Author Archives: Frank Andorka

Q&A: Why Is Community Solar So Hot And The Keys To Getting Deals Done

By Frank Andorka, Senior Correspondent

As community solar continues to streak across the solar sky as the hottest segment in the industry, the questions are twofold: Why is it the hottest segment, and what are the keys to getting deals done. Scott Wiater, president and CEO of Standard Solar, a national solar company that has recently done community solar deals in New York and Colorado, agreed to answer those questions – and offer advice to anyone trying to launch community solar programs in new areas.

SolarWakeup: Why is community solar one of the fastest-growing segments of the solar industry?

Scott Wiater: The size of the market is staggering. According to a GTM Research, Wood Mackenzie and Vote Solar report, between 50% and 75% of U.S. electricity consumers can’t put solar arrays on their own roofs. That means there’s 50% to 75% of U.S. electricity consumers that can’t be a part of the Solar Revolution unless there’s an alternative way to reach them. People are realizing that community solar provides them with that opportunity.

[wds id=”3″]

SolarWakeup: According to a recent study, only 19 states have programs that actively promote community solar programs. Why is that?

Scott Wiater: It’s a relatively new market, and just like any other new market, there’s an education process that we have to go through. It’s not that states don’t want community solar programs. I just think that right now that they don’t know any better.

SolarWakeup: What kind of education effort is needed to explain the benefits of community solar to policymakers?

Scott Wiater: You’d be surprised how quickly policymakers start to get it once you explain to them not only the benefits to the consumers but also the neighborhood that’s connected to the community solar program. So it doesn’t take much, though it does require that the solar company involved be willing to take the time to explain the process to them. In the end, it’s so worth every effort we make.

SolarWakeup: What kind of reception do you get when you start talking about community solar to customers?

Scott Wiater: They get excited. After all, what’s not to get excited about? It’s an opportunity to access clean energy without the complex process of putting it on your own roof. People like easy, and community solar gives them an easy way to do their part to help the environment—and it saves them money on their electric bills to boot. What’s not to like?

SolarWakeup: What are the three most important elements to getting a community solar deal done?

Scott Wiater: The three most important elements to getting a community solar deal done are education, financing and customer acquisition. The key to making sure all of that goes smoothly is to have a development group involved that has done it before and won’t get tangled up in the complexity of the deal. There’s a specific set of skills companies must have to do community solar projects smoothly, and not everyone has that skill set. If you’re considering doing a community solar project, do your due diligence and make sure the company you choose to spearhead your deal fully understands everything that entails.

New York Pledges 3 GW Of Energy Storage By 2030

By Frank Andorka, Senior Correspondent

When New York announces clean energy goals, they do it in the only way the Empire State knows how to do anything: They do it big.

So it was when Governor Andrew Cuomo announced his latest bid to reclaim New York’s leadership in the clean energy push that’s sweeping through the Northeast, calling for 3 GW of energy storage to be added to the state’s grid by 2030.

“As the federal government continues to ignore the real and imminent dangers of climate change, New York is aggressively pursuing clean energy alternatives to protect our environment and conserve resources,” Governor Cuomo said in a press release. “These unprecedented energy efficiency and energy storage targets will set a standard for the rest of the nation to follow, while supporting and creating jobs in these cutting-edge renewable industries.”

[wds id=”3″]

In June, Governor Cuomo announced the State’s plan to jumpstart the development of energy storage in New York, calling for the deployment of 1,500 megawatts of energy storage by 2025, or enough electricity for 1.2 million average sized homes, while avoiding more than one million tons of carbon pollution.

To achieve the Governor’s goal, the Commission today adopted a comprehensive strategy to address barriers that have been impeding energy storage technologies from competing in the energy marketplace. These actions are intended to accelerate the market learning curve, drive down costs, and speed the deployment of the highest-value energy storage projects for maximum benefit to New Yorkers and the electric grid.

In addition to the 2025 goal, a secondary energy storage deployment goal of 3,000 megawatts for 2030 is being adopted, which was called for pursuant to legislation signed into law last year by Governor Cuomo. When implemented, the strategy adopted by the Commission today will establish a critical foundation for the emergence of this clean-tech industry across the state and support New York’s goal to create 30,000 jobs in this industry.

To further stimulate energy storage deployment across the state and spur private sector investment, earlier this week, New York Power Authority (NYPA) announced it will invest $250 million over the next five years to accelerate the flexibility of the electric grid to give New Yorkers greater access to renewable energy resources such as wind and solar power. This multi-pronged, collaborative effort by NYPA will harness the abilities of third-party providers to address key market and financial barriers, and accelerate implementation of 150 megawatts of grid flexibility projects and decrease market risk.

Both Commission actions today are the result of extensive public outreach, numerous public hearings, regional forums, active stakeholder engagement, and public comment review.

The Commission order also:

  • Authorizes a $310 million market acceleration bridge incentive to be administered by NYSERDA, in addition to $40 million announced in November for pairing storage with PV projects, and directs NYSERDA to file a market acceleration bridge incentive implementation plan; and
  • Directs the State’s six major electric utilities to hold competitive procurements for 350 megawatts of bulk-sited energy storage systems.

As more renewable energy resources, such as wind and solar, are brought online, energy storage will enhance efficiency of the electric grid to better integrate these variable resources. Importantly, energy storage will also enable these resources to meet periods of peak demand. Achieving the 2025 energy storage target will produce $2 billion in gross lifetime benefits to New Yorkers by reducing the reliance on costly, dirty and inefficient energy infrastructure, while also helping to scale up the clean energy industry.

According to a recent report by the American Jobs Project, New York is home to nearly 100 energy storage companies with expertise in hardware manufacturing, advanced materials, software development, and project management, and ranks fifth in the nation for energy storage patents due to the depth of research across its universities, national lab, and businesses.

The Energy Show: Manufacturing Solar in the U.S. with Auxin Solar

The Energy Show: By Barry Cinnamon

Attention U.S. Department of Commerce: your well-intentioned efforts to help the U.S. solar panel manufacturing industry are not working.

Even with 30%+ tariffs on imported solar panels and cells, the remaining U.S. manufacturers are struggling to stay competitive. The good news, as one would expect, is that there is strong demand for Made in the U.S.A. solar panels – both from ordinary consumers as well as government purchases. However, structural issues with the supply chain for solar components puts the remaining U.S. manufacturers at a substantial disadvantage.

The reasons for these supply chain challenges are simple. Basically, many of the key components that go into solar modules are not manufactured in the U.S., including wafers, cells, EVA and junction boxes. And many of the components that are indeed available in the U.S. — such as glass, backsheets and aluminum frames — are significantly less expensive at comparable quality levels if purchased from overseas suppliers. To make matters even worse, these essential imported solar components are subjected to additional tariffs when imported from certain countries. Essentially, we are shooting ourselves in our foot if we expect U.S. solar manufacturers to be competitive when 30%+ tariffs are applied to most of the major solar components.

A rational plan to make the U.S. competitive in solar manufacturing does not require government support. Instead, it requires government to get out of the way and set a long-term solar manufacturing policy. U.S. manufacturers would instantly be more competitive if they did not have to pay tariffs on imported solar components — particularly cells and aluminum solar frames. Once the U.S. solar manufacturing base is re-established and consistent, U.S. manufacturers could invest in domestic wafer, cell, junction box and other component manufacturing.

How are U.S. manufacturers coping with competitive global issues of cell production and purchasing, U.S. production costs, cell and panel tariffs, local and federal regulations, and shifting national policies? The best way to answer this question is to speak with one of the most experienced U.S. solar panel manufacturers. My guest on this week’s show is Mamun Rashid, COO of Auxin Solar, based in San Jose, California. Auxin manufactures high quality poly and mono solar panels for residential and commercial customers. They also do original equipment manufacturing for tier-1 manufacturers who have “made in the USA” requirements. Please listen up to this week’s Energy Show for Mamun’s perspective on the opportunity and challenges for companies manufacturing solar panels in the U.S.

Tariffs Squeeze Utility-Scale Solar In Third Quarter Of 2018

By Frank Andorka, Senior Correspondent

Ah. There it is.

After escaping several quarters largely unscathed by the insane Trump tariffs on solar, the Solar Energy Industries Association and Woods Mackenzie report that the third quarter of 2018 saw the 30% tariffs take a bite out of the utility-scale sector.

Though not unexpected, the slowdown hurt solar’s overall growth numbers and has Woods Mackenzie analysts predicting that 2018 will finish flat with year on year growth.

If most of us are being honest, we consider the solar industry a bit lucky that it hadn’t already felt the bite of the tariffs, though as we’ve reported, a massive slowdown in the Chinese market created a glut of solar modules that helped offset some of the damage for a while. But given the wailing and gnashing of teeth that occurred last year as the tariffs were under consideration, surviving two quarters without damage being felt seems like something of a small victory at least.

[wds id=”3″]

For the first time since 2015, quarterly additions of utility-scale solar photovoltaics (PV) fell below 1 gigawatt (GW), highlighting the impact of the tariffs and the uncertainty surrounding them in late 2017 and early 2018. As a result, the U.S. solar market was down 15 percent year-over-year in the third quarter of the year, but the report notes that a strong project pipeline lies ahead.

“Developers originally planning to bring projects online in Q3 2018 were forced to push out completion dates to Q4 2018 or Q1 2019 due to uncertainty around tariffs,” said Colin Smith, Senior Analyst at Wood Mackenzie. “We did, however, see utility PV procurement outpace installations fourfold in Q3, showing that despite the tariffs causing project delays, there is substantial growth ahead for the U.S. utility PV sector.”

Even with the tariffs, the report forecasts 3.5 GW of utility PV for Q4 2018, and projects that the fourth quarter will be the largest quarter for utility PV installations since Q4 2016, as Wood Mackenzie expects many of the delayed projects to come online by the end of the year.