Energy & Sustainability Client Feature: Energetic Insurance
This month, we are pleased to feature Energetic Insurance, a company that facilitates solar project financing for developers, investors, and energy service providers. Serving as a Managing General Underwriter (MGU), the insurance company helps to evaluate risks and sell and bind policies for large insurance carriers.
In April of this year, Energetic Insurance launched the EneRate Credit CoverTM credit insurancepolicy. With backing from SCOR Global P&C, the EneRate policy provides up to ten years of insurance protection for commercial solar projects. Since a majority of US companies do not have public credit ratings, many financiers are hesitant to fund large projects. Growth in the US nonresidential solar sector has been stagnant for years, and Energetic Insurance hopes its EneRate Credit Cover policy will address investors’ concerns about such setbacks. The credit insurance policy will protect developers and their lenders from offtaker payment default risk and provide them with benefits such as SCOR Global P&C’s AA-/Aa3 credit rating.
The first EneRate Credit Cover deal was finalized in August to assist CalCom Energy with developing an 800-kilowatt carport in California. The undertaking received primary funding from Live Oak Bank as well as a tax equity investment from Symbiont Energy.
Additionally, Energetic Insurance announced the successful closing of a $2.5 million funding round. The seed investment round was led by Congruent Ventures with participation from Clocktower Technology Ventures and Powerhouse Ventures. Energetic Insurance recently received awards from both the US Department of Energy’s Solar Energy Technologies Office (SETO) and the Massachusetts Clean Energy Center (MassCEC). Together with grants, the company has raised more than $4 million in funding as it continues to roll out its new EneRate Credit Cover policy and expand the solar energy market.