This is your SolarWakeup for January 11th, 2023

The Polar Vortex Test. Over the next week the weather may not align with grid forecasts. Yesterday’s storm matched with ice conditions knocked out power to over 500k consumers across the east and another vortex is coming from the Canadian border. In the southeast we’ve had an unseasonably windy winter. ERCOT is looking at the weather forecast and has a rather tight operating window a week from today and that’s assuming everything works as it’s supposed to which we should all hope for.

Profits Sit With Risks. Herein lies the answer to the NYT’s opinion piece. Comparing renewables to oil or gas is flawed in its analysis with regard to profits. Solar and wind have a capital structure that centers around certainty with little room for volatility, i.e. no fuel costs and predictable operating expenses with a contract for revenue. Most power plants operate differently, producing energy on a dispatch or traded basis with much shorter contracts that allow room for upside. Fuel costs are inherently volatile when long term hedges don’t exist.

Managing Installer Cash Flow. Interest rates are the highest in 22 years, increasing solar financing costs and softening consumer demand for loan products. Businesses are feeling the pain of strained cash flows, labor costs and profitability pressures. Palmetto, a B2B technology company accelerating the adoption of clean energy, has announced a new partnership offering for solar installers to help stabilize cash flows and grow faster in today’s market. Built on top of Palmetto’s Clean Energy Operating Platform, this is a comprehensive suite of tools and services enabling installers to streamline operations, optimize performance, and increase profitability. Visit https://www.palmetto.com/finance or contact capital@palmetto.com for more.

Opinion

Best, Yann