Inflationary Loss Of Tax Credits. The loss of the ITC causes the increase of off take cost by something like $20-$30 per MWh depending on where you are. One side will argue that that’s the market cost, i.e. a data center or utility pays for the energy that is produced without influence. On the other hand, if a solar deal goes up by $20, so will the pressure on the wholesale market because the value will levelize across the entire grid. The argument for the ITC extension is straightforward, it lowers the cost to consumers and businesses and spreads that cost, i.e. the cost of the tax credit, across the entire Federal balance sheet.
BYOP. Bring your own power, of course a concept that is helping data centers get connections faster. But I am more interested in the concept that the BYOP is all in DC, solar to the servers with every electron, including the grid (converted to DC), running through giant BESS systems. Batteries aren’t a backup, they are the supply chamber that regulates all of the needs and inputs that alleviates and warns the data center operator well in advance of any issues.
- Reuters: Killing wind and solar subsidies will make US electricity more expensive
- Canary Media: Data centers use more power in the US than in any other country
- PV-Magazine: Qualifying for solar tax credits beyond the July 4th deadline
- PV-Tech: US considers ban on Chinese solar inverters
- New York Times: Energy Dept. Orders Data Centers to Tap Backup Power
- Utility Dive: US wholesale power prices to decline 8% this summer – EIA
- Axios: A renewables playbook for the rest of Trump 2.0
- Solar Power World: Enphase debuts smart thermostat displaying home solar production
Opinion
Best, Yann