Energetic Insurance Closes Series A Round Led By Schneider Electric Ventures With Participation From MS&AD Ventures to Transform Commercial Financing for Renewables
LAS VEGAS, Oct. 8, 2021 /PRNewswire-PRWeb/ — Announced officially at the Insuretech Connect 2021 (ITC) conference, Energetic Insurance announced the completion of a Series A financing of $7 million led by Schneider Electric Ventures with participation from MS&AD Ventures, MCJ Collective, and Atlantic Global Risk. Existing investors Congruent Ventures, SCOR P&C Ventures, MUUS Asset Management, Powerhouse Ventures, and Clean Energy Venture Group also participated in this round. Foley Hoag was counsel for Energetic in this transaction.
Energetic operates as a Managing General Underwriter (MGU) with initial capacity provided by SCOR Global P&C, the fourth largest global (re)insurer rated AA-/Aa3 by the three major ratings agencies. Energetic’s founders met SCOR P&C Ventures at the first ITC conference in 2016 which ultimately led to their partnership for the EneRate Credit Cover product.
The round blends support from global players across the energy, insurance, and finance sectors, demonstrating cross-sector alignment and collaborative action for renewable energy development.
Varun Jain, General Partner at Schneider Electric Ventures stated: “Schneider Electric is a market leader in the deployment of distributed, digital and decentralized technologies for the renewable and energy efficiency sectors. To scale these deployments and achieve a successful energy transition we must have affordable and scalable financing options. We believe Energetic Insurance is a key to enabling our industry achieve this scale because their product enables all kinds of businesses – not just the giant investment grade corporations – to adopt renewable and energy efficiency. Energetic Insurance is unlocking the much sought-after “middle market” of energy and we are excited to support them in their growth.”
Energetic Insurance created the EneRate Credit Cover® insurance policy which addresses a longstanding barrier to growth in the renewable and energy efficiency industries by covering default risk for payments made by commercial and other non-residential customers who purchase electricity through long-term power purchase agreements. Many of these commercial customers are unrated or below investment grade, which further increases the need for EneRate Credit Cover. Lenders who finance these projects based on the expected regular payments from the business to the project developer can now lend with confidence in cash flows when EneRate Credit Cover is used.
To-date Energetic has placed their novel form of credit insurance on projects with over $70M of insured value with 160 sites across 13 U.S. states. The funding raised will enable Energetic to expand their team and reach new markets, with a focus on technology development, product offering diversification, and geographic expansion.
“At MS&AD Ventures, we care about creating a better future for the world. The clean energy transition is an important global topic and we see climate change as a critical risk management issue. Energetic Insurance’s products will be a key enabler for the financing and development of this transition. We have been tracking the team for some time and their deep market expertise and analytical prowess has yielded a robust, data-driven approach to underwriting credit risk for the energy sector. The growing demand for their EneRate Credit Cover validates the need for better financing options for solar and next generation energy. We are excited to support the team at Energetic as they scale their impact on climate and energy finance.” said Tiffine Wang, Partner at MS&AD Ventures.
James Bowen, Co-founder and CEO of Energetic Insurance stated: “I’m honored to be able to work every day with such a dedicated and committed team at Energetic. Because of their relentless efforts, we are poised to harness this additional capital and investor support to grow and streamline operations as we expand our current offering and enter new markets. Thanks to the enthusiastic support of our existing and new investors, Energetic Insurance is becoming a driving force behind the clean energy transition.”
Project developers, tax equity investors, and debt lenders in the U.S. and abroad can purchase EneRate Credit Cover to protect against default risk for up to a 10-year term. This allows financiers to the project to benefit from SCOR Global P&C’s AA-/Aa3 credit rating.
EneRate Credit Cover can be used on renewable energy or energy efficiency projects with commercial or other non-residential electricity customers, including utility scale projects and community solar projects. The electricity buyer can be investment grade, unrated or sub-investment grade.
Julian Torres, Chief Investment Officer at Scale Microgrid Solutions said: “EneRate Credit Cover is a powerful tool I can bring to bear as a financier and developer of resilient and sustainable distributed generation projects. It allows me to target with confidence the large segments of the US market that have historically been considered “unbankable” by tax equity investors or lenders. I’m excited to see the global venture community’s support for the critical role Energetic is playing to expand the adoption of renewable energy in the US.”
Energetic Insurance is headquartered in Boston, Massachusetts and was supported initially with an $850,000 grant from the U.S. Department of Energy’s Solar Energy Technologies Office (SETO).
For media inquiries, please contact:
James Bowen – (617) 701-7796
james.bowen at energeticinsurance.com
NOTE: This Press Release does not constitute and is not intended by Energetic Insurance or any of the entities mentioned in this release to constitute a solicitation for any insurance business.
About Energetic Insurance (http://www.energeticinsurance.com)
Energetic Insurance is a Managing General Underwriter (MGU) with a novel, data-driven approach to develop new risk management products to unlock exponential growth in the renewable energy industry. Our first product, EneRate Credit Cover®, unlocks renewable and energy efficiency project financing for unrated and below investment grade counter parties by covering counterparty credit risk. EneRate Credit Cover® was selected by Insurance Insider Magazine as the “New Underwriting Product of the Year” for 2020.
Headquartered in Boston, Energetic Insurance was awarded a SunShot Prize from the US Department of Energy in 2017 and has received a total of $12 million 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), both wholly-owned subsidiaries of Energetic Insurance, Inc. Energetic Insurance complies with all state-mandated regulations for surplus line insurance brokers and is licensed as a surplus lines broker in Massachusetts with License #: 2053916.
About Schneider Electric (http://www.se.com)
At Schneider, we believe access to energy and digital is a basic human right. We empower all to make the most of their energy and resources, ensuring Life Is On everywhere, for everyone, at every moment. We provide energy and automation digital solutions for efficiency and sustainability. We combine world-leading energy technologies, real-time automation, software and services into integrated solutions for Homes, Buildings, Data Centers, Infrastructure and Industries. We are committed to unleash the infinite possibilities of an open, global, innovative community that is passionate about our Meaningful Purpose, Inclusive and Empowered values.
About MS&AD Ventures (http://www.msad.vc)
MS&AD Ventures is a global early-stage fund based in Silicon Valley and backed by Mitsui Sumitomo & Aioi Nissay Dowa (MS&AD Holdings). The firm invests in emerging technologies in Fintech, InsurTech, AI, Sustainability, Digital Health, Big Data, and Enterprise/Cybersecurity. Regions served include the US, Israel, Southeast Asia, Europe, and the Middle East.
About Scale Microgrid Systems (http://www.scalemicrogridsolutions.com)
Scale is a vertically integrated distributed energy platform, with a core focus of designing, building, financing, owning and operating cutting-edge distributed energy assets that offer cheaper, cleaner, and more resilient power. Their team of energy and financing experts accelerate growth in distributed energy projects by providing financing to technology providers, energy developers, and OEMs, while also directly helping large energy-consuming customers to take charge of their energy infrastructure and future-proof their businesses.
About SCOR (http://www.scor.com)
SCOR, one of the world’s largest reinsurers, provides insurance companies with a diversified and innovative range of solutions and services to control and manage risk. Using its experience and expertise (“The Art & Science of Risk”), SCOR provides cutting-edge financial solutions, analytics tools and services in all areas related to risk.
James Bowen, Energetic Insurance, +1 (617) 701-7796, [email protected]
SOURCE Energetic Insurance
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