SAN FRANCISCO--(BUSINESS WIRE)--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.
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 a division of IGS Energy, IGS Solar is dedicated to delivering innovative solar energy solutions. For more information, visit IGS.com.
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 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.