A new insurance product from kWh Analytics guarantees up to 95 percent of forecasted energy production for a solar plant, providing security for solar developers in a regulatory environment where it’s been scarce.

Insurance giants like Swiss Re AG, with the help of a San Francisco firm, now have a way of guaranteeing production from solar farms — not an easy feat considering supplies from these plants rise and fall with the sun.

Higher debt proceeds could also keep WACC lower. ABS proceeds have increased from 62% of loan to value (LTV) for SolarCity’s first solar ABS issued in 2013 to 77% for their last ABS issued in December 2017.

Richard Matsui, CEO of kWh Analytics, joins us to discuss the Solar Revenue Put, an innovative new financial product that may change the way solar projects are financed.

Proponents of two new financial innovations in the renewable power industry are hoping they can soften the impact of tariffs imposed on solar equipment imported to the U.S.

Despite the clear headwinds from a rising yield curve of late, we note continued focus on bringing costs down through a variety of methods including increased leverage as financial firms get more comfortable with the risk profile of solar, which we see as consistently viewed as lower risk.

With so many in the solar industry and outside it fixated on the potential impact of tariffs on solar deployment, it is important to note that a big part of system cost reduction has been and will continue to be driving down “soft”, non-hardware costs.

A U.S. developer recently closed financing for a 30 MW (ac) portfolio of solar projects in Virginia with what is thought to be the industry’s first solar revenue put.

kWh Analytics & JLT Re have been awarded ‘Insurance Initiative of the Year’ at the London Market Awards.

A bank has laid out terms for a loan to finance a contracted solar project with a novel production hedge developed by kWh Analytics, offering a debt service coverage ratio of 1.1 times.

SAN FRANCISCO (September 20, 2017) – JLT Re, the global provider of reinsurance broking and consultancy, has partnered with kWh Analytics, the leading data repository and risk management provider in the solar industry, to create a risk transfer product insuring solar energy output. 

A solar analytics firm called kWh Analytics is marketing a production hedge product that it claims will allow sponsors to raise more debt on contracted solar projects in the U.S.

The solar market needs a revenue put like what is now used to finance merchant gas-fired power plants, except it would cover output rather than price risk.