The Chinese solar energy giant Wuxi Suntech has enlisted the services of two large insurance companies, one German and one Chinese — Munich RE and Ping An, respectively — in order to offer improved insurance protection for customer module warranties.
The new insurance policy offers a 25-year warranty protection period, covering “significant decreases” in module performance. The move is expected to help Suntech — according to the company itself — expand sales, owing to greater customer confidence and security.
“We have great confidence that our products are of the highest quality and are built to last,” stated Suntech CEO Eric Luo. “But to ensure our customers feel fully protected, our new insurance policy with Ping An and reinsurance by Munich Re will allow us to continue to honor our products’ performance warranties, while still maintaining our strong financial balance sheet.”
“Thanks to the cooperation with our partner Ping An, we are able to provide an innovative performance warranty insurance solution for Suntech’s modules that are fundamental to the sustainable success in the solar industry,” stated August Proebstl, head of Corporate Insurance Partner at Munich Re. “It sets industry standards by being the first significant deal when it comes to volume insured and indemnity offered to a manufacturer domiciled in the People’s Republic of China.”
Despite Suntech’s widely reported on issues in recent years, the company has actually been doing quite well as of late — with strong financing channels and relationships as well as, now, nearly zero debt.
On that note, it’s worth noting that Suntech recently made the announcement that its polycrystalline silicon modules were rated higher than industry standards in a technical review done by UK-based consultancy OST Energy, which follows on the heels of VDE-Quality Tested certification being granted to Suntech’s modules — which is simply, more-or-less, a distinction indicating quality beyond industry standards.
Image Credit: Suntech