Munich Re Introduces Insurance Solution for Renewable Energy

Munich Re introduced the first insurance solution to provide an
effective performance warranty for solar panels in the United States
through a new plan that covers concentrator photovoltaic (CPV) systems
manufactured by SolFocus. Munich Re, SolFocus and broker Woodruff-Sawyer
& Co collaborated on this first coverage of its kind for CPV
technology systems. With a view to climate change, Munich Re has devised
a number of coverages that reduce the risks in renewable energy for
investors and thus make such investments possible.

Source: Source: Munich Re | Published on October 8, 2010

“The performance and reliability of CPV has advanced to such a
high level that a renowned insurer like Munich Re has offered an
insurance policy,” said Mark Crowley, CEO of SolFocus.“ As the first CPV
company that can provide an insured performance-warranty to its
customers, we are proud to pave the way for this advanced solar
technology to reach commercial status and become a trusted, bankable
technology for developers, financial institutions and utilities.
Providing such confidence and trust to the marketplace is critical for
companies like SolFocus to deliver the capability of advanced solar
technology.”

SolFocus provides all of its customers globally with a warranty
for its CPV systems of 25 years for power performance. If any product
fails to meet the specifics of this warranty then the Munich Re cover
attaches. In order to realize the insurance solution, Munich Re has
brought in one of its specialty primary insurers. “SolFocus has achieved
similar breakthroughs in proving “bankability” for developers and
investors by securing the first International Electrotechnical
Commission (IEC) certification for performance and safety”, Crowley
added.

Prior to the agreement being signed, Munich Re had conducted an
in-depth review of the SolFocus development and manufacturing processes.
This CPV technology uses innovative optics to concentrate sunlight onto
a small area of high-efficiency solar cell material. Munich Re already
makes its unique performance-warranty insurance available to several
other manufacturers of photovoltaic cells based on other technologies,
but this is the first CPV offering.

Thomas Blunck, member of Munich Re’s Board of Management added,
“We are delighted to have concluded the first contract of this kind on
the U.S. market with SolFocus. By coming up with this solution for the
new CPV technology, we have again taken the lead after we had introduced
the performance warranty insurance onto the market over a year ago. And
we are also close to marketing similar performance-guarantee products
for other technologies in the renewables sector such as wind or solar
thermal energy.”

By providing this insurance, Munich Re allows solar plant
operators and investors greater planning security. The innovative
insurance solution is thus an important milestone for the financing of
photovoltaic projects, offering producers additional financial
protection. Manufacturers of modules can take the long-term, technical
guarantee risk off their balance sheet, thus easing the financial burden
and giving their customers greater security.

“We are proud to have had the opportunity to collaborate with
Munich Re and SolFocus on this inventive and unique coverage solution”
said Steve Sawyer, Executive Vice President at Woodruff-Sawyer & Co.
“Both companies are leaders in innovation within their industries, and
we expect this program will have a substantial impact on the continuing
expansion and implementation of solar power/power production in the
United States.”

About SolFocus

The SolFocus mission is to enable solar energy generation at a
Levelized Cost of Energy (LCOE) competitive with traditional fossil fuel
sources. To achieve this goal, SolFocus has developed leading
concentrator photovoltaic (CPV) technology which combines
high-efficiency solar cells (approaching 40%) and advanced optics to
provide solar energy solutions which are scalable, dependable and
capable of delivering on the promise of clean, low-cost, renewable
energy. SolFocus is headquartered in Mountain View, California with
European operations headquartered in Madrid, Spain, and manufacturing in
Mesa, Arizona and manufacturing partners in India and China.