The world’s largest reinsurer recently introduced stricter requirements for PV warranty insurance to further reduce the risks of insured PV farms and set a higher benchmark for reliability and production quality across the industry.
PV technology has advanced rapidly in recent years, with new solar cell architectures such as tunnel oxide passivated contacts (TOPCon) jumping straight from early development to gigawatt-scale mass production, surpassing traditional risk management frameworks. In 2024, after a substantial implementation of TOPCon, UVID was reported in several modules, surprising the industry as manufacturers had not fully anticipated this degradation.
Furthermore, the rapid pace of PV technology development has surpassed some IEC standards. For example, IEC 61215 tests modules at a UV dose of 15 kWh/m², while UVID usually only appears after about 60 kWh/m². In response, Munich Re tightened its underwriting and due diligence procedures in mid-2024 and introduced the UV60 test as a mandatory requirement for all PV warranty partners. While this represents an extra step for potential partners, project owners, banks and investors have welcomed it as an additional quality assurance measure.
The UV60 test was introduced as an additional stress test for photovoltaic modules to assess the risks of UV-induced degradation (UVID) before issuing long-term warranty insurance. The test involves exposing solar panels to high-intensity ultraviolet light, at a dose four times higher than the IEC 61215 standard. After exposure, the modules are inspected for physical damage, discoloration, delamination and loss of efficiency, providing a measure of their resistance to UV-induced degradation.
Munich Re’s portfolio of guaranteed modules includes a wide range of products from most PV suppliers, deployed in all climatic zones and owned by numerous project developers. With an exposure of over $1.5 billion, covering more than $30 billion or 150 GW of PV modules, Munich Re is well versed in managing the risks of PV technology.
Munich Re’s PV warranty insurance covers all inherent failure and degradation modes, including UVID, potential induced degradation (PID), light and elevated temperature induced degradation (LeTID), spontaneous glass breakage and more. To stay one step ahead of emerging risks, München Re collaborates with research institutes such as Fraunhofer ISE and quality assurance companies including Sinovoltaics, ISC Konstanz, PVEL Kiwa and CEA. These collaborations provided early warning signs of UVID in TOPCon modules.
By strengthening underwriting discipline, München Re is not only reducing risk to its own portfolio and that of PV park owners, but also helping to establish the UV60 test as an insurance-driven industry standard, improving reliability and production quality across the entire PV supply chain.
Furthermore, inspections of solar cell production lines can complement rigorous audits of module factories. This cell-level research focuses on the diversity of commercial, mass-produced cell technologies currently on the market, including TOPCon, heterojunction, and back-contact cells, each with multiple variations.
Author: Ronald Sastrawan
Ronald Sastrawan is a senior risk analyst and senior underwriter in the Green Tech Solutions unit at Munich Re, focusing on underwriting long-term risks for clean technology and solar projects. He has extensive experience in the solar industry and helped develop Munich Re’s PV Warranty Partner program to support solar investments.
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