The latest on Energetic and renewable energy trends.

Introduction: Protecting What Powers Your Project

In the world of energy project finance, physical assets like panels, turbines, and transformers are the big-ticket items that lenders require sponsors to insure, given their value to the project. But what about the contracts that make those assets valuable in the first place?

Power purchase agreements (PPAs) and similar revenue contracts don’t appear on the balance sheet, yet they underpin the entire economic case for a project. These contracts generate tens of millions in future revenue—any loss or impairment can cripple a project’s value.

This blog explores why PPAs should be treated like the valuable assets they are—and how developers can protect them accordingly.

Tangible Assets Are Insured—Why Not Revenue?

In a typical project, fixed assets like equipment and infrastructure account for 80–90% of reported asset value. These are heavily insured against physical loss, enabling recovery in case of damage or disaster.

But the PPA, which arguably drives most of the project’s long-term value, is left exposed. If the offtaker defaults or terminates the contract, the revenue disappears—and standard P&C insurance doesn’t cover it.

The Revenue Engine Developers Ignore

Most clean energy projects are built around long-term PPAs that span 15–25 years. These contracts lock in a future cash flow that makes the project bankable.

Let’s do the math: a 50 MW solar farm that costs $1.50/W to build will generate nearly $280M in revenue over 25 years:

• Project Cost: $75M

• PPA Price: $0.125/kWh

• → FMV: ~$110M

The fair market value, based on project income, is 50% higher than the cost. And yet, this entire revenue stream is often unprotected.

The Risk Is Real: Credit Matters

Not all offtakers are equal. Many do not post credit support—especially in commercial or community solar contexts. In a tightening credit market, the risk of counterparty default is rising.

Recent downgrades across industries (e.g., Boeing, Insight Investment) underscore the volatility. When a revenue contract vanishes, the project’s fair market value plummets—because valuation models rely on expected income.

What Happens If the Revenue Goes Away?

In traditional casualty events, insurers step in to restore asset value. For PPAs, there’s no such backstop—unless you build one.

If your $75M project is protected against wind and hail but not against a failed offtaker, you’re only managing half your risk profile.  

Tools for Revenue Protection Exist

There are ways to insure your PPA-driven revenue stream—just as you do for your physical plant:

• Credit support agreements or letters of credit

• Third-party credit insurance: This is where companies like Energetic come in, offering specialized protection against offtaker default on ongoing PPA obligations or on amounts due upon termination.

These tools can stabilize project returns, protect equity, and enhance lender confidence.

Conclusion: Protect the Contract Like the Plant

PPAs may be intangible—but they’re no less valuable. Developers already insure their physical assets. It’s time to extend that mindset to the contracts that bring those assets to life.

If you’d insure your $75M plant, why wouldn’t you insure your $110M PPA?

‍

There’s a major M&A wave rolling through the commercial and industrial (C&I) renewables sector—and it’s reshaping how projects are built, valued, and acquired.

On one end, large IPPs are offloading C&I portfolios to focus on utility-scale. On the other, pure-play developers are intentionally building with a “sell at NTP” model in mind. Buyers—often institutional-backed aggregators—are actively hunting for bankable projects they can roll up into larger portfolios.

But while transaction activity is high, financing remains a persistent bottleneck.

The Financing Roadblock: What’s Slowing Deals

Most buyers operate with strict internal financing assumptions. If a project doesn’t have an investment-grade offtaker, it often gets priced conservatively—or skipped entirely.

This doesn’t just create a pricing mismatch. It distorts the entire pipeline:

• Sellers believe the asset is worth more.

• Buyers can’t justify the risk-adjusted return.

• And developers stop pursuing projects with non-IG offtakers altogether.

The result? A narrower set of deals gets built—and a massive swath of viable demand remains unserved.

But that risk isn’t always unmanageable. In many cases, credit risk can be mitigated. That’s where credit insurance enters—not just to rescue tough deals, but to expand what’s possible in the first place.

Smart Buyers Are Quietly Using Credit Insurance to Win

A growing group of repeat acquirers are shifting their approach. Before they close, they bring projects to Energetic Capital and ask:

“Would your team have appetite for this offtake?”

If the answer is yes, they know they can likely secure investment-grade permanent debt financing post-close. That clarity gives them the confidence to bid more aggressively—and win deals others can’t.

In this context, credit insurance becomes more than just a safety net.

It’s a strategic tool that gives buyers real bidding power.

Sellers Are Catching On—And Reaping the Benefits

We’re now seeing sellers take a page from the buy-side playbook. By engaging early and pre-packaging projects with credit insurance on part of the cash flows, they boost the overall bankability of their portfolio.

The upside?

• Better risk profile.

• Faster buyer diligence.

• Higher exit valuations.

This isn’t theoretical—it’s happening right now. And it’s turning generic portfolios into premium ones.

A Market-Level Shift Is Underway

Credit insurance is no longer just a back-end, post-financing tool—it’s becoming a foundational part of how clean energy transactions are priced, structured, and executed.

The benefits are increasingly hard to ignore:

• Sellers attract stronger buyers and accelerate time to close.

• Buyers unlock more projects without compromising returns.

• Lenders get comfortable due to credit risk-mitigation earlier in the process, not after the fact.

• Deals move faster—with fewer surprises, fewer retrades, and clearer alignment on value.

At Energetic Capital, we’re not just supporting financing—we’re actively shaping how C&I projects get valued, acquired, and monetized. This isn’t just about de-risking deals. It’s about stepping into a true capital markets role:

• enabling transactions

• improving execution

• and giving our clients a strategic edge.

In a market defined by speed, scale, and scarcity, that kind of edge isn’t optional—it’s a competitive advantage.

Ready to Play Offense in M&A?

The landscape is changing fast. Those who know how to enhance credit profiles early will move faster, win more deals, and realize stronger returns.

Whether you’re a developer building to sell or an aggregator looking to scale—talk to us before your next transaction.

Credit insurance isn’t just a de-risking tool. It’s a deal accelerator, a pricing lever, and a competitive advantage.

‍

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.