We are in a new world when it comes to financing for solar projects! Last year, more money was invested in solar projects than coal, gas or nuclear. That is great news, but there is even more on the way! Recently, kWh Analytics and Swiss Re have structured a deal with GCL New Energy, a top five global solar developer and PNC Bank, an industry-leading investor in U.S. solar projects since 2007, for 50 MW of solar projects financed using the Solar Revenue Put to guarantee 95% of solar generation. Dick Rai, the manager of PNC, “We have long-standing relationships with both GCL New Energy and kWh Analytics, dating back to their respective entries into the U.S. solar market.”
Solar Revenue Put
kWh Analytics has developed the Solar Revenue Put , which is an enhancement for financial investors to lower the investment risk, and encourage the development of clean, low-cost solar energy. This credit enhancement will guarantee up to 95% of a solar project’s expected energy output. Essentially, investors will purchase solar energy from sunlight farmers, and there will be a guaranteed net profit for the farmers and a lower risk for the investors. This is a win for both lenders and farmers.
The Future of Solar After Solar Revenue Put
A recent survey, conducted by kWh Analytics, found that 40% of lenders are now valuing the Solar Revenue Put as a credit enhancement. From residential rooftops to utility scale plants, financing structures have been supported by the Solar Revenue Put. This reduces the risk for investors and will improve the bottom line. Less risk means less cost, which means more solar.
“We have a global mandate to rapidly expand our investment portfolio of solar projects,” says Frank Zhu, Executive President of GCL New Energy. “To support us in this growth, we were pleased to have found efficient and reliable execution with our partners, PNC Bank and kWh Analytics.” Renewable energy accounted for two-thirds of the new power added to the world’s grids in 2016. With this latest advancement, The Solar Revenue Put will help to increase the amount of renewable energy every year.
At Intersect Energy, we provide turnkey service to our customers, from assessment, design, financing, installation and management. We offer innovative solutions to facility upgrades when paired with a new solar project, at little to no capital cost to our clients. To learn more about our services, contact us today! Don’t forget to stay up-to-date with all the happenings at Intersect Energy by following us on LinkedIn!