The latest on Energetic and renewable energy trends.

‍Q1 2025 marked our highest deal volume since Q2 2020—the onset of the pandemic. It reflects a shift in market behavior.

Borrowers, lenders, and sponsors are all navigating what’s arguably the most fragile credit environment in over a decade. Interest rates remain elevated, spreads are widening, and sentiment is slipping. Amid all this, credit insurance is emerging not just as a risk tool—but as a strategic enabler.

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The Macro Backdrop: A Storm That’s Still Gathering

The signals are everywhere—and they aren’t subtle.

• Bankruptcies surged to 188 corporate filings in Q1 2025, the highest since Q1 2010. (S&P Global)

• Credit spreads are widening, especially in high-yield markets. (MarketWatch)

• Consumer sentiment collapsed to 50.8 in April—the second-lowest since 1952. (Wall Street Journal)

• 5-year inflation expectations rose from 3.0% to 4.4% year-over-year.

Even small businesses are pulling back. The NFIB Small Business Optimism Index dropped to 97.4 in March—the largest dip since mid-2022. Plans for hiring and growth hit multi-year lows. (Reuters)

And it’s not just sentiment. According to Allianz Trade, global insolvencies are on pace to rise for a fifth consecutive year. Their downside scenario? A full-blown trade war could add over 6,000 insolvency cases in the U.S. alone by 2026.

Credit Spreads Are Flashing Warnings

We’re still early in the credit cycle turn—but spreads are moving.

“Credit spreads are the canary in the coal mine.” — Emily Roland, Manulife (via MarketWatch)

What’s at stake? Mispricing. Loans are being priced off assumptions that no longer hold—particularly around liquidity, recovery, and repayment strength.

This is where credit insurance enters the picture.

What Credit Insurance Enables for Banks

Lending Continuity Without Compromise

Credit insurance allows banks to keep lending to strategic clients—even as internal risk thresholds tighten. Committees stay comfortable. Lending flows continue. Deals get done.

Value That Reaches the Sponsor

Risk mitigation benefits don’t stay locked inside the bank, they often flow downstream. Some examples are:

• Lower DSCR thresholds

• Tighter spreads

• Flexibility on non-IG obligors

• Relaxed concentration limits

Each bank has its own mechanism of what it passes onto its borrower—but across the board, insurance helps unlock flexibility that sponsors feel.

A Structuring Tool—Not Just a Backstop

Smart credit teams aren’t just using insurance for protection. They’re using it to:

• Support internal alignment across credit, risk, and origination teams

• Strengthen the overall credit package for smoother approvals

• Increase clarity and confidence in execution timelines

In this environment, that’s not a bonus—it’s essential.

Why Deal Flow Is Surging at Energetic Capital

Sponsors Are Getting Proactive

We’re seeing more deals come in before they hit the bank market. Why?

• Sponsors want lending partners who recognize and price in the value of credit insurance.

• They’re looking for capital that rewards risk mitigation—not penalizes uncertainty.

• And they’re leveraging Energetic’s network to navigate to aligned lenders.

We’re not intermediaries, but we know where the traction is—and we help direct traffic accordingly.

Banks Are Engaging Earlier

In many cases, banks come to us with deals in-flight—facing internal headwinds.

• Credit committee not convinced?

• Structuring stalled?

• Internal exposure limits too tight?

We help close the gap—strengthening credit packages and unlocking approvals.

No Preferred Lenders. Just Alignment.

We don’t push deals toward “preferred partners.” Our only objective is to get the deal over the line—efficiently, strategically, and on structure.

Energetic Capital’s Role in This Market

We’ve transacted on 1,500+ renewable infrastructure projects—directly with some of the largest banks, sponsors, and developers.

Our custom credit insurance structures are purpose-built for project finance risks in renewable infrastructure transactions. They’re designed to help capital flow into the deals that should get done—but often stall under outdated credit assumptions.

We’re not just supporting financing—we’re redefining how transactions get underwritten, structured, and executed.

In a market this fragile, that’s not a support function—it’s a capital markets role.

Ready to Navigate Today’s Credit Conditions?

In today’s market, certainty of execution isn’t just a differentiator—it’s the ask behind every term sheet. Credit insurance helps lenders and sponsors meet that ask without compromise.

This is the moment to bring in a partner that can unlock capital, de-risk outcomes, and accelerate execution.

Credit insurance isn’t a last resort. It’s a first-move advantage.

Let’s talk.

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Broadening the Scope of Credit Enhancement

Energetic Capital has built a strong reputation for providing capital solutions to C&I solar developers. As the energy transition accelerates, our innovative credit enhancement product is being applied to a broader range of energy assets. In fact, most of our policies now extend beyond solar, covering payments under Power Purchase Agreements (PPAs) and Energy-as-a-Service (EaaS) agreements—facilitating critical clean energy deployments.

Beyond traditional renewable energy financing, we've supported projects with Scale Microgrid Solutions and Redaptive, demonstrating how credit enhancement unlocks capital for projects facing financing barriers. As business models like EaaS gain traction, counterparty creditworthiness remains a key challenge—one our solutions are uniquely positioned to address.

In our latest blog, we explore how shifts in the tax credit market are reshaping lender risk perceptions. Read more here.

Fuel Cells: A Key Player in the Energy Transition

We recently announced our first fuel cell project, highlighting how our solutions help unlock financing for emerging energy technologies. Read more about this milestone here.

Fuel cells offer a highly efficient way to convert gas into electricity, providing resilient, low-carbon energy solutions. Modern designs can operate on multiple fuel types, including renewable natural gas (RNG), biodiesel, and hydrogen—making them a key technology in the transition away from conventional LNG.

Despite this fuel flexibility, the core financing challenge remains: securing long-term, creditworthy revenue streams that lenders can confidently underwrite. Our expertise in credit enhancement ensures these projects can attract the capital they need to scale.

Addressing the Credit Challenge in Fuel Cell Deployment

Scaling fuel cell projects requires lenders to see a fixed revenue stream with a creditworthy counterparty. However, not all entities investing in resiliency and efficiency have an investment-grade credit rating. This financing gap can slow deployment, especially in sectors where end-users are smaller businesses or private entities.

In our latest deal, we insured payments under a Master Services Agreement, enabling a domestic manufacturer to proceed with its fuel cell deployment. By mitigating counterparty credit risk, we unlocked capital that might not have otherwise been available—helping accelerate the adoption of this critical technology.

Unlocking Capital for the Clean Energy Economy

As clean energy technologies evolve, flexible financing solutions are essential for accelerating adoption. By enhancing creditworthiness, we help developers, manufacturers, and service providers secure financing and scale their projects more efficiently.

Credit enhancement continues to prove its value across both traditional and emerging energy markets, breaking down financing barriers and driving long-term success.

Looking ahead, the tax credit market is shifting, with new PTC buyers entering the space. In our upcoming blog, we’ll explore how these changes are shaping lender confidence and project financing. Stay tuned for insights here.

Interested in how Energetic Capital’s solutions can support your clean energy projects? Let’s connect.

We’re excited to announce Energetic Capital’s groundbreaking application of EneRate Credit Cover to a fuel cell project, marking a significant milestone in energy resiliency and decarbonization efforts. This innovative policy played a pivotal role in securing financing for a key domestic manufacturer, even with a counterparty rated below investment grade.

As demand for sustainable and resilient energy solutions continues to grow, creative financing strategies like this demonstrate the power of thinking beyond traditional credit constraints.

To learn more about how Energetic Capital is driving impactful decarbonization through flexible insurance solutions, read the full press release here.

Let’s continue pushing the boundaries of what’s possible in energy innovation!

We’re thrilled to share that Energetic Capital has been selected as one of the winners of InnSure’s Insurance Innovation Prize, a prestigious $5M program accelerating groundbreaking insurance solutions for the energy transition supported by NYSERDA!

This recognition highlights our commitment to addressing critical gaps in renewable energy financing and driving clean energy adoption. To date, we’ve enabled $800M in renewable projects, powering 1,500 sites across 46 states and reducing carbon emissions by 114,700 metric tons.

Thank you to NYSERDA and InnSure for supporting our mission to advance scalable climate solutions. Together, we’re paving the way for a more sustainable future!

See the press release here.

Financing a C&I solar project can be a complex process, with multiple stakeholders, detailed requirements, and tight timelines. Even small missteps—like missing a key document or under-preparing for lender diligence—can slow things down or jeopardize a deal entirely.

At Energetic Capital, we sit at the crossroads of developers and lenders, working on transactions of all shapes and sizes. From small, agile teams to some of the largest developers and project finance banks in the industry, we’ve seen what works and what doesn’t when it comes to securing financing for C&I infrastructure. Our experience has taught us that the difference between a seamless process and a drawn-out one often comes down to preparation and organization.

In this article, we’re breaking down best practices that can save you time and frustration. You’ll also get access to a free data room template designed to help you put your best foot forward and close deals faster.

The Developer's Diligence Toolkit: Key Materials for Your Financing Data Room

To secure financing for your C&I solar project, assembling a well-organized data room with the right materials is essential. Lenders rely on this information to assess the project's viability, size the debt, and evaluate risk. Below, we outline a few of the key materials every developer should prepare to streamline the financing process and ensure a smooth review:

1. Project Financial Models

• What it is: A detailed Excel-based financial model showing the project’s key assumptions and cash flow projections.
• What it includes:
  • Production assumptions
  • PPA or ESA rates and escalators
  • REC/Incentive rate assumptions (contracted/uncontracted)
  • Asset degradation assumptions
  • Operating and maintenance (O&M) expenses
  • All other project expenses (insurance, site lease, etc.)
  • Sensitivity analyses for key variables
• Why it matters: Lenders use this to size the debt appropriately and understand the financial health and risk profile of the project.

2. Power Purchase Agreement (PPA) or Energy Services Agreement (ESA)

• What it is: The contract between the project asset and the offtaker detailing energy sales terms.
• What it includes:
  • Pricing terms, escalators, and termination clauses
  • Contract duration and renewal provisions
  • Obligations of both parties
• Why it matters: Lenders review these agreements to ensure they are bankable and aligned with the project’s financial model.

3. Offtaker Financial Information

• What it is: Documentation that provides insights into the creditworthiness of the offtaker.
• What it includes:
  • Three years of audited financial statements
  • Key financial ratios (e.g., debt-to-equity, liquidity)
  • Any existing credit ratings or guarantees
• Why it matters: The offtaker's ability to meet payment obligations significantly impacts the project's financial stability and risk profile.

4. Permits and Approvals

• What it is: Evidence of all required regulatory and environmental clearances.
• What it includes:
  • Local, state, and federal permits
  • Interconnection agreements and grid approvals
  • Zoning and land use compliance documents
• Why it matters: These documents ensure the project is legally authorized to operate and won’t face regulatory hurdles.

5. Construction and Material Contracts

• What it is: Agreements with the EPC (Engineering, Procurement, and Construction) provider and other key contractors.
• What it includes:
  • EPC agreements with milestone timelines
  • Major equipment supply contracts (e.g., panels, inverters, storage systems)
  • Warranties and performance guarantees
• Why it matters: Lenders need confidence that the project will be completed on time and within budget.

6. Tax Equity Strategy

• What it is: A plan or agreement outlining how tax equity investment will be structured.
• What it includes:
  • Tax equity investor documents (letters of intent, commitments, broker agreement, MIPA, etc..)
  • ITC (Investment Tax Credit) or PTC (Production Tax Credit) calculations
  • Expected contribution timelines
• Why it matters: Lenders often require clarity on tax equity funding as it can materially affect the project's overall financing structure.

7. Insurance Coverages

• What it is: Policies that protect the project against operational and financial risks.
• What it includes:
  • General liability insurance
  • Property and casualty coverage
  • ITC insurance (if applicable)
  • Credit insurance to de-risk offtaker payments (if applicable)
• Why it matters: Comprehensive insurance ensures financial protection against unforeseen risks that could disrupt cash flows.

8. Project Timeline

• What it is: A detailed schedule from construction to commercial operation.
• What it includes:
  • Construction start and completion dates
  • Permitting milestones
  • Expected commercial operation date (COD)
• Why it matters: A clear timeline helps lenders assess the feasibility of construction-to-permanent financing and align on key disbursement milestones.

By preparing these materials in advance, developers can demonstrate professionalism, reduce back-and-forth with lenders, and accelerate the financing process.

Free C&I Developer Data Room Template

When it comes to presenting your project to potential financiers, organization is everything. While this template isn’t a one-size-fits-all solution, it provides a robust starting point. By ensuring that every folder contains the relevant information for your specific project or portfolio, you’ll be in a much better position to streamline the financing process, reduce delays, and improve the chances of success.

Our template is designed with simplicity and clarity in mind, breaking down your project’s data into clearly labeled folders and subfolders. Each section reflects the key diligence items lenders expect to see, helping you present your project as a polished, professional opportunity.

DOWNLOAD NOW

Why Energetic Capital Can Make a Difference

Financing C&I renewable energy projects often comes with unique challenges, from addressing offtaker creditworthiness to organizing complex project details. At Energetic Capital, we’ve seen firsthand how the right tools and preparation can transform this process. With transactional experience spanning hundreds of projects, we’ve worked with developers of all shapes and sizes—from small, independent teams to some of the largest players in the industry—to navigate these hurdles and achieve financing success.

Our position at the intersection of developers and many of the leading project finance banks gives us a deep understanding of the critical factors that streamline approvals and secure better terms. This perspective enables us to provide actionable insights and practical solutions, helping developers create a more efficient financing journey.

How We Support Developers

• Addressing Gaps in Financing: With tools like credit insurance, we help developers overcome challenges related to offtaker credit or other perceived risks, ensuring your project meets lender requirements.
• Improving Financing Outcomes: By understanding what leading lenders prioritize, we guide developers in organizing materials and presenting projects in a way that resonates with financiers.
• Building Confidence: Our experience across a diverse range of projects means we can anticipate challenges and proactively help you address them, making the financing process smoother and more predictable.

At the end of the day, our goal is to help developers like you focus less on the complexities of financing and more on building renewable energy projects that make an impact. If you’d like to learn more about how our insights and tools can help you take the next step, we’re here to share our expertise.

Energetic Capital is proud to announce the successful close of its first policy covering offtaker default in connection with a 40 MW wind project in the MISO region. By collaborating closely with the project sponsor and a leading global financing bank, this policy addressed the unique credit risks associated with a virtual power purchase agreement (vPPA), unlocking critical funding to advance renewable energy deployment.

This transaction highlights the growing role of credit insurance as a flexible and impactful tool in clean energy financing. By mitigating risks tied to unrated or sub-investment-grade offtakers, credit insurance enables lenders and project sponsors to reallocate financial risk and achieve more favorable terms—similar to its use as a solution for challenging forbearance structures.

The deal also reflects broader market trends in power purchase agreements (PPAs), where diversification of offtakers and the rise of unrated entities are reshaping the market landscape. These trends were recently explored in our article, Corporate PPAs Hit Record High in 2023: Emerging Credit Trends Reshape the Markets.

Energetic Capital remains committed to providing innovative financial solutions that drive the clean energy transition forward. This milestone underscores the adaptability of our products to support projects of all sizes and structures in today’s evolving energy markets.

To learn more about this achievement and how our solutions can support your projects, reach out to our team or explore the full article here.