Energetic Capital’s EneRate Credit Cover mitigates offtaker credit exposure and enhances financing for one of the largest solar projects in the ERCOT market.

Energetic Capital announced today that its flagship credit insurance product, the EneRate Credit Cover, supported the financing of a nearly 400MW utility-scale solar project under development in Texas. The project, sponsored by a leading renewable energy developer, will provide enough clean electricity to power over 75,000 homes annually.

EneRate Credit Cover is used to provide additional credit support to a 20-year Virtual Power Purchase Agreement (VPPA) with an unrated corporate offtaker. It insures settlement payments due from the offtaker to the project under the VPPA. This innovative credit support structure allows the offtaker to avoid posting additional collateral, such as a letter of credit or corporate guarantee, while maintaining balance sheet efficiency. For the financier, the coverage increases the level of income that can be recognized for debt sizing, thereby enhancing loan proceeds and optimizing the project’s capital structure.

“This transaction highlights the growing role of credit insurance in unlocking liquidity and enabling large-scale renewable projects to reach financial close,” said Nathan Maggiotto, President of Energetic Capital. “By addressing credit risk within complex power purchase structures, our products make it easier for developers and lenders to move critical energy infrastructure projects forward to serve communities and end-power users of all profiles.”

The deal underscores Energetic Capital’s commitment to advancing the deployment of clean energy infrastructure by providing financial tools that align developers, financiers, and corporate buyers around sustainable, bankable outcomes.

NOTE: This Press Release does not constitute and is not intended by Energetic Capital or any of the entities mentioned in this release to constitute a solicitation for any insurance business.

About Energetic Capital (www.energeticcapital.com)

Energetic Capital is a Managing General Agent with a novel, data-driven approach for developing new risk management products to unlock investment in the renewable energy industry. The EneRate Credit Cover® unlocks renewable energy project financing for unrated and below investment grade counterparties by covering counterparty credit risk.

Headquartered in Boston, Energetic Capital was awarded a SunShot Prize from the US Department of Energy in 2017 and has received a total of $5M in financing to date. EneRate Credit Cover® and other insurance policies are issued by RE3 Energetic Insurance Solutions, LLC, or SiKey Insurance Services, LLC in New York, wholly-owned subsidiaries of Energetic Insurance, Inc. d/b/a Energetic Capital. Energetic Capital complies with all state-mandated regulations for surplus line insurance brokers and RE3 Energetic Insurance Solutions, LLC is licensed as a surplus lines broker in Massachusetts with License #: 2053916.

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Credit insurance is unlocking liquidity and accelerating the financial close of large-scale renewable projects across the U.S.