Allianz General Insurance Company (Malaysia) Berhad (Allianz General) and its agency partner, Anora Agency Sdn Bhd, signed a memorandum of understanding (MoU) today with Pekat Solar Sdn Bhd to further their commitment in promoting solar energy as the nation’s primary source of energy generation.

As one of the pioneers on the local renewable energy scene, Pekat Solar has contributed directly to the rapid rise of solar as an alternative energy source in the country on the back of its extensive engineering background, technical proficiency, and innovation capacity. It was the first solar photovoltaic (PV) installer in Malaysia to receive the prestigious ISO 50001: 2011 Energy Management System certification and is recognised by Sustainable Energy Development Authority (SEDA) Malaysia as a certified PV provider for both on-grid and off-grid solar PV systems.

Through this collaboration, Pekat Solar’s business, assets, and projects will be protected by a range of insurance solutions, including the SolarPro All-Risks Insurance, which is exclusively distributed by Anora, with Allianz General as its principal insurer.

“Consumer protection is at the forefront of the solar industry and is exactly what is needed to drive and sustain the adoption of renewable energy. Consumers generally will only buy-in when they feel secure,” said Allianz Malaysia Berhad Chief Executive Officer Zakri Khir.

“As such, our role as insurers is to support local players in the solar PV industry, as well as to fill the protection gaps in the solar PV ecosystem.”

Besides that, the Allianz Group in Munich has joined the RE100 initiative, led by the global initiative The Climate Group, which works with businesses and Governments to address climate change. The company has committed to sourcing 100 percent of its global electricity needs from renewable sources by no later than 2023, an initiative Allianz Malaysia is ready to support.

“Such collaborations provide us with the perfect opportunity to provide industry players and consumers with unparalleled solutions and services which will ultimately serve the greater good in securing the future development of solar energy in Malaysia,” added Zakri, who is also Chief Executive Officer for Allianz General.

The SolarPro All-Risks Insurance, which was launched by Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin during the International Greentech and Eco Products Exhibition and Conference Malaysia (IGEM) 2018, is Malaysia’s first comprehensive insurance protection scheme that is catered for home and commercial Solar PV owners.

“While the local solar PV industry is growing rapidly, it is vital that these solar assets and investments are well secured and protected to ensure their longevity and sustainability,” said Anora Agency Chief Executive Officer Samuel Soon.

“With SolarPro All-Risk Insurance, Pekat and its customers will not only be able to access a network of qualified service providers to maintain and repair their assets, but also receive compensation for loss of savings or income in the event of down time or damages to their solar PV system.”

Developed in collaboration with SEDA and Malaysia Photovoltaic Industry Association (MPIA), SolarPro offers comprehensive protection and covers loss or damage to the solar PV system due to any malicious damage, theft or lightning, as well as damage from aircraft aerial devices or articles dropped, fire, explosion, earthquake and other natural disasters, flood, landslides, burst water pipes and overflowing water tanks, and more. Solar PV owners will also be compensated for loss of income or savings should their solar PV system experience down time due to damage or theft.

“We are very relieved to discover Allianz Malaysia’s SolarPro All-Risks Insurance, which, with its great considerations, is able to protect both the solar PV owners and solar service providers,” said Pekat Solar’s Managing Director Wee Chek Aik.

“On top of the manufacturing defects warranty offered by manufacturers on main components such as panels and inverters, there are many other risks due to force majeure on the equipment and systems that are not covered. Such downtime and loss of income for a sizable solar system can be catastrophic. We believe with Allianz Malaysia’s SolarPro policy, these risks can be greatly mitigated and bring sunshine all year long to solar investors.”

Malaysia has set a target to increase the use of renewable energy in electricity generation from the current six percent to 20 percent by 2025, a majority of which would be driven by solar.

Solar energy generation is becoming increasingly competitive as the bidding of the 500 megawatt (MW) solar project saw large-scale solar energy has received bids with lower costs than those of the country’s average gas-powered electricity – a first for Malaysia. Moreover, Yeo has also indicated that there will be at least another 500 MW tender in the second quarter of 2020.

After neighbours Thailand, Malaysia is the second Asian country to have launched a peer-to-peer energy trading programme that will allow the sale of excess PV-generated energy to other consumers via Tenaga Nasional Berhad’s grid.