Qsolar Reaches Milestone Event to Make Its Solar Panels Project Bankable

Published December 28th 2012 at 2:35pm

December 27, 2012 - QSolar Limited is pleased to announce that its wholly owned subsidiary, QSolar Ltd., has received a confirmed offer for Willis Electronic Plus Photovoltaic Power Plant insurance ("Willis insurance") for its range of solar panels from German insurer Gaede & Glauerdt, Assecuradeur GMBH & Co KG, Hamburg, Germany through insurance broker, Willis GMBH & Co KG, Frankfurt, Germany. The significance of QSolar Ltd. executing this performance warranty insurance is that this will allow for QSolar photovoltaic ("PV") solar panels to be project bankable by third party purchasers and installers of QSolar products. Upon execution of definitive contracts by QSolar, the Willis insurance offering will expand the Corporation's potential selling market and allowing QSolar to compete for larger projects and sales orders. The insurance on QSolar's range of solar panel products may be offered to the project end user, and if accepted by the end user's financial institution, will provide in many cases, sufficient collateral for end user PV power plant financing. It ultimately gives operators of solar projects additional economic security in the event of an unforeseen loss in performance of the PV modules and installation. This event marks another major developmental milestone for the Corporation.

Willis Electronic Plus insurance provides solar panel manufacturers, developers and dealers with all-risk insurance protection against property or revenue losses caused by property damage. It also puts in place cover against yield reduction due to a lower outcome of the forecast annual energy yield.

As solar power grows in popularity, photovoltaic businesses, and in particular banks and investors, are looking for comprehensive all-risk insurance in addition to cover for financing risks like the liquidation of a manufacturer or developer. Willis Electronic Plus coverage was developed and when offered by Willis, is placed for up to 10 years and is not cancellable, giving lending institutions a greater degree of confidence when it comes to financing photovoltaic projects.

QSolar Ltd. offers a performance guarantee on the power output of its PV module, and now together with Willis, the power output is not only guaranteed but is also insured. The insurer will indemnify for any reduction in power from QSolar's warranted energy output. Additionally the insurance also covers expenses which might become necessary when recovering the formerly certified energy output. PV module satisfaction is also tied to replacement in the event of incorrect manufacture. QSolar guarantees their modules are defect free as a result of manufacture for a specified period, additional insurance is provided to third party end users within the new product solution.

Willis has created a further benefit to solar system buyers by combining an "All-Risks" cover, together with this guarantee insurance. This additional insurance covers risks which might lead to damage, destruction or loss of insured property due to e.g. operating errors, vandalism, theft, natural disasters.

Furthermore it not only covers property damage but also resulting business interruption claims. The "All-Risks" cover is initiated by QSolar for two years, after which, third party end user purchasers can extend this two-year "All-Risks" cover for an attractive premium.

This benefit will be further enhanced by a so-called "less revenue insurance", covering revenue losses (on the basis of a survey), not caused by willful intent or gross negligence. Consequently, this coverage does not require property damage in comparison to the usual products.

This insurance guarantees to the end user customer and their financial institutions that QSolar PV panels will perform during the entire life of the product, and thus it opens up the financing of any size installations using QSolar products. The majority of large solar panel projects require financing mainly from financial institutions, which in turn require bankable products as security. QSolar will now be able to offer this security through the unique Willis insurance product, thus opening up the marketability of QSolar products' for large projects.

For QSolar end user purchasers, the installed system may be insured to provide the predicted financial returns of PV modules performance, allowing greater business certainty and giving operators of solar power projects the opportunity to deploy QSolar modules to finance photovoltaic installations more easily and with increased flexibility.


Source: Stockhouse
ENF Profiles For Companies Mentioned in This Article

Qsolar (Solar Panels): http://www.enfsolar.com/directory/panel/16422
Qsolar (Solar System Installers): http://www.enfsolar.com/directory/installer/16422
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