Signet Solar gets module cover from Munich Re and Marsh
London, 28 May: Insurance broker Marsh and Munich Re are insuring Signet Solar’s photovoltaic (PV) modules against deterioration in performance, through what they claim is a first-of-its-kind policy.

Signet, based in Menlo Park, California, manufactures thin film PV modules, backed with a 25-year guarantee, stating the modules will perform to 90% of capacity for the first 10 years and to at least 80% capacity for the remaining 15 years.

Marsh and reinsurer Munich Re will back this guarantee, transferring the risk from the manufacturer and reducing its need to hold reserves of cash. Munich Re spokesman Michael Able told Environmental Finance that, although the product has been designed with Signet in mind, the insurers will offer it to other manufacturers.  

Thomas Blunck, a board member at Munich Re, said that Signet is the first client for its risk-transfer products designed for renewable energy. To develop the product, the reinsurer performed a “detailed examination” of Signet’s manufacturing processes and quality standards.

“For our clients, this insurance solution is a major stepping-stone in financing PV projects,” said Guntr Ziegenbalg, managing director of Signet. “It ultimately gives operators of solar parks additional economic security in the event of an unforeseen loss in performance of the modules.” Signet makes its modules in Dresden, Germany – production started in October 2008 and the firm aims to ramp up to 130 megawatts a year capacity by 2011.