This is your SolarWakeup for November 17th, 2016

Next Secretary of Energy? We’ve got your list. The list of people that President-Elect Trump should consider for DOE. This isn’t a political assessment it is an assessment for the type of person that can be successful within the administration and inspire private sector innovation. Let’s remember, the energy sector is an enormous wealth creation market with a trillion dollar opportunity. Follow the money, open the markets and the private sector will thrive on economics and value to the consumer.
Distributed rate design. NARUC finalized its DER guide for rate design at their annual meeting. Both SEIA and Vote Solar came out with positive outlook for the report which amongst other things outlines that 19 States have published reports saying that there does not appear to be a cost shift for distributed solar.
Series 6 focus. First Solar formally announced that it was scrapping Series 4 manufacturing expansion and planned Series 5 roll out in favor of going straight to Series 6. The reason is simple, it brings First Solar’s modules in line or ahead of crystalline in terms of efficiency. The company is going to reduce its workforce by 27% (1,600 people) and write down between $500-$700million. I don’t see this as bad news, this is a focus on cost reduction and creating margins on a value proposition. More solar companies should focus on that, especially the $150million in profits last quarter.
Let the market work. You are going to hear a lot about letting markets work from this outlet. When we talk about demand charges, solar fees, or rate design, remember that if the market has the right pricing signals then the consumer will be able to figure out what they need, when they need it and how much they are willing to pay. Illinois is doing it wrong in my opinion, no need for indiscriminate demand charges and handouts for power plants. Fix the valuation for the power market instead.
Larger grids = greater value. EDF makes a point that needs to be talked about more. The electric grid needs to start connecting to neighboring systems. PJM which goes from Illinois to North Carolina and New Jersey which allows for all sorts of fuels to compete in a regulated competitive market.

Opinion

Have a great day!

Yann