kWh Analytics, a leading solar risk management provider, has structured a Solar Revenue Put with global solar developer GCL New Energy and U.S solar project investor PNC Bank for 50 MW of solar farms, with risk capacity provided by Swiss Re Corporate Solutions.
The 4 solar farm projects, which belong to GCL New Energy, are located in Oregon and were financed with the Solar Revenue Put protecting cashflows.
kWh Analytics used its proprietary actuarial model and risk management software (HelioStats) to develop the Solar Revenue Put, which is a credit enhancement that guarantees up to 95% of a solar project’s expected energy output, enabling financial institutions to more easily finance solar projects on terms more favourable to the sponsor.
The firm explained that the policy currently protects against shortfalls in irradiance, panel failure, inverter failure, snow, and other system design flaws.
“We have a global mandate to rapidly expand our investment portfolio of solar projects,” said Frank Zhu, Executive President of GCL New Energy. “To support us in this growth, we were pleased to have found efficient and reliable execution with our partners, PNC Bank and kWh Analytics.”
Brian Beebe, Head of North America Origination, Swiss Re Corporate Solutions, added: “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.”
Dick Rai, Manager of PNC Bank’s bank’s renewable energy financing arm, also commented: “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 U.S. solar market.”
kWh Analytics claimed that 40% of active lenders now value the Solar Revenue Put as a credit enhancement, with the Put now financing structures for solar portfolios ranging from thousands of residential rooftops to more than ten utility-scale plants.
Portfolios supported by the Solar Revenue Put are also securing, on average, debt sizing increases of around 10%, kWh Analytics added.