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Beyond the Spark: Insuring Battery Storage

Exploring Thermal Runaway, Risk Mitigation, and the Future of BESS Insurance

By: Adam Shinn, Data Science Manager, kWh Analytics; Michael Cosgrave, Principal, Renewable Guard; Ross Kiddie, Sr. BESS Risk Manager, Renewable Guard 

Originally Published on Energy Storage News

The energy landscape is undergoing a profound transformation, with Battery Energy Storage Systems (BESS) at the forefront of this change. The BESS market has experienced explosive growth in recent years, with global deployed capacity quadrupling from 12 GW in 2021 to over 48 GW in 2023. These sophisticated systems are revolutionizing how we generate, distribute, and consume electricity, offering unprecedented flexibility and efficiency to power grids worldwide.

The trajectory of BESS growth shows no signs of slowing. According to Lloyd's article in the 2024 Solar Risk Assessment, the industry is poised for a staggering 13-fold expansion, with an additional 181 GW either planned or under construction. This surge is driven by several key factors, capturing the attention of developers and investors alike. The intermittency of renewable energy sources like wind and solar power has created a pressing need for storage capabilities to balance irregular supply with demand. BESS offers crucial grid stabilization services and enables the delivery of more clean energy.

However, with these opportunities come significant challenges. The rapid growth of the BESS industry has outpaced the development of comprehensive safety standards and regulations. The technology itself, while advancing quickly, still faces issues related to energy density, cycle life, and overall performance. Perhaps most critically, BESS installations face a unique risk in the form of thermal runaway events, which can lead to fires and explosions if not properly managed.

Battery chemistry plays a crucial role in both the performance and risk profile of BESS. Lithium Iron Phosphate (LFP) has become the standard for commercial-scale energy storage due to its balance of cost, environmental impact, and safety characteristics. However, other chemistries like traditional lithium-ion, lead-acid, and flow batteries each offer different advantages and challenges depending on the specific application and use case.

Insuring BESS installations presents unique challenges due to the novelty of the technology and the potential for catastrophic events like thermal runaway. However, insurance is not just a cost of doing business—it's an enabling form of capital that's critical for the continued growth and adoption of BESS technology. Understanding how to protect these assets effectively is key to securing favorable insurance terms and, by extension, unlocking the financing necessary for new projects. Delving into the intricacies of BESS risks and mitigation strategies may help shed light on how asset owners, developers, and insurers can work together to foster a more resilient and insurable BESS industry, ultimately supporting the transition to a cleaner, more sustainable energy future.

Thermal Runaway: The Critical BESS Safety Challenge

The growth of global installed capacity of utility-scale BESS has naturally led to increased scrutiny of asset safety, particularly in light of high-profile fire incidents that have garnered significant media attention. However, it's important to note that despite these incidents, the overall rate of failures has decreased sharply. When failures do occur, they are often attributed to a phenomenon called thermal runaway.

Figure 1: Global Grid-Scale BESS Deployment and Failure Statistics

Thermal runaway occurs when a battery cell enters an uncontrollable, self-heating state. This process can rapidly escalate, potentially affecting neighboring cells and leading to a cascading failure across the entire system, often causing fire, explosion, and the release of toxic gases. It's crucial to understand that thermal runaway in lithium-ion batteries differs significantly from conventional fires. While conventional fires are sustained by fuel, heat, and oxygen[3], and can be extinguished by removing one of these elements, thermal runaway does not require oxygen. Instead, it is fueled by an internal chemical reaction that can continue without oxygen or visible flame.

Figure 2: The ‘traditional’ fire triangle and its relationship to Thermal Runaway

To fully grasp the complexity of thermal runaway, it's essential to understand its progression. The process typically unfolds in three distinct phases, each with its own characteristics and challenges:

  1. Initial Instability: A voltage or temperature instability occurs, and the cell begins emitting gases.

  2. Internal Short Circuit: The voltage drops to zero as internal cell materials fail, and the anode and cathode experience a direct internal short. The stored electrical energy in the battery flows through this short, causing temperatures to spike as high as 300-600°C. Importantly, visible flame may or may not occur at this stage.

  3. Consumption of Cell Materials: As the internal materials of the cell are consumed, the thermal runaway event can transition to consuming the cell's encasing materials such as the electrolyte, polymers, and plastics surrounding the cell. The gaseous emissions at this stage are consistent with a plastic fire.

Understanding what triggers thermal runaway is equally important as recognizing its phases. Several factors can initiate this dangerous process:

  1. Electrical Abuse: Overcharging or over-discharging batteries can lead to undesirable electrochemical reactions. When batteries are charged beyond their specified voltage range, it can result in electrolyte decomposition on the cathode surface, increasing battery temperature. Excessive lithium-ion migration during overcharging can destabilize the cathode, potentially initiating thermal runaway.

  2. Mechanical Abuse: External damage to Li-ion batteries, such as impacts, indentations, or punctures, can compromise the integrity of the cell. If the casing is damaged, air can enter and react with the active components and electrolyte, generating heat. Severe internal damage can also lead to short circuits within the cell.

  3. Internal Failures: Manufacturing defects or degradation over time can lead to internal short circuits, generating enough heat to initiate thermal runaway. These failures are particularly challenging, as they are hard to detect with external inspections.

Once thermal runaway begins in a single cell, it can quickly escalate into a cascading failure affecting neighboring cells and potentially the entire BESS installation. The heat generated by the failing cell can raise the temperature of adjacent cells, pushing them into thermal runaway as well. Additionally, failing cells can release flammable and toxic gases, further exacerbating the situation.

The consequences of a thermal runaway event in a large-scale BESS can be catastrophic. High-profile incidents have resulted in significant property damage, extended system downtime, and in some cases, injuries to first responders. These events not only pose immediate safety risks but also have broader implications for public perception and regulatory scrutiny of BESS technology.

Despite these challenges, it should be noted that the BESS industry has made significant strides in understanding and mitigating the risks associated with thermal runaway. As manufacturers, operators, and regulators gain more experience with large-scale BESS deployments, they have been able to identify common failure modes and develop more effective mitigation strategies.

Risk Mitigation Strategies and Best Practices

The BESS industry's approach to risk mitigation, particularly regarding fire protection and suppression, has undergone a significant evolution over the past eight years. This journey reflects the industry's growing understanding of the unique challenges posed by large-scale battery installations.

The landscape changed dramatically following a series of fires in Korea in 2017 and 2018. These incidents prompted a shift towards gaseous fire suppression systems in containerized units and dedicated BESS rooms. The theory was simple: remove oxygen from the environment to suppress fires effectively. However, the limitations of this approach became apparent with the APS Surprise, Arizona event in 2019, where quelled fires reignited upon the reintroduction of oxygen into the system.

In response to the Surprise, AZ incident, many fire departments and authorities began requiring water-based fire protection systems for BESS installations. Yet, several events since 2020 have revealed flaws in relying solely on water-based systems, particularly in remote locations where water availability can be limited.

Today, the industry has come full circle, returning to an approach that echoes the pre-2017 era but with pivotal enhancements, specifically the mandatory inclusion of Battery Management Systems (BMS). These systems are the nerve centers of modern BESS installations, playing a role in both performance optimization and safety management. BMS provides sensing and control of critical parameters, and importantly trigger protective or corrective actions if the system is operating out of the norm. These parameters include battery module over or under voltage, cell string over or under voltage, battery module temperature, temperature signal loss, and battery module current. In the event of any abnormal condition, the BMS will first raise an information warning and then trigger a corresponding corrective action should certain levels be reached.

While the Battery Mangement System is an essential component of BESS safety, a comprehensive approach to risk management includes several other best practices:

Spatial Separation and Explosion Relief: Effective explosion relief systems require design conformance to NFPA Standards and sufficient spatial separation between containers or structures to avoid collateral damage. The standard minimum distance for non-sprinklered LFP containers is 6 feet.

Multi-Layered Approach to Fire Protection: While the emphasis is on prevention, many installations still incorporate fire suppression systems as a last line of defense. This may include a combination of gaseous suppression, water-based protection, and emerging coolant-based systems.

Adherence to Evolving Standards: Compliance with applicable fire and building codes provides a basis for resilience. As these standards continue to evolve, BESS operators must stay informed and adapt their systems accordingly.

Conforming to these best practices is not just a matter of regulatory compliance; it's necessary for the long-term viability and growth of the BESS industry. As energy storage becomes increasingly central to our power infrastructure, the safety and reliability of these systems directly impact public trust, regulatory support, and investor confidence. BESS operators who prioritize these best practices not only mitigate their own risks but also contribute to the overall resilience and reputation of the industry. Moreover, as insurers and regulators scrutinize BESS installations more closely, those adhering to best practices are likely to find themselves in a more favorable position for insurance coverage and regulatory approval.

 

Beyond Compliance: Proving Resilience to Insurers

For battery storage asset owners, navigating the insurance landscape can be as complex as the technology itself. Insurers are looking beyond mere compliance; they seek evidence of a comprehensive, proactive approach to risk management. The following areas are critical for positioning BESS projects favorably in the eyes of underwriters:

Prove Preparedness

Insurers want evidence of active prevention rather than not just reaction to potential issues, but actively preventing them. This starts with your Battery Management System (BMS). Asset owners should be prepared to demonstrate how the BMS goes beyond basic monitoring, showing its capability to detect subtle anomalies that might precede a thermal runaway event and, crucially, how it autonomously implements corrective actions.

Remote monitoring is no longer a luxury—it's a necessity. Insurers are looking for systems that provide real-time, granular data on battery performance. The monitoring setup should allow for rapid intervention before small issues become major incidents.

Design for Safety

The physical layout of BESS installations significantly impacts risk assessment. Insurers are particularly interested in spatial separation between enclosures. While a minimum of 8 feet (already more conservative than NFPA code standards) is often cited as a benchmark, asset owners should be prepared to justify their chosen configuration based on specific risk assessments.

Fire suppression systems remain critical, but the approach must be tailored to the specific installation. Asset owners should be ready to explain the rationale behind their chosen system—whether gaseous, water-based, or an emerging technology—and how it's optimized for the specific setup and location.

Commitment to safety should extend beyond technology. Insurers look favorably on projects that engage experienced O&M providers familiar with regional specifics. Demonstrating coordination with local fire departments, including specialized training programs tailored to the BESS installation, is important.

Chemistry Considerations

Battery chemistry choice significantly impacts the risk profile. While Lithium Iron Phosphate (LFP) batteries are generally viewed favorably due to their stability, other chemistries may be beneficial depending on the use case.

Comprehensive Documentation

Thorough documentation is crucial. Insurers like to see:

  • Detailed site plans

  • Comprehensive BMS specifications

  • Fire suppression system details

  • Testing certifications

  • Maintenance protocols

  • Staff training programs

This information should be contextualized to demonstrate how each element contributes to the overall risk mitigation strategy.

The Path Forward

The BESS industry stands at the cusp of a transformative era, with rapid growth driven by technological advancements and the pressing need for sustainable energy solutions. As deployments scale up, emerging technologies like artificial intelligence and advanced data analytics are reshaping how we approach battery management and risk mitigation.

This technological revolution, however, must be balanced with a thorough understanding of the risks inherent to BESS. The industry's future hinges on our ability to build resilience into every aspect of BESS design, operation, and insurance. From innovative battery chemistries to sophisticated monitoring systems, each advancement plays a crucial role in enhancing safety and reliability.

As insurers and operators gain more experience and data, we’re seeing a shift towards more nuanced risk assessments and tailored insurance solutions. In this evolving landscape, brokers play a pivotal role. They should be proactively seeking detailed information and documentation from their clients and marketing these accounts across the insurance market. Not all insurers are equipped to make price adjustments based on resilience measures, making it crucial for brokers to work with those who have their arms around this risk class.

Looking ahead, there is reason for optimism for the battery energy storage. The industry has shown adaptability in the face of adversity, and the collaborative efforts between developers, brokers, and insurers are paving the way for safer projects. Carriers are only likely to become smarter and more comfortable with storage as the technology matures. By continuing to prioritize resilience, embracing innovative risk management strategies, and communicating with the insurance markets, we can ensure that BESS continues to play a vital role in our clean energy future, powering us toward a more sustainable and secure energy landscape.




[1] https://www.kwhanalytics.com/solar-risk-assessment

[2] https://www.epri.com/research/products/000000003002030360

[3] https://www.researchgate.net/profile/Edmund-Fordham/publication/359031670_Safety_of_Grid_Scale_Lithium-ion_Battery_Energy_Storage_Systems/links/62236da03c53d31ba4a9404b/Safety-of-Grid-Scale-Lithium-ion-Battery-Energy-Storage-Systems.pdf

kWh Analytics Leads $2.4M Initiative to Strengthen Solar Asset Resilience with the U.S. Department of Energy

San Francisco, CA – September 23, 2024 – kWh Analytics, a leading provider of Climate Insurance for renewable energy assets, is excited to announce a new, $2.4M partnership with the U.S. Department of Energy Solar Energy Technologies Office (SETO) through the Materials, Operation, and Recycling of Photovoltaics (MORE PV) Funding Program. This partnership aims to develop innovative approaches to solar PV resilience, focusing on introducing asset resilience measures against natural catastrophes earlier in the asset development lifecycle.

The increasing severity and frequency of damage-causing natural catastrophes, such as hail, hurricanes, and floods, pose a significant threat to solar assets, putting clean energy goals at risk. In today’s environment, developers lack the tools they need to make informed decisions on how to design, build, and operate more resilient facilities; kWh Analytics' project aims to produce tools to help asset developers address the specific perils their assets are exposed to at every stage in the project lifecycle.

“This award is a testament to both the long-standing partnership between kWh Analytics and the U.S. Energy Department, and our organization’s commitment to advancing the energy transition,” said Jason Kaminsky, CEO of kWh Analytics. “Our deep industry knowledge and unparalleled data give us unique insight into climate-resilient design, construction, and management of renewable energy assets – knowledge that we apply to our underwriting decisions and risk assessment. ” 

The funding will support several key initiatives, including aggregating real-world renewable energy physical loss data and developing standardized best practices. Project partners include the National Renewable Energy Lab, known for resilience best practice research; DNV, a prominent independent engineer; and lender's consultant STANCE Renewable Risk Partners.

In the context of solar energy, resilience refers to an asset's ability to withstand, adapt to, and quickly recover from disruptions caused by extreme weather events or other natural disasters. This includes features such as reinforced mounting systems, hail-resistant panels, and advanced monitoring and response systems. By focusing on resilience, the solar industry aims to ensure the long-term viability and reliability of clean energy infrastructure.

kWh Analytics is committed to connecting researchers and industry experts to the insurance market to foster a collaborative environment for sharing best practices and knowledge. Each year, kWh Analytics publishes its 'Solar Risk Assessment,' recognized as the solar industry's leading report on the evolving landscape of solar generation risk. The report has become a staple read for the solar insurance industry, serving as a guide for investors who recognize the importance of allowing data-based insights inform the deployment of capital. The MORE PV research award is a further opportunity to work alongside industry experts to advance resiliency measures to mitigate solar generation risks and collectively support the energy transition. 

kWh Analytics was selected as a part of the SETO Materials, Operation, and Recycling of Photovoltaics (MORE PV) Funding Program. MORE PV projects address challenges associated with the rapid deployment of PV systems in the United States, including the increasing demands on PV materials, system operation and maintenance, and recycling. kWh Analytics is one of several project partners that will support technology improvements to reduce these challenges with a holistic view of all stages of the PV lifecycle—from the material needs and installation to operation and end of life.

 

ABOUT KWH ANALYTICS

kWh Analytics is a leading provider of Climate Insurance for zero-carbon assets. Utilizing their proprietary database of over 300,000 operating renewable energy assets, kWh Analytics uses real-world project performance data and decades of expertise to underwrite unique risk transfer products on behalf of insurance partners. kWh Analytics has recently been recognized on FinTech Global’s ESGFinTech100 list for its data and climate insurance innovations. Property Insurance offers comprehensive coverage against physical loss, with unique recognition and consideration for site-level resiliency practices, and the Solar Revenue Put production insurance protects against downside risk and unlocks preferred financing terms. These offerings, which have insured over $30 billion of assets to date, aim to further kWh Analytics’ mission to provide best-in-class Insurance for our Climate. To learn more, please visit https://www.kwhanalytics.com/, connect with us on LinkedIn, and follow us on X.

About the Solar Energy Technologies Office 

The U.S. Department of Energy Solar Energy Technologies Office supports research, development, demonstration, and technical assistance to improve the affordability, reliability, and domestic benefit of solar technologies to support an equitable transition to a decarbonized energy sector. Learn more at energy.gov/solar-office. 

Contact 

Nikky Venkataraman 

Senior Manager, Marketing 

kWh Analytics 

E | nikky.venkataraman@kwhanalytics.com 

T | (720) 588-9361

 

Case Study: Resilient Assets Command Better Coverage

A utility-scale solar developer saw a 72% natural catastrophe rate reduction for employing resilient site design and operation

The Challenge

In a market where insurance rates for renewable energy projects are climbing, especially in hail-prone regions, asset owners face increasing pressure to protect their investments. This is particularly true in North Central Texas, where one developer sought coverage for their 140MW solar project valued at $100MM in a high hail risk area.

The Solution: Proactive Resilience Measures

The developer implemented a comprehensive strategy to harden their asset against natural catastrophes:

Physical Hardening:

  1. Installed 3.2mm tempered glass solar panels

  2. Used high-quality components across modules, inverters, and tracking systems

  1. Operational Protocols

    1. Implemented a verified 53-degree hail stow angle

    2. Developed comprehensive extreme weather mitigation plans

    3. Executed proactive stowing for over 90% of past hail events

Proving Resilience

What set this developer apart was the evidence of resilience provided to their brokers and carriers with thorough documentation and proactive approach:

  • Provided photographic evidence of the hail stow angle

  • Submitted stow logs for recent months, demonstrating consistent operational implementation

  • Incorporated resilience planning from the project's design phase

The Result: Substantial Insurance Savings

kWh Analytics underwriters, recognizing the developer's commitment to resilience, were able to offer a 72% reduction in the natural catastrophe insurance rate for this project—this significant saving directly resulted from the developer's investment in physical hardening and operational measures.

The Takeaway

By combining physical asset improvements with smart operational protocols, developers cannot only protect their assets but also secure substantial insurance savings.

kWh Analytics values sponsor resilience measures and they do impact our premiums. We work directly with developers and brokers to ensure that investments in resilience translate into tangible financial benefits.

For more information on how your resilience measures can be factored into your insurance program, ask your broker for a kWhote.

Powering Progress: Winds of Change

kWh Analytics, along with Munich Re and MUFG, have just closed on a groundbreaking new structure - the Wind Proxy Hedge structured with the kWh Analytics “Indifference Structure” - for a 59 MW wind project in Maine, developed by Greenbacker Capital Management. Notably, the Wind Proxy Hedge creates a floor on revenues tied to a lack of wind resource and provides lenders with additional cash flows when considering downside debt sizing cases.

kWh Analytics Pioneers First-of-its-Kind Parametric Wind Proxy Hedge for Greenbacker with Munich Re, MUFG

This innovative structure hedges wind speed utilizing the kWh Analytics Indifference Structure, enhancing the project’s P99 scenario and reducing the sponsor equity requirement. 

Originally posted on Business Wire

JULY 23, 2024, SAN FRANCISCO, CA - kWh Analytics, the market leader in Climate Insurance, today announced the successful close of a groundbreaking wind proxy hedge risk transfer product for a 59MW, 14-turbine wind project in Maine, developed by a Greenbacker Capital Management affiliated investment vehicle that invests in sustainable infrastructure assets. This innovative financial structure included the use of a wind proxy hedge, provided by global reinsurer MunichRe, advised by kWh Analytics, and utilizing the kWh Analytics Indifference Structure for debt sizing.  This implementation marks the first time a parametric wind hedge has been paired with the kWh Analytics Indifference Structure to reduce equity requirements for a project sponsor. The structure’s implementation enabled the project sponsor to raise roughly 20% more debt capital for this project, led by MUFG.

Wind is a notoriously volatile resource, resulting in distributions with tail events (i.e. P99) that can severely impact debt sizing. Wind speed variability far exceeds that of solar irradiance, presenting unique challenges for project financing. The wind proxy hedge paired with the kWh Analytics Indifference Structure addresses this volatility, significantly improving the project’s P99 scenario by adding investment-grade cash flow above the P99 wind speed. This credit enhancement makes the project more attractive to lenders, leading to increased debt capacity. By incorporating the wind proxy hedge and kWh Indifference Structure, each dollar of premium paid for the product resulted in ~$6 of additional loan proceeds.

Geoffrey Lehv, Head of US Accounts for kWh Analytics, commented on the innovation: “We provided a proprietary debt structure, applying modeling, analysis, and risk management expertise to assist MunichRe in incorporating its parametric solution to a project financing. The resulting credit enhancement not only mitigates downside risk but also optimizes capital structure. This is about more than just financial engineering – it's about accelerating the transition to clean energy by making wind projects more bankable and attractive to investors."

Bill MacLauchlan, CEO Munich Re Trading LLC, commented that: “Deep project finance knowledge was crucial in structuring this transaction. By leveraging our team's long-standing expertise in designing parametric risk-transfer solutions, collaborating closely with MUFG, and utilizing kWh Analytics' unique position in the market, we successfully implemented an innovative risk transfer solution for this Sponsor.”

Alberto Mihelcic Bazzana, Director at MUFG, said: “As a leader in project finance, MUFG is pleased to partner with Greenbacker, kWh Analytics, and MunichRe in developing new financing solutions that can expedite the energy transition process.”

kWh Analytics served as an advisor to Munich Re during the structuring process, drawing on their expertise in designing risk transfer products for renewable energy such as the Solar Revenue Put and Property Insurance. The engineering firm DNV provided a detailed analysis of the wind proxy hedge as part of their project review. MUFG acted as Sole Lead Arranger for the debt financing. 

For more information about the wind proxy hedge and/or the kWh Analytics Indifference Structure and its application for solar and wind, please contact Geoffrey Lehv, geoffrey.lehv@kwhanalytics.com.

ABOUT kWh Analytics

kWh Analytics is a leading provider of Climate Insurance for zero-carbon assets. Utilizing their proprietary database of over 300,000 operating renewable energy assets, kWh Analytics uses real-world project performance data and decades of expertise to underwrite unique risk transfer products on behalf of insurance partners. kWh Analytics has recently been recognized on FinTech Global’s ESGFinTech100 list for their data and climate insurance innovations. Property Insurance offers comprehensive coverage against physical loss, with unique recognition and consideration for site-level resiliency practices, and the Solar Revenue Put production insurance protects against downside risk and unlocks preferred financing terms. These offerings, which have insured over $32 billion of assets to date, aim to further kWh Analytics’ mission to provide best-in-class Insurance for our Climate. To learn more, please visit https://www.kwhanalytics.com/, connect with us on LinkedIn, and follow us on X. 

ABOUT Munich Re

Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the asset management company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake through Hurricane Ian in 2022. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies or cyberattacks. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.

About MUFG and MUFG Americas

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,100 locations in more than 50 countries. MUFG has nearly 160,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to be “the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges.

MUFG’s Americas operations, including its offices in the U.S., Latin America, and Canada, are primarily organized under MUFG Bank, Ltd. and subsidiaries, and are focused on Global Corporate and Investment Banking, Japanese Corporate Banking, and Global Markets. MUFG is one of the largest foreign banking organizations in the Americas. For locations, banking capabilities and services, career opportunities, and more, visit www.mufgamericas.com.

ABOUT Greenbacker Capital Management

Greenbacker Capital Management LLC is an SEC registered investment adviser that provides advisory and oversight services related to project development, acquisition, and operations in the renewable energy, energy efficiency, and sustainability industries. For more information, please visit https://greenbackercapital.com.


Media Contact

Nikky Venkataraman

Senior Marketing Manager

kWh Analytics

E | nikky.venkataraman@kwhanalytics.com

T | (720) 588-9361

Alexandra Weiss

Senior Communications Manager

Munich Re

E | alexandra.weiss@munichre.com

T | +41 (0)58 22 66 216

2024 Solar Risk Assessment: Audiobook Edition and Currents Podcast Interview

Jason Kaminsky, CEO of kWh Analytics, joins Norton Rose Fulbright and the Currents podcast to discuss this year’s Solar Risk Assessment report published by kWh. He summarizes the findings in the report, including risks to the battery energy storage industry. Additionally, for the first time, kWh Analytics has released a full audiobook version of the 2024 Solar Risk Assessment.

kWh Analytics Reveals Top 14 Risk Management Challenges in Solar Generation

2024 Solar Risk Assessment Report highlights the remarkable progress and resilience of the solar industry in the face of evolving challenges.

The renewable industry's ability to collaborate and innovate remains one of its greatest strengths.

Originally posted on Business Wire

SAN FRANCISCO--(BUSINESS WIRE)--kWh Analytics, the market leader in Climate Insurance, today announced the release of its 6th annual Solar Risk Assessment, a comprehensive report designed to provide an objective and data-driven evaluation of solar risk. The annual report includes contributions from leaders in the solar energy industry spanning technology, financing, and insurance.

In 2024, the solar industry continued its rapid growth trajectory, fueled by the Inflation Reduction Act and increasing demand for clean energy. This year’s report expands the analysis to include Battery Energy Storage Systems (BESS), recognizing the increasingly critical role that storage plays in the renewable energy ecosystem.

“We’re seeing burgeoning growth in solar, wind, and battery storage,” said Jason Kaminsky, CEO at kWh Analytics. “However, to meet renewable energy deployment goals, the focus needs to be on smart growth - relying on data to inform decisions and utilizing resilience measures to protect assets. We are grateful for the collaboration of the solar, BESS and renewable insurance thought leaders included in this year’s report, recognizing that the clean energy future requires mutual understanding between operators protecting assets and underwriters pricing risks.”

The 2024 report offers detailed research on top risks including extreme weather, operational risks, and battery risks to help industry organizations overcome market hurdles and expand lines of business. Top 14 risk findings include:

Extreme Weather Risk

1. kWh Analytics: Industry standard modeling assumptions can underestimate solar project losses from weather-related physical damage by 300+%

2. Kiwa PVEL: No modern module will experience power loss >3% when the cells are severely damaged by hail

3. Waaree: During hail testing, positioning glass/glass modules in hail stow mode resulted in only a 0.8% power loss, well below the 5% threshold permitted by IEC guidelines

4. Alliant Power: Renewable energy project owners can reduce insurance costs by up to 50% in high-risk zones by investing in resilient solar site design and maintenance

5. Longroad Energy and Nextracker: 75 Degree Tilt Can Decrease PV Asset Damage Probability by 87%

Operational Risk

6. kWh Analytics: Aggregating portfolios of 4 or more sites can cut the risk of extreme downside scenarios by 50%

7. Solarlytics: Voltage Collapse Can Reduce Production by More Than 20%

8. Univers: O&M corrective action statistics show a 14% surge in winter compared to summer in 2023

9. SolarGrade: Safety problems requiring partial or total de-energization found in 11% of PV systems inspected by auditors

10. Clean Power Research: Unmitigated soiling of PV systems can reduce annual energy production by 50%

11. kWh Analytics: Inverters cause 59% of lost energy, but DC distribution issues last 2.2x longer than they’re worth

Battery Risk

12. Lloyd’s: Global role of Battery Energy Storage Systems poised for 13x growth

13. Powin: Conventional State of Charge measurements are error-prone and can result in an average error of 7% in estimation of energy available for dispatch

14. SEVO IFP: 26% of Energy Storage Systems Face Fire-Detection and Fire-Suppression Challenges


“Overcoming these challenges will require ongoing collaboration and innovation among industry leaders,” said Isaac McLean, Chief Underwriting Officer at kWh Analytics. “In this dynamic landscape, asset owners play a critical role in protecting renewable energy investments by securing comprehensive insurance coverage and seeking multiple quotes from brokers to ensure accurate protection.”

To access the complete 2024 Solar Risk Assessment, please visit www.kwhanalytics.com/solar-risk-assessment.

About kWh Analytics

kWh Analytics is a leading provider of Climate Insurance for zero carbon assets. Utilizing their proprietary database of over 300,000 operating renewable energy assets, kWh Analytics uses real-world project performance data and decades of expertise to underwrite unique risk transfer products on behalf of insurance partners. kWh Analytics has recently been recognized on FinTech Global’s ESGFinTech100 list for their data and climate insurance innovations. Property Insurance offers comprehensive coverage against physical loss, with unique recognition and consideration for site-level resiliency practices, and the Solar Revenue Put production insurance protects against downside risk and unlocks preferred financing terms. These offerings, which have insured over $27 billion of assets to date, aim to further kWh Analytics’ mission to provide best-in-class Insurance for our Climate. To learn more, please visit https://www.kwhanalytics.com/, connect with us on LinkedIn, and follow us on Twitter.

Contacts

Nikky Venkataraman
Senior Marketing Manager
kWh Analytics
E | nikky.venkataraman@kwhanalytics.com
T | (720) 588-9361

kWh Analytics shortlisted for two Program Manager Awards

kWh Analytics is thrilled to announce that the company has been shortlisted for two prestigious Program Manager Awards - Program Launch of the Year and Innovation in Programs. These awards recognize excellence and innovation in the insurance industry, and being named a finalist is a testament to the hard work and dedication of the team in developing cutting-edge risk management solutions for the renewable energy sector.

The nomination for Program Launch of the Year highlights the successful launch of a Property Insurance program for renewable energy assets in partnership with Aspen Insurance. By leveraging a proprietary database of over 300,000 renewable energy assets and $80bn of loss history, kWh Analytics is able to bring much-needed capacity and sophisticated risk assessment to a rapidly growing industry facing challenges from recent natural catastrophe losses.

The Innovation in Programs award shortlisting recognizes the pioneering development of the Renewable Energy Adjusted Loss (REAL) model. This model represents a crucial advancement for the sustainable growth of the renewables industry, enabling carriers to insure projects commensurate with true risk profiles and rewarding asset owners for implementing resilience measures. By combining unparalleled data and analytics capabilities with deep renewable energy expertise, kWh Analytics encourages the industry to better manage risk in the face of climate change.

Location, location, location: how catastrophic risks can shape renewable energy insurance premiums

Originally published on PV Tech
By Bobby McFadden, kWh Analytics, and Keaton Carlson, Renewable Guard

As a renewable energy managing general agent (MGA) and a broker, one of the most common questions we hear from solar and battery asset owners is: “Why do my insurance premiums keep rising, even though I haven’t had a claim?” It’s a frustrating and often confusing situation for many in the industry, but the answer lies in the changing landscape of natural catastrophe (nat cat) risks.

For certain carriers, when a significant loss is incurred, the pricing approach for comparable accounts in the book could be affected as well, adjusting insureds’ rates with no claim activity come renewal. Over the past few years, however, nat cat events have taken a major role in driving insurance premiums across carrier’s books. Nat cat risks are changing, and locations with historically temperate weather are experiencing extreme disasters.

As global temperatures rise, we are seeing more intense hurricanes, prolonged droughts and heavier rainfall events. These changes in weather patterns are altering the risk landscape for businesses, specifically impacting industries with exposed assets, such as renewable energy. Climate change is affecting the frequency and severity of natural catastrophes, making it more difficult for asset owners to secure affordable insurance coverage.

Take the example of an asset owner who had a solar site in Georgia. In 2023, the Federal Emergency Management Agency (FEMA) updated the local Flood Insurance Rate Map (FIRM), and the insured saw their flood premium dramatically spike by 300%, as the site was now located directly in a high hazard flood zone.

With major hurricanes and flood events, the topography under established sites changes, creating higher risks in some areas. Further, land development and paving over natural terrain increases water runoff.  This is not an isolated story; tornadoes are ripping through the Midwest, hailstones are increasing in size, and even New York is experiencing earthquakes.

These events can cause significant damage to solar panels, wind turbines, battery assets and other equipment, leading to costly repairs or replacements. As the frequency and severity of these events increase, insurers are adjusting their rates to account for the higher risk. As the risk landscape shifts, admitted carriers are facing capacity constraints in regions with high catastrophe exposure, such as coastal areas or flood zones, limiting the options available to asset owners.

Some catastrophe risks, such as earthquakes in California, have gotten so severe that some carriers have pulled their coverage for the state completely. Non-admitted carriers, however, can provide flexibility around regulated rates. The losses from catastrophe events ripple through insurers’ books, leading to rate increases even for asset owners who haven’t experienced losses directly.

It’s a vicious cycle. Renewable assets are a large part of the United Nations Climate Action Plan, and every industry stakeholder, including carriers, has a vested interest in ensuring these assets are built to last. So, renewable energy asset owner, here is what you can do to manage your risk profile:

  • The cheapest time to implement resiliency is during the design phase of a project. Consult with your broker and carrier on location, equipment type and catastrophe protocols before assets go in the ground.

  • Invest in high-quality equipment from reputable original equipment manufacturers (OEMs) and ensure that specifications are appropriate for the site’s specific catastrophe risks. For example, 3.2mm heat-tempered glass is becoming the best practice in hail-prone Texas.

  • Implement robust risk management practices, such as stow programs for hail, wind, flood and snow, as well as hurricane preparedness plans and spare parts programs. Have a fire suppression system and thermal runaway management plan ready for your battery energy storage system (BESS) projects.

  • Partner with experienced operations and management (O&M) providers that can offer precautionary services tailored to the site’s catastrophe exposures. Location matters; rats in Nebraska chewing wires pose a different risk than lizards slithering through transformer boxes in New Mexico. O&M providers have noted that vegetation mix heavy in seeds can attract more rodents to accumulate used underneath panels.

  • Collaborate with brokers that specialise in renewable energy and can effectively communicate the nuances of catastrophe risk pricing to carriers. Not all carriers are made the same, and asset owners deserve an insurance price that is based on the true merits of their risk. By addressing climate risk with thoughtful equipment selection and strong risk management practices, asset owners can experience reduced insurance premiums and loss activity. When these factors are contemplated, sites can benefit from improved resiliency and reduced costs.

In the face of increasing natural catastrophe risks and rising insurance premiums, it has become abundantly clear that the renewable energy industry must adapt and evolve to ensure its long-term success. This is not to say that insurance is out of reach financially, but to explain that there are plenty of tools in the belt that can help owners reduce these costs.

Asset owners should take a proactive approach to risk management, not only to protect their investments, but also to contribute to the global fight against climate change. Insurance carriers and brokers can help by conducting their own research, collecting data and giving actionable feedback to the industry on designing, constructing and maintaining the best, most resilient renewable energy assets.

We cannot afford to let the vicious cycle of climate change and rising insurance costs hinder the deployment of renewable energy infrastructure. There’s an industry-wide incentive to share our knowledge and expertise, and to find innovative solutions that will allow us to build a more resilient and sustainable future.

Bobby McFadden is an underwriter at kWh Analytics, which manages a comprehensive database of renewable power assets in the US. Keaton Carlson is a risk manager at Renewable Guard, an insurance broker servicing the renewable power sector.

kWh Analytics Raises Property Insurance and BESS Capacity for Renewable Energy Projects with Leading Carrier Aspen Insurance

Capacity supports renewable energy growth to fight climate change

San Francisco, CA, [DATE] - kWh Analytics, Inc., the industry leader in climate insurance, announced today a significant increase in its capacity agreement with Aspen Insurance (“Aspen”) to support its property insurance offering for renewable energy projects. With this increase, kWh Analytics is able to underwrite up to USD$75 million per renewable energy project location and has full delegated authority to cover accounts compromising up to 100% of operational solar and/or battery energy storage systems (BESS) projects and up to 50% of wind and/or construction accounts.

 

kWh Analytics’ capacity increase comes one year after the company partnered with Aspen to launch property insurance underwriting and capacity for renewable energy assets in January 2023. In addition to this increase, kWh Analytics and Aspen now have four of the top ten global (re)insurance partners on their panel.

 

Jason Kaminsky, CEO at kWh Analytics, said: “This capacity raise is a strong indicator of confidence in our company’s data and sophisticated modeling capabilities and the industry’s desire to encourage resilient renewable assets. Adding capacity enables us to expand coverage options for responsible asset owners, supporting renewable energy growth amidst worsening natural disasters by incentivizing resilience and bridging the protection gap.”

Josh Jennings, SVP and Head of Inland Marine at Aspen Insurance, said: "kWh Analytics' data-driven approach is consistent with Aspen’s future-focused underwriting strategy, and we’re delighted to continue our collaboration to meet our clients’ evolving needs with innovative renewables solutions. This increased capacity provides additional options for asset owners who are proactively designing, building and maintaining resilient assets, and it further strengthens our commitment with kWh Analytics to offer solutions for the growing demands of the renewable energy market.”

 

Recent years have seen reduced limits and substantial cost increases for renewable asset owners, amidst a growing need for new solutions to manage and underwrite risk. kWh Analytics uses its proprietary database of over 300,000 renewable energy assets to accurately price and underwrite unique risk transfer products, as well as reward asset owners for resiliency measures. This year, kWh Analytics launched a microcracking endorsement for solar assets that simplifies the insurance claims process for this common but difficult-to-assess form of solar module damage.

 

In addition to its insurance products, kWh Analytics is leveraging data to encourage resilient design practices and to identify the most common failure modes among existing solar PV projects. The findings, which are incorporated in property insurance underwriting, are distributed to the company’s clients and broadly to manufacturers, operators, carrier partners and investors to reinforce the further development of sustainable renewable energy projects.

 

ABOUT KWH ANALYTICS

kWh Analytics is a leading provider of Climate Insurance for zero carbon assets. Utilizing their proprietary database of over 300,000 operating renewable energy assets, kWh Analytics uses real-world project performance data and decades of expertise to underwrite unique risk transfer products on behalf of insurance partners. kWh Analytics has recently been recognized on FinTech Global’s ESGFinTech100 list for their data and climate insurance innovations. Property Insurance offers comprehensive coverage against physical loss, with unique recognition and consideration for site-level resiliency practices, and the Solar Revenue Put production insurance protects against downside risk and unlocks preferred financing terms. These offerings, which have insured over $23 billion of assets to date, aim to further kWh Analytics’ mission to provide best-in-class Insurance for our Climate. To learn more, please visit https://www.kwhanalytics.com/, connect with us on LinkedIn, and follow us on Twitter.

 

About Aspen Insurance Holdings Limited 

Aspen provides insurance and reinsurance coverage to clients in various domestic and global markets through wholly-owned operating subsidiaries in Bermuda, the United States and the United Kingdom, as well as its branch operations in Canada, Singapore and Switzerland. For the year ended December 31, 2023, Aspen reported $15.2 billion in total assets, $7.8 billion in gross loss reserves, $2.9 billion in total shareholders’ equity and $4.0 billion in gross written premiums. Aspen's operating subsidiaries have been assigned a rating of “A-” by Standard & Poor’s Financial Services LLC and an “A” (“Excellent”) by A.M. Best Company Inc. For more information about Aspen, please visit www.aspen.co.

 

 

Media Contact

Nikky Venkataraman

Senior Marketing Manager

kWh Analytics

E | nikky.venkataraman@kwhanalytics.com

T | (720) 588-9361

Power Players: Right Sizing Solar Risk with Jason Kaminsky

In Episode 16 of Power Players by Origis®, host Michael Eyman discusses the history and future

trends of risk assessment and allocation for solar assets with Jason Kaminsky, co-founder and CEO of

kWh Analytics.

During their conversation, Kaminsky and Eyman discussed right sizing risk allocation. Three key

takeaways:

1. Risk for solar assets is being spread to more parties. It’s no longer just origination bankers

and developers, but also insurance companies, O&M operators and tax equity buyers.

2. Historically, solar projects have needed protection from physical damage and

underperformance, leading to financial losses. New provisions in the IRA create a blending

of these risks that have buyers demanding better models for production forecasts.

3. More data on weather risk mitigation and asset production are improving those forecast

models and creating an overall more reliable and resilient solar asset.

Cracking Open the Underwriting Vault: Insights into Renewable Nat Cat Resiliency

When disasters strike, is your solar site resilient enough to survive?

Data scientists and underwriters don’t often go on the record to talk about how they approach writing property risks. We believe so strongly in our methods that we’re taking a different approach. Data scientists Nicole Thompson, Veronica Anderson, and Charity Sotero recently consolidated their insights into this no-holds-barred video on actionable resiliency efforts. These are the very natural catastrophe mitigation measures that our data scientists and underwriters look for in every submission.

By analyzing past loss data and applied learnings, we help incentivize resiliency in every submission that we see. Learn what considerations across equipment, layout, and operations can boost preparedness and help your investment weather the worst scenarios. Crucial watch for solar developers and owners seeking to create disaster-ready renewable energy systems.

kWh Analytics appoints Isaac McLean Chief Underwriting Officer

With McLean in this role, kWh Analytics is positioned to rapidly grow innovative renewable energy insurance offerings

Originally Posted on BusinessWire

San Francisco, CA - December 4, 2023 - kWh Analytics, a leading provider of Climate Insurance for renewable energy assets, announced that it has named Isaac McLean as the company’s new Chief Underwriting Officer. McLean will lead kWh Analytics’ growing underwriting team as the company ramps up its Property Insurance offering for renewable energy assets.

“Isaac has played an integral role in expanding our company’s climate insurance offerings, a critical component of the shift to a decarbonized economy,” said Jason Kaminsky, CEO of kWh Analytics. “Isaac’s extensive experience building catastrophe-exposed property insurance programs from the ground up has proven invaluable in scaling our property offering to support the rapid expansion of renewable energy projects.”

Launched in January with capacity partner Aspen Insurance, kWh Analytics’ Property Insurance product offers coverage against physical damage for solar, storage, and other renewable projects, providing much-needed capacity to a rapidly growing industry. Renewable energy is expanding quickly, and solar alone is expected to more than double installed GigaWatts over the next five years, but insurance capacity is not currently keeping up with demand. Using its extensive database of over 2800 system years of claims data, kWh Analytics develops and accurately prices risk transfer products for renewable energy. This data expertise has enabled the company’s underwriters and data scientists to provide considerations to asset owners implementing resiliency measures for their projects against a key industry loss driver: natural catastrophes.

“This is an exciting time to work for a company that is at the forefront of innovation in the emerging renewable energy industry,” said McLean. “I am honored to work alongside an experienced, mission-driven team committed to underwriting products that enable the financing of renewable assets.”

McLean has over 18 years of insurance experience, previously serving as Head of Property Insurance at kWh Analytics, leading the charge to launch the company’s property insurance product. Prior to joining kWh Analytics, McLean spent 14 years at ICAT Managers building and growing natural catastrophe-exposed property insurance programs. These programs included residential, small commercial, and middle market books of business throughout the United States. He holds a B.B.A. in Business Management and Leadership from New Mexico State University.

ABOUT KWH ANALYTICS
kWh Analytics is a leading provider of Climate Insurance for zero carbon assets. Utilizing their proprietary database of over 300,000 operating renewable energy assets, kWh Analytics uses real-world project performance data and decades of expertise to underwrite unique risk transfer products on behalf of insurance partners. kWh Analytics has recently been recognized on FinTech Global’s ESGFinTech100 list for their data and climate insurance innovations. Property Insurance offers comprehensive coverage against physical loss, with unique recognition and consideration for site-level resiliency practices, and the Solar Revenue Put production insurance protects against downside risk and unlocks preferred financing terms. These offerings, which have insured over $15 billion of assets to date, aim to further kWh Analytics’ mission to provide best-in-class Insurance for our Climate. To learn more, please visit https://www.kwhanalytics.com/, connect with us on LinkedIn, and follow us on Twitter.

Contact

Nikky Venkataraman

Marketing Manager

kWh Analytics

E | nikky.venkataraman@kwhanalytics.com

T | (720) 588-9361

Powering Progress: Navigating the Challenges of Renewable Energy Insurance

Jason Kaminsky, CEO, kWh Analytics

I recently had the opportunity to participate in an Insurance 101 Webinar hosted by Solarplaza, with co-panelists Lindsey Chang of Marsh, and Jaime Carlson of SB Energy. Insurance continues to be an enigma in the renewable energy industry, albeit an increasingly important one. We wanted to provide some global context for understanding the space and the pivotal role insurance can play in financing and protecting your assets. 

The value chain of insurance typically flows from the client or sponsor, like SB Energy, through brokers, like Marsh, and then finally to the insurance carrier. You can also have managing general agents who help carriers understand and underwrite risk, and that is where kWh Analytics falls. Renewable Energy insurance is impacted by the entire (re)insurance ecosystem; it typically sits within a carrier’s Energy/Inland Marine book, which is within a Property insurance book. The carrier then buys reinsurance across multiple lines of business, which is essentially insurance that insurance companies purchase. Reinsurance typically renews on January 1, and this year’s renewals proved to be especially difficult. If you’ve followed the news, you’ll know that there were significant natural catastrophe losses in the past year. Reinsurance rates have shot up across many insurance types, particularly for natural catastrophe coverage, and the end clients and sponsors are feeling the effects in all lines of business, including renewables.

Since renewable energy is still a newer asset class, there are few underwriters and agencies with the expertise and specialization to truly understand the nuances and risks associated with solar panels, wind turbines, and storage. Believe it or not, some underwriters are still using the ‘tin roof’ model for solar, underwriting these assets as if they were a tin-roofed storage shed. There are a few criteria that underwriters should be looking at when assessing a project: 

  • attritional risks, such as the chance of inverter failure, vandalism, etc 

  • natural catastrophe risks like wind, hurricane, earthquake, fire, and flood. 

Natural catastrophe risks receive a lot of attention, and for good reason - such events have tripled in frequency in the past 50 years. These shocks to the system have caused the industry, and carriers in particular, significant concern when managing renewable energy. Major hail and hurricane events have resulted in outsized losses in carriers’ books, which are now passed onto end customers through higher premiums and tighter terms and conditions. 

The good news is that there is a lot of innovation in renewable energy, particularly around data and resiliency. With more and better data entering the space, modeling and pricing have become more accurate. At kWh Analytics, we utilize the largest database in renewable energy operating assets to understand weather predictions, the frequency of natural catastrophe events, and the actual outcomes for the assets. Today, we’re having conversations about correct hail stow angles and vegetation management, topics that were not nearly as active even 5 years ago. 

Pre-2019, insurance was abundant and asset owners could receive as much as they asked for. Between 2019 and 2022, outsized natural catastrophe losses catalyzed changing insurance terms, driving up premiums and driving down capacity, creating a difficult environment for insureds. Looking ahead, the key will be continued innovation and the further adoption of resilient practices. Sponsors can control some of their risk by diversifying their portfolio geographically, and ensuring that adequate operations and management protocols are in place for their sites. Insurance has become a crucial part of the development process and it’s important to understand it in a global context. Working with knowledgeable, specialized, and data-driven carriers will help unlock this lucrative form of capital for the renewable energy industry.

Thank you to Solarplaza for the opportunity to discuss renewable energy insurance on their platform. Check out the webinar here. Join us at Solarplaza Summit Asset Management North America this April in San Diego for further discussions on solar underproduction, mitigating natcat risks, and the future of solar insurance.

Sincerely,

Jason Kaminsky, CEO

kWh Analytics

 


SOLAR COSTS RISING: KWH ANALYTICS FINDS A UNIQUE INSURANCE SOLUTION

The Solar Revenue Put supports Pivot Energy in upsizing its loan facility.

SAN FRANCISCO, CA, March 6, 2023 – kWh Analytics, the market leader in Climate Insurance, has announced a partnership with Pivot Energy, LLC, to provide Solar Revenue Put production insurance for multiple distributed solar projects totaling 70 MW across six states. The Solar Revenue Put was added post financial close to improve leverage from lenders Silicon Valley Bank, Cadence Bank, and Bank United. Everest is the main carrier for the production coverage.

Once considered a low-cost investment, the price to build solar assets has increased considerably. To combat rising costs due to inflation, Pivot Energy worked with kWh Analytics to employ the Solar Revenue Put, a credit enhancement product designed to help investors improve leverage by mitigating solar production risk. Although the financing closed in April of 2022, the post-financing addition of the Solar Revenue Put for an extended 20-year term has enabled Pivot Energy to increase the loan size helping to cover increased costs that would otherwise be covered by equity.

“The post-financing partnership with Pivot Energy was a unique opportunity for our team, which worked swiftly and adeptly to secure favorable terms for our client,“ said Jason Kaminsky, CEO of kWh Analytics. “Our goal is to aid in the deployment of funds into renewable energy, and we succeeded in doing so through the utilization of the Solar Revenue Put.”

“Our partnership kWh Analytics will be a game-changer for our portfolio of community solar assets,” said Bret Labadie, Chief Financial Officer of Pivot Energy. “This insurance product reduces the risk of the portfolio, which enables stronger project returns, and ultimately allows us to more effectively finance more clean energy projects in the future.”

 The Pivot Energy portfolio presented the kWh Analytics team with a new challenge; each of the 36 sites had a different configuration, a different tracking system, and different associated risks. Utilizing the largest database of operating solar assets, the team assessed the risk at the individual project level as well as a diversified portfolio to underwrite the policy, finding the best value for the client and ultimately allowing for debt optimization for Pivot Energy.

The Solar Revenue Put is an insurance policy covering solar production to provide protection against downside risk. The policy allows asset owners to achieve more favorable financing terms via additional debt or optimized loan terms. The additional Supplemental coverage protects Pivot Energy for a 20-year term. The Solar Revenue Put coverage of the Pivot Energy portfolio brings kWh Analytics’ total assets under management to over $4 Billion.

ABOUT PIVOT ENERGY

Pivot Energy is a national renewable energy provider that develops, finances, builds, owns, and manages solar and energy storage projects. Pivot offers a distributed energy platform that includes a range of services and software that serves the full solar ecosystem. Pivot is a Certified B-Corporation that proudly follows a corporate strategy that provides a positive impact on society as measured by Environmental stewardship, Social leadership, and responsible Governance (ESG) factors. Learn more at pivotenergy.net.

ABOUT kWh Analytics

kWh Analytics is a leading provider of Climate Insurance for zero carbon assets. Utilizing their proprietary database of over 300,000 operating renewable energy assets, kWh Analytics uses real-world project performance data and decades of expertise to underwrite unique risk transfer products on behalf of insurance partners. kWh Analytics has recently been recognized on FinTech Global’s ESGFinTech100 list for their data and climate insurance innovations. The Solar Revenue Put production insurance protects against downside risk and unlocks preferred financing terms, and Property Insurance offers comprehensive coverage against physical loss. These offerings, which have insured over $4 billion of assets to date, aim to further kWh Analytics’ mission to provide best-in-class Insurance for our Climate. To learn more, please visit https://www.kwhanalytics.com/, connect with us on LinkedIn, and follow us on Twitter.

MEDIA CONTACT

Nikky Venkataraman

Marketing Manager

E | nikky.venkataraman@kwhanalytics.com

T | (720)-588-9361

PVTech's The Weekend Read: Financial risks of solar

Full article available on PVTech.

“Data analyst Hao Shen is following his growing suspicion. “We thought that more modern photovoltaic systems would be more reliable and efficient than those commissioned 10 years ago.” Shen is the head of data products at data analytics and climate insurance firm kWh-Analytics.

The company has compiled performance data from the portfolios of 15 of the 20 largest system operators in the United States. It then compared the revenue reports prepared before the plants went online and the actual production data. That comparison, covering 30% of ground-mounted plants in the United States, showed “just the opposite is true,” Shen says. The discrepancy between predictions and real output has increased.”

Norton Rose Fulbright's Currents Episode 190: Climate Insurance and the Solar Industry

Originally posted in Norton Rose Fulbright’s Currents Podcast.

Jason Kaminsky, CEO of kWh Analytics, joins us to discuss the company’s $20M Series B fundraise and the emergence of climate insurance. We discuss what the fundraise means for the industry as a whole, why climate insurance hasn’t emerged yet and the challenges the insurance industry faces when insuring renewables, solutions he has seen on the insurance side, the partnerships that are happening in the industry, the improvement in modeling on the underwriting side and more.