Surety Bonds for Solar and Wind
Advance Payment Bond - All States
Coverage:
Provides utility, project owner or EPC contractor with financial protection in the event modules are not delivered per supply contract terms, resulting in the advance payment being subject to refund.
Underwriting considerations:
Term and premium earn:
Supply Chain Performance and Payment Bond
Coverage:
Provides counter parties in the supply chain to with financial protection and cure in the event of a default under a supply contract,
Underwriting considerations:
Term and premium earn:
Engineering, Procurement, Construction Payment Bond
Coverage:
Provides guarantee of payment to EPC contractor pending financing being in place to assume progress payment obligations.
Facilitates for long lead items to be secured.
The EPC bond will provide default protection, with the following understanding:
To be most effective:
Underwriting considerations:
Term and premium earn:
EPC Contractor Payment Bond
Coverage:
Provides facility owner with financial protection to guarantee payment to all subcontractors, vendors and suppliers, also to include payment of any other obligations that arise under the contract that are the obligation of the Principal.
Underwriting considerations:
Term and premium earn:
EPC Contractor Payment Bond with Design and Performance
Coverage:
Provides facility owner with financial protection to guarantee payment to all subcontractors, vendors and suppliers, also to include payment of any other obligations that arise under the contract that are the obligation of the Principal.
Clarifies coverage includes design and performance aspects of the contract
Underwriting considerations:
Term and premium earn:
EPC Contractor Performance Bond
Coverage:
Provides facility owner with financial protection to guarantee performance of contract through completion, and for the surety to facilitate curing a default..
Underwriting considerations:
Term and premium earn:
EPC Contractor Performance Bond with Design and Performance
Coverage:
Provides facility owner with financial protection to guarantee performance of contract through completion, including the design and performance components, and for the surety to facilitate curing a default.
Underwriting considerations:
Term and premium earn:
EPC Payment Bond with Solar Module Sublimit - All States
Coverage:
When EPC is already providing a 100% payment bond to a guarantee a prime contract that includes the purchase of modules, the module provider can be specifically named as an obligee for the modules being supplied to the project.
Term and premium earn:
Interconnection Payment Bond
Coverage:
Underwriting considerations:
Term and premium earn:
On Bill Finance - Utility Payment Bond
Coverage:
Provides the utility with protection against a ratepayer defaulting on their utility bill that includes On Bill loan repayment for installation of a solar system or other energy efficiency updates.
Underwriting considerations
Program Outline: On Bill Surety Program
Term and premium earn:
Power Purchase Agreement - Surety Payment Bond
Coverage
Provides for the cost differential incurred by the obligee between the cost of power that was contracted to be delivered, and the cost on the spot market that had to be paid.
Underwriting considerations:
Term and premium earn:
Solar Facility Decommissioning Bond
Coverage
Provides for the removal of all panels and equipment at the end of the lease term.
Underwriting considerations:
Term and premium earn:
Solar Facility Operations And Maintenance Performance Bond With Performance Guarantee
Coverage:
Provides facility owner with financial protection to guarantee performance of O&M contract, including the performance guarantee components, and for the surety to facilitate curing a default.
Clarifies coverage includes design and performance aspects of the contract
Underwriting considerations:
Term and premium earn:
Solar Facility Operations And Maintenance Payment Bond
Coverage:
Provides facility owner with financial protection to guarantee payment to all subcontractors, vendors and suppliers, also to include payment of any other obligations that arise under the contract that are the obligation of the Principal.
Underwriting considerations:
Term and premium earn:
Solar Facility Operations And Maintenance Performance Bond
Coverage:
Provides facility owner with financial protection to guarantee performance of contract, and for the surety to facilitate curing a default.
Underwriting considerations:
Term and premium earn:
Solar Module Payment Bond
Coverage:
Provides panel manufacturer with financial protection in the event payment is not received for panels delivered.
Underwriting considerations:
Term and premium earn:
Solar Module Supply Bond
Coverage:
Provides utility, project owner or EPC contractor with financial protection in the event panels are not delivered per supply contract terms.
Underwriting considerations:
Term and premium earn:
Solar Module Warranty Bond
Coverage:
Provides utility, project owner or EPC contractor with financial protection in the event panels are defective per supply contract terms.
Underwriting considerations:
Term and premium earn:
Wind Facility Decommissioning Bond
Coverage
Provides for the removal of all equipment at the end of the lease term.
Underwriting considerations:
Term and premium earn:
Advance Payment Bond - All States
Coverage:
Provides utility, project owner or EPC contractor with financial protection in the event modules are not delivered per supply contract terms, resulting in the advance payment being subject to refund.
Underwriting considerations:
Term and premium earn:
Surety Bonds for Standard Construction
General Contractor Payment Bond - All States
General Contractor Performance Bond - All States
Subcontractor Payment Bond - All States
Subcontractor Performance Bond - All States
Surety Bonds for Construction
General Contractor Payment Bond
Coverage:
Provides facility owner with financial protection to guarantee payment to all subcontractors, vendors and suppliers, also to include payment of any other obligations that arise under the contract that are the obligation of the Principal.
Underwriting considerations:
Term and premium earn:
General Contractor Performance Bond
Coverage:
Provides facility owner with financial protection to guarantee performance of contract through completion, and for the surety to facilitate curing a default..
Underwriting considerations:
Term and premium earn:
Subcontractor Payment Bond
Coverage:
Provides facility owner with financial protection to guarantee payment to all subcontractors, vendors and suppliers, also to include payment of any other obligations that arise under the contract that are the obligation of the Principal.
Underwriting considerations:
Term and premium earn:
Subcontractor Performance Bond
Coverage:
Provides facility owner with financial protection to guarantee performance of contract through completion, and for the surety to facilitate curing a default..
Underwriting considerations:
Term and premium earn:
Standardized Electronic Surety Bonds
2019 06-02 XBRL-CET Standard Electronic Surety Bond
2019 06-02 XBRL-CET Standard Electronic Surety Bond - Bond Text Only
2019 06-02 XBRL-CET Standard Electronic Surety Bond - Data Elements Only - Excel
2019 06-02 XBRL-CET Standard Electronic Bond Form - Data Element Information
Surety Bonds for Solar and Wind
Advance Payment Bond - All States
Supply Chain Performance and Payment Bond - All States
Engineering Procurement Construction Payment Bond - All States
EPC Contractor Payment Bond - All States
EPC Contractor Payment Bond with Design and Performance - All States
EPC Contractor Performance Bond- All States
EPC Contractor Performance Bond with Design and Performance- All States
EPC Payment Bond with Solar Module Sublimit - All States
Interconnection Payment Bond - All States
On Bill Finance - Energy Efficiency Upgrades - Utility Payment Bond - All States
On Bill Finance - Solar Projects - Utility Payment Bond - All States
Power Purchase Agreement Surety Payment Bond - All States
Solar Facility Decommissioning Bond - All States
Solar Facility Operations And Maintenance Performance Bond
With Performance Guarantee - All States
Solar Facility Operations And Maintenance Payment Bond - All States
Solar Facility Operations And Maintenance Performance Bond - All States
Solar Module Payment Bond - All States
Solar Module Supply Bond - All States
Solar Module Warranty Bond - All States
Wind Facility Decommissioning Bond - All States
Electronic Surety Bonds
Frequently Asked Questions
What is the legal difference between a manually prepared paper bond and an electronic bond?
Nothing, they both have the same legal standing.
How is the process for securing an electronic surety bond different than a paper bond?
There is no difference, the surety broker develops the underwriting submission and the surety company authorizes the extension of surety credit based on its underwriting.
The efficiency for exchanging underwriting data does not change the process.
What is the efficiency difference between a manually prepared paper bond and an electronic bond?
The processing and administrative time for the manually prepared paper bond is extensive and costly for all stakeholders.
The various paper forms require individual handling as the data elements can vary and data needs to individually inserted throughout the form, along with the expense of generating and executing the power of attorney, notary and shipping documents.
For those receiving the bond the expense of validating the bond, verifying it is correctly executed and then manually extracting and rekeying the data into their respective systems compounds the high cost of paper bonds.
The electronic bond can be executed online and administered cost effectively.
How does the XBRL-CET standard electronic bond improve efficiency over the paper bond?
The established “Data Set” of data elements utilize the XBRL taxonomy to assure “apples to apples” reliability of the data to enable data exchange throughout the ecosystem of stakeholders.
This data interoperability will enable system designers and programmers to develop data analytical tools with digital administrative processes unique to their respective needs.
How can just the one XBRL-CET standard electronic bond form cover all the different obligations, contracts and circumstances?
The XBRL-CET Standard Electronic Surety Bond backs a contract or obligation, it does not define the obligations of the surety under the contract, the contract defines the obligations and cure options for a default.
The XBRL-CET Standard Electronic Surety Bond includes all the data elements for incorporating the underlying contract and/or obligations by reference, so the bond itself does not have to repeat terms and conditions, which also eliminates any conflicts in coverage interpretation.
The XBRL-CET Standard Electronic Surety Bond utilizes standardized text for surety bond terms and conditions, including how claims are handled, referencing the data elements instead of requiring form filling. This allows stakeholders to focus on data elements for the information needed, confident in the terms and conditions of "boiler plate text" without the need for additional review.
The XBRL-CET Standard Electronic Surety Bond also includes data elements for monitoring and measuring contract compliance along with data elements for communication between stakeholders to make the surety product more reliable and predicable.