kWh Analytics’ Solar Revenue Put Protects Matrix Renewables’ New Solar Projects for 26 Years with Lending Partners MUFG, HSBC, CBA, and NBC
The deal marks the largest capacity and longest tenor transaction supported by the Solar Revenue Put
San Francisco, CA (Nov. 8, 2022) – kWh Analytics, the market leader in Climate Insurance, is pleased to announce 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.
About Matrix Renewables
Matrix Renewables is a renewable energy platform created and backed by global alternative asset manager TPG and its $15 billion impact investing platform TPG Rise. Matrix Renewables’ current portfolio is comprised of 2.3 GW of operational, under construction, or near ready-to-build solar PV projects and a further 7.3 GW pipeline of renewable energy projects under development, across North America, Europe, and Latin America. For more information, visit matrixrenewables.com.
About kWh Analytics
kWh Analytics is a leading provider of Climate Insurance for zero carbon assets. Utilizing their proprietary database of over 300,000 operating renewable energy assets, kWh Analytics uses real-world project performance data and decades of expertise to underwrite unique risk transfer products on behalf of insurance partners. kWh Analytics has recently been recognized on FinTech Global’s ESGFinTech100 list for their data and climate insurance innovations. The Solar Revenue Put production insurance protects against downside risk and unlocks preferred financing terms, and the Renewable Energy Property Product offers comprehensive coverage against physical loss. These offerings, which have insured over $3 billion of assets to date, aim to further kWh Analytics’ mission to provide best-in-class Insurance for our Climate. For more information, visit www.kwhanalytics.com.
SOURCE: kWh AnalyticsTags: climate change, funding, kWh Analytics