Long time leader in specialty insurance for the energy industry, Walsh Carter & Associates has presented details of what it cites as the most comprehensive coverage for fiscal risks associated with all phases of a commercial solar energy project.
Up to 50% of the total insurable value of a solar installation is comprised of Federal Investment Tax Credits (FITCs), US Treasury Renewable Energy Cash Grants, Depreciation Tax Shields and Renewable Energy Credits (RECs). In the event of catastrophic damage to the solar installation, the financial funding group could suffer a major loss, because the unvested portions of prepaid credits and cash grants are legally refundable to the issuing agencies. Walsh Carter's TOTAL SPF programme is different from other insurances in the industry as it covers these risks, protecting key stake holders including the integrator, installer, maintenance and operations companies, as well as the banks and investors that provide financing.
According to Christina Bowman-Jones, an executive from this San Francisco-based firm, this new insurance “could open the floodgates of projects waiting to be financed”.
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