SAN FRANCISCO--(BUSINESS WIRE)--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 developer1, and PNC Bank, N.A., an industry-leading investor in U.S. solar projects since 2007. The 4 projects, totaling 50 MW DC of capacity and located in Oregon, were financed with the Solar Revenue Put protecting cashflows.
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 development of clean, low-cost solar energy.
“We have a global mandate to rapidly expand our investment portfolio of solar projects,” says Frank Zhu, Executive President of GCL New Energy. “To support us in this growth, we were pleased to have found efficient and reliable execution with our partners, PNC Bank and kWh Analytics.”
“Strong relationships are the cornerstone upon which we have built this business,” says Dick Rai, manager of PNC Bank’s energy finance team, the bank’s renewable energy financing arm. “We have long-standing relationships with both GCL New Energy and kWh Analytics, dating back to their respective entries into the U.S. solar market.”
A recent survey2 of the solar industry’s most active lenders indicates that more than 40% of active lenders are now valuing the Solar Revenue Put as a credit enhancement. Solar portfolios ranging from thousands of residential rooftops to more than ten utility-scale plants have had financing structures supported by the Solar Revenue Put. Portfolios supported by the Put are securing, on average, debt sizing increases of 10%.
Swiss Re Corporate Solutions provides the risk capacity for the Solar Revenue Put. Brian Beebe, Head of North America Origination, 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.”
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 GCL New Energy, Inc.
GCL New Energy, Inc. is a wholly-owned international renewable energy IPP subsidiary of GCL New Energy Holdings Ltd (0451.HK) with offices in San Ramon, California. The company focuses on developing, owning, and operating utility scale solar projects, and has experience in the United States, Puerto Rico, Latin America, and numerous other international markets.
About PNC Bank
PNC Bank, National Association, is a member of The PNC Financial Services Group, Inc. (NYSE: PNC). PNC is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.
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 over 50 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.