Swiss Re backs 35MW Solar Revenue Put by kWh Analytics

Originally posted on Reinsurance News.

Swiss Re Corporate Solutions, the commercial insurance arm of global reinsurer Swiss Re, is to provide risk capacity for a 35MW Solar Revenue Put structured by solar risk management provider kWh Analytics.

Solar energyThe deal relates to a portfolio of 4,000 projects located in the Northeast U.S. that are being developed and managed by IGS Solar, a residential and commercial solar provider.

It is the first U.S residential portfolio financed with the support of the Solar Revenue Put and kWh Analytics said that it has now structured its Solar Revenue Put credit enhancement on over $250 million of solar assets.

The IGS Solar portfolio is being funded by a commitment from Ares EIF, the power and infrastructure strategy at global asset manager Ares Management, L.P., as well as a term loan commitment from ING Capital LLC, a financial services company.

The Solar Revenue Put was developed by kWh Analytics to act as insurance policy on solar production and revenues, serving as a credit enhancement for financial investors and accelerating the growth of the solar industry.

Brian Beebe, Head of Origination North America Weather and Energy at Swiss Re Corporate Solutions, commented on the deal: “Swiss Re is committed to managing carbon-related sustainability risks and supporting the transition to a low-carbon economy. We are actively building our business to support the renewable energy that will power our global future. The Solar Revenue Put represents a new, multi-billion dollar insurtech category.”

In September, Swiss Re Corporate Solutions also provided risk capacity for a separate Solar Revenue Put structured by kWh Analytics, which related to 50MW of solar farms in Oregon, owned by GCL New Energy.

“In the solar business, risk is cost,” explained Richard Matsui, Founder and Chief Executive Officer (CEO) of kWh Analytics. “With the Solar Revenue Put, industry-leading sponsors and banks are able to reduce the risk—and therefore the cost—of solar. Less risk, less cost, more solar.”

The Solar Revenue Put has been utilised for portfolios ranging from thousands of residential rooftops to more than ten utility-scale plants, and a recent survey revealed that more than 40% of active lenders value the Put as a credit enhancement.

“We started IGS Solar because we believe in the value of developing alternative sources of energy,” said Mike Gatt, Chief Operating Officer of Distributed Generation at IGS. “To support us in this growth, we were pleased to have found efficient and reliable execution with our partners, ING, Ares, and kWh Analytics. The Solar Revenue Put enables us to both enhance our returns and reduce our downside risk.”

“Starting with our initial investments in 2013, we have continued our leading role as a lender to the residential solar space,” added Scott Hancock, Director at ING. “We are pleased to have incorporated the Solar Revenue Put to support this financing for IGS and Ares.”

Marathon Capital acted as exclusive financial adviser to IGS for the Solar Revenue Put transaction.

First U.S. Residential Solar Projects Turn to Output Insurance

Originally posted on Bloomberg.

  • IGS Solar portfolio to use KWh’s ‘solar-revenue put’ tool
  • To be used in financing for 4,000 projects in U.S. Northeast

A tool designed as an insurance policy for solar-power generation will be used to manage the risk associated with U.S. residential systems for the first time as part of a financing agreement backing 4,000 projects in the Northeast.

Investment in the 35 megawatts of capacity being developed by IGS Energy’s solar unit will be partly protected by KWh Analytics’ “solar-revenue put,” according to the statement Thursday by the San Francisco-based risk-management software company. Solar farms have previously obtained the put, which can guarantee as much as 95 percent of expected output. It can be used to help solar investors reduce their cost of capital, leading to better financing terms.

IGS is both developing and managing the portfolio, which is being backed by funds managed by Ares Management LP. Swiss Re AG is backing the insurance product. Terms weren’t disclosed.

This “demonstrates that this product works for utility-scale as well as residential,” Richard Matsui, KWh’s chief executive officer, said in an interview. KWh has structured the put on more than $250 million of solar assets, according to a separate statement Thursday.

Ares EIF-backed resi solar portfolio closes financing

Originally posted on SparkSpread.

An Ares EIF-backed residential solar portfolio has closed financing with a term loan from ING Capital and a solar revenue put with Swiss Re.

kWh Analytics structured the solar revenue put, which backs a 35 MW (dc) residential solar portfolio that comprises 4,000 projects in the U.S. northeast.

Marathon Capital was the exclusive financial advisor to IGS Solar, the developer behind the portfolio.

This is the first U.S. residential portfolio financed with the support of a solar revenue put, according to an announcement from kWh. Solar portfolios supported by a revenue put are able to line up debt packages that are 10% larger on average, the press release said.

“Starting with our initial investments in 2013, we have continued our leading role as a lender to the residential solar space,” Scott Hancock, director at ING, said in a statement. “We are pleased to have incorporated the Solar Revenue Put to support this financing for IGS and Ares.”

Brian Beebe, Head of Origination North America Weather and Energy, Swiss Re Corporate Solutions, said in a statement: “Swiss Re is committed to managing carbon-related sustainability risks and supporting the transition to a low-carbon economy.”

“The Solar Revenue Put represents a new, multi-billion dollar insurtech category,” he added.

kWh Analytics Structures Solar Revenue Puts on $250 Million of Solar Assets

Originally posted on Business Wire.

SAN FRANCISCO – kWh Analytics, the market leader in solar risk management, announced today that it has structured its Solar Revenue Put credit enhancement on over $250 million of solar assets. Rapid adoption of the Solar Revenue Put is improving the economics of solar power and accelerating the growth of the solar industry.

“The history of the solar industry is one of relentless innovation,” said Ed Feo, President of Coronal Energy. “kWh Analytics developed a novel solution that we are proud to have deployed. The Solar Revenue Put is moving the market by driving down the industry’s cost of capital.”

The Solar Revenue Put has emerged as a powerful tool that enables acquisitive solar investors to win more competitive bids by reducing their cost of capital. The Solar Revenue Put has been incorporated into a variety of project financings, ranging from thousands of residential rooftop power plants to centralized utility-scale solar farms. Both refinancing and “new build” financing have been supported by the Put.

“We provide creative renewable energy solutions,” said Richard Dovere, CEO of C2 Energy Capital. “Implementing the Solar Revenue Put in our project financings is not only consistent with our mission, but also helps us to win deals. The Put is quickly becoming an industry standard.”

“As a trusted energy partner delivering reliable and affordable solar PV projects on a stand-alone basis or paired with storage, and an active solar investor, AES Distributed Energy constantly seeks out new tools to support our competitive edge,” said Brian Cassutt, Chief Financial Officer at AES Distributed Energy. “The Solar Revenue Put is a strategic option for sponsors to enhance returns and presents a unique opportunity for lenders to differentiate themselves.”

According to a recent survey of the 50 most active solar lenders (the “Solar Lendscape”), more than 40% of these lenders are now underwriting the Solar Revenue Put as a credit enhancement. Project financings supported by the Put are securing approximately 10% more debt.

“Nomura worked with kWh Analytics on a new build solar farm to come up with a unique solution to meet the owner’s needs,” said Vinod Mukani, Managing Director at Nomura Securities. “The insurance allowed Nomura and the sponsor to create a floor on revenue reducing the risk of resource volatility, enhancing the investment value. The policy was put in place quickly and efficiently at an accretive price point.”

“Managing the cost of capital is a central challenge for every solar investor,” said Justin Fuller, SVP of Renewable Energy Finance at Celtic Bank. “We have successfully combined the strengths of the USDA loan guarantee with the Solar Revenue Put to create a best-in-class offering for project-level debt.”

Using its proprietary actuarial model and risk management software (“HelioStats”), kWh Analytics developed the Solar Revenue Put, a credit enhancement for solar investors, to drive down investment risk and encourage development of clean, low-cost solar energy. Solar Revenue Puts are now set to guarantee production of more than 3 TWh of solar electricity, enough electricity to power every home in America for a day.

“In the solar business, risk is cost,” said Richard Matsui, Founder and CEO of kWh Analytics. “With the Solar Revenue Put, industry-leading sponsors and banks are able to reduce the risk—and therefore the cost—of solar. Less risk, less cost, more solar.”

###

Learn More about us: kwhanalytics.com & kwhanalytics.com/SolarRevenuePut

Media Contact:

Sarah Matsui

sarah.matsui@kwhanalytics.com

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.

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 Anthemis, a leading fintech venture capital firm, ENGIE New Ventures, the venture arm of France’s largest energy company, and the US Department of Energy. For more information about kWh Analytics, please visit: www.kwhanalytics.com or follow us on Twitter @kwhanalytics.

kWh Analytics Closes Solar Revenue Put for 35 MW of Solar Power Projects with IGS Solar, Ares Management, ING, & Swiss Re

Originally posted on BusinessWire, Solar Power World.

SAN FRANCISCO – kWh Analytics, the market leader in solar risk management, today announced that it structured a Solar Revenue Put for a portfolio of 4,000 projects totaling approximately 35 MW DC of capacity located in the Northeast U.S. The facilities are being developed and managed by IGS Solar, a residential and commercial solar provider. The IGS Solar portfolio is being funded by a commitment from Ares EIF, the power and infrastructure strategy at Ares Management, L.P. (NYSE: ARES), a global asset manager, and a term loan commitment from ING Capital LLC (“ING”), a financial services company. Swiss Re, a leading global corporate insurer, is providing capacity for the Solar Revenue Put. Marathon Capital acted as exclusive financial advisor to IGS. This was the first US residential portfolio financed with the support of the Solar Revenue Put.

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 (“HelioStats”), kWh Analytics developed the Solar Revenue Put to drive down investment risk and encourage development of clean, low-cost solar energy.

“We started IGS Solar because we believe in the value of developing alternative sources of energy,” says Mike Gatt, Chief Operating Officer of Distributed Generation at IGS. “To support us in this growth, we were pleased to have found efficient and reliable execution with our partners, ING, Ares, and kWh Analytics. The Solar Revenue Put enables us to both enhance our returns and reduce our downside risk.”

“Starting with our initial investments in 2013, we have continued our leading role as a lender to the residential solar space,” says Scott Hancock, Director at ING. “We are pleased to have incorporated the Solar Revenue Put to support this financing for IGS and Ares.”

A recent survey of the solar industry’s most active lenders indicates that more than 40% of active lenders value the Solar Revenue Put as a credit enhancement. Solar portfolios ranging from thousands of residential rooftops to more than ten utility-scale plants have utilized financing structures supported by the Solar Revenue Put. Portfolios supported by the Solar Revenue Put are securing debt sizing increases of 10% on average.

Swiss Re Corporate Solutions provided the risk capacity for the Solar Revenue Put. Brian Beebe, Head of Origination North America Weather and Energy, Swiss Re Corporate Solutions, says, “Swiss Re is committed to managing carbon-related sustainability risks and supporting the transition to a low-carbon economy. We are actively building our business to support the renewable energy that will power our global future. The Solar Revenue Put represents a new, multi-billion dollar insurtech category.”

###

Learn More about us: kwhanalytics.com & kwhanalytics.com/SolarRevenuePut

Media Contact:

Sarah Matsui

sarah.matsui@kwhanalytics.com

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.

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 IGS Solar
IGS Solar, a turn-key commercial and residential solar provider with significant solar assets under development, provides businesses, homes, and communities with an opportunity to participate in creating a sustainable energy future. As an affiliate of IGS Energy, IGS Solar is dedicated to delivering innovative solar energy solutions. For more information, visit IGS.com or connect with IGS Solar at linkedin.com/company/igs-solar.

About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global alternative asset manager with approximately $125 billion of assets under management as of September 30, 2018 and 18 offices in the United States, Europe, Asia and Australia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its three distinct but complementary investment groups in Credit, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole. For more information, visit www.aresmgmt.com.

Ares EIF is the power and infrastructure strategy within Ares’ Private Equity Group, with a 31-year track record of investing in assets and companies in the power generation, transmission and midstream sectors. Since inception, Ares EIF-managed funds have made approximately 70 equity investments in nearly 130 different power and energy infrastructure assets with a combined underlying enterprise value exceeding $20 billion. During the last 15 years, Ares EIF has invested in nearly 9,000 MW of greenfield generation and transmission projects, as well as 200 miles of greenfield pipeline projects, representing over $11 billion of capital costs.

About ING Capital LLC

ING Capital LLC is a financial services firm offering a full array of wholesale financial lending products and advisory services to its corporate and institutional clients. ING Capital LLC is an indirect U.S. subsidiary of ING Bank NV, part of ING Group (NYSE: ING), a global financial institution of Dutch origin. The purpose of ING Bank is empowering people to stay a step ahead in life and in business. ING Bank’s more than 51,000 employees offer retail and wholesale banking services to customers in over 40 countries.

About Marathon Capital

Marathon Capital is an investment bank focused on the global power and infrastructure markets. Founded in 1999, Marathon Capital has been involved in many pivotal energy transactions and company expansions in the areas of M&A, capital raising, project financing, tax equity and financial restructuring. The firm is headquartered in Chicago, with additional offices in San Francisco, New York and Canada. Marathon Capital is a four time recipient of the “Best Renewable Asset Advisor Award” by Power Finance & Risk.

About Swiss Re Corporate Solutions

Swiss Re Corporate Solutions provides risk transfer solutions to large and mid-sized corporations around the world. Its innovative, highly customised products and standard insurance covers help to make businesses more resilient, while its industry-leading claims service provides additional peace of mind. Swiss Re Corporate Solutions serves clients from over 50 offices worldwide and is backed by the financial strength of the Swiss Re Group. Visit corporatesolutions.swissre.com or follow us on linkedin.com/company/swiss-re-corporate-solutions and Twitter @SwissRe_CS.

The Orange Button ‘gridvolution’: A critical tool for taking the energy transition digital

Originally posted on Smart Electric Power Alliance (SEPA).

Two months ago at the Global Climate Action Summit in San Francisco, decarbonization captured most of the headlines—and for good reason. California Gov. Jerry Brown and former New York City Mayor Michael Bloomberg announced that state, local and business leadership is driving the United States toward its 2025 goals for the United Nations’ Paris climate accord, despite President Donald Trump’s withdrawal from the agreement. The campaign against climate change is gaining momentum.

Meanwhile, at an affiliated event called Gridvolution, several sessions focused on distributed energy resources, including the Orange Button Initiative, a collaborative effort to drive down project soft costs by establishing a standard format for reporting and collecting project data. The U.S. Department of Energy launched the initiative in 2016 with the goal of creating an industry-wide standard similar to the Green Button standard for streamlining consumers’ access to their energy use data.

Led by SunSpec Alliance, the creators of the Gridvolution forum and a principal Orange Button sponsor, the event had no grand proclamations; instead initiative stakeholders rolled out a powerful new set of software tools for solar financiers, project developers and asset managers. The message here: an electric grid evolution, a “gridvolution,” is gathering speed, as well.

Talking Orange Button at the Gridvolution, (from left) Jon Previtali, Wells Fargo; Michelle Savage, XBRL US; Charlie Isaacs, Salesforce; David Sykes, Chapman and Cutler LLP; and Tom Tansy, SunSpec Alliance. (Photo by Matthew Wiseman)

Key takeaways from the event: Moving beyond initial development of the standard, software developers are now major players in the multiplication and sophistication of its potential applications. And, from an initial group of four sponsors, Orange Button has expanded to include 350 companies and more than 1,000 individuals as active participants.

Still, over the past two years, much of the work on Orange Button has taken place behind the scenes. Initially, sponsors partnered with financiers such as Wells Fargo and asset managers such as sPower to demonstrate market demand for the standard, also reaching out to software companies large and small to help identify and shape cost-saving solutions. More recently, the project has entered a new phase, as noted, with software developers delivering the lines of code and functional tools to significantly cut costs on data collection and management for the people who build and invest in solar projects.

The Orange Button data standard itself is an open-source system for codifying solar project data and automating data exchange during project assessments, permitting, financing, interconnection, and other stages of the project lifecycle. Reflecting the complexity and granularity of the information involved, the initial release of the standard — Orange Button 1.0 — contains about 4,200 data fields.

Access Orange Button 1.0 at the SunSpec Alliance website.

Soon after releasing version 1.0, members of the Orange Button workgroup set their sights on adding project documents to the standard’s open-source, digital library, starting with manufacturer data sheets. Also known as spec sheets or cut sheets, a data sheet reports a product’s key specifications, including dimensions, electrical characteristics, and third-party certifications. Adding data sheets to Orange Button enabled inverter manufacturers to report compliance with California’s newly revised interconnection standard, Rule 21, highlighting one of many use cases.

Gridvolution panel on Orange Button code, (from left) Jan Rippingale, Blue Banyan Solutions; Jonathan Xia, kWh Analytics; and Jessie Deot and Tom Tansy, both of SunSpec Alliance. (Photo by Matthew Wiseman)

More recently, kWh Analytics introduced Orange Button Translate, software that takes proprietary project data and converts it to the Orange Button standard, moving the market one step closer to deploying data interoperability at scale.

“The reason Orange Button has developed faster than many of us had anticipated is the high rate of industry participation,” said Jan Rippingale, CEO at Blue Banyan Solutions, which provides business software for solar firms. “Given the strength of the developer community and the results we have already achieved, it’s only a matter of time before we see soft cost reductions attributable to the Orange Button standard.”

Raising the bar on industry IT

When the Department of Energy launched the the Orange Button Initiative with a grant in 2016, inefficient data gathering and management practices were slowing market growth. Some financiers reported spending hundreds of dollars an hour for lawyers to review project agreements and tens of thousands of dollars on due diligence before they could finalize projects. Data standards improve growth potential for everyone.

As an open-source software project, Orange Button has continually raised the bar on information technology (IT) capabilities throughout the industry. One benefit, asset managers no longer have to expend resources creating proprietary systems for tracking and reporting on solar performance evaluations. They can use the classification system in the Orange Button standard, which was developed by a team of industry experts, including a performance engineering manager at sPower, the largest private owner of operating solar assets in the US.

Machine-readable data sheets

In July, California updated the smart inverter requirements in its Rule 21 interconnection regulations, ordering grid-tied inverters to activate more of their built-in grid-stabilizing features. Without data standards, rule changes like this can create inefficient processes for many organizations. Inverter makers would have to produce new versions of their product data sheets, and utilities responsible for grid interconnection would have to collect the updated data sheets and enter the compliance information into their IT systems.

With the Orange Button data standard, inverter makers can streamline compliance reporting, which simplifies data collection for utilities. In fact, Orange Button makes it possible to reduce data collection costs by making data sheets and other project documents machine readable. Clean Power Research has demonstrated this capability by using Orange Button data to report an updated list of Rule 21-compliant solar equipment to California utilities.

Translating legacy data

One of the biggest anticipated barriers to adoption of the Orange Button standard is migrating legacy data to Orange Button data. kWh Analytics has taken the first step toward solving for this problem with the release of Orange Button Translate. This publicly available, proof-of-concept software allows users to fill in Excel spreadsheets with production data, solar array metadata, and solar system metadata, then upload the data to generate Orange Button-compatible files.

“We support Orange Button because it will reduce the cost for risk managers to monitor key metrics,” said Jason Kaminsky, chief operating officer at kWh Analytics.“ Orange Button Translate is the first piece of software designed exclusively to support the new data standards.”

What’s next?

Looking ahead, software developers are continually working to improve the Orange Button data standard through public and online meetings of the Orange Button workgroup, and occasional in-person programming sessions. SunSpec Alliance hosted the latest active coding session, or hackathon, Nov. 7-8 at its offices in San Jose. The event served as a kickoff for the Orange Button core library, a set of programming files that will be included in all implementations of Orange Button software.

“Energy is the last fundamental industry to go digital because it hasn’t had communications standards like Orange Button to streamline data exchange,” said Tom Tansy, chairman of SunSpec Alliance. “Cost reductions for solar hardware have defined the past ten years in the solar industry. The next ten years will be remembered for our ability to drive down soft costs using data standards.”

kWh Analytics Wins $1.25MM U.S. Department of Energy Award to Quantify Degradation Rates and Increase the Affordability of Solar

Originally posted on BusinessWire and Solar Power World.

SAN FRANCISCO – kWh Analytics, the market leader in solar risk management, has won a $1.25 million award from the U.S. Department of Energy Solar Energy Technologies Office (SETO) to utilize its real-world data to quantify degradation rates and increase the affordability and reliability of photovoltaics.

Today’s state-of-the-art study of degradation is constrained by the lack of real-world performance data. With this award, kWh Analytics will build a machine learning model on its industry-wide data repository to statistically quantify degradation rates on an ongoing basis. The project is titled, “Deciphering Degradation: Machine Learning on Real-World Performance Data,” and will be led by kWh Analytics Data Scientists Ben Browne, Victor Garcia, and Adam Shinn (Principal Investigator).

Understanding degradation rates is important for the PV industry, along the entire value chain. According to the 2018 SETO PV Innovation Roadmap, a DOE-conducted survey of 89 companies and researchers, better understanding of the degradation rate was cited as the single biggest need under “Reliability and Durability,” which itself was the most popular issue amongst all categories. According to NREL’s 2016 Compendium of Photovoltaic Degradation Rates, the uncertainty in degradation has a total potential impact of $17/MWh, “even exceeding the impact of the initial cost” of the solar power plant itself.

Degradation rates have far-reaching implications, stretching from BOM decisions made at the module factories to financial assumptions made at the banks. Experts from manufacturing and finance attest to the importance of kWh Analytics’ work to quantify degradation rates:

“kWh Analytics’ approach of using its historical data to deeply understand and quantify degradation can have a significant positive impact on the industry,” said Howard Wenger, clean power investor and former President and CEO of SunPower Systems (NASDAQ: SPWR). “The lack of long-term solar panel performance data has been a real challenge because buyers of inferior panels have been unable to readily know the difference in quality between the various products on the market. With data on one-in-five American solar assets and growing, kWh Analytics is uniquely positioned to address this industry-wide challenge and enable the solar industry to accurately price quality and inform buyers on how to value their solar power assets before and after purchase.”

“kWh Analytics is recognized as an industry expert on PV plant performance, and they have been instrumental in the effort to make solar affordable and brought to scale,” said Jon Previtali, Director of Technology and Technical Services for Wells Fargo’s Environmental Finance team. “kWh Analytics’ quantification of degradation rates using 10+ years of historical performance data will help investors better inform our energy production estimates, project proformas and investment theses.”

Further, kWh Analytics also intends to equip insurers with insights that enable them to identify reliable modules and charge less when insuring them. The introduction of that price signal—explicitly linking module reliability to levelized cost of energy (LCOE) through intelligent insurance premium pricing—is an innovative approach that solves a fundamental incentive misalignment for the industry.

With SETO’s support, kWh Analytics’ work to quantify degradation rates will create systemic, scalable impact by:

  • Delivering real-world perspective on the causes of degradation, enabling the industry to improve reliability.
  • Creating a price signal that puts a tangible dollar value on high reliability, via insurance premium pricing.
  • Contributing to the open source community by sharing the proposal’s resulting machine learning model.

###

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 Anthemis, ENGIE New Ventures, and the US Department of Energy. For more information about kWh Analytics, please visit: www.kwhanalytics.com or follow us on Twitter @kwhanalytics.

About the Solar Revenue Put

The Solar Revenue Put is backed by investment-grade insurance capacity that guarantees up to 95% of a solar project’s expected energy output. kWh Analytics’ wholly-owned broker has placed the policy with Swiss Re, a global insurer rated AA- 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.

About the Solar Energy Technologies Office
The U.S. Department of Energy Solar Energy Technologies Office supports early-stage research and development to improve the affordability, reliability, and performance of solar technologies on the grid. Learn more at energy.gov/solar-office.

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.

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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.

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.