SAN FRANCISCO -- kWh Analytics, the leader in Climate Insurance, today announced the largest new-build, utility-scale solar project supported by the Solar Revenue Put. The solar project, located in Virginia and owned and operated by The AES Corporation (NYSE: AES), totals approximately 225 MW DC of capacity. The Virginia project is being financed by HSBC, Citi, and National Bank of Canada.
The Solar Revenue Put is structured as an insurance policy on solar production and revenue, providing protection against downside risk. The policy also serves as a credit enhancement for financial investors, allowing asset owners to achieve more favorable financing terms. 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.
A recent survey of the solar industry’s most active lenders indicates that more than 60% of the active lenders in the solar market value the Solar Revenue Put as a credit enhancement. Notably, these lenders are now offering the Solar Revenue Put proactively in their financing bids. In total, more than 2.5 GW of solar assets, including both operating and new-build utility-scale and distributed generation portfolios, have utilized financing structures supported by the Solar Revenue Put. The Solar Revenue Put has increased the amount of debt raised against assets by 10% on average.
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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 leading provider of Climate Insurance by using our proprietary database of renewable energy project performance of over 300,000 operating assets -- the world's largest database -- to underwrite insurance policies for renewable energy, backed by the world’s most trusted insurers. To-date, we have insured over $3 billion of American solar power plants with our first insurance product, the Solar Revenue Put. kWh Analytics is funded by venture capital and the US Department of Energy. To learn more, please visit www.kwhanalytics.com, connect with us on LinkedIn, or follow @kWhAnalytics on Twitter.