A Boston renewable energy insurance startup, founded by a long-time entrepreneur and clean energy leader, announced Thursday that it's raised $7 million after early success with selling its product to hundreds of energy projects.
Energetic Insurance, led by CEO James Bowen, provides a credit insurance policy covering payment default risk to commercial and utility-scale renewable energy projects. The company has insured more than 160 sites for a total of over $70 million, it said in a press release.
Energetic announced this week it's raised $7 million in a Series A investment round led by the investment arm of energy giant Schneider Electric, with MS&AD Ventures, MCJ Collective and Atlantic Global Risk also participating. The startup has now raised $12 million total.
Bowen is a former director of business development at the Massachusetts Clean Energy Center. He co-founded renewable energy development and investment company Vertex Energia and served on the board of Agira Photonics before founding Energetic.
"We are poised to harness this additional capital and investor support to expand and streamline operations as we expand our current offering and enter new markets," Bowen said in a statement.
The company calls its insurance policy EneRate Credit Cover, and says it addresses a "longstanding barrier" to growth in the renewable energy industry, in part because it covers commercial customers who are unrated or below investment grade.
