Little Markets, Big Opportunity. The Netherlands represent less than 3% of the European population but in a surprise move, the already great solar market is doubling down on solar by doubling the rebate for installing solar. This is a massive sign of support for distributed generation and an overt statement that everyone should go solar. Imagine if the US supported each block of 17 million people with the equivalent of $4billion in support.
Impact Of The Day. The growth in Netherlands is a sign of the broader market. This is merely the start of the market in Europe that is driving massive growth of solar over the next decade and more. If more than 1GW of rooftop solar gets installed in the Netherlands this year, imagine what this means to every other Country in Europe and around the world. It also reiterates the importance of geographic diversity for solar companies. Some markets may normalize while others grow, whether it’s a Country in Europe or a State in the US. Companies that have geographic diversity can whether potential risks while also having the necessary infrastructure to take advantage of the opportunities that come up.
The Banks Are Lending. Energy storage, EV infrastructure or solar on homes are a growing asset base for many banks or other asset based lenders. This is creating a new level of importance in the market around bankability. Module OEMs have long shown their bankability reports and touted their BNEF tier 1 status. This is also enhancing value in the energy storage market by the majors like LG Chem and Samsung. Investors are also becoming pickier on inverter selection given the decade of changes in the market in that segment, residential solar may as well be a duopoly at this point between Enphase and Solaredge. Loan companies have limited their bankability and code-compliance to modules and inverters only but are learning more about the importance of the mounting and racking equipment installed on customers homes. With billions going into residential solar per year now, expect more scrutiny on product and installation methods used by your businesses.
Continued Growth Of Load. General Motors showed analysts 10 versions of their electric cars ranging from 50 to 200kWh. EVs make up 99% of what we talk about in vehicles but only 1% of total sales. Imagine the change in consumer behavior when every GM dealership has sales people incentivized to actually sell electric cars and trained on the nuance of owning one. EV owners want to charge at the store and at the office, that makes it easiest for them and eliminates the assumed range anxiety that is mostly only reality in the minds of non-EV owners. Watch this space…
- Reuters: Netherlands doubles 2020 green subsidies in rush to hit climate goals
- Axios: GM begins historic shift to electric vehicles
- Solar Power World: Berkeley Lab report finds lower income ranges adopting solar over time
- Bloomberg: Banks Finally Start to Spend Big on Giant Batteries
- Utility Dive: DOE Secretary holds out hope for new low carbon coal plants as Senate drills him on renewables cuts
- PV-Tech: Boon for UK solar as government welcomes PV back into renewables auctions
- Greentech Media: David Energy Raises $1.5M to Turn New York’s Buildings Into Energy Market Players
Opinion
Best, Yann