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kWh Analytics’ Solar Revenue Put Protects Matrix Renewables’ New Solar Projects for 26 Years with Lending Partners MUFG, HSBC, CBA, and NBC

08 Nov 2022

kWh Analytics, the market leader in Climate Insurance, announced that it has structured a Solar Revenue Put supporting back-leverage financing with Matrix Renewables, the TPG Rise-backed global renewable energy platform, insuring solar production on 143 MW of new-build utility-scale solar projects. For the first time, the Solar Revenue Put policy will provide coverage for the full 26 year amortization term. The projects, Gaskell West 2 & 3, are financed by major lending partners MUFG, HSBC, Commonwealth Bank of Australia, and National Bank of Canada.

The Solar Revenue Put is an insurance policy covering solar production to provide protection against downside risk. The policy serves as a credit enhancement for financial investors, allowing asset owners to achieve more favorable financing terms. The addition of the Solar Revenue Put including Base and Supplemental Coverage has significantly reduced Matrix Renewables’ DSCR sizing requirements, and provides 26 total years of production insurance.

“The passage of the Inflation Reduction Act has accelerated demand for renewable energy projects. Our product allows sponsors to deploy more MWs using less capital, something that’s increasingly important in today’s rising cost environment,” says Jason Kaminsky, kWh Analytics’ CEO.

The Solar Revenue Put has insured production for nearly 3GW of renewable generation capacity, including portfolios ranging from thousands of residential rooftops to utility-scale plants. Portfolios backed by the Solar Revenue Put are able to support higher leverage levels or lower credit spreads, reducing equity checks while mitigating downside risk. The Supplemental Coverage extends these debt sizing and risk mitigation benefits beyond ten years, to match the term of debt amortization.

Matrix Renewables | matrixrenewables.com 

kWh Analytics | https://www.kwhanalytics.com/