kWh Analytics’s New Offering to Ensure a New Revenue Stream for Asset Owners

Accelerating the process of installing more solar for Energy Transition, kWh Analytics launched its product – the Solar Generation Advance. The launch is expected to allow the industry to accomplish its goal of installing more solar for Energy Transition apart from ensuring reliable returns to equity investors.

As per reports, the Solar Generation Advance will allow solar asset owners to receive upfront “bonus” payments in return for maintaining asset performance. kWh Analytics, a market leader in Insurance for the Energy Transition’s new offering has been developed in partnership with Excelsior Energy Capital.

The company has structured the Solar Revenue Put on $3 billion projects, enhancing project economics and protecting against downside risk for both sponsors and lenders since 2017. As per kWh Analytics, it will continue to explore unique solutions to improve project financial terms and mitigate risk for sponsors and financiers. Representing a milestone, the Solar Generation Advance will provide a second revenue stream for operating and new build projects.

The Solar Generation Advance provides an additional revenue source for both development and operating assets. Specifically, for development stage assets, the Solar Generation Advance can provide additional unencumbered cash for developers, which can increase their development fee or increase equity internal rates of return by 50-100 bps. For operating assets, the Solar Generation Advance provides a flexible funding source for additional sponsor distributions or operations and maintenance enhancements to the project.

Ryan Fegley, Partner and Co-Founder at Excelsior Energy Capital said, “As a long-term asset owner, we understand the benefit of flexible capital and additional revenue streams in today’s market. The Solar Generation Advance provides value-enhancing optionality to both developers and asset owners, and we are proud to be a part of this innovative solution.”

“We are excited to deliver a solution that rewards prudent owners and stewards of solar power plants. The Solar Generation Advance and Solar Revenue Put are complementary risk management tools that sophisticated investors use to unlock more value from their assets,” said Richard Matsui, CEO and Founder at kWh Analytics.

Akin Gump has provided legal support for the formation of this project with a team led by Daniel Lynch and including Matt Kapinos and Graham McCall.

kWh has insured $3 billion of American solar power plants herewith their first insurance product, the Solar Revenue Put. kWh Analytics is funded by venture capital and the US Department of Energy. Excelsior Energy Capital is a pure-play renewable energy infrastructure fund focused on long-term investments in wind and solar power plants in North America.