kWh Analytics has entered into a partnership with Pivot Energy LLC to provide Solar Revenue Put production insurance for several distributed solar projects with a total capacity of 70 MW across six states.
According to kWh Analytics, the Solar Revenue Put was added after the financing closed to improve the leverage of lenders Silicon Valley Bank, Cadence Bank and Bank United.
Everest is the main carrier of production coverage.
“Our partnership with kWh Analytics will be a game changer for our community solar portfolio,” said Bret Labadie, Pivot Energy’s CFO. “This insurance product reduces portfolio risk, which allows for stronger project returns and ultimately enables more efficient financing of clean energy projects in the future.”
Solar Revenue Put is a credit enhancement product designed to help investors improve leverage by reducing the risk of solar energy production. Although the financing ended in April 2022, Solar Revenue Putin’s extension of post-financing to an extended 20-year period has helped Pivot Energy increase its loan size, helping to cover increased costs that would otherwise be covered by equity.
The Pivot Energy portfolio presented a new challenge to the kWh Analytics team: each of the 36 sites had a different configuration, a different monitoring system, and different risks. Leveraging the largest database of solar assets in use, the team assesses risk at the individual project level as well as the diversified portfolio to secure insurance, find the best value for the customer and ultimately enable Pivot Energy’s debt optimization.