The following are green flags associated with cheaper insurance at better terms (while also complying with lender requirements):
SPACING
≥ 8 feet spacing expected between rows of BESS units. This is used to calculate the biggest potential thermal runaway cascade.
INFORMATION
Site layout with spacing labelled
Warranties
What is and isn’t included in your BESS, PCS and transformer warranties. The greater the warranty coverage, the lower the risk to insure at lower cost.
INFORMATION
Site layout with spacing labelled
supplier
A reputable integrator. Is it a reputable cell supporter?
INFORMATION
Technical due diligence report
Technical specification and/or supply agreement
Grid Connection
We can insure projects connected to either a transmission or distribution grid and up to 1,000m of the cable from site to first non-owned substation. We do need to know: integrator. Is it a reputable cell supporter?
- If the project has any main power transformers
- If so, how many and who is the manufacturer.
- Location of first non-owned substation, (i.e. where the project connects to the grid).
INFORMATION
Layout, Spec Sheets, and coordinates
BMS
Cell-or-module level monitoring, 3rd party monitoring is a bonus
INFORMATION
Technical due diligence report
Technical specification and/or supply agreement
Revenue Stack
A monthly breakdown of the expected revenue for the policy period. This is for insured revenue in the event of downtime from a claim.
- Monthly to capture monthly revenue volatility
- Breakdown of expected monthly revenue stack.
INFORMATION
Simple Excel summary of stack by month
UL9540A
To Check:
- Thermal runaway temperatures sit in typical range for cathode chemistry
- Minimal spread of thermal runaway between modules.
INFORMATION
Cell, module and unit-level reports
This list is founded on our experience of structuring insurance for over $7 billion of BESS assets around the world. It covers the range of utility-scale project sizes, technology (integrator and cell supplier), cathode chemistry, BMS and control system architecture, warranties and changing revenue stacks.
Units: we define units as the integrated product, be it a container or cabinet
Want more information on BESS insurance coverage? Reach out to our team today!
