SAN FRANCISCO, Jan. 30, 2018 /PRNewswire/ -- kWh Analytics, the market leader in solar risk management, today announced that it transacted the industry's first Solar Revenue Put with Coronal Energy, a leading independent power producer focused on utility-scale solar and storage projects. The three projects, totaling 30 MW AC of capacity and located in Virginia, were financed with the Solar Revenue Put protecting cashflows.
The solar industry has needed solutions to reduce financing costs, but previously lacked the historical data necessary to attract the protection of the global reinsurance markets. kWh Analytics has amassed the largest database of solar asset performance and developed actuarial models that enable insurers to reliably underwrite solar projects. With actuarial performance data on one in five of America's operating solar projects, kWh Analytics is uniquely positioned to offer the Solar Revenue Put.
The Solar Revenue Put is backed by a global insurer rated AA- by Standard and Poor's, and the kWh Analytics' insurance package covers up to 95% of a solar project's expected energy output. As an 'all-risk' policy, the Solar Revenue Put not only protects against shortfalls in irradiance, but it also protects against panel failure, inverter failure, snow, and other system design flaws.
In the past three months, kWh Analytics has already seen seven lenders issue term sheets at 1.10x or 1.15x DSCR on the P50 revenue when the Solar Revenue Put is in the structure.
"The solar industry is built upon development expertise and innovative financial partnerships and our Virginia portfolio is demonstrative of both. Our work with the kWh Analytics team enabled the portfolio to move smoothly across the finance finish line and on to producing clean, low-cost energy for our utility customers," said Ed Feo, President of Coronal Energy.
The three Coronal projects sited in Virginia include the 20MW Essex Solar Center with power sales to Dominion Energy and the Martin and Palmer Solar Centers, totaling 10MW with power sales to Central Virginia Electric Cooperative (CVEC).
"In the solar business, risk is cost. In fact, the cost of capital is the single largest cost to a solar power plant. Using data, we at kWh Analytics reduce risk. Lower risk means lower cost means more solar," said Richard Matsui, Founder and CEO of kWh Analytics. "In 2018, 1.10x DSCR will become the new normal."
"The Solar Revenue Put employs an innovative insurance structure to drive down solar financing risk, significantly reducing cost and transaction friction," added Chuck Wallace, Esurance co-founder and kWh Analytics investor. "By reducing transaction friction and driving down cost in solar project financing, the Solar Revenue Put is having a direct, measurable impact on increasing the number of solar project installations throughout the world. The importance of this to our local, national and global communities in accelerating the adoption of clean energy sources and reducing climate change is obvious."
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. Kudos, 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. 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 Coronal Energy
Coronal Energy, powered by Panasonic, is a leading independent power producer providing turnkey solar energy solutions tailored for diverse enterprise customers across North America, including utilities, corporations, and the public sector. It unites the financial strength of a Fortune Global 500 company (#110) and Panasonic's award-winning history of solar innovation and sustainability leadership with the project development, finance, engineering, construction, and asset management experience of Coronal Energy. The result is smarter solar that translates to smarter business for customers. The collective experience of Coronal Energy, powered by Panasonic, includes projects in 40 states totaling 2.3 GW, with more than 3.4 GW of greenfield and brownfield projects under construction/contract or in development. For more, please visit CoronalEnergy.com and follow on Twitter @CoronalEnergy.
SOURCE kWh Analytics