Solar risk management provider kWh Analytics has announced a partnership with Pivot Energy, LLC, to provide solar revenue put production insurance for multiple distributed solar projects totaling 70 MW across six states.
The solar revenue put was added post financial close to improve leverage from lenders Silicon Valley Bank, Cadence Bank, and Bank United. Everest is the main carrier for the production coverage.
To help combat rising costs to build solar assets due to inflation, Pivot Energy has teamed with kWh Analytics to employ the Solar Revenue Put – a credit enhancement product designed to help investors improve leverage by mitigating solar production risk.
Although the financing closed in April 2022, the post-financing addition of the Solar Revenue Put for an extended 20-year term has enabled Pivot Energy to increase the loan size helping to cover increased costs that would otherwise be covered by equity.
Moreover, the solar revenue put is an insurance policy that covers solar production to provide protection against downside risk.
At the same time, the policy allows asset owners to achieve more favorable financing terms via additional debt or optimized loan terms. The additional supplemental coverage protects Pivot Energy for a 20-year term.
Addressing the partnership, Jason Kaminsky, CEO of kWh Analytics, said: “The post-financing partnership with Pivot Energy was a unique opportunity for our team, which worked swiftly and adeptly to secure favorable terms for our client. Our goal is to aid in the deployment of funds into renewable energy, and we succeeded in doing so through the utilization of the Solar Revenue Put.”
Bret Labadie, Chief Financial Officer of Pivot Energy, added: “Our partnership kWh Analytics will be a game-changer for our portfolio of community solar assets. This insurance product reduces the risk of the portfolio, which enables stronger project returns, and ultimately allows us to more effectively finance more clean energy projects in the future.”
Meanwhile, in February it was also reported that kWh Analytics will provide insurance support for a solar investment deal between Arava Power, Paz Oil and Menora via a solar revenue put.
