kWh Analytics announced it has been awarded $500,000 from InnSure’s Insurance Innovation Prize supported by the New York State Energy Research and Development Authority (NYSERDA). The funding will support the development of a tax credit insurance product tailored specifically for small-scale distributed generation (DG) renewable energy projects, addressing a critical market gap in renewable energy financing.
The new insurance product will enable projects under 20 MW to effectively monetize transferable tax credits introduced by the Inflation Reduction Act (IRA). While the IRA made tax credits transferable, in part to promote distributed generation, traditional tax credit insurance solutions require extensive and expensive due diligence from highly specialized and skilled professionals that smaller projects cannot support. This creates a substantial barrier for smaller renewable energy projects seeking to participate in the tax credit market.
“The transition to clean energy requires innovative financial solutions that work for projects of all sizes,” said Jason Kaminsky, CEO of kWh Analytics. “This award will enable us to leverage our extensive data, insurance expertise and technological advantage to open new financing pathways for smaller renewable energy projects, supporting the deployment of clean energy across the country.”
kWh Analytics will apply its data-driven approach, powered by its AI-enabled underwriting assessments and proprietary database of over 300,000 renewable energy projects, to streamline and standardize the due diligence process for tax credit insurance.
The new tax credit insurance product is expected to launch within 18 months, supporting the growth of distributed generation solar and battery storage projects in New York and nationwide.
News item from kWh Analytics
