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Definitely a conflict of interest. That said I think all the solar sales organizations/financial models I have seen have been bullish on the performance of sol
by boringg 5y ago
Definitely a conflict of interest. That said I think all the solar sales organizations/financial models I have seen have been bullish on the performance of solar assets and then refer to the warranties as a backup.
If you are financing a project and the degradation occurs faster but not at a rate of which it gets swapped out on warranty - you want something to cover that financial difference. Also swapping out the asset has costs that aren't covered - so it isn't as simple as it would seem.
It's the same as all insurance products - might need it, might not. At least in this case they put forward some real statistical data. And their comment that residential performs worse than commercial completely resonates given the LOE difference.
- ethbr0 5y agoOut of curiosity, how the heck are they modeling these for insurance rate purposes? Considering we're at the beginning of mass deployment.
- boringg 5y agoThey have large tranches of data from large funds that have deployed. While we are at the beginning of mass deployment - theres been a considerable amount of deployment to date that you can model against if you have access to data and then constantly update your priors as you get more information.
- ethbr0 5y agoPresumably premiums are adjustable on a yearly (or relatively short-term) basis too, which would bound the risk of incorrectness.