Battery Storage
Renewable Guard
Approach
Battery Energy Storage Systems (BESS) has seen significant growth for several reasons. First, it addresses the intermittency issues associated with solar. Secondly, BESS can be used to de-risk a solar project’s production and financial model. Lastly, many states and municipalities are now mandating solar projects be constructed with a BESS component.
Yet the BESS industry is still relatively new at the utility-scale level and insurance carriers are becoming increasingly concerned with selected technology, along with how and where the systems are built. Renewable Guard’s approach is to collaborate with carriers and insureds during the early stages of a project to improve insurability. The result is substantial savings on insurance premiums for the life of the project while mitigating losses.
Battery Storage risk & insurance experts
Battery storage insurance by Renewable Guard covers the financial costs associated with battery storage systems. This includes damages or losses incurred from mechanical breakdowns, fire and theft, as well as any sort of system malfunction or failure. It also protects against third-party liability claims for personal injury or property damage caused by your battery storage system.
BESS RISKS
- Builder’s risk insurance provides property coverage for buildings and BESS structures that are under construction.
- Property damage insurance is a type of coverage that protects battery energy storage companies from the financial losses caused by damage to their physical assets, such as lithium-ion batteries, inverters, transformers, and other equipment. Property damage insurance can cover various perils, such as fire, wind, flood, hail, theft, vandalism, and equipment breakdown.
- Commercial general insurance is a type of coverage that protects battery energy storage businesses from third-party claims. This includes damage to property and bodily injury sustained by third parties due to the operations of the business or any products or services it provides. Commercial general insurance can also cover product liability, professional indemnity, and workers’ compensation.
- When faced with a battery energy storage system failure, business interruption insurance can help cover the financial losses associated with lost income, unpaid bills, and other related expenses.
Additional BESS Resources:
Our BESS (Battery Energy Storage System) data room checklist provides a comprehensive list of the documents and information necessary for due diligence during project procurement, acquisition, and financing. Investors and other stakeholders can evaluate the project’s technical, financial, and legal viability through this process.
bankability
Revenue Protection Product –
This enables efficient merchant storage financing by transferring revenue risk to investment-grade counterparties, empowering developers to bring large battery storage systems online faster and with greater returns.
- Insurer provides annual coverage of hedged revenues in exchange for premium.
- Downside revenue guarantee to project owner – 70-85 percent est.
- Provides fixed cash stream guarantee to financial and banking partners.
- Discount on premium option in exchange for upside revenue share.
- Pricing at nodal location.
Bespoke Solutions for the Battery Storage Industry
Concierge Insurance Services
Sometimes insureds feel like they are discarded or lost at big box insurance brokerages. Not here. With elite, high-caliber, and high-touch customer relations, we provide our clients with a concierge experience that they won’t find elsewhere.
Project finance closing support
We have bolstered our support for your closings by hiring a former STANCE insurance lender consultant on staff. Having represented lenders and tax equity investors on hundreds of renewable energy transactions, our consultant now uses that knowledge to help clients navigate insurance requirements for closings.
parametric insurance
Renewable Guard helped innovate the first parametric hail solution for solar 3 years ago. Since then we have expanded to other severe weather exposures. Parametrics have the ability to be far more competitive than traditional insurance.
Tax credit insurance
With the passing of the Inflation Reduction Act, there are more questions than ever about the application of tax credits. This can also give investors heartburn and tax credit insurance is a great solution for addressing these concerns while helping deals get done.
surety
Renewable Guard has helped to develop and provide surety resources that have many use cases in renewables. Bonds can often be used as an alternative instrument for the following: Interconnection Agreements, PPAs, Decommissioning, and Material Procurement or Purchase Order Bonds. Learn how our surety resources can improve liquidity.
RG scorecard
How does your existing insurance program compare to the rest of the industry? The RG Scorecard is designed to help answer this question by benchmarking your program to the rest of the industry and providing you with your own personalized scoring.
Master Builder’s Risk
We have developed our own Master Builders Risk product to provide insurance during the construction of your projects. Terms are competitive and offer coverage that is better than the market.
Claims Masterclass
Renewable Guard hosts a class for our clients to educate them and dispel many misconceptions around insurance claims. This class is designed to mitigate loss while showcasing our client support capabilities when claims do occur.
