Ariel Re insures contractual performance guarantees for NovaSource Power Services

Ariel Re has insured the contractual performance guarantees (PeGu) of NovaSource Power Services, which provides solar operations and maintenance (O&M) for commercial, industrial and utility-scale solar projects.

Ariel Re provided solar power outage insurance through its Lloyd’s of London Syndicate 1910 to backstop NovaSource’s PeGu liabilities in the event of unexpected downtime. This guarantees revenue streams on a large international portfolio of utility-scale solar plants.

Jan Napiorkowski, Ariel Re’s global head of clean energy, said: “As the solar market continues to grow and mature, institutional investors will benefit from insurance products that shift the liabilities that arise from more complex performance guarantees to strong counterparties like Ariel Re.”

Jack Bennett, CEO of NovaSource, said: “Our laser-focused field teams, supported by a robust spare parts strategy with performance guarantees backstopped by the groundbreaking Ariel Re insurance product, provide customers with a high degree of confidence their assets will perform and generate maximum revenue.”

HUB International and Miller Insurance were the exclusive insurance brokers for the transaction.

This month NovaSource was acquired from SunPower Corporation by its management team and Clairvest Group.

“The Clairvest and NovaSource deal team fostered an open dialogue and sharing of information that enabled us to not only understand the risk, but also tailor a custom risk transfer solution,” said Napiorkowski.