Government Energy Policy, Business and Technology

First U.S. Residential Solar Projects Turn to Output Insurance

Renewable Energy World: A tool designed as an insurance policy for solar-power generation will be used to manage the risk associated with U.S. residential systems for the first time as part of a financing agreement backing 4,000 projects in the Northeast.

Investment in the 35 megawatts of capacity being developed by IGS Energy’s solar unit will be partly protected by KWh Analytics’ “solar-revenue put,” according to the statement Thursday by the San Francisco-based risk-management software company. Solar farms have previously obtained the put, which can guarantee as much as 95 percent of expected output. It can be used to help solar investors reduce their cost of capital, leading to better financing terms.

Read article