What is SPP (Solar Power Plant) Insurance?

Solar Power Plants (SPP) are among the most popular investment tools today, both due to being environmentally friendly and providing high returns in the long term. Whether installed on the roof of your factory (Rooftop SPP) or on a large plot of land (Ground-mounted SPP), these facilities are open to all kinds of environmental risks as they are located in open-air and wide areas. An unexpected hail storm can break thousands of panels, cable theft can stop the system for days, or a transformer explosion can completely cut off production. SPP Insurance is an indispensable safeguard for the sustainability of the investment, securing both the physical assets of your plant (panels, inverters, transformers) and your financial losses resulting from the electricity you cannot produce (Loss of Profit).

As Panacea Insurance, we offer this insurance—which is also required by banks in the financing of SPP projects—with a continuous protection shield starting from the “Erection” phase of your plant through to the “Operational” period.

Why is it Vital for Investors?

SPP investments are mathematical projects based on payback period (Amortization) calculations. Insurance ensures that this math remains intact:

• Open Area Risk: Panels are in the lap of nature. It is impossible to avoid risks such as hail, storms, snow load, or lightning strikes.
• Credit and Financing Requirement: If you established your plant with a bank loan or leasing, financial institutions require insurance with them listed as the “Loss Payee” throughout the investment period.
• Income Stability: In case of a claim, replacing panels can take months. Not being able to sell electricity during this period disrupts your cash flow. Loss of profit coverage steps in here.

Two Phases of Insurance: Erection and Operation

SPP projects are insured in two stages, and the risks of each period are different:

1. Erection All Risks (Installation Period)

Covers the period from the moment panels are delivered to the site until the system acceptance (TEDAŞ acceptance) is completed. Within the scope of Erection All Risks Insurance; transportation damages, workmanship errors during installation, theft, and natural disasters are covered.

2. Operational Period (Operational Insurance)

This is the main insurance that starts after the plant is commissioned and is renewed every year. The coverages we detail in this content belong to the operational period.

What Does the Policy Cover?

Panacea Insurance’s SPP package protects your plant from A to Z:

• Natural Disasters: Hail (the biggest risk), storm, flood, inundation, landslide, snow load, and earthquake.
• Fire and Explosion: Cable overheating, transformer explosion, or external fires.
• Theft: Theft of panels, copper cables, or inverters.
• Terrorism and Malicious Acts: Sabotage or acts of vandalism against the plant.
• Machinery Breakdown: Inverter failures or breakdown of mechanical parts.
• Loss of Profit (Business Interruption): Compensation for income loss during the days the plant cannot produce electricity due to a damage covered by the policy (e.g., fire).

What are Performance and Lack of Sun Coverages?

These are special coverages offered in some advanced policies:

• Lack of Sun (Irradiance Deficiency): Production loss resulting from the expected sunshine duration falling significantly below meteorological data (Usually optional and subject to special conditions).
• Performance Deficiency: Panels not working at the promised efficiency due to a production error (Usually covered under the manufacturer’s warranty but can be supported by insurance).

SCADA and Monitoring Systems

Computers, servers, and SCADA systems in the monitoring rooms, which are the brain of the plant, are also covered by insurance. For the detailed protection of these devices, we integrate Electronic Device Insurance terms into your policy.

Which Situations are Paid, Which are Not?

Scenarios investors are most curious about:

Situation	Coverage Status
Panel Breakage Due to Hail	✅ Paid (Most Common Damage)
Production Stoppage Due to Cable Theft	✅ Paid (Damage + Loss of Profit)
Efficiency Drop Due to Lack of Maintenance	❌ Not Paid (Operating Error)
Panel Soiling (Dust/Bird Droppings)	❌ Not Paid (Cleaning belongs to Operations)
Micro Cracks (Invisible Cracks)	⚠️ Subject to Special Detection and Condition

What Should You Do in Case of a Claim?

When damage occurs at the plant:

1. Stop Production: Shut down the system safely to prevent further damage.
2. Detection: Document the damage by taking photos and videos. Back up SCADA records (production data).
3. Notification: Call the Panacea Insurance claim hotline without losing time. An adjuster will come to the site for damage assessment and loss of profit calculation.

You can access detailed information about renewable energy legislation and unlicensed electricity production on the official website of the Energy Market Regulatory Authority (EPDK). Panacea Insurance offers specialized solutions supporting green energy investments.

In conclusion, SPP Insurance is the only power that ensures your earnings from the sun do not get cloudy. While entrusting your investment to nature, entrust your financial security to Panacea Insurance.
We wish you many sunny and profitable days.