MNRE enlists 11 companies for solar insurance in its updated list of insurance companies that protect solar project development risks. The list was presented by India’s Insurance Regulatory Development Authority, which provides solar insurance.

The Ministry of New and Renewable Energy (MNRE) brought an updated version of the list, earlier published on 26 February 2024. The updated list mainly includes private insurance companies that cover various risks for solar projects. Some notable insurers in the list are: New India Assurance Co Ltd, HDFC ERGO, IFFCO Tokio, ICICI Lombard, Cholamandalam, Tata AIG, and Reliance General Insurance.

Highlights

  • These firms offer a variety of insurance policies like, solar panel warranty insurance and plant protection insurance. It also covers PV sales insurance, weather insurance, and others.
  • Different set of policies offered, protect solar panels and plants from damages caused by weather or other types of risks. 
  • The solar insurance policy allows the buyer to claim compensation from the insurance if the manufacturer goes bankrupt.
  • The project becomes more reliable for banks as each sales contract and buyer has an assignment limit as well as a deductible.
  • The policy safeguards manufacturers from any legal responsibilities related to the long-term performance and warranties of PV panels sold internationally. It pays what is needed to meet warranty obligations.

MNRE enlists 11 companies for solar insurance but with increased awareness and governmental support, insurance companies are offering more options.

Similarly, lending for solar projects has also seen significant growth. Apart from banks, even non-banking financial companies (NBFCs) and fintech firms are making special packages for solar and residential rooftop projects. Moreover, fintech firms are offering short-term loans to make small solar projects more accessible to residential and C&I consumers.

Source: Insurance Products for Solar Power Plants

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Elliot is a passionate environmentalist and blogger who has dedicated his life to spreading awareness about conservation, green energy, and renewable energy. With a background in environmental science, he has a deep understanding of the issues facing our planet and is committed to educating others on how they can make a difference.

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