A critical tool for scaling climate tech: insurance

What this episode covers

Jeff McAulay, founder and president of Energetic Insurance, explains how his company addresses counterparty credit risk to enable financing for distributed renewable energy projects, starting with commercial solar. He details how transferring this specific risk lowers the cost of capital and Levelized Cost of Electricity (LCOE), allowing businesses with lower credit ratings to access project finance. McAulay also discusses the application of these insurance models to other climate technologies, including geothermal drilling success, heat pumps, and advanced nuclear, while highlighting the critical role of government backstops and development finance institutions in de-risking earlier-stage innovations.