December 11, 2012 by Canadian Underwriter
Munich Re announced Wednesday it is providing reinsurance for some product warranties of Chinese solar module manufacturer Yingli Green Energy Holding Company Ltd.
“In the event of an unexpectedly large performance loss below guaranteed performance specification, Munich Re indemnifies Yingli Green Energy for its performance warranty obligations,” the firms stated in a press release.
Baoding, China-based Yingli’s products include solar power modules for residential and commercial users as well as utilities.
The reinsurance agreement covers the 10-year and 25-year warranties on all multicrystalline solar modules sold by Yingli between Oct. 1, 2012 and Sept. 30, 2013.
“It guarantees that within ten years multicrystalline Yingli Solar modules exhibit a power output of no less than 91.2% of the nominal power output specified on the module’s original product label,” the firms stated. “Furthermore it covers multicrystalline modules within 25 years exhibiting a power output of no less than 80.7% of the nominal power output as specified on its original product label.”
Munich Re is also offering option cover insurance to operators using the Yingli modules, in the event that their output falls below the “guaranteed level” but where the manufacturer cannot be held liable under warranties due to insolvency.
“Without such insurance, banks may provide necessary funding at less favourable terms,” Munich Re stated.