kWh Analytics, the market leader in solar risk management, today announced the first contract for differences (CFD) supported by the Solar Revenue Put.
Image: kWh Analytics closes Solar Revenue Put. Photo: Courtesy of Good-start/FreeDigitalPhotos.net
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.
Source: Company Press Release