kWh Analytics, the market leader in solar risk management, today announced the first contract for differences (“CFD”) supported by the Solar Revenue Put. The 23-MW dc Grand Ridge Solar project, located in La Salle County, Illinois, was refinanced with the Solar Revenue Put protecting cashflows. Grand Ridge is owned and operated by Invenergy, a leading privately held developer and operator of sustainable energy solutions. The project is being funded by Mitsubishi UFJ Financial Group (MUFG), a Japanese financial services company. Swiss Re Corporate Solutions, a leading global corporate insurer, provided capacity for the Solar Revenue Put.
The Solar Revenue Put is structured as an insurance policy on solar production and revenues, which serves as a credit enhancement for financial investors. Using its proprietary actuarial model and risk management software (“HelioStats”), kWh Analytics developed the Solar Revenue Put to drive down investment risk and encourage development of clean, low-cost solar energy.
“Invenergy is pleased to work with kWh Analytics on the successful refinancing of our Grand Ridge Solar project,” said Meghan Schultz, Senior Vice President, Finance & Capital Markets at Invenergy.
“We are committed to managing carbon-related sustainability risks and supporting the transition to a low-carbon economy,” says Brian Beebe, Head of Origination North America Weather and Energy, Swiss Re Corporate Solutions. “We are actively building our business to support the renewable energy that will power our global future. The Solar Revenue Put represents a new, multi-billion dollar insurtech category.”
A recent survey of the solar industry’s most active lenders indicates that more than 40% of active lenders value the Solar Revenue Put as a credit enhancement. Solar portfolios ranging from thousands of residential rooftops to more than ten utility-scale plants have utilized financing structures supported by the Solar Revenue Put. Portfolios supported by the Solar Revenue Put are securing debt sizing increases of 10% on average.
About the Solar Revenue Put
The Solar Revenue Put is a credit enhancement that guarantees up to 95% of a solar project’s expected energy output. kWh Analytics’ wholly-owned brokerage subsidiary places the policy with risk capacity rated investment-grade by Standard and Poor’s. As an ‘all-risk’ policy, the Solar Revenue Put protects against shortfalls in irradiance, panel failure, inverter failure, snow, and other system design flaws. The Solar Revenue Put provides comprehensive coverage that banks rely upon, enabling financial institutions to more easily finance solar projects on terms more favorable to the sponsor.
About kWh Analytics
kWh Analytics is the market leader in solar risk management. By leveraging the most comprehensive performance database of solar projects in the United States (20% of the U.S. market) and the strength of the global insurance markets, kWh Analytics’ customers are able to minimize risk and increase equity returns of their projects or portfolios. kWh Analytics also provides HelioStats risk management software to leading project finance investors in the solar market. kWh Analytics is backed by private venture capital and the US Department of Energy.
Invenergy drives innovation in energy. Invenergy and its affiliated companies develop, own, and operate large-scale renewable and other clean energy generation and storage facilities in the Americas, Europe and Asia. Invenergy’s home office is located in Chicago and it has regional development offices in the United States, Japan, Canada, Mexico, Colombia and Poland. Invenergy and its affiliated companies have developed more than 22,600 megawatts of projects that are in operation, construction or contracted, including wind, solar, natural gas-fueled power generation and energy storage projects. For more information, please visit: Invenergyllc.com or Japan.invenergyllc.com.
About Swiss Re Corporate Solutions
Swiss Re Corporate Solutions provides risk transfer solutions to large and mid-sized corporations around the world. Its innovative, highly customised products and standard insurance covers help to make businesses more resilient, while its industry-leading claims service provides additional peace of mind. Swiss Re Corporate Solutions serves clients from over 50 offices worldwide and is backed by the financial strength of the Swiss Re Group. Visit corporatesolutions.swissre.com or follow us on linkedin.com/company/swiss-re-corporate-solutions and Twitter @SwissRe_CS.