Venture-backed Managing General Underwriter Energetic Insurance has named the first solar energy project to use its EneRate Credit Cover.
With initial capacity provided by SCOR Global P&C back in April, the product covers default risk for payments made by businesses, without a public credit rating, that purchase electricity through long-term power purchase agreements.
Lenders typically finance these projects based on the expected regular payments from the business to the project developer.
In this first deal, Live Oak Bank was the debt lender for an 800-kilowatt carport project, developed by CalCom Energy with tax equity investment from Symbiont Energy, at a retail centre in California.
“Today marks an important milestone for the commercial and community solar market. EneRate Credit Cover levels the playing field so that project developers can now offer the same electricity savings to small and medium businesses that were previously reserved for the largest companies in the US,” said James Bowen, Co-founder and Chief Executive Officer of Energetic Insurance.
“Our policy provides the missing link for commercial solar that FICO has provided to residential solar and will enable the commercial solar market to attain and surpass the adoption rates seen in the residential solar market.”
David Williams, Chief Commercial Officer at CalCom Energy added, “The Energetic product is a valuable product to bring solar to our customers without a traditional credit story. We are excited to be a part of this landmark project.”