Tax equity investor list: 28 partners for your solar projects

Originally posted on pv Magazine USA.

Yesterday, Solar Energy Industries Association (SEIA) released its 9.0 update to the Federal Tax Guide for Solar Energy. This matters because mastering it means you can find partners to fund up to 46% of a project’s cost. And now that you know how important tax expertise is, (and you’ve got your site control, ISA and PPA) the next step is to find that partner…

kWh Analytics has launched its Solar Lendscape for Tax Equity – a list of finance groups who will partner with your solar project as a tax equity investor. Filters allow for segmentation via key point such as market segment, check size, deal structure, and a few other items.

The tool complements kWh Analytics’ June release of the Solar Lendscape for Lenders. Users can toggle between the two lists via a button at the top of the segmentation filters.

It is sort of a one stop shop for sourcing project money: construction capital from the tax equity partner, and finishing money from a lender.

The table also notes whether companies have tacitly approved accounting for kWh Analytics’ Solar Put – a tool to guarantee output of up to 95% of a solar power projects projected production.

All kWh Analytics has to do is find early stage development investors, and backend it with institutional lenders who will own the projects over the long game, then we’ll have the whole finance ecosystem within a few clicks.

A few data points that kWh released, first on the tax equity partners:

  • Most organizations are using partnerships as a preferred structure
  • Nearly a dozen investors are investing in community solar
  • There was an influx of new tax equity providers in 2017, following the extension of the investment tax credit in 2016

And second on the lenders:

  • Over 40% of the most active lenders now value kWh Analytics’ Solar Revenue Put as a credit enhancement
  • There are now 14 lenders that have either originated or hold more than $1b of solar term debt
  • ~20% of the lenders are now willing to lend to community solar projects
  • ~20% of the lenders are now willing to take risk on the merchant tail
Solar Lendscape

kWh Analytics Releases Industry’s Official “Solar Lendscape,” Now Profiling 28 Active Tax Equity Investors

Additional coverage in Solar Power World, BusinessWire, Yahoo Finance, and SolarWakeup.

SAN FRANCISCO – kWh Analytics, the market leader in solar risk management, today announced the release of Solar Lendscape for Tax Equity, a free resource that profiles 28 tax equity investors. For developers looking to raise capital, the Solar Lendscape catalogs the industry’s most active debt and tax equity investors, including details on check size, target market segments, and product type.

The industry’s first Solar Lendscape was released in June 2018 and initially focused exclusively on providers of debt. Following industry interest, kWh Analytics developed Solar Lendscape for Tax Equity to also include an overview of tax equity investors.

Project development is known to be a complex engagement in which the rules and variables regularly change. One of the most important variables for a developer to track is the availability of capital. Leveraging their experience working with investors, kWh Analytics built a simple, free tool to help developers assess the investor landscape and find the right partner for their projects.

“Solar Lendscape should prove a useful tool for developers trying to raise capital for their projects,” says Keith Martin, Partner at Norton Rose Fulbright. “It was inevitable that someone would create an internet portal to help with that process.”

Fast facts from the Solar Lendscape for Tax Equity:

  • Most organizations are using partnerships as a preferred structure.
  • Nearly a dozen investors are investing in community solar.
  • There was an influx of new tax equity providers in 2017, following the extension of the investment tax credit in 2016.

Fast facts from the Solar Lendscape:

  • Over 40% of the most active lenders now value kWh Analytics’ Solar Revenue Put as a credit enhancement.
  • There are now 14 lenders that have either originated or hold more than $1b of solar term debt.
  • ~20% of the lenders are now willing to lend to community solar projects.
  • ~20% of the lenders are now willing to take risk on the merchant tail.

###

Learn more about the Solar Lendscape & the Solar Lendscape for Tax Equity: www.kwhanalytics.com/solar-lendscape

Media Contact:

Sarah Matsui

sarah.matsui@kwhanalytics.com

About kWh Analytics          

kWh Analytics is the market leader in solar risk management. By leveraging the most comprehensive performance database of solar projects in the United States (20% of the U.S. market) and the strength of the global insurance markets, kWh Analytics’ customers are able to minimize risk and increase equity returns of their projects or portfolios. kWh Analytics also provides HelioStats risk management software to leading project finance investors in the solar market. kWh Analytics is backed by private venture capital and the US Department of Energy.

About the Solar Revenue Put

The Solar Revenue Put is a credit enhancement that guarantees up to 95% of a solar project’s expected energy output. kWh Analytics’ wholly-owned brokerage subsidiary places the policy with risk capacity rated investment-grade by Standard and Poor’s. As an ‘all-risk’ policy, the Solar Revenue Put protects against shortfalls in irradiance, panel failure, inverter failure, snow, and other system design flaws. The Solar Revenue Put provides comprehensive coverage that banks rely upon, enabling financial institutions to more easily finance solar projects on terms more favorable to the sponsor.

#Solar100’s Lidija Sekaric: Solar’s Jack of All Trades

Originally posted on pv Magazine USA.

The saying goes, “A jack of all trades is a master of none,” positing a distinction between a generalist and a specialist.

Bucking convention that someone could only be a generalist or a specialist, Dr. Lidija Sekaric is solar’s jack of all trades.

Previously as Director at the Department of Energy’s Solar Energy Technologies Office, Sekaric effectively served as a cleantech investor. Before that, she worked as a research scientist, earned her PhD in applied physics, holds thirty U.S. patents, and has over forty scientific publications. Now shifting from government to business, she works in strategy and marketing.

In this interview, Sekaric talks about the future of distributed energy and what she’s learned about successful teams after hearing $1B of solar funding pitches.

STARTING IN RENEWABLE ENERGY

Richard Matsui: From a PhD in applied physics to research at IBM to policy work at the Department of Energy, you have a unique career in renewable energy. How did you get started?

Lidija Sekaric: I started my career working as a Research Scientist in Nanostuctures and Exploratory Devices group at IBM. Although it was fascinating work, and I was working alongside very smart people, I decided to shift my focus to renewable energy. I felt that I needed to do something about climate change, using whatever brain power I have.

So in 2009, I joined the US Department of Energy (DOE) as an American Association for the Advancement of Science (AAAS) Science Policy Fellow, a two year program that encourages participants to engage in policy work where they can contribute with their critical thinking and analytical skills. Before us were the big problems in policy and technology, especially with the new administration in place, and we asked questions such as, “Is there a new material we may need for solar to become the default energy source?” or “Is there a new device we need to invest in?”, towards, ultimately: “How can solar be made more affordable all around?” Afterwards, I was recruited for the newly-founded SunShot Initiative at the US DOE Solar Energies Technologies Office (SETO).

After seven years with DOE and five with SETO, the renewables landscape had changed quite a bit. There was so much more activity in the private sector in renewables and distributed energy that was not there when I first got into the field. An opportunity with Siemens came up and a company that has an incredibly wide array of technologies and business engagements was very attractive. It, too, followed the expansion of my personal universe when it came to technology and business activities.

Richard Matsui: How does having a physics and research background influence or inform the way you think about these very different roles?

Lidija Sekaric: In my current role in Strategy and Marketing, I do not spend much of my time thinking about the next greatest material or device. We build projects that are bankable, and so we don’t integrate solutions right out of a lab on customer sites—there is no need for that, with an array of proven solutions. But I have found that my research background is helpful when communicating with colleagues across executive, R&D, and sales departments. Whether it’s thinking about fluid dynamics or grid operations, or talking about product offerings in the context of market needs, it is useful to be able to quickly grasp and communicate technical concepts, without needing to learn them from scratch.

DISTRIBUTED ENERGY

Richard Matsui: What do your customers value, when you pitch them on distributed energy solutions?

Lidija Sekaric: Cost savings, reliability, and sustainability—and the order of importance changes for a different customer class. If we look at the U.S. military as an example, the mandate has previously been sustainability and minimizing cost to the government. Reliability was always absolutely needed,  but now I think that reliability is certainly first and foremost. Similarly, hospitals and aid shelters think about reliability first.

And then, there are customers who want to save money in the short-term, or have a customer-driven path to reducing the carbon footprint.

However, even if the customer’s stated motivation is sustainability or reliability, all of them want to see savings from the project. Because these projects can and do save money. Because now we don’t have to assume that you always have to spend more to have cleaner, on-site power.

Richard Matsui: Fascinating. I’m reminded of an interview we did with Jigar last year, and this was the point he was making, too. He was saying that sophisticated C&I developers have moved beyond simply pitching customer savings, because the customer values a lot of things beyond dollars. He provided an example of solar projects for schools, and how if batteries were attached to those solar projects, then all those schools could also serve as shelters in case of emergency. In this case, yes, there are savings, but the resiliency benefit is also critical.

From your experience, do you find this is true, or is the priority still cost savings first?

Lidija Sekaric: First, assume that everybody wants to save money, and assume that you have to build a project where you will save them money. But in terms of other priorities, I think it really depends on the customer. You have to understand their priorities, and it’s best when you can address multiple motivators.

Richard Matsui: In the past 24 months, there has been a flurry of acquisitions in this C&I distributed energy space, including ENGIE buying Opterra and SoCore. If you fast-forward 10 years, what does this market look like? Does it end up being fairly fragmented or are there just a couple of large national players?

Lidija Sekaric: That’s a really good question. Is the market going to consolidate, with only one entity that is servicing everything from top to bottom, including a building’s service, power generation, trading into the wholesale market, and advice on energy purchasing? It would be like replacing your utility with another entity that is functionally equivalent to your utility, and then some. Of course, in some markets, the major difference is choice and competition. The switching costs to this model could be high in some cases, or low, with a number of innovations in financing these services, but if done right, the rewards should always be worth it.

The critical question here is: How are customers going to react? I think it will ultimately depend on how the customer feels about signing up with one entity for a long time. It’s still an evolving landscape.

Richard Matsui: Everyone’s favorite analogy in storage is, “Storage is where solar was ten years ago.” You’re uniquely positioned to be able to comment on both, having worked in solar then and storage now. From a technical standpoint, would you agree with that analogy?

Lidija Sekaric: It is not dissimilar. Because they are both materials-intensive industries, the learning curve should look about the same. In a sense, there is no actual scaling required in the way we think of physical scaling with a computer chip. Scaling with storage is just tied to volume, as manufacture of the materials scales.

Further, you can also consider the obstacles for solar that will be similar for storage. If you look at a breakdown of the costs, we have almost a mirror image of soft costs versus hard costs. They are basically the same, and I can’t say I am surprised.

To illustrate that, let’s look at large scale versus small scale storage. Small scale storage is still going to be very tough for all the reasons that small solar was difficult. From the different local rules for electricians, to system integration, to business overhead, to packaging, it is fundamentally harder on a small scale, when the market is still so small and every solution looks different. Small storage now is harder because it is not standardized at small scale. And non-standard solutions can be expensive, unless that is mitigated in the overall project.

In many ways, solar ten years ago and storage today are the same.

ADVANCEMENTS IN THE SOLAR INDUSTRY

Richard Matsui: As Director of the US DOE SETO’s SunShot Initiative, you previously managed a portfolio of about $1B in project funding in solar R&D.

Having heard $1B worth of pitches, have you noticed trends or shared traits across successful teams?

Lidija Sekaric: Yes—it always came down to how well teams understood the market. From startups to university professors to national lab researchers, when teams possessed the instinct for keeping an eye on the market, they often came up with very relevant proposals. A team can understand the technology and have very smart people, but unless that team truly understands the market, their solution goes nowhere.

In addition, the ability to pivot was also important, because there’s always ways to improve the project.

Richard Matsui: Can you highlight a few projects that you feel really moved the needle for the industry?

Lidija Sekaric: There are several that come to mind and that I noticed in recent headlines. Aurora Solar was funded early on through a SETO program, and they are still out there and offering automated design.

And your team at kWh Analytics won an early SETO award. It was incredibly ambitious, what your team proposed to do all the way back in 2013, building the industry’s data repository. And now you created the Solar Revenue Put with all of that data. It is very significant.

Richard Matsui: Thanks, I really appreciate it.

Lidija Sekaric: We can’t take a hundred percent credit for everything you’ve done, but by association, we’ll say, “That’s in the family.”

Richard Matsui: Without the early support from your team we would not be where we are today. A lot of credit should go to SETO.

GENDER EQUITY AS A BUSINESS IMPERATIVE

Richard Matsui: You’ve previously said that gender equity in solar is “more than a diversity imperative; it is a business as well as a moral imperative.” Can you elaborate?

Lidija Sekaric: From the standpoint of having managed and worked with people from a range of diverse backgrounds—cultural, educational, gender, orientation, and so forth—I have seen the business benefits to having a diverse team. I firmly believe that we bring our entire selves to work, and that where we come from shapes our unique perspectives on life. Having a diverse team means being able to turn a problem over and examine it from many different sides. Diversity is one of the most important things in tackling problems creatively. And creativity is incredibly important in solving problems. For example, when it comes to gender equity in particular, there are studies that show that companies that have women in leadership perform better than comparable companies without women in leadership. When finding the most efficient business practices, diversity needs to be prioritized.

The moral imperative comes into play for companies that have a social mission. Diversity and equality are smart and important ways of bettering society.

Richard Matsui: The Solar Foundation has helped provide important data about the people working in our industry. Their latest survey underscored that yes, progress has been made, but that women and people of color are still underrepresented in this industry. Have you seen examples of initiatives or individuals who are moving the needle on this issue?

Lidija Sekaric: For diversity and inclusion, awareness is a requisite for change. To start, the Solar Foundation provides a valuable service by allowing us all to speak from the same set of facts. For anyone who cares, learning the current realities is an important step towards then being able to ask, “What do we do about this?”

When it comes to initiatives that I see promoting economic equity, I would like to highlight an organization that was started by a former colleague of mine, Dan Conant. Dan founded Solar Holler, which is an enterprise with a solar and economic development initiative at the core.

Dan went back to West Virginia and said, “Look, coal is not going to be around for these people. What are we going to do for the people in the poorest places that we have in the country?” And so he started this program doing installations and providing trainings to develop the skills of West Virginians to develop solar.

This example is not specific to gender equity, but it is about economic equity and giving people opportunities to thrive. It takes exposure to know that an industry is thriving, and for people to think about moving in that direction.

On the gender equity issue, any conference organizer, or a committee organizer, who is thinking about the makeup of that group beyond their degrees and titles, is doing something significant—it is providing human visibility, and visibility begets diverse participation in return.

Highlights from the #Solar100 at SPI 2018

Originally posted on pv Magazine USA.

Through a featured list and monthly interviews, the #Solar100 celebrates our industry’s thought leaders and the ideas that drive them.

This year at Solar Power International, all attendees were invited to nominate who they wanted to see interviewed next for #Solar100. The #Solar100 Leaders nominated both “Next Interviews” as well as “Next Entrants.” Below are select highlights.

Stay tuned for additions to the #Solar100 and new interviews on pv Magazine USA.

Next Interview Nomination Highlights

  • “Emily Kirsch the Mother Theresa of Solar” by Kyle Cherrick
  • “Jamie Nolan the Olivia Pope of Solar” and “Meghan Nutting the Kamala Harris of Solar” by Jen Bristol
  • “Christian Roselund the Yosemite Sam of Solar Media” by John Weaver
  • “Billy Parish the Captain Cook of Solar Finance” by Deborah Knuckey
  • “Tom Weirich the Human in Action of Solar Finance” by Yoni Cohen
  • “Andrea Luecke the Einstein of Solar Jobs” by Meghan Nutting
  • “Stephen Lacey the Edward R. Murrow of Solar News” by Tor Valenza
  • “Yann Brandt the E-Newsletter of Solar” by Kendra Hubbard
  • “Tor the Solar Fred of Solar” by Eli Hinckley
  • “Tim Buchner the Bill Gates of Solar” by Tom Weirich
  • “Susanna Murley the Peggy Olson of Solar Creatives” by Jamie Nolan
  • “Lynn Jurich the Lynn Jurich of Solar”
  • “Adam Browning the Gandhi of Energy Equality”
  • “Tom Matzzie the Clean Choice of Solar”
  • “Elias Hinckley the Renaissance Man of Renewables”
  • “Julia Hamm the Warren Buffett of Solar”
  • “Lidija Sekaric the Visionary of Solar Deployment”

New Entrant Nomination Highlights

  • “Audrey Lee the Julia Morgan of Solar + Storage” by Anne Hoskins
  • “Rosalind Jackson the Heart + Soul of the Solar Movement,” “Jessica Scott the Champion of Nevada Solar,” and “Zadie Oleksiw the Solar Splainer of the Solar Movement” by Adam Browning
  • “Raffi Garabedian the Staying Power of Thin Film Solar” by Lidija Sekaric
  • “Mike Pound the Winston Churchhill of Solar” and “Mauricio Anno the Peter Sellers of Solar” by TJ Kanczuzewski
  • “Jared Johnson the Larry Bird of Financial Innovation” by Jason Kaminsky
  • “John Weaver The Tick of Solar” and “Gregor Macdonald the da Vinci of Clean Energy Writing” by Christian Roselund
  • “Stephen Trimble the Alaska Builder of Solar Growth” by Kelly Pickerel

 

kWh Analytics Releases Orange Button Translate to Streamline Data Sharing

Originally posted on Solar Power World and BusinessWire.

kWh Analytics, the market leader in solar risk management, today announced the release of Orange Button Translate, the first piece of software designed exclusively to support the U.S. Department of Energy Solar Energy Technologies Office’s (SETO) Orange Button data standards.

Orange Button Translate streamlines data sharing in the market by facilitating the transmission of solar data between developers, investors, and other key stakeholders. This tool is the culmination of a two year award from the DOE, and it supports Orange Button’s goals of reducing transaction costs and increasing bankability.

“kWh Analytics has built and maintains the most comprehensive performance database of solar assets in the United States,” said Jason Kaminsky, COO of kWh Analytics. “We are proud to leverage our experience working with solar big data in support of the adoption of Orange Button along with the Department of Energy, NREL, SEPA, and SunSpec Alliance.”

“Orange Button Translate will improve data sharing throughout the solar value chain and will help reduce solar soft costs as the Department of Energy and the solar industry have envisioned,” said Aaron Smallwood, Senior Director for Technical Services at the Smart Electric Power Alliance (SEPA). “This is the culmination of years of work by the project teams and the solar industry, and will quicken the transition to a more clean and modern grid.”

Orange Button is supported by the solar finance community, including large banks like Wells Fargo.

“Standardized data will reduce time, cost, and industry inefficiencies,” said Jon Previtali, Director of Technology and Technical Services for Wells Fargo’s Renewable Energy & Environmental Finance team. “With Orange Button Translate, kWh Analytics has moved the industry forward with their advanced data capabilities. Wells Fargo is a proud supporter of the Orange Button initiative.”

Orange Button Translate is free and available to the public. More information can be found here: kwhanalytics.com & translate.kwhanalytics.com.

kWh Analytics receives 2018 Finance Innovation Award at the Global Climate Action Summit

Originally posted in Solar Power World.

kWh Analytics was awarded the 2018 Finance Innovation Award at the Global Climate Action Summit (GCAS) for its invention of the Solar Revenue Put, a credit enhancement that de-risks the performance of solar power plants, enables investors to deploy more capital into solar assets and reduces the cost of solar.

Dan Carol, the Senior Advisor of Infrastructure and Energy for the Office of Governor Jerry Brown, presented kWh Analytics team member Sarah Matsui with the Global Climate Action Summit’s 2018 Finance Innovation Award.

 

The GCAS is an annual gathering co-chaired by Jerry Brown, Governor of California, and Patricia Espinosa, Executive Secretary of the U.N. Framework Convention. The Summit celebrates “the extraordinary achievements of states, regions, cities, companies, investors and citizens with respect to climate action.”

GCAS’s Friday Finance Roundup focused on bringing climate finance to scale and featured speakers David Ige, Governor of Hawaii; Danny Kennedy, CEO of CalCEF; and Richard Kauffmann, Chairman of Energy, Office of the Governor of New York.

Concluding GCAS’s Friday Finance Roundup, kWh Analytics was recognized with the Finance Innovation Award for improving solar project economics and accelerating the growth of the solar industry.

“The technological solutions needed to address climate change already exist, today. Now we need the capital to deploy those technologies at scale,” said D. Van Skilling, former CEO of Experian. “kWh Analytics is unlocking that capital by providing investors with the data they need to invest confidently in renewable energy technologies, similar to the role that Experian serves in consumer credit investments.”

“The world desperately needs novel solutions to real problems,” added Chuck Wallace, co-founder of Esurance. “We need more solutions like the Solar Revenue Put. The importance of the Solar Revenue Put to our local, national and global communities in accelerating the adoption of clean energy and reducing climate change is obvious.”

“The monumental problem of climate change is being answered by many of the world’s most talented and tenacious teams,” said Richard Matsui, Founder and CEO of kWh Analytics. “We are honored to be recognized for delivering an impactful solution at this critical time. We will continue to realize our mission of “More solar through better data” by bringing together the best of data science, software development, and financial engineering.”

kWh Analytics completes 50 MW Solar Revenue Put, backed by Swiss Re

Originally posted in Reinsurance News.

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.

Oregon projects incorporate solar output insurance in financing

Originally posted on Utility Dive.

Dive Brief:

  • On Wednesday kWh analytics announced it has structured financing for a series of solar projects in Oregon that include insurance to protect cash flow when the sun does not shine.
  • The financing covers four solar projects in Oregon with an aggregate capacity of 50 MW being developed by GCL New Energy, a Hong Kong-based solar developer, and financed by PNC Bank.
  • The deal structure includes a “solar revenue put” from kWh Analytics that uses the company’s proprietary actuarial model and risk management software, HelioStats. The company’s product provides a data base of solar performance statistics that is designed to provide the actuarial data needed to be able to make the premiums on a solar output insurance policy affordable. It says it has data on about 20% of U.S. solar projects.

Dive Insight:

With a put in place, kWh Analytics says financial institutions can more easily finance solar projects on favorable terms.

The company developed the “solar revenue put” as a way to drive down investment risk and encourage development of solar energy. The put guarantees up to 95% of a solar project’s expected energy output. It is essentially an insurance policy that kWh Analytics places with a provider — for the Oregon projects, Swiss Re — that protects a project’s lenders against shortfalls in irradiance, panel failure, inverter failure, snow and other system design flaws.

The first solar revenue put was signed in January. “It is a brand new product and so far kWh Analytics is the only provider,” Christine Brozynski, a senior associate at Norton Rose Fulbright, told Utility Dive.

Revenue puts have been used for years in the financing of merchant gas plants as a way of protecting lenders and investors from the volatility of natural gas prices and the attendant fluctuations in power prices. The output of a gas plant can be controlled by the owner, but some party has to assume the price risks associated with gas and power prices.

Revenue puts were designed to hedge the volatility of a gas plant. The put establishes a floor or minimum amount of revenue for a gas-fired generator. If the revenue from the gas plant does not meet that floor, then the hedge provider pays the difference.

Unlike a gas plant, the pricing of solar power is known; it is guaranteed in a power purchase agreement. What is not known is the amount of power that will be available — that depends on the sun.

The combination of predictive analytics and an insurer with a strong balance sheet can enable a financial structure that requires less equity and more leverage or debt, which enables developers to improve their returns.

“In general, these types of insurance products are helpful in securing financing or at least financing at a lower cost,” Caileen Kateri Gamache, senior counsel at Norton Rose Fulbright, told Utility Dive via email. “Developers frequently ask whether there is insurance available to cover unique risks, so it is not surprising that the market is rising to meet the demand.”

Other solutions are also beginning to emerge in the solar market as a result of the low pricing in solar PPAs. Developers are looking for ways to lock in revenues, Brozynski said.

GCL New Energy closes solar revenue put

Excerpt below; full piece available on SparkSpread.

GCL New Energy has closed a solar revenue put for a 50 MW (dc) portfolio of four solar generation facilities in Oregon.

kWh Analytics underwrote and structured the hedge, while Swiss Re Corporate Solutions provided the financial backing for it, according to the companies’ announcement from Aug. 29.

The solar revenue put is a volume hedge, not a price hedge. It protects against shortfalls in solar irradiance, panel failure, inverter failure, snow, and other system design flaws, according to kWh Analytics’ statement.

GCL Inks Tax Equity for Projects with Solar Revenue Put

Excerpt below; full piece available on Power Finance & Risk.

GCL New Energy has made use of kWh Analytics’ solar revenue put as part of its tax equity financing of a contracted four-project solar portfolio in Oregon.

PNC Bank is providing the tax equity for the 38.5 MW portfolio, which is under construction in Jefferson and Klamath counties, Oregon.

The deal is one of a handful to benefit from credit enhancement through kWh Analytics’ solar revenue put, which guarantees up to 95% of a projects’ expected output.