The Solar Revenue Put has become a market standard solution for sponsors seeking to optimize their financial returns, ranging from thousands of residential rooftop power plants to utility-scale solar farms.
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.
GCL New Energy Holdings Ltd. is managing the risk related to the unpredictable nature of the sun, with an insurance-like policy that will guarantee the production from solar projects it’s building in Oregon.
kWh Analytics, a leading solar risk management provider, has structured a Solar Revenue Put with global solar developer GCL New Energy and U.S solar project investor PNC Bank for 50 MW of solar farms, with risk capacity provided by Swiss Re Corporate Solutions.
SAN FRANCISCO – kWh Analytics, the market leader in solar risk management, today announced that it structured a Solar Revenue Put with GCL New Energy, Inc., a top five global solar developer, and PNC Bank, N.A., an industry-leading investor in U.S. solar projects since 2007.
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.
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.