. These properties can range from industrial units and housing association premises to private dwelling houses. The property owner is not responsible for the panels so the responsibility is on the operator to insure the panels once in place. This is where solar power insurance comes into play.
The opportunities
- Solar energy accounts for 14% of the UK renewable energy market with an estimated turnover value of £4.4bn of which £1.1bn (25%) relates to manufacturing activities
- There are an estimated 2,260 businesses in the UK employing over 38,000 people engaged in trades linked to the solar energy sector
- The sector is set to grow by £3bn in the next three years
Key solar power insurance cover that is available
This is a diverse sector including manufacturing, construction, installation, management and operations of solar panels or farms and Aviva has the products to help all types of businesses engaged in this sector. Below is a list of key covers to consider in this sector.
- Machinery Breakdown – electrical and or mechanical breakdown of any machinery or other equipment resulting in costly repairs or even replacement of the solar panels
- Business Interruption – cover for periods of operational downtime as a result of an Insured peril e.g. fire or storm damage, machinery breakdown and equipment failure. We can also cover lost revenue associated with the failure or physical damage to non-owned property such as a utilities substation
- Property Damage – all risks cover to protect from any loss arising out of fire, hail or storm damage which is normally excluded
- Contract Works – protection against any loss arising from property damage caused during construction of the project. Also protects the value of labour and materials of the work in progress in the event that it is damaged by theft, vandalism, fire, storm, etc. Cover starts while solar panels are in transit to the job site and ends once the job is completed or the owner accepts the work
- Computer – cover for specialist computer equipment including laptops and portable media used off site. Reinstatement of Data cover should also be considered to protect from any loss of valuable data not easily replaceable
- Employers’ Liability – provides cover against risk of accident from usual workplace risks such as working at height and manual handling
- Public Liability – provides cover for any damage caused to third party property during installation of the panels. Essential for businesses engaged in Construction and Installation of solar panels and solar farms
- Products Liability – essential if the business manufactures, distributes or sells solar panels or any semi-finished goods, components and equipment. We can also offer Product Recall for businesses against the costs arising from a recall of any defective products that may cause imminent injury/damage
- Professional Indemnity – for construction professionals such as architects, consulting engineers, project managers, quantity surveyors who accept design liability as part of Design & Build contract terms
- Marine Cover – a significant number of businesses are involved in the export and import of components, semi-finished goods, machinery and equipment throughout the world. Covers available include Marine Transit for any loss of goods and Marine Delay in Start up to protect from any consequential loss in revenue
- Directors and Officers Cover – a very useful cover for this sector due to the use of new and emerging technologies, processes and equipment. Helps protect company directors and officers if accused of any ‘wrongful acts’