kWh Analytics, a leading solar risk management provider, has closed a Solar Revenue Put for a 23 MW solar project, with capacity provided by Swiss Re Corporate Solutions.
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 privately held developer of sustainable energy solutions, and the project is being funded by Mitsubishi UFJ Financial Group (MUFG), a Japanese financial services company.
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, kWh Analytics developed the Solar Revenue Put to reduce investment risk and encourage the development of low-cost solar energy.
Swiss Re has now backed a number of Solar Revenue Puts by kWh Analytics, the most recent of which was a deal in April 2019.
“We are committed to managing carbon-related sustainability risks and supporting the transition to a low-carbon economy,” said 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,” he added. “The Solar Revenue Put represents a new, multi-billion dollar insurtech category.”
Meghan Schultz, Senior Vice President, Finance & Capital Markets at Invenergy, added: “Invenergy is pleased to work with kWh Analytics on the successful refinancing of our Grand Ridge Solar project.”
