By leveraging the most comprehensive performance database of solar assets in the United States and the strength of the global insurance markets, innovation is enabling investors to minimise risk and increase returns.
kWh Analytics has developed a tool that reduces the cost of capital, which is the single largest cost for a solar project. Using its proprietary actuarial model and risk management software (HelioStats), the firm developed the Solar Revenue Put, the credit enhancement for solar investors, to drive down investment risk and encourage the development of clean, low-cost solar energy, guaranteeing 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 favourable to the sponsor.
Solar energy and its role in enabling the energy transition is a hot topic set for discussion at DISTRIBUTECH INTERNATIONAL. Click here to register to attend or for more information about the event.