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Defining ClimateTech. ClimateTech is the nexus where technology meets software to aid in the fight to reverse climate change. The ‘tech’ sector is largely software and at some point it meant having a photo sharing app to become a billionaire but it also brings us to what I’m learning about energy storage. Batteries systems are a set of hardware parts which include the battery racks, power electronics, inverters and transformers but they are complemented by controls run by software. In reality, no battery project is complete without that software component meeting the need of your project, i.e. what do you plan on doing with the battery post install, and qualifying that software with the ISO/RTO and potentially meeting the NERC regulations depending on how big the project is or your portfolio is. For solar plus storage projects, you need to install the site software, beyond the battery EMS, to coordinate the generation on site and plan, sometimes daily based on forecast, when to charge and discharge the system. My point is that we, as a solar industry, have jumped into the deep end of the ClimateTech sector. But that’s a good thing because we will become key market makers instead of constantly being at the mercy of whatever the market price for energy is. More to come…
Infra Bill Path. Biden’s infrastructure proposal includes a corporate tax rate increase to 28% which Joe Manchin has said no to. He did open the door for a 25% tax rate which is a preview to how Biden could get his vote. A tax increase means that this is unlikely to be bipartisan but Schumer got the green light for a third reconciliation this year thus creating the path for the infrastructure bill. Wait and see…
Canary In The CleanTech Mine. It wasn’t long since GTM shut down the news site for the team to get back together. Supported by RMI, the one and only Eric Wesoff is leading the team as Managing Editor and is joined by former GTMers Emma Foehringer Merchant, Jeff St. John, and Julian Spector. Additionally, former Grist/Vox climate journalist, David Roberts, is added to the group as Editor at Large. Canary Media will be a new name you see most days on the SolarWakeup, a rather poorly edited newsletter which I’ve known since Eric told me I need an editor 8 years ago. Great to see this effort get off the ground and hats off to RMI for their continued leadership in the sector. Between this and SolarApp, RMI is at the center of the more important efforts in our industry. Eric writes their mission here.
Electric Pick Ups. I’m all in on the EV Silverado and F150 face off. The Rivian and Cybertruck are due to hit the streets before Detroit’s OEMs do but pick up trucks are the key to America’s hearts.
Back To Court. PG&E has been charged criminally for their role in 2019 wildfires.
It’s Official. Forbes billionaire list was released this week and we have our first US billionaire from solar on the list. Shoals’s Dean Solon hits the list at #1444. Congrats Dean!
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The Digital Energy Era. Over the past few years the capital has been coming to the software side of solar and when the funding rounds reached marks over $10million, the question had to be asked, how could any software company in our industry ever be worth multiples of that. In the past year we’ve seen acquisitions and valuations that explain that rationale, companies like Geli, SofDesk and Energy Toolbase were acquired in part of entirely. This also comes when valuations of hardware companies like Shoals, Enphase and Array Technologies is well over 100x current earnings creating entire eBOS categories. The most indicative of what is yet to come is Generac acquiring Enbala because the energy transition is not as simple as coal to solar crossing the gas bridge. A renewable grid is a complicated slinky that is managed on supply and demand sides of the energy market with energy storage acting as the dampering traffic cop. Consumers of electricity will also be a dampening agent, learning to adjust behaviors, mostly without realizing it, through programs led by companies like cPower and OhmConnect. Tomorrow, I will tell you my biggest learning thus far in energy storage and why this storyline of digitization is one we all need to embrace.
A Utility Survey. UtilityDive has the results of this years utility survey with highlights on how to get more renewables. It also gives some views on how the industry should be regulated, whether states or FERC should be leading on that.
Newsom’s Time To Shine. California’s solar installers, representing tens of thousands of jobs in and out of the State are asking Governor Newsom to make his views known. More than 20,000 have signed a petition calling for strong policies that will enable distributed solar and storage to be a valuable asset to help manage the grid which continues to be hamstrung by power shutoffs, wildfires and heat related demand outages. CALSSA is on track to install 1million solar plus storage homes matching the million solar rooftop challenge from a decade ago.
The Corporate Voice. 5 years ago, SolarWakeup podcast recorded an episode with a Google energy director just before the company announced it was going 100% renewables. The 3 phase plan would seek to match renewable energy purchasing/generation with their geographic AND time shaped consumption. I.e. they wanted to have solar and wind where and when they were using it. This is a complicated challenge that has to be met by cost reduction in energy storage, market expansion and policy efforts. We have seen the ability for corporations to be a powerful voice in politics, through their PR prowess as well as their fundraising capabilities.
Claim Your Prize. Baylor has defeated Gonzaga and this year’s March Madness bracket comes to an end. “No Idea What Im Doing” has won the SolarWakeup bracket and while I share your sentiment I’d like to recognize you and invite you to write the column one day. Hit reply and announce yourself.
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Same But Not. Some years I do better than others with the April Fools joke and I think after last year, I may never get a good reaction again. You didn’t quite fall for the batterywakeup joke but some of you still think I am a Florida PSC Commissioner, a job I am somewhat shocked I haven’t been offered yet. It’s not that this page shouldn’t be called batterywakeup or evwakeup or energywakeup, I just like it being SolarWakeup. Thanks for playing along in another annual edition of the April Fools charade, I’ll try again next year.
Infra Bill, Day After. It’s better than I thought and more important than we can imagine. I really want to see the political machinery in action to see it become law.
Expanding Storage. I want you to tell me what inning energy storage is in for your business and what it will take for it to get into the primetime. More importantly I want to understand what you consider the most important choice when planning your project. I’ve enjoyed the storage conversations with the solar community and want to keep hearing from you.
Weekend. Have a great weekend, there’s a good chance that Monday is a no newsletter holiday depending on how few pieces are written over the weekend. Enjoy the holidays, celebrate if you do, find some eggs with your kids and wish Joe Manchin an enlightened weekend thinking about infrastructure!
Free Series for Solar EPCs. I’ve teamed up with EagleView to host their Solar Business PowerSeries. Each month, we’re talking with experts on topics like LEAN and TQM, streamlining the solar permit process, deploying technology in solar, and more. This month, I’m talking with Jake Wachman from SunPower Corporation about how his company uses technology and automation to drive growth. If you’re a small- or mid-sized EPC who’s looking to improve your operations in 2021, sign up to join us live on April 8th. Registered users also gain access to the first two episodes on-demand.
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