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 30 MWDC of capacity located in the Northeast, Florida and California. The facilities are being developed and managed by IGS Solar, a residential and commercial solar developer. The IGS Solar portfolio is being funded by ING Capital. Swiss Re, a global corporate insurer, is providing capacity for the Solar Revenue Put.
This is the first publicly announced repeat closing with the Solar Revenue Put. The Solar Revenue Put supported a financing with IGS Solar, ING and others in November 2018 for a 30-MW portfolio of 4,000 projects located in the Northeast United States.
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. The Solar Revenue Put enables us to both enhance our returns and reduce our downside risk,” says Mike Gatt, Chief Operating Officer of Distributed Generation at IGS. “kWh Analytics has proven out a reliable claims process for the Solar Revenue Put, enabling cashflow certainty.”
“We are pleased to have incorporated the Solar Revenue Put to support a second financing for IGS,” 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.”
A recent survey by kWh Analytics 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. Solar portfolios ranging from thousands of residential rooftops to more than ten utility-scale plants have utilized financing structures supported by the Solar Revenue Put. Portfolios supported by the Solar Revenue Put are securing debt sizing increases of 10% on average.