kWh Analytics announced it has structured its Solar Revenue Put credit enhancement on over $500 million of solar assets.
Rapid adoption of the Solar Revenue Put highlights kWh Analytics’ usage of data analytics and financial innovation to successfully lower the cost of solar.
With the Solar Revenue Put, industry-leading sponsors have been able to increase IRRs by 30+ bps, improve bids by up to 5% and free up cash availability. Notable sponsors include Coronal Energy, Ares EIF and AES Distributed Energy.
The Solar Revenue Put has also emerged as a powerful tool for solar lenders, enabling market leaders to differentiate themselves, help their clients succeed, and gain a valuable credit enhancement. According to a 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.
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.
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. Solar Revenue Puts are now set to guarantee production of more than 6 TWh of solar electricity, enough electricity to power every home in America for over a day.
“The Solar Revenue Put has quickly become a market standard,” 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.”