kWh Analytics gets insurance backing on Solar Revenue Put

Risk-management software firm kWh Analytics has partnered with Swiss Re Corporate Solutions (SRCS) to underwrite its product Solar Revenue Put, a credit enhancement that guarantees the performance of solar assets.

Using its proprietary actuarial model and risk management software (“HelioStats”), kWh Analytics developed the Solar Revenue Put informed by the performance history of 300,000 solar power plants. This partnership reflects an emerging insurance industry trend wherein new categories of insurance products are enabled through collaboration between innovative startups and experienced insurers. The first-ever Solar Revenue Put was transacted in December 2017 on three solar power plants owned by Coronal Energy, a Panasonic affiliate. The Solar Revenue Put has now been structured on $1B of solar capacity.

“As we strive to make the world more resilient, we prioritize risk transfer solutions that enable sustainable progress for our customers and our communities. The agreement helps further that commitment and establishes an entirely new category of risk management products based on kWh Analytics’ industry-leading solar power plant data repository.” – Ivan Gonzalez, CEO SRCS North America.

“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 are reducing that risk. Investors have long sought assurance that solar power plants will perform as promised. With kWh Analytics and Swiss Re Corporate Solutions now protecting their investments, stakeholders are better able to invest the hundreds of billions of dollars that the solar industry requires in the next three years. Swiss Re seized the opportunity to build a lead in insuring the world’s fastest growing source of energy.” – Richard Matsui, CEO of kWh Analytics.