kWh Analytics has closed a Solar Revenue Put with GCL New Energy and PNC Bank for 4 projects totaling 50MW.
Image: kWh Analytics completes Solar Revenue Put for GCL New Energy's 50MW solar farms. Photo: Courtesy of Ben Schonewille/FreeDigitalPhotos.net.
The 4 projects, totaling 50 MW DC of capacity and located in Oregon, were financed with the Solar Revenue Put protecting cashflows.
Using its proprietary actuarial model and risk management software (HelioStats), kWh Analytics developed the Solar Revenue Put, a credit enhancement for financial investors, to drive down investment risk and encourage development of clean, low-cost solar energy.
GCL New Energy executive president Frank Zhu said: “We have a global mandate to rapidly expand our investment portfolio of solar projects. To support us in this growth, we were pleased to have found efficient and reliable execution with our partners, PNC Bank and kWh Analytics.”
PNC Bank’s energy finance team manager Dick Rai said: “Strong relationships are the cornerstone upon which we have built this business. We have long-standing relationships with both GCL New Energy and kWh Analytics, dating back to their respective entries into the US solar market.”
A recent survey of the solar industry’s most active lenders indicates that more than 40% of active lenders are now valuing the Solar Revenue Put as a credit enhancement. Solar portfolios ranging from thousands of residential rooftops to more than ten utility-scale plants have had financing structures supported by the Solar Revenue Put. Portfolios supported by the Put are securing, on average, debt sizing increases of 10%.
Swiss Re Corporate Solutions provides the risk capacity for the Solar Revenue Put. Swiss Re Corporate Solutions North America Origination Head Brian Beebe said: “We are bullish about solar, and Swiss Re is committed to providing innovative risk transfer solutions. kWh Analytics built the industry’s largest data repository, encompassing one-in-five American solar power plants, and owns the foundation upon which entirely new categories of risk management products will be built.”
Source: Company Press Release