kWh Analytics, the market leader in solar risk management, announced the first refinancing supported by the Solar Revenue Put. The portfolio of 41 projects totaling approximately 28 MW DC of capacity is located in Arizona and Massachusetts. The facilities are managed by AES Distributed Energy (DE), a subsidiary of The AES Corporation (AES). The AES Distributed Energy portfolio is being funded by Silicon Valley Bank and a Japanese financial services company. Swiss Re Corporate Solutions, a leading global corporate insurer, is providing capacity for the Solar Revenue Put.
The Solar Revenue Put is structured as an insurance policy on solar production and 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.
“AES Distributed Energy is focused on helping our customers affordably and reliably meet their sustainable energy needs, and strategically-timed refinancings enable us to re-deploy capital to build more clean energy projects,” says Brian Cassutt, Chief Financial Officer at AES Distributed Energy. “The Solar Revenue Put will help sharpen our competitive edge by enhancing our returns and reducing our downside risk.”
“We’re pleased to continue our support of AES Distributed Energy as they deploy innovative distributed solar and energy storage projects,” says Bret Turner, Managing Director and Market Manager of Project Finance at Silicon Valley Bank. “The strong collaboration between SVB, the Japanese financial services company, and kWh Analytics enabled us to deliver a transformational financing for AES DE and the market.”
A recent survey of the solar industry’s most active lenders indicates that more than 40% 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.
kWh Analytics | kwhanalytics.com
AES Distributed Energy | aesdistributedenergy.com