Swiss Re provides capacity on structured solar deal

Swiss Re Corporate Solutions has provided the risk capacity for a so-called Solar Revenue Put, a credit enhancement that guarantees up to 95 percent of a solar project’s expected energy output, which has also been described as a new type of insurtech potentially worth billions.

The Solar Revenue Put was structured by kWh Analytics, a specialist in solar risk management. It covers a portfolio of 4,000 projects totalling approximately 35 MW DC of capacity located in the Northeast US. The facilities are being developed and managed by IGS Solar, a residential and commercial solar provider.

The IGS Solar portfolio is being funded by a commitment from Ares EIF, the power and infrastructure strategy at Ares Management, a global asset manager, and a term loan commitment from ING Capital.

Swiss Re Corporate Solutions provided the capacity for the Solar Revenue Put, which is structured as an insurance policy on solar production and revenues and which serves as a credit enhancement for financial investors.

Brian Beebe, head of origination North America Weather and Energy, Swiss Re Corporate Solutions, said: “Swiss Re is committed to managing carbon-related sustainability risks and supporting the transition to a low-carbon economy. We are actively building our business to support the renewable energy that will power our global future. The Solar Revenue Put represents a new, multi-billion dollar insurtech category.”

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