Experience in the different branches became very important because the insurance market changed dramatically and hardened. Today the market is characterized by restrictions in capacities (with the decline in stocks there was a decrease of the reserves of the insurers). The increasing demand caused an increase in price — meaning premiums. Higher premiums are also reached with hardened conditions — meaning coverage of less risks for the same price.

Figure 2 shows the change in the insurance markets. In the past it was considered which part of the risk was to bear self (this could be the deductible) and the remaining was transferred onto insurances. Today there is only few possibility to choose. The Insurer lays down what he is willing to insure and the remaining rest cannot be transferred.

This means: Risk management becomes more and more important. If the risk in the beginning is reduced as far as possible, there is only a minor part remaining.

In outside financing projects a loan is only granted if the repayment is assured. For this reason often the financing institute lays down which risks have to be insured and the institute itself is the recipient of the indemnification.

A comprehensive and conclusive Risk Management program gives confidence to the operator in the future and gives evidence to the financial institutes that the owner has examined the risks of the project. Furthermore it is possible that the financing conditions are improved because according to Basle II less risk mean better financing conditions. Finally the project cost will decrease because there will be less unexpected expenses. Taking these points into consideration it can be stated that the financing of photovoltaic projects is facilitated if Risk Management is included.