Existing investors Congruent Ventures, SCOR P&C Ventures, MUUS Asset Management, Powerhouse Ventures, and Clean Energy Venture Group also participated in this round.
Founded in 2016, Energetic operates as an MGU with initial capacity provided by SCOR Global P&C. The startup created the EneRate Credit Cover insurance policy which covers default risk for payments made by commercial and other non-residential customers who purchase electricity through long-term power purchase agreements.
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.”
