Pivot Financing Solution
Insure the savings and make the project pay for itself
Pivot creates confidence in the project savings attracting finance providers to enter this asset class at scale and benefit from the sustainable risk-adjusted returns which are available. This enables low or zero capital outlay from the landlords or residents. More importantly it enables off-balance sheet treatment for the landlord and does not interfere with existing borrowing. These features are essential for those social housing groups who have little balance sheet capacity. We release a resource for them - they are in control of very large estates of inefficient homes that contain great opportunities to reduce carbon and improve living conditions. Pivot’s financial solution helps to unlock these.
The carbon net zero projects typically include insulation, electrification of the heating, solar and storage however all technologies are considered. The insured savings are measured on an ongoing basis and, after leaving a proportion with the resident, the balance is transmitted by the social landlord to the project vehicle to manage the operation & maintenance and service the finance. Partnerships with social landlords are long-term, enabling the upgrade of their estate in tranches over several years with contract terms per tranche of between 15-30 years.
If the savings are not realised the insurance covers the shortfall while remediating the problem. This enables consistent cashflows and for the projects to pay for themselves.
Funding with Energy Savings Insurance
Pivot’s risk mitigation platform and process employs methodology well used in the capital markets, however not previously applied to the building sciences.
The platform generates risk metrics which quantify the probability and magnitude of projected underperformance which indicate the availability and pricing of both insurance and therefore financing. The selected projects are then progressed through to detailed engineering design with third party engineers. The platform reflects the underwriting criteria of our insurance partner. Use of the platform right from the discovery phase provides certainty the insurance will be available.
The specific underwriting criteria of financing partners can easily be reflected. This equips the Pivot platform to be the end-to-end data driven solution from lead-generation, aggregation, technical due diligence, underwriting, risk management and monitoring.
Pivot’s platform driven insurance product provides transparency and speed of process
Instantaneous feedback and early guidance to achieve reduced risk and best pricing
Design large projects with certainty of insurance leading to more carbon reduction
Customer journey and policy terms are tailored for capital providers
Risk transfer then risk mitigation. Real-time monitoring, proactive and automated operation & maintenance supports good projects
Energy Costs
- Baseline is a key contractual term.
- Energy costs reduce once project commissioned.
Project And Financing Cost
- Project is financed externally, on or off-balance sheet with debt service funded by the energy savings which are insured.
Tenant Savings
Benefits from Day 1
- Zero capex.
- No payment towards financing unless savings are realised.
- Receives 100% of savings after contract term.
Managing the Risk
Ongoing metering & monitoring increases operational success:
- Predictive maintenance.
- Fault detection and root-cause.
- Guides tenant on better operation to keep bills down.
Insurance Coverage
The policy is underwritten through the Pivot platform and terms are provided against the desired savings levels and excess. Cover includes both performance and asset cover (equipment and labour) across a very broad range of technologies.
Shortfall Indemnity
Property Damage
Breakdown and Defect
