The Jobs Plan. Joe Biden went to Pittsburg last night to pitch his vision for the infrastructure bill, dubbed the American Jobs Plan. You can see what’s included in the $2trillion spending bill here, or read the White House official bullet point fact sheet. This plan separates physical infrastructure from social infrastructure, a clear indicator that the White House hopes to get bipartisan support. Given that the spending is partially paid for with a proposed increase of the corporate tax rate to 28%, don’t expect smooth sailings.
A 10 Year ITC. For our industries, there is an unprecedented vision for EV charging infrastructure, likely to get charging companies excited about the future. More importantly, it proposes a 10-year extension of the ITC, expands the ITC for stand-alone energy storage, and likely brings it back to the 30% rate. All of this will be confirmed by the House version of the bill yet to be filed by leadership. A decade-long certainty for our industry will create a certain maturity overnight, no longer planning year by year and planning for the cliffs that leave us breathless during every extension fight.
The DC Fight Ahead. This is a bill without a roadmap, how and when it gets passed is TBD, but everyone knows it’s a good thing to build new and improved physical infrastructure. The GOP isn’t about to give Biden an easy win and they are surely not about to give back half of the corporate tax cut that they passed in 2017. Manchin stands out as the middle man, likely having orchestrated the split between physical and social infrastructure legislation leaving some room for the possibility that this gets passed on a 50/50 vote through reconciliation. McConnell is digging his heels in on the point that this type of spending can’t move forward without ways to pay for it and not allowing for it to be deficit spending which is exactly what every member of the republican party will likely say. There will be pressure on them, however, from their local communities that this is money well spent which will drive new economic growth and therefore pay for itself. It’s the climate bill for Biden’s legacy and I can see the inside game moving already, especially with 2 trillion reasons for businesses to get excited about the work coming up.
Big Wakeup Update. As many of you know, my new day job has me at FlexGen, the leading energy storage integrator in the Country. It’s early days but things are on a rocket ship for battery storage development and execution. I’ve been writing the ‘solar’wakeup for almost nine years and I think given that I am more of a solar+ guy these days, I thought we should brand the next nine years more appropriately. So I bring you to the big news, introducing batterywakeup.com, the most influential newsletter in all of the clean energy. It’s a great day for all of us and I’m excited about all the new stuff coming at us.
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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Yann
Infra Day. Biden is set to unveil the 2 trillion dollar infrastructure plan today. Expect to get some exciting solar and storage headlines. More tomorrow!
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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When A Market Is A Market. IHS reports that 2021 is going to be a record year with 181GW of solar installed across the world, growing 27% over last year. This is a good thing for the planet and creates a reality that we can’t question where this is going. Our baseline no longer includes a possible fossil first energy market. Driven by cost, demand and policy, the energy transition has entered the full court press which means that any grid planning and market design has to re-evaluate the what the generation portfolio looks like going forward. There is still untapped value in how generation is used, designed or valued by those making those investments but I would bet my career that every energy market is making changes in real time to adjust to the new reality.
What’s In A Name. The car of the people is becoming the car of energy units. Let’s see if the leaked VW press release is real or not…
Not Green Or Alternative. In the upcoming months you’ll see the world of political PR twist roads and bridges into the green new deal, renaming the infrastructure bill as the green stimulus. The counter has to be by the people and for the people and you can have an impact on this. Start building a relationship with your local TV and newspapers to show the jobs that you created in post covid months. Focus on great stories where an employee was trained by you and created a new opportunity for them. There is no need for hyperbole, I know that you have great stories and great team members that are excited to be working in solar having come from a different industry. This can’t just be led by DC groups or large corporations, you need to be changing the hearts and minds of people watching your local news. Just search for your local tv ‘news desk’ and you’ll find a form or phone number.
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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Almost Infrastructure Week. On the Sunday shows, the White House revealed that the $3trillion infrastructure bill will separate actual infrastructure from social infrastructure. This means that the more popular roads, bridges, and energy-related topics will likely be packaged in hopes to get bipartisan support. From a behind-the-scenes standpoint, you can feel Manchin’s fingerprints on the split possibly with support for a reconciliation vote in the later package. Much is being made of the 10-year extension for the ITC, possibly back to 30%, the inclusion of stand-alone storage, and a shorter-term direct pay.
The Amazon Of Solar. With Sunpower’s CEO, Tom Werner, retiring after some 18 years at the helm of the company, the board brings in a new face to solar. Peter Faricy is viewed as a direct-to-consumer pro, sits on the board of Blue Apron, and spent over 12 years at Amazon, from 06 to 2018. Sunpower has spent quite a bit of money trying to reach homeowners and get them to view the company as a brand without much success, relying on their dealer network to do the more grassroots approach. With the company pivot in full swing, I’d expect the company to give that another shot. Here’s the interesting thing about the CEO hire, it doesn’t matter that there is no solar experience, the hire shows a pivot to mainstream consumer marketing instead. So I ask you this, is solar mainstream enough that it’s become a marketing-first industry?
Renewables Means Profits. Public companies are leaning in and sometimes relying on renewables to create shareholder value. Look at the tailwinds in the industry, from the first two paragraphs, as well as the ability to start creating a 10-year company plan due to regulatory certainty that the ITC extension will provide. It will show the maturity of an industry that things in real-world time horizons instead of peaks and valleys that we’ve become used to. It also means that the multiples that public companies like Enphase, Array Technologies, Shoals, Solaredge and Generac have are justified given the long-term growth ahead for the markets; in all segments and markets around renewables and grid resilience.
A Global Climate Summit. Biden and Xi are publicly thinking about having a climate summit. Alignment on this issue to sort through the other diplomatic rifts would be good for our industry.
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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Yann