Energetic Insurance has held the close of a $2.5m seed investment round, and also established a partnership with SCOR to launch the EneRate Credit Cover policy.
The seed investment was led by early-stage venture capital firm Congruent Ventures, with participation also coming from Clocktower Technology Ventures and Powerhouse Ventures.
Prior to this round, the company pulled in a $635,000 angel investment round, which was also led by Congruent Ventures. The company has raised a total of $4m in funding, with other capital injections being an $800,000 award from the US Department of Energy Solar Energy Technologies Office and a $265,000 award from the Massachusetts Clean Energy Center (MassCEC).
Alongside the close of the funding, the InsurTech revealed the company has partnered with SCOR Global P&C for a new energy policy.
EneRate Credit Cover aims to remove the barrier to non-residential solar by covering default risk for payments made by businesses without a public credit rating who purchase electricity through long-term power purchase agreements, it said. Lenders that finance these solar projects will be able to ensure regular payments.
Project developers will be able to purchase EneRate Credit Cover to protect against default risk for up to a 10-year term.
In addition to the credit cover, Energetic Insurance partnered with SCOR to launch new risk management products for the renewable energy industry.
SCOR Global P&C innovation leader Will Thorne said, at. “SCOR has a longstanding and ongoing commitment towards achieving climate resilience and sees (re)insurance as a key enabler for the continuing development of the renewable energy sector.
“Energetic Insurance’s deep experience in energy and financial markets make them the ideal partner to develop the innovative risk management solutions needed to spur further growth in renewables in the US and worldwide. Their data-driven approach to underwriting credit risk in solar projects, using analytical methodologies, business process and software, complements SCOR Global P&C’s long-standing expertise in this sector”
Energetic Insurance is a managing general underwriter leveraging a data-driven approach to risk management products for the renewable energy space.
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