Solar Revenue Put

De-Risking the Future: kWh Analytics, Arava Power, Paz Oil, Menora Mivtachim and Nomura Partner on Solar Investment

Originally posted on Business Wire

Solar Revenue Put production insurance supports Arava Power, Paz Oil and Menora’s US solar debut in a $200m senior secured credit facility lead by Nomura.

SAN FRANCISCO--kWh Analytics, the market leader in Climate Insurance, today announced a partnership with Arava Power, Paz Oil and Menora Mivtachim to provide production insurance to optimize debt terms on a 270MWdc utility-scale solar project in Uvalde County, TX.

Arava Power, Paz Oil and Menora Mivtachim utilized the Solar Revenue Put from kWh Analytics to de-risk their solar investment in the United States and enhance the project’s financial success. The Solar Revenue Put is an insurance policy covering solar production to provide protection against downside risk. The policy allows asset owners to achieve more favorable financing terms via additional debt or optimized loan terms, providing sponsors with greater financial flexibility and stability.

“At kWh Analytics, our goal is to provide sponsors and lenders with the tools and resources they need to confidently invest in the renewable energy sector,” said Jason Kaminsky, CEO of kWh Analytics. “The Solar Revenue Put is a game-changer, offering an uplift in return on investment and reducing the risks associated with solar performance. We are thrilled to partner with Arava Power, Paz Oil and Menora Mivtachim on this venture, and are proud to be at the forefront of renewable energy investing in the US.”

Nomura led the debt financing as sole Coordinating Lead Arranger and Sole bookrunner, arranging an approximately $200 million senior secured credit facility on behalf of Arava Power, Paz Oil Ltd and Menora Mivtachim. This financing is a landmark transaction for the consortium with the project. Nomura assembled a syndicate of international lenders which includes Siemens Financial and BHI. Snapper Creek Advisors, a boutique energy advisory firm, is providing commercialization and financial consulting to the sponsors.

“We are proud to have achieved financial closing on the exceptional Project Sunray, together with our remarkable partners, Paz Oil and Menora Mivtachim,” said Arava Power CEO, Ilan Zidkony. “This Project represents the first step in our broader US expansion strategy, and we are honored by the trust and partnership of our financing partners – Nomura, BHI, Bank Hapoalim, and Siemens Financial who have helped us reach this important milestone. We were delighted to be able to work with kWh Analytics on this project, their support and professionalism were first-class, and we look forward to working together on future projects.”

“We are proud and satisfied to reach full financial close and start construction for this substantial and unique solar PV project,” said Hagai Miller of Paz Oil. “By mid-next year, we expect this project to be in full operation, producing enough electricity to power tens of thousands of households in the area. We would like to thank our excellent partners, Arava Power Company and Menora Mivtachim group and to our remarkable financing partners who put their trust in us and into this project – Nomura, Bank Hapoalim, and Siemens Financial.”

Vinod Mukani, Global Head of Nomura’s Infrastructure and Power Business (“IPB”) commented, “We are very pleased to leverage our global financial and intellectual expertise to provide a bespoke funding and financing solution to support Arava Power, Paz Oil and Menora Mivtachim as they enter the United States market. Providing superior execution in growing sectors, like renewable energy, for excellent Sponsors like these, aligns perfectly within Nomura’s business strategy and goals.”

“Nomura is excited to provide a unique financing package supporting the funding of this important project in the US for Arava Power, Paz Oil and Menora, who have talented teams and a compelling business strategy contributing toward the transition of low carbon economy,” said Alain Halimi, Executive Director of Nomura’s IPB. “We appreciate the support and creative approach from the kWh team assisting in enhancing the project’s structure and mitigating lenders’ downside risk.”

The United States has become an increasingly attractive location for international renewable energy sponsors, with growing demand for clean energy and a supportive regulatory environment. However, making long-dated investments in such a rapidly evolving industry can expose investors to risks. The Solar Revenue Put credit enhancement provides a solution for these risks by insuring the revenue generated, increasing investor confidence in renewable energy projects and their returns. This, in turn, helps to drive the growth of renewable energy and supports the transition to a clean grid.

ABOUT Arava Power

Arava Power Company (APC) is a solar Developer / IPP that pioneered utility scale photovoltaics in Israel; developing, owning and operating hundreds of megawatts over the past 15 years.

APC’s profound expertise and years of experience have allowed it to build one of the most profitable portfolios in the industry, maintaining and improving performance through excellence in development, technological innovation and advanced asset management operations.

Today, APC holds a multi-GW development portfolio in Israel and the U.S., across utility scale PV and BESS, Agri-Voltaics and Distributed Energy Systems.

Since the earliest days of the solar industry, APC has been at the forefront of the energy transition, delivering on the promise of clean, sustainable energy to power our planet’s future.

ABOUT Paz Oil Group (TLV: PZOL)

Founded in 1922 and based in Israel, Paz (TASE: PZOL; ilA+) is one of the largest energy companies in Israel, focusing mainly on fuel retail, LPG, real estate, food & convenient retail, renewables, EV charging.

Paz is a public company whose shares are traded in the Tel Aviv Stock Exchange, and it is listed on the TASE's flagships indexes, which tracks the shares of the companies with the highest market capitalization in the stock exchange.

Paz is the largest gas retailer in Israel with about 270 gas stations and convenience retail locations and more than 60 supermarkets in the center of the cities, which is one of the leaders in Israel. Further, Paz has annual revenue of 5.3$bn, total assets of 4.5$bn and a market capitalization of over 1.3$bn. Paz is currently increasing its dedication to the energy transition infrastructure sector by beginning to install EV charging stations to its existing convenience and gas stations, receiving licenses to supply electricity to a large share of households in Israel using its hundreds of thousands existing LPG clients alongside with using the company's knowledge for recruiting new clients, and through its acquisition of supermarkets, expanding its retail of food and energy business.

In the renewable sector, Paz Group is establishing a global RES activity focusing on utility scale solar, onshore wind and storage solutions in Europe/US and expand into neighboring countries. In Israel, Paz is focusing to become a customer-centric player in the IL electricity market by providing a variety of solutions to its customers, incl. energy and electricity, mainly to the Industrial, commercial and residential sectors.

The Group's financial resilience, combined with advanced work methods, a highly developed service orientation and the ability to zero in on marketing opportunities, have positioned Paz as one of Israel's top companies, with a reputation for professionalism and leadership.

More about Paz at https://www.paz.co.il/en-US/home

ABOUT Menora Mivtachim

Menora Mivtachim Holdings Ltd. is one of Israel's five largest insurance & finance groups. The group specializes in asset management, manages the largest pension fund in Israel – ‘Menora Mivtachim pension and gemel', and is the largest General Insurer in Israel and the market leader in Motor Insurance sector. The group operates through its subsidiaries, in all sectors of Life Insurance, Long/Mid/Short-Term Savings, General Insurance and Health Insurance. In addition, the group is active in the capital markets and finance sectors, including Mutual Funds Management, Financial Portfolio Management, Underwriting and worldwide real estate investments.

ABOUT Nomura

Nomura is a global financial services group with an integrated network spanning over 30 countries and regions. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Retail, Investment Management, and Wholesale (Global Markets and Investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com.

ABOUT kWh Analytics

kWh Analytics is a leading provider of Climate Insurance for zero carbon assets. Utilizing their proprietary database of over 300,000 operating renewable energy assets, kWh Analytics uses real-world project performance data and decades of expertise to underwrite unique risk transfer products on behalf of insurance partners. kWh Analytics has recently been recognized on FinTech Global’s ESGFinTech100 list for their data and climate insurance innovations. The Solar Revenue Put production insurance protects against downside risk and unlocks preferred financing terms, and Property Insurance offers comprehensive coverage against physical loss. These offerings, which have insured over $4 billion of assets to date, aim to further kWh Analytics’ mission to provide best-in-class Insurance for our Climate. To learn more, please visit https://www.kwhanalytics.com/, connect with us on LinkedIn, and follow us on Twitter.

Contacts

Nikky Venkataraman
Marketing Manager
E | nikky.venkataraman@kwhanalytics.com
T | (720)-588-9361

Solar asset underperformance hurts equity owner's bottom line

Full article available on PVTech.

“Last year analysis by renewables performance aggregator and insurance provider kWh Analytics highlighted the extent of solar asset underperformance against P50 estimates in the US. Here, the company’s Sarath Srinivasan details some of the reasons behind that underperformance.”


kWh Analytics Closes Solar Revenue Put for 225 MW of Solar Power Project with HSBC, Citi, and National Bank of Canada

SAN FRANCISCO -- kWh Analytics, the leader in Climate Insurance, today announced the largest new-build, utility-scale solar project supported by the Solar Revenue Put. The solar project, located in Virginia and owned and operated by The AES Corporation (NYSE: AES), totals approximately 225 MW DC of capacity. The Virginia project is being financed by HSBC, Citi, and National Bank of Canada.

The Solar Revenue Put is structured as an insurance policy on solar production and revenue, providing protection against downside risk. The policy also serves as a credit enhancement for financial investors, allowing asset owners to achieve more favorable financing terms. 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.

A recent survey of the solar industry’s most active lenders indicates that more than 60% of the active lenders in the solar market value the Solar Revenue Put as a credit enhancement. Notably, these lenders are now offering the Solar Revenue Put proactively in their financing bids. In total, more than 2.5 GW of solar assets, including both operating and new-build utility-scale and distributed generation portfolios, have utilized financing structures supported by the Solar Revenue Put. The Solar Revenue Put has increased the amount of debt raised against assets by 10% on average.

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

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 leading provider of Climate Insurance by using our proprietary database of renewable energy project performance of over 300,000 operating assets -- the world's largest database -- to underwrite insurance policies for renewable energy, backed by the world’s most trusted insurers. To-date, we have insured over $3 billion of American solar power plants with our first insurance product, the Solar Revenue Put. kWh Analytics is funded by venture capital and the US Department of Energy. To learn more, please visit www.kwhanalytics.com, connect with us on LinkedIn, or follow @kWhAnalytics on Twitter.

kWh Analytics Closes First 20-Year Solar Revenue Put+

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SAN FRANCISCO – kWh Analytics, the Insurer for the Energy Transition, today announced that it structured the first-ever Solar Revenue Put+, which will provide 20 years of Solar Revenue Put protection, for a project located in the Southern U.S. The project is being funded through a private bond placement. SwissRe, a leading global corporate insurer, is providing insurance capacity for the Solar Revenue Put+. This deal represents the longest solar generation guarantee in the industry and the second bond deal structured with the Solar Revenue Put.

The Solar Revenue Put is a solar production and revenue insurance policy, 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. The Solar Revenue Put+ is an innovative new offering that extends Solar Revenue Put coverage from the typical ten years to up to 30 years, or the full amortization period of a project.

“The Solar Revenue Put+ allows asset owners to achieve the benefits of the Solar Revenue Put across a project’s entire life,” said Richard Matsui, Chief Executive Officer at kWh Analytics. “This means it’s easier than ever to achieve a lower cost of capital and reduce downside risk, even for uncontracted portions of the lifecycle.”

A recent survey of the solar industry’s most active lenders indicates that a majority of active lenders value the Solar Revenue Put as a credit enhancement. Solar portfolios ranging from thousands of residential rooftops to 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, while mitigating downside risk. The Solar Revenue Put+ offering extends these debt sizing and risk mitigation benefits by an additional 5 to 20 years, across the project’s full lifecycle.

For more information about this product, please contact Sarath Srinivasan, Head of Risk Transfer Products at kWh Analytics. 

About kWh Analytics   

kWh Analytics is Insuring the Energy Transition by leveraging the most comprehensive performance database of renewable energy projects in the United States (300,000+ operating assets) and the strength of the global insurance markets. Through the industry-leading Solar Revenue Put, asset owners and lenders 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. 

Learn More: www.kwhanalytics.com & https://www.kwhanalytics.com/solarrevenueput 

Follow Us on Twitter: @kwhanalytics 

Connect with Us on LinkedIn: https://www.linkedin.com/company/kwh-analytics/mycompany/

SOLAR REVENUE PUT CLAIM PAID FOR TEXAS SOLAR PROJECT IMPACTED BY STORM URI

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kWh Analytics achieved another Solar Revenue Put milestone with a recent claim paid to a leading solar asset owner for a utility-scale project in Texas. This represents the sixth claim; all have been paid in full and within 30 days for the over $3 billion in solar assets insured with the Solar Revenue Put. Notably, the Solar Revenue Put typically insures projects for ten years with an annual settlement, meaning the product has paid out a significant portion of claims in its 34 total completed operating years. 

“Our claims track record demonstrates that the Solar Revenue Put works as advertised: it ensures that asset owners can recoup any losses insured by the Put through a quick and easy claims process, insulating their projects from negative financial impacts,” said CEO, Richard Matsui.

This particular asset owner structured the Solar Revenue Put on the project in  2018 to guarantee production for ten years. In Q1 of 2021, the project underperformed its production estimates due to a combination of overly aggressive production estimates and the impacts of Storm Uri. kWh Analytics’ quick claims process allowed the asset owner to issue their quarterly debt service payment. This claim illustrates the Solar Revenue Put’s ability to protect against all risks, including extreme weather, such as wildfires and severe storms.

For additional details on this claim, please contact Sarath Srinivasan, Head of Risk Transfer Products. For more information about our claim track record, download our claims case study here.

kWh Analytics expands Solar Revenue Put team

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kWh Analytics has expanded its team to accelerate the adoption of the Solar Revenue Put with the addition of Sam Barton, Colin Schneider, and Alex Deng, three experienced business development professionals with significant knowledge of renewable energy project finance.

“2020 set a new record for market adoption of the Solar Revenue Put, which we believe will be exceeded in 2021. We are expanding our team to meet the needs of our clients within the hyper-competitive solar industry,” said Richard Matsui, Chief Executive Officer. “Our new hires’ insights will help advance the growth of the Solar Revenue Put and kWh Analytics’ position as the insurer for the Energy Transition.”

Sam Barton joined kWh Analytics from Silicon Valley Bank (SVB), where he served as Vice President of Project Finance. Previous to SVB, Sam held roles at Tesla and SolarCity, supporting structured finance for renewable energy projects. Sam brings over 10 years of experience in solar project finance and business development. He holds a BS in Environmental Engineering from the University of California, San Diego.

Colin Schneider joined kWh Analytics after serving as the Head of Solar Acquisitions at Gardner Capital and the Vice President of the Renewable Energy Infrastructure Group at Bridge Bank, a group he helped found. Colin has a wealth of experience leading the development of millions of dollars of solar assets over 10 years. He holds a BS in Finance from Santa Clara University.  

Alex Deng joined kWh Analytics from Advanced Power where he supported project finance, acquisitions, and development. Before Advanced Power, Alex worked at Soltage and the Glenfarne Group, supporting renewable energy project development and asset management. He also holds a BA in Economics from New York University. 

For more information on the kWh Analytics team, visit https://www.kwhanalytics.com/.

Norton Rose Fulbright's Project Finance NewsWire

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Originally posted in NRF’s Project Finance NewsWire April 2021 edition by Keith Martin.

About 15% of US solar projects will reach the end of the recapture period for investment tax credits this year, presenting opportunities for private equity and pension funds looking to buy assets and for lenders looking to do refinancings. Many US solar projects are financed in the tax equity market.

Tax equity accounts for roughly 35% of the capital stack in a typical solar project, plus or minus 5%. A sale of a project within the first five years after it is put in service will cause part of the investment tax credit claimed on the project to have to be repaid to the US Treasury. This lock-in effect makes it hard to sell such projects directly for at least five years. However, private equity and pension funds can still buy the developer interest without triggering significant recapture in cases where projects have been financed with tax equity to the extent the tax equity papers allow the developer to shed its interest during that period. The sale of the developer interest usually triggers recapture at most of only 1% of the investment tax credit claimed.

kWh Analytics expects more refinancings of large solar projects in the next few years as solar projects that were installed in the last five years start to roll off tax equity financings. Its Lendscape survey of solar project finance lenders in March found that little to none of their business in 2020 was refinancings. About 14,000 megawatts of projects were put in service in 2016. Seventy-nine percent of lenders surveyed said that their spreads on loans are currently at or below pre-COVID levels.

Norton Rose Fulbright's Currents Episode 149 - 2020 Lendscape Updates: the Refinancing Boom

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Our CEO, Richard Matsui, joins NRF Currents for an update on the Solar Lendscape. He covers what is new in tax equity, gives a breakdown of three trends he is seeing on the lender side and an update on the underperformance of solar projects that was uncovered in the Solar Generation Index, explains how underperformance might affect refinancing and more.

Solar Revenue Put featured in New Energy Nexus Climate Fintech report

Full Climate Fintech Report available at New Energy Nexus.

“The Solar Revenue Put is a credit enhancement that guarantees the performance of solar assets. It was invented by kWh Analytics, a firm that conducts risk analysis and due diligence on solar project development. Over a 12-year period, kWh aggregated the performance of hundreds of solar projects around the country, resulting in enough data to create an actuarial model and price the risk of consistent solar revenues. With this vast amount of data in hand, they worked with Swiss Re, one of the largest reinsurance firms in the world, to create a product which would guarantee solar revenues regardless of the volatility of energy prices and varying production due to weather fluctuations. “These things take a long time, and the finance community hates new things. But if you can show that risk is mispriced, and offer a product that pencils for the end customer, there is tremendous potential to change how long these projects take,” explains Richard Matsui, CEO of kWh. “The Product improves lender terms by de-risking the asset with an insurance-backed production guarantee for up to 95% ofexpected energy output. This is the tip of the iceberg; there is still untapped opportunity for firms to look at insuring the floor of electricity prices as they drop, or wind resources hedging such as a proxy revenue swap. This space is ripe for additional product creation and innovation.” Investors have long sought assurance that solar power plants will perform as promised. With kWh Analytics and Swiss Re now protecting their investments, stakeholders are better able to deploy the hundreds of billions of dollars that the solar industry requires the coming years.”

Solar Revenue Put Transaction Structured on 33MW DC of Solar Power Projects with IGS Solar, ING, & kWh Analytics

Originally posted on BusinessWire. Additional coverage in North American Clean Energy and InsurTech News.

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 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 .  Back-leverage is being provided by ING Capital LLC (“ING”), a US- based financial services company. Swiss Re Corporate Solutions, a leading global corporate insurer, is providing capacity for the Solar Revenue Put.

The Solar Revenue Put supported a financing with IGS Solar (a division of IGS Energy), ING and others in November 2018 for a 30 MW portfolio of 4,000 projects located in the Northeast U.S., and again for another financing with IGS Solar, ING, and others in April 2020 for a 30 MW portfolio of 4,000 projects.

The Solar Revenue Put is structured as an insurance policy on solar production and PPA 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 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,” says 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, portfolios supported by the Solar Revenue Put are securing debt sizing increases of 10% on average. The Solar Revenue Put has been structured on over $1 billion of solar assets, and a survey of the solar industry’s most active lenders indicates that more than 50% of active lenders value the Solar Revenue Put as a credit enhancement. The Solar Revenue Put 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.

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

kWh Media Contact:

Sarah Matsui

sarah.matsui@kwhanalytics.com

 

IGS Energy Media Contact:

David Gilligan

David.Gilligan@igs.com

614.659.5422 (o) | 614.787.6094 (m)

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 developer with significant solar assets deployed and under management, provides businesses, homes, and communities with an opportunity to participate in creating a sustainable energy future. As an division 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 IGS Energy

IGS Energy is a private energy company that believes it’s both capable and obligated to fight climate change and to promote sustainability and energy independence. The company serves more than 1 million homes and businesses nationwide, offering sustainable technologies and services, including 100% renewable electricity, carbon-neutral natural gas, solar energy systems, and other energy-efficiency products.

IGS Energy empowers consumers to source and manage their energy and protect their homes’ appliances and utility lines. 

The company is committed to a sustainable energy future for a healthier planet. The belief in Conscious Capitalism and a purpose beyond profit prioritizes the needs of IGS Energy’s customers, employees and the planet. For more information visit www.igs.com.

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 Groep NV (NYSE: ING), a global financial institution with a strong European base. The purpose of ING is empowering people to stay a step ahead in life and in business. ING’s more than 53,000 employees offer retail and wholesale banking services to customers in over 40 countries. Please note that neither ING Groep NV nor ING Bank NV have a banking license in the U.S. and are therefore not permitted to conduct banking activities in the U.S. 

About Swiss Re Corporate Solutions

Swiss Re Corporate Solutions provides risk transfer solutions to large and mid-sized corporationsaround the world. Its innovative, highly customised products and standard insurance covers helpto make businesses more resilient, while its industry-leading claims service provides additionalpeace of mind. Swiss Re Corporate Solutions serves clients from offices worldwide and isbacked by the financial strength of the Swiss Re Group. Visit corporatesolutions.swissre.com orfollow us on linkedin.com/company/swiss-re-corporate-solutions and Twitter @SwissRe_CS.

World Bank Report ‘Enabling Institutional Investment in Climate Smart Infrastructure’

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Full report available on The World Bank.

A new World Bank report on renewable investment and climate change, "Enabling Institutional Investment in Climate Smart Infrastructure," highlights the Solar Revenue Put in a case study on refinancing on better terms.

“Refinancing and securitization can create opportunities not only for lenders to free up capital so that they can finance additional greenfield projects, but also to create ways for institutional investors who may lack the capacity or ability to invest directly in projects that support climate-smart infrastructure. New financial products can help further unlock value when used to refinance climate-smart infrastructure (kWh Analytics 2019).”

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kWh Analytics Closes a Solar Revenue Put with Capital Dynamics, Commonwealth Bank of Australia, Rabobank, and Swiss Re Corporate Solutions

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Originally posted on BusinessWire. Additional coverage in Reinsurance News, Solar Power World, Solar Quarter, Solar Builder.

SAN FRANCISCO – kWh Analytics, the market leader in solar risk management, today announced that it structured a Solar Revenue Put as part of the refinancing of the 173 MW DC Cal Flats 130 photovoltaic facility located in Monterey County, California. 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 for the Cal Flats facility.

The facility is owned and operated by Capital Dynamics, an independent global private asset management firm focusing on private assets including private equity, private credit, and clean energy infrastructure. The refinancing was led by Commonwealth Bank of Australia (CBA), Australia's leading provider of integrated financial services and among the leading arrangers of renewable energy projects in the U.S., Europe and Australia; and Rabobank, a leading global bank focused on the food, agribusiness, commodities and renewable energy industries. Swiss Re Corporate Solutions, a subsidiary of Swiss Re, the world’s largest reinsurer, is providing capacity for the Solar Revenue Put. This is the first syndicated refinancing utilizing the Solar Revenue Put.

“Capital Dynamics is a leader in clean energy investing and is focused on helping its customers affordably and reliably meet their sustainable energy needs. Community solar farms bring renewable energy to our customers while saving them money on their electric bills,” said Benoit Allehaut, Managing Director of Capital Dynamics’ Clean Energy Infrastructure team. “The Solar Revenue Put helps sharpen our competitive edge by enhancing our returns and reducing our downside risk.”

“As a leading renewable energy financier and customer-focused institution, we’re pleased to continue our support of Capital Dynamics as they deploy innovative renewable energy solutions for communities in the U.S.,” said Alain Halimi, Director of Natural Resources & Energy at Commonwealth Bank of Australia. “Capital Dynamics is one of the largest solar developers in the U.S.; the strong collaboration between Capital Dynamics, CBA, and Rabobank, and the expertise of  kWh Analytics, enabled us to deliver a groundbreaking financing for Capital Dynamics and the market.”

“Rabobank has a strong commitment to driving the energy transition in North America and is very excited to continue the partnership with Capital Dynamics, one of the leading developers and operators in the renewable energy space,” said Greg Hutton, Head of Project Finance Americas at Rabobank. “We always focus on working with our clients to execute the solutions that best fit their needs, and were thrilled to collaborate with Capital Dynamics and the other financing parties in delivering a robust and efficient financing package.”

Across the industry, portfolios supported by the Solar Revenue Put are securing debt sizing increases of 10% on average. The Solar Revenue Put has been structured on over $1 billion of solar assets, and a survey of the solar industry’s most active lenders indicates that more than 50% of active lenders value the Solar Revenue Put as a credit enhancement. The Solar Revenue Put has now 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.

 

###

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 Capital Dynamics

Capital Dynamics is an independent global asset management firm focusing on private assets including private equity, private credit, and clean energy infrastructure. Capital Dynamics’ Clean Energy Infrastructure (CEI) is one of the largest renewable energy investment managers in the world with USD 6.5 billion AUM[1], and has one of the longest track records in the industry.

The CEI strategy was established to capture attractive investment opportunities in the largest and fastest growing sector of global infrastructure – proven renewable energy technologies, with a focus on utility-scale and distributed generation solar, wind, and storage. The CEI platform’s dedicated asset management business provides highly-specialized services to ensure optimal performance and value from projects. The CEI strategy currently manages 7.3 GW of gross power generation across more than 100 projects in the United States and Europe[2], and is one of the top 3 global solar PV owners[3].

Since the CEI platform’s inception in 2010, over 13 million metric tons of greenhouse gas emissions have been avoided as a result of the firm’s renewable investments[4]. This is equivalent to the power needed to supply more than 2 million homes or passenger vehicles for one year. In 2019, the CEI strategy received top rankings from GRESB (the ESG benchmark for real assets) for commitment to sustainability, and was awarded Global PE Energy Firm of the Year by Private Equity International. For more information, please visit: www.capdyn.com.

 

About Commonwealth Bank of Australia

The Commonwealth Bank (ASX:CBA) is one of Australia’s leading providers of personal banking, business and institutional banking and share broking services. With 17.4 million customers and a history spanning more than a century, the Group’s purpose is to improve the financial wellbeing of its customers and communities. The Commonwealth Bank is Australia’s leader in digital banking and maintains the largest branch network across the country. Headquartered in Sydney, Australia the Bank operates brands including Bankwest in Australia and ASB in New Zealand. For more information on Commonwealth Bank, visit www.commbank.com.au.

 

About Rabobank  

Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, and real estate services in more than 40 countries worldwide. Founded over a century ago, Rabobank today is one of the world’s largest banks with over $640 billion in assets. In the Americas, Rabobank Wholesale Banking is a premier corporate and investment bank to the food, agribusiness, commodities and renewable energy industries, providing sector expertise, strategic advisory and tailored financial solutions to clients across the entire food value chain. Additional information is available on our website or on our social media platforms, including Twitter and LinkedIn.

 

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 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.

[1] Capital Dynamics as of March 31, 2020. Includes assets in renewable energy projects managed by Capital Dynamics, including USD 3.7bn assets under discretionary management and USD 2.4bn tax equity assets. Tax equity is a financing solution for renewable energy projects. Capital Dynamics makes no representation as to future size or growth of the CEI program.

[2] As of January 31, 2020.

[3] As of February 4, 2020.

[4] Environmental benefits are based on US Environmental Protection Agency Greenhouse Gas Equivalencies Calculator.

First Repeat Solar Revenue Put Transaction structured on 32MW DC of Solar Power Projects with IGS Solar, ING, & kWh Analytics

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Additional coverage in: PV Magazine USA, Solar Power World, Reinsurance News.

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 30 MW DC of capacity located in the Northeast, Florida and California. The facilities are being developed and managed by IGS Solar, a residential and commercial solar developer. The IGS Solar portfolio is being funded by ING Capital LLC (“ING”), a financial services company. Swiss Re Corporate Solutions, a leading global corporate insurer, is providing capacity for the Solar Revenue Put.

This is the first publicly announced repeat closing with the Solar Revenue Put. The Solar Revenue Put supported a financing with IGS Solar, ING and others in November 2018 for a 30 MW portfolio of 4,000 projects located in the Northeast U.S.

The Solar Revenue Put is structured as an insurance policy on solar production and PPA 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 have again found efficient and reliable execution with our partners, ING, and kWh Analytics. The Solar Revenue Put enables us to both enhance our returns and reduce our downside risk,” says Mike Gatt, Chief Operating Officer of Distributed Generation at IGS. “kWh Analytics has proven out a reliable claims process for the Solar Revenue Put, enabling cashflow certainty.”

“We are pleased to have incorporated the Solar Revenue Put to support a second financing for IGS,” says 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.”

A recent survey of the solar industry’s most active lenders indicates that more than 50% 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.

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

kWh Media Contact:

Sarah Matsui

sarah.matsui@kwhanalytics.com

 

IGS Media Contact:

David Gilligan

David.Gilligan@igs.com

614.659.5422 (o) | 614.787.6094 (m)

 

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 developer 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 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 Groep NV (NYSE: ING), a global financial institution with a strong European base. The purpose of ING is empowering people to stay a step ahead in life and in business. ING’s more than 53,000 employees offer retail and wholesale banking services to customers in over 40 countries. Please note that neither ING Groep NV nor ING Bank NV have a banking license in the U.S. and are therefore not permitted to conduct banking activities in the U.S. 

 

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 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.

Swiss Re Inks Agency Agreement with kWh Analytics

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Originally posted on Power Finance & Risk.

Solar data and risk management firm kWh Analytics has signed an agency agreement with Swiss Re Corporate Solutions.

The contract formalizes the cooperation between kWh Analytics and Swiss Re, which has already underwritten several solar revenue puts provided to solar project developers since the risk mitigation tool was pioneered in 2017.

Agency agreements typically define the ownership of renewals, commission percentages, and duties and responsibilities of an insurance provider and agent.

Swiss Re has underwritten solar revenue puts brokered by kWh Analytics for clients including GCL New Energy and IGS Solar (PFR 8/29/18, 11/19/18).