The alternative energy industry is full of opportunities. Society, in addition to these opportunities, is driving the need to reduce energy consumption or to produce energy from alternative non-fossil fuel sources. In order to move everything from concept to completion, several parties must come together to not only provide the innovation and installation, but underpin the industry with assurances to lenders and investors. These assurances lower the financial risk in the event default, making funding more available and affordable. How does energy saving contractors, alternative energy producing companies or owners of facilities secure the financing to get their project built and completed? How do lenders find collateral to meet banking guidelines and protect their loan when the only collateral they have are panels, converters and wiring that may have little value on the resale marketplace? Banks can look at the borrower’s equity, but after the first or second project, there is little left for additional projects.
The solution is our efficacy insurance policy guaranteeing the performance of the energy saving and alternative energy producing projects, securing the future cash flows to cover financial obligations.
We issue these policies to owners or contractors after we independently review the assertions made by the contractor and the calculations of the project are verified. The respective lender or investor is listed on the policy as loss payee creating collateral. They have the ability to file a claim in the event the project does not generate enough cash flow to pay the debt service. There is no recourse or repayment required by the insured party if a claim is paid. The efficacy insurance/ warranty product has had tremendous success in the United States and Canada. The policy is written by an A+ rated international reinsurance company. Our agency’s engineering and underwriting partner is located in Boston.
I am one of about twelve brokers specializing in this product in the United States and our carrier is the largest insurer of these types of products. My career in construction and public accounting gives me insight and understanding with my clients. The following tabs are the types of warranty products we provide to the industry. If you have any specific questions or have a specific project you would like to discuss, please email me or give me a call.