EU panels with insurance backed warranty

[SolarRoofSols]

I am being asked for a EU panel with insurance backed warranty, have spoken to a few suppliers and have drawn a blank - can you guys recommend one?

 

[solarfred]

When you say "insurance backed" what do you mean exactly? All manufacturers have to offer a guarantee against defect. 99.999% of modules work out of the box as they are not batch tested but individually tested. If you want an insurance against performance over 25 years then this is industry standard and many manufacturers use this as a marketing gimmick. Fact is there will unlikely ever be a claim under this that will stick. If you want accidental damage then your home insurance should cover this. Same goes for any Public Liability arising from ownership. The big problem is if you want a warranty against financial loss then I think you will struggle. If you need to replace one panel for lack of performance then you need to find a replacement that matches or replace the whole array - and that is not going to happen. Manufacturers will have product warranty cover against any damages claims arising from their products but this is to protect their balance sheet. An insurance backed warranty is supposed to react where a manufacturer cannot or will not respond due to insolvency etc. but in truth what can the insurance company do? It is not there to act instead of the manufacturer as it is the manufacturer who is paying the premium. You will have to bring the claim for damages at some potential cost. So best option is to use a decent installer with decent products as that is your best insurance policy. Having read what some do on here for after sales service - they do exist.

 

[Gavin A]

he means that the manufacturers warranties themselves are backed by an external insurance company in case the manufacturer goes bust.

Personally I doubt most would be worth the paper they're written on, though I guess they might pay out if the entire array was defective.

Personally I'd prefer the company to have the money internally to ensure they keep running rather than adding the cost of paying for this insurance cover externally, but some customers are rightly being a little wary about such issues at the minute.

 

[solarfred]

I think that is what I said? So who is paying the premiums?? If not the manufacturer (for their own benefit) and not the customer - who?? Standard warranty insurance is paid by the customer. Extended warranty is just an insurance policy. Customer pays and customer claims. I think what he is looking for is a warranty paid for by the manufacturer to support the customers loss. What will the loss be - financial and you will need to claim for and prove financial damages under an Errors and Omissions policy . If it is a manufacturing fault within the guarantee period then you get a replacement unit but if you suffered financial loss then you claim for the loss but it will not be a complete new system and the loss of profits. If the manufacturer goes bust then the policy will cease. There will be no ongoing coverage as the policy will be "claims made and reported within the policy period". Once the premiums stop there is no cover.Unless someone can show me an unlimited policy.

 

[Gavin A]

sorry, I missed that line.

All premiums are ultimately paid for by the customer one way or another.

Some of the policies do actually cover the full warranties for the life of the warranty in the case of the manufacturer going bust, others don't - the latter are entirely pointless, the former marginally less so, but most insurance companies will find ways of wriggling out of paying anyway.

 

[SolarRoofSols]

Yes Gavin, you are on the right train of thought with regards my question. An independently insured warranty underwritten by a 3rd party insurance company. Renesola, Canadian Solar now offer one via a German insurance provide (i think), as do Suntellite via Chubb. Even if there is only a marginal amount of protection for the end client, a little extra is better than nothing. None of the UK manufacturers or EU ones I am aware of offer this, unless I can now market Renesola as being an EU company now!

 

[solarfred]

Well here is the Chubb policy - read it carefully ......
This backs up the product warranty from the manufacturer as an "indemnity" policy ie. you have to prove an error or omission to claim damages. Read the bit about "claims made during..." and "if this policy is in force". I can send you the larger copy if you can't read it here. If the policy lapses then there is no more cover unless the policy holder (Suntellite) pay for a run off policy, to give ongoing coverage, which if they go bust they are very unlikely to do.

 

[SolarRoofSols]

Ok, so Suntellite and Chub is a bad example, I hadn't read it as I don't offer the panels. But some customers will attach a value to this if they are the sort to take the headlines and sales man spiel at face value. Chubb is a recognised name in insurance, so this recognition may lead someone to assume that Suntellite is a better panel because of this independent warranty and therefore better value (because they are cheaper) than an EU panel that is considered superior, but without the independent backing.

Whilst I agree that warranty terms should be looked into, many people don't. Nitpicking at an example is not answering my original question about whether there is an uk/eu panel offering insurance on their warranty.

 

[solarfred]

Well I was not nitpicking but offering the explanation for why warranty policies in general were probably not really going to help and why they are generally not available.
You are now better informed so if you do find a warranty you will know it may be of limited use in fact. As I said the small print will probably not give the coverage you or your customer are expecting. You will not find anything in the EU that protects a manufacturers trading loss but only offers a liability policy where you/customer has to prove negligence against the company to claim financial loss. Not worth it for the average Joe 'cos if you lose you pay. For a megawatt installation then the customer can bring an action for compensation directly against the manufacturer/supplier.
BTW Suntellite panels are excellent quality and MCS certified. As for their Chubb "policy" underwritten by the Chubb in PRC; well I just accept it is a PR gimmick.

 

[Gavin A]

Whilst I agree that warranty terms should be looked into, many people don't. Nitpicking at an example is not answering my original question about whether there is an uk/eu panel offering insurance on their warranty.

It's not, but then it does offer you some additional amunition to use to go back to the customer to explain why the policies generally aren't worth the paper they're written on and are just a marketing scam used by mainly shakey Chinese manufacturers to make their warranty seem more valid than it actually is.

ALternatively you have the likes of Bosch who're big enough as a company outside of PV to mean that they're warranty as a company should be as safe as any insurance company.