Solar risk management company kWh Analytics has structured a “solar revenue put” with solar developer GCL New Energy Inc. and solar investor PNC Bank NA.
The four projects, located in Oregon, total 50 MW of capacity. Using its proprietary actuarial model and risk management software, HelioStats, kWh Analytics developed the solar revenue put, a credit enhancement for financial investors, to drive down investment risk and encourage the development of solar.
Swiss Re Corporate Solutions provides the risk capacity for the solar revenue put.
Brian Beebe, head of North America origination for Swiss Re Corporate Solutions, says, “We are bullish about solar, and Swiss Re is committed to providing innovative risk transfer solutions. kWh Analytics built the industry’s largest data repository, encompassing one-in-five American solar power plants, and owns the foundation upon which entirely new categories of risk management products will be built.”
According to kWH Analytics, the solar revenue put guarantees up to 95% of a solar project’s expected energy output. As an “all risk” policy, the solar revenue put protects against shortfalls in irradiance, panel failure, inverter failure, snow and other system design flaws, says the company, adding that portfolios supported by the put are securing, on average, debt sizing increases of 10%.