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					</table><p>Warranty of solar modules is a crucial part of any solar installation, as modules account for nearly 40% of project cost. Warranty covers both the product and its performance. While warranty is a business enabler, it is yet to grain traction in the industry, experts at a webinar hosted by Mercom India said.</p>
<p>The webinar was titled <strong>&#8216;Solar PV Performance Warranty: Building Market Confidence.&#8217;</strong></p>
<p>The panelists were Burzin Umrigar, SVP-Head Construction Insurance &amp; Renewable Energy, <a href="https://www.howdenindia.in/" target="_blank" rel="noopener">Howden India</a>; Punit Mehta, Director at <a href="https://www.pixonenergy.com/" target="_blank" rel="noopener">Pixon Green Energy</a>; Sudhanshu Kamboj, VP-Project Development at <a href="https://www.radiancerenewables.com/" target="_blank" rel="noopener">Radiance Renewables</a>; and Vineet Mittal, Director, and Co-founder at <a href="https://navitassolar.in/" target="_blank" rel="noopener">Navitas Solar</a>.</p>
<p>Priya Sanjay, Managing Director, Mercom India, moderated the session.</p>
<p><strong>Growing Demand for Solar Module Warranty Insurance</strong></p>
<p>Solar module warranty insurance as a business enabler has come to the fore in the last four- five years.</p>
<p>On the growing significance of module warranty insurance, Burzin Umrigar said, &#8220;The insurance is for both buyers and sellers. The insurance is for faulty manufacturing, material defects, material aging, and insolvency of manufacturers. Currently, there are few players in the market, but it is bound to grow.&#8221;</p>
<p>He said if the manufacturer goes insolvent, the insurance policy is transferred to a registered buyer, ensuring that his warranty claims remain covered.</p>
<p>&#8220;Most companies provide insurance for 25-30 years. We require insurance policy longevity in terms of business focus. We take utmost care in the manufacturing process, and the insurance policy is to address particular contingencies that crop up from time to time,&#8221; Punit Mehta of Pixon Green Energy said.</p>
<p>The market has matured over a period of time, and manufacturers are now offering warranties for 25 years.</p>
<p>According to Sudhanshu Kamboj, &#8220;There is a need for climate change insurance which is not in vogue right now but will come into the picture with global warming taking center stage. It will certainly gain traction in the coming years. The insurance business is at a nascent stage, and the premiums are too high.&#8221;</p>
<p>The surge in demand for solar module warranty insurance is expected to boost the market&#8217;s growth in the coming period.</p>
<p>&#8220;Even projects with lower capacities should get the benefits of insurance. It gives the buyers additional coverage and a layer of security. There is a lot of flexibility in buying insurance products, and this makes it easier for us to export the products. Now the U.S. clients are planning to buy from Indian manufacturers as an alternative to China. Having insurance in place makes it easier for us to sell,&#8221; Vineet Mittal of Navitas Solar said.</p>
<p><strong>Turnover Requirement a Challenge</strong></p>
<p>Many believe the insurance products are not customized for Indian manufacturers. The minimum turnover requirement of availing the claim is also a significant hurdle.</p>
<p>&#8220;The developers want insurance for a range of capacities, and they feel that the capacity cap for availing the insurance is a challenge. Also, we have stringent insurance eligibility criteria in place. However, manufacturers are able to provide the documentation needed for the insurance, which makes it easier for developers,&#8221; Umrigar said.</p>
<p>He added that there is definitely a need for a risk advisor who can decode the nuances of insurance for customers.</p>
<p>&#8220;Product warranties contribute to the growth of sales, and it is imperative that all the assets should be insured. Insurance cover has become very important as a part of our business, and manufacturers are comfortable with the fact that any hurdle that comes in the way can be dealt with,&#8221; added Mehta.</p>
<p>He said Pixon Green Energy has been in the export business for quite some time. “For exports, insurance is essential since clients demand insurance coverage for deals to go through.&#8221;</p>
<p>Stakeholders feel the need for customization for each client. Customers are ready to pay the cost, but the product should be good.</p>
<p>&#8220;Getting insurance claims reimbursed is a big challenge for any manufacturer. It is a big impediment to facilitating the growth of insurance products in the country. There should be greater clarity regarding the details of the overall process, and also, there is an utmost need to keep the insurance process simple,&#8221; said Mittal.</p>
<p><strong>Solar PV Warranty Insurance from a Developer&#8217;s Perspective</strong></p>
<p>Solar developers invest significant capital into projects, and therefore solar PV warranty insurance becomes critical.</p>
<p>&#8220;We get lending from Indian banks, which take into account the Tier-I manufacturers, and the lending process becomes easier. The lenders are happy with the product and performance warranties, and it is only a matter of time before climate change insurance also becomes popular. On behalf of other developers, I might say there are challenges for domestic manufacturers, and the banks see domestic manufacturers with a critical eye,&#8221; opined Kamboj.</p>
<p>Many developers do their own third-party inspections before opting for any insurance products.</p>
<p>You can watch the webinar <a href="https://register.gotowebinar.com/register/1155881818944469077?source=Website" target="_blank" rel="noopener">here</a>.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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Module Warranty Insurance Key to Solar Market’s Growth: Mercom Webinar


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					</table><p>Solar modules account for nearly 40% of the total project cost. Maintaining their quality and efficiency for the entire lifetime (25-30 years) becomes critical so that the project is economically viable.</p>
<p>The manufacturers&#8217; warranty on solar modules becomes crucial for any solar installations as they build confidence among project developers and investors who own the assets for a long time.</p>
<p>Mercom&#8217;s webinar <strong>&#8216;Solar PV Performance Warranty: Building Market Confidence&#8217;</strong> will explore some of these issues on March 1 at 3 PM.</p>
<p>You can register for the webinar by clicking <a href="https://register.gotowebinar.com/register/1155881818944469077?source=Article" target="_blank" rel="noopener">here</a>.</p>
<p>The webinar will bring together industry experts who will discuss how solar warranty insurance can significantly reduce financial losses in the event of a warranty claim and how crucial they are while selling or refinancing a project. The webinar will also discuss client expectations from such warranty insurance products.</p>
<p>The panelists are Burzin Umrigar, SVP-Head Construction Insurance &amp; Renewable Energy, <a href="https://www.howdenindia.in/" target="_blank" rel="noopener">Howden India</a>; Punit Mehta, Director at <a href="https://www.pixonenergy.com/" target="_blank" rel="noopener">Pixon Green Energy</a>; Col Sudhanshu Kamboj, VP-Project Development at <a href="https://www.radiancerenewables.com/" target="_blank" rel="noopener">Radiance Renewables</a>; and Vineet Mittal, Director and Co-founder at <a href="https://navitassolar.in/" target="_blank" rel="noopener">Navitas Solar</a>.</p>
<p>Priya Sanjay, Managing Director, Mercom India, will moderate the session.</p>
<p>The performance warranties indicate that the solar panels will perform at 80-90% of their capacity over a given period. Product warranty, on the other hand, is based on modules and quality.</p>
<p>Additionally, the performance warranty indicates the modules&#8217; intended degradation. If the solar panels degrade faster than the warranty specifies, the manufacturer is liable to repair or replace the underperforming modules.</p>
<p>Hence, solar module warranty insurance caters to the needs of solar developers and safeguards the insured against module quality and defects in manufacturing and materials.</p>
<p>Solar project tenders mandate module warranties, including product and performance warranties.</p>
<p>Further, the project&#8217;s return on investment (RoI) depends on the amount of electricity generated every year, and system performance degradation needs to be addressed to enhance the RoI of a project.</p>
<p>With the government of India setting a target of 280 GW of solar installations by 2030, solar module warranty insurance acquires greater significance for all stakeholders.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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Mercom to Host a Webinar on Solar Module Performance Warranty Insurance

<p>The New and Renewable Energy Development Corporation of Andhra Pradesh (<a href="http://nredcap.in/Default.aspx" target="_blank" rel="noopener noreferrer">NREDCAP</a>) has issued an empanelment tender for rooftop solar installers in the state. The tender covers rooftop solar projects with capacities ranging from 1 kW to 500 kW. The empanelment will be valid up to June 31, 2021.</p>
<p>The projects will be developed at various locations in Andhra Pradesh under CAPEX mode. The bid-submission deadline is August 28, 2019.</p>
<p>The rooftop solar PV projects will be developed under three categories:</p>
<p><strong>Category-I</strong> &#8211; Size ranging from 1 kW to 10 kW</p>
<p><strong>Category-II</strong> &#8211; Size ranging from 11 kW to 100 kW</p>
<p><strong>Category-III</strong> &#8211; Size ranging from 101 kW to 500 kW.</p>
<p>Ten bidders will be selected under each category after matching the lowest (L1) price. For projects under Category-I, the project commissioning timeframe will be 45 days from date of award of contract. Bidders executing rooftop solar PV projects under Category-II will get 60 days from the award of the contract to complete the project and bidders who will be awarded contracts to set up rooftop solar PV projects under Category-III will get 90 days to complete the project.</p>
<p>The empaneled firms develop the projects on a turnkey basis and will be responsible for the supply, installation, commissioning, maintenance, and operation of rooftop solar PV systems.</p>
<p>NREDCAP has also specified that the solar PV panel will carry a warranty of at least 25 years. The rooftop solar PV systems installed and commissioned will be under warranty against any manufacturing or usage defect for a minimum period of five years from the date of commissioning.</p>
<p>The mechanical structures, electrical works including power conditioners, inverters, powerpoint tracker units, digital meters and the overall workmanship of the rooftop solar PV systems must be warranted against any manufacturing or installation defects for a minimum of five years.</p>
<p>Previously, NREDCAP had tendered 15 MW of grid-connected rooftop solar PV projects in <a href="https://mercomindia.com/andhra-pradesh-15mw-solar-rooftop-tender/" target="_blank" rel="noopener noreferrer">June 2018</a>.</p>
<p>In the same year, it also floated an <a href="https://mercomindia.com/nredcap-empanelment-tender-rooftop/" target="_blank" rel="noopener noreferrer">empanelment tender</a> for 35 MW of rooftop solar projects. It covered rooftop solar projects with capacities ranging from 1 kW to 500 kW. The empaneled developers were to develop 15 MW of rooftop solar PV projects atop government buildings and 20 MW of rooftop solar PV projects atop residential, social, and institutional buildings in Andhra Pradesh.</p>
<p>Image Credit: <a href="https://solarrooftop.gov.in/ap/">https://solarrooftop.gov.in/ap/</a></p>
<p>&nbsp;</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/saumy/" class="vcard author" rel="author"><span class="fn">Saumy Prateek</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Saumy Prateek</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/saumy/" target="_blank" rel="noopener">More articles from Saumy Prateek</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="79" height="102" /><a href="https://mercomindia.com/author/saumy/" rel="noopener"><strong>Saumy Prateek, </strong> </a>is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism &amp; Mass Communication from the Manipal Institute of Communication at Manipal University.<a href="https://mercomindia.com/author/saumy/">More articles from Saumy Prateek.</a></div>
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Andhra Pradesh Issues Empanelment Tender for CAPEX Rooftop Solar Projects

<p>The Karnataka Power Corporation Limited (KPCL) has issued a repair tender for a 3 MW solar photovoltaic (PV) project located in Itnal village of the state’s Belagavi district. This is a unique first of its kind tender in India.</p>
<p>The bid submission deadline is April 10, 2019. The tender is for the supply, erection, testing, and commissioning of 700 solar PV modules of 230-watt capacity.  The scope of work also includes the dismantling of defective 668 solar PV modules of capacity 230 watts at the project site.</p>
<p>The 3 MW project was <a href="http://karnatakapower.com/en/portfolio/itnal-solar-pv-plant-belgaum-district/" target="_blank" rel="noopener noreferrer">developed</a> at the cost of ₹590 million (~$8.5 million) on 17 acres of government land acquired. Photon Energy Systems served as the engineering procurement construction (EPC) contractor for this project. The project commissioned in December 2009, was financed by KPCL from its internal resources under Arunodaya Scheme. Now this project needs replacement of solar modules merely within a decade of commissioning. The project is receiving a feed-in tariff of ₹14.5 ($0.21)/kWh.</p>
<p>The new modules must match the existing module connectors and mounting structure size. The project completion timeframe is 12 weeks from the date of award of the contract. All equipment supplied and installed at the site must have a guarantee of 18 months after its commissioning.</p>
<p>The solar PV modules utilized for the project will be warrantied for a period for ten years for failures due to material defects and workmanship. The peak output wattage of the solar modules should not be less than 90 percent after one year and 80 percent at the end of 25 years.</p>
<p>The successful bidder will also be required to provide a contract performance guarantee amounting to 10 percent of the contract value.</p>
<p>The question also is why did so many modules fail in one project? Issues like this will arise in projects which were built using low-quality components. As projects age, we could see more tenders of this type in the future.</p>
<p>According to the <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener noreferrer">Mercom India Solar Project Tracker</a>, Karnataka has installed large-scale solar capacity of over 5.3 GW and has a development pipeline of ~2.5 GW, making it the leading solar state. Karnataka is a hotbed of activities when it comes to the solar sector.</p>
<p>KPCL has 34 MW of solar projects in the operation of which 15 MW was developed under the National Solar Mission program, according to <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener noreferrer">Mercom India Solar Project Tracker</a>.</p>
<p><a href="https://mercomindia.com/50-mw-solar-karnataka-pavagada/" target="_blank" rel="noopener noreferrer">Recently</a>, the Karnataka Electricity Regulatory Commission (KERC) provided its approval to issue the letter of award to Amar Raja Power Systems Limited, to construct 50 MW (10 MW x 2 blocks + 15 MW x 2 blocks) of solar projects at Pavagada Solar Park, located in Tumkur district of Karnataka. In <a href="https://mercomindia.com/solar-tender-50-mw-karnataka-pavagada/" target="_blank" rel="noopener noreferrer">December 2018</a>, Karnataka Renewable Energy Development Limited (<a href="http://kredlinfo.in/" target="_blank" rel="noopener noreferrer">KREDL</a>) had issued a tender for the selection of engineering, procurement, and construction contractor for 50 MW solar PV at Pavagada Solar Park, located in Tumkur district of Karnataka.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/saumy/" class="vcard author" rel="author"><span class="fn">Saumy Prateek</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Saumy Prateek</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/saumy/" target="_blank" rel="noopener">More articles from Saumy Prateek</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="79" height="102" /><a href="https://mercomindia.com/author/saumy/" rel="noopener"><strong>Saumy Prateek, </strong> </a>is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism &amp; Mass Communication from the Manipal Institute of Communication at Manipal University.<a href="https://mercomindia.com/author/saumy/">More articles from Saumy Prateek.</a></div>
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