Energy insurance provider kWh Analytics announced it has launched its new Solar Generation Advance today. The Solar Generation Advance allows solar asset owners to receive upfront “bonus” payments in return for maintaining asset performance. The innovative new offering was developed in partnership with Excelsior Energy Capital.
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.
“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.
The Solar Generation Advance will help ensure our industry accomplishes its goal of installing more solar to accelerate the Energy Transition, while continuing to provide reliable returns to equity investors.
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.
News item from kWh Analytics