- Tallarna has secured a contract to develop a performance insurance product for Battery Energy Storage Systems (BESS) and solar PV deployed across commercial real estate.
- This product will protect technologies' economic outcomes, empowering Tallarna's fully-funded Energy-as-a-Service (EaaS) subscription offering across New York State.
- By underpinning BESS and solar PVs' cash flows with investment-grade insurance, Tallarna gives stakeholders the confidence to decarbonize at scale.
Tallarna, a climate tech and finance platform for sustainable impact, today announced it has secured a significant contract under the New York State-based Insurance Innovation Prize. This initiative is administered by InnSure and supported by the New York State Energy Research and Development Authority (NYSERDA). Tallarna has been contracted to create a data-led, performance insurance product that protects the economic outcomes of BESS and solar PV deployed across commercial real estate. This represents a significant milestone in the company's continued product and market expansion.
Called Energy Infrastructure Insurance (EII), this pioneering product will de-risk the adoption of BESS and solar PV protecting these technologies in isolation and together. This will lower the cost of capital for fully-funded EaaS projects by transferring significant risks away from funders. In doing so, off-takers will gain increasingly attractive EaaS subscription prices. EII will be integral to Tallarna's EaaS offering, which will give commercial building owners and occupiers the guaranteed availability, performance, and economic outcomes of clean energy technologies without the risks or costs of ownership. Technologies' financial benefits will exceed the subscription fee, turning decarbonization into a financial imperative.
Part of EII's innovation will be its use of data in identifying, scoping, and managing risk. Tallarna will collaborate with a software analytics provider to ensure effective scenario modeling, operational control, and real-time metering monitoring across these energy assets' lifetimes. Such granular, data-driven insights will enhance insurers' understanding of the risks facing these technologies, inform proactive maintenance to mitigate against loss events, enable cover to dynamically adapt to changes in technology use, and accelerate claims payment.
This data-led approach will support EII to comprehensively address the specific and complex risks facing BESS and solar PV deployment in commercial real estate. These technologies produce a sophisticated revenue stack, both Behind-the-Meter (BTM) and Front-of-the-Meter (FTM), on which stakeholders' returns depend. By uniquely underpinning these cash flows with a holistic, investment-grade, and long-term insurance product, Tallarna will make large-scale action possible.
Designed with input from Tallarna's panel of funding partners, technology providers, insurers, developers, and commercial real estate customers, EII will cover five key risks:
- Shortfall Indemnity: Protects against the difference between BESS and solar PVs' expected and actual cash flows due to technology underperformance.
- Revenue Cap and Collar: Delivers minimum price certainty for FTM merchant revenues in exchange for an upfront premium and an upside revenue share.
- Defect, Breakdown, and Design Fault: Covers the repair and replacement of installed systems, including parts and labor, for the entirety of EaaS projects' contract term.
- Fire: Provides cover against first and third-party property damage risks, including that caused by thermal runaway in BESS.
- Lack of Irradiance: Compensates for reduced energy generation due to periods of insufficient sunlight.
By integrating these elements of cover, Tallarna will protect against the major and material risks facing these technologies for up to 15 years.
At the end of this contract, Tallarna will have commercialized a new, data-led performance insurance product across New York State.
"Overcoming the financial uncertainty facing clean energy technologies is key to driving a sustainable, profitable future for people and the planet," commented Rupert Dixon, Director of Insurance at Tallarna. "We are excited for this collaboration our first with InnSure and our third with NYSERDA to create an insurance product that offers stakeholders the robust, dynamic, and comprehensive cover required to decarbonize at scale."
"Insurance is a powerful risk management tool that is instrumental to scaling technology adoption across various industries," added Christopher Lowell, Managing Director at InnSure. "Tallarna's EII exemplifies how insurance can lead efforts to incentivize climate action by defending the financial outcomes of projects."
View source version on businesswire.com: https://www.businesswire.com/news/home/20250115883109/en/
Contacts:
Michelle Taute
press@tallarna.com
+44 7771786102
