Solar risk manager kWh Analytics has structured yet another Solar Revenue Put with capacity support from Swiss Re Corporate Solutions, the commercial insurance division of reinsurer Swiss Re.
The latest Solar Revenue Put was structured for a portfolio of 4,000 projects totalling approximately 33 MW DC of capacity located in the Northeast, Florida and California.
The IGS Solar portfolio is being funded by a private equity Power and Infrastructure group headquartered in Los Angeles, CA , with back-leverage is being provided by ING Capital LLC (ING), a US financial services company.
kWh and Swiss Re have already collaborated on two similar Solar Revenue Put deals this year, first in April and then again in May.
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 drive down investment risk and encourage development of clean, low cost solar energy for the Cal Flats facility.
“We have again found efficient and reliable execution with our partners, ING, and kWh Analytics,” says Mike Gatt, Chief Operating Officer of Distributed Generation at IGS Energy. “kWh Analytics has proven out a reliable and timely claims process for the Solar Revenue Put, enabling cashflow certainty. We value the equity yield protection offered by the Solar Revenue Put.
“IGS Energy is committed to building a sustainable energy future for a healthier planet, and this partnership continues to support our goal of being a completely carbon-neutral energy company by 2040.
“We are pleased to have the Solar Revenue Put as credit support for this third financing for IGS Solar,” added Scott Hancock, Director in the Power & Renewables team at ING in New York. “The framework was established with the initial financing with the intention that it could be easily replicated for future financings with IGS Solar.”
Across the industry, kWh claims that portfolios supported by the Solar Revenue Put are securing debt sizing increases of 10% on average.
So far, the Solar Revenue Put has been structured on over $1 billion of solar assets, and it has been incorporated into both new build financing and refinancing of all types of solar projects, including utility scale, residential, community solar, and commercial and industrial.
