Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ), one of the world's largest solar power companies, today announced it has completed the annual renewal of its 25-year product warranty insurance policy through April 1, 2013. In 2010 Canadian Solar became one of the first companies in the industry to offer enhanced product and performance warranty backed by an immediately available and non-cancellable insurance policy.
Canadian Solar's product and performance warranty insurance is underwritten by world leading insurance companies based in North America and Europe with A.M. Best Rating of "A" VIII or better. The policy has been active since April 2010 and covers Canadian Solar modules for 25 years following warranty start date. The insurance coverage is based on Canadian Solar's standard quality and performance warranty statements, which includes a 10-year product workmanship warranty and a 25-year linear power output performance guarantee. Canadian Solar's insurers must continue to compensate Canadian Solar's module end users for warranty claims for product quality and/or performance even if Canadian Solar ceases to exist as an independent operating company. This insurance program is non-cancellable by the insurer and provides third-party bankruptcy rights.
Dr. Shawn Qu, the Chairman and Chief Executive Officer of Canadian Solar, commented, "While we remain extremely confident in the excellency of our product workmanship, offering enhanced warranties has proven to help our customers make their purchase decision, giving them added confidence and peace of mind. Our customers have repeatedly told us the importance of this enhanced warranty insurance in helping their project finance. Given our financial stability and consistent high performance level in even the most difficult environments, we are happy to continue offering customers this significant benefit.
A.M. Best ratings are provided by A.M. Best Company as the reference of an insurer's financial strength and ability to meet ongoing obligations to policyholders. A.M. Best Company is a worldwide insurance-rating and information agency with more than 100 years of history.
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