Tariff Slowdown. Here’s a hot take. A slowdown doesn’t require the market to actually go down in size. The tariffs can have an impact that drags the market in the negative direction while still allowing the market to grow because solar is doing very well. On the other hand if tariffs weren’t in play, AD/CVD tariffs were gone, and the trade war wasn’t happening, solar would be growing much larger and faster. Anytime these things happen, make sure to listen to people that are actually in the market doing things. Punditry is fun and all but being a full time pundit doesn’t help you with your business. Tariffs are causing executives to have to spend time and money on changing manufacturing locations, figure out new supply chain logistics and dealing with new partners in new places. This drags the market in a direction that none of us like. On the upside, this is the first December that I don’t see a cliff on December 31st. No NEM cap, incentive pool or other regulatory barrier ahead that would hurt a big market right now and that is a positive sign for everyone. 
Live! Rewind, Abby Hopper. How much is the right amount of budget for SEIA to do everything they would like to do? Abby answers this and more. Full episode here
Live! Rewind, President Fiordaliso. The New Jersey SREC cap is going to reach the goal sometime in the first quarter of 2019. What does the BPU think is the right approach as the market heads to a brick wall? Fiordaliso answers my question and makes a bold statement. The Conversation Starts Here. 
SMA Job Cuts. SMA continues the corporate restructuring including 100 job cuts in Germany, 300 in foreign locations and the sale of the China business unit to the local team. The consolidation in inverters is real and I worry a bit about the market over consolidating while still sustaining massive price pressures. 
Weekend. We’ll be heading to the aquarium this weekend, I hope you enjoy your weekend as well! Keep calm and solar on!

Opinion

News

 

Have a great day!
Yann

By Frank Andorka, Senior Correspondent

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. 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.

Hopper On SolarWakeup Live! Abby Hopper is the CEO of SEIA and she joined me on SolarWakeup Live! to talk about the state of the solar industry. She’s been the CEO for an entire solar year, SPI to SPI, and it all started with tariffs. In this conversation we talk about where we are today, what States will take off and how SEIA negotiates for all members, regardless of the segment they operate in. We also talk about the reality of a split government in DC. Listen to the full interview here and make sure to leave a review on iTunes. 
Message To Federal Regulators. Don’t miss the conversation with New Jersey’s BPU President, Joseph Fiordaliso. He has a strong message for the federal regulators and we discuss the role that PJM plays within the NJ solar market. I ask about the reality of New Jersey leaving the PJM system. Full conversation available here, hit reply to let me know your thoughts and pass it on to your colleagues. 
Elon Continues Charm Offensive. I enjoy Elon on the shows, whether it is Joe Rogan or 60 minutes. He is the right amount of real while staying true to the overarching reasons for his businesses. Every CEO knows that if they fail to execute they will die, even the Walmart CEO keeps a list of the top retailers on his phone (hello Sears!). On the other hand, most CEOs would never tell millions of people that the failure would result in the company failing. 60 minutes is under fire for creative editing to release the full interview, this comes from the fact that Elon drama gets many clicks and views. I did enjoy Jay Leno’s 60 second pitch for supporting Tesla. 
UPS Spends To Lead. This may be the first sponsored post that I rebroadcasting but it is interesting and notable for UPS to spend money to talk about their fleet electrification. Transportation is one of the largest sources of emissions by segment and electrifying fleets across the globe would do great things if solar and wind are there to supply the needed generation. 

Opinion

News

 

Have a great day!
Yann

By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

Illinois is one of the hottest solar markets in the country, thanks in part to the Future Energy Act of 2016. Solar companies are flooding into the state, and many cities are clamoring to be part of the Solar Revolution in the state. And now at least one city has decided to take its devotion to clean energy that extra step by pledging to become the 102nd city in the United States - and the first in Illinois - to generate 100% of its electricity from renewable sources. Yesterday, the Evanston City Council unanimously approved its new Climate Action and Resilience Plan (CARP), which includes a commitment to achieve 100 percent renewable electricity supply community-wide by 2030, along with other bold climate goals. “We thank Mayor Hagerty and the Evanston City Council for taking bold steps to address climate change and prioritize an equitable, just transition to 100 percent renewable clean electricity,” said Jack Darin, Director of the Sierra Club Illinois Chapter. “As a fellow Evanstonian, I look forward to the Sierra Club’s continued work with the City as it implements the Climate Action and Resilience Plan and ensures that the transition to 100 percent clean, renewable electricity by 2030 benefits everyone in our city.” The Plan calls for 100 percent renewable electricity for municipal operations by 2020, 100 percent renewable electricity by 2030, and carbon neutrality by 2050, in addition to other ambitious goals to address climate change. The plan was developed by a 17-member working group appointed by Mayor Stephen Hagerty, who is also signed on to the Mayors for 100 Percent Clean Energy initiative. CARP identifies critical actions that need to be taken in order for Evanston to play its part in avoiding cataclysmic climate change as well as key strategies to ensure that Evanson is prepared to deal with those climate hazards. “From our residents, to our businesses, to our schools and hospitals, Evanston is united i its efforts to mitigate the far-reaching effects of climate change through bold and immediate action,” said Evanston Mayor Stephen Hagerty. “While Evanston will likely undergo many changes on the way to 2050, this plan ensures that our longstanding commitment to climate action will remain.” Evanston’s plan for moving to 100 percent clean, renewable electricity can serve as an example to other communities in the Prairie State looking to set their own renewable energy goals. A transition to 100 percent renewable electricity by 2030 means cleaner air, energy bill savings, local solar development and job creation, and a healthier community for all Evanstonians. “I’m proud to live in a community that is willing to confront climate change head on. Citizens’ Greener Evanston looks forward to working with all community stakeholders to make the vision of a zero carbon, zero waste Evanston a reality. We’re particularly proud of the fact that the plan directly addresses equity issues so that the effects of climate disruption won’t be borne disproportionately by those of our neighbors who are least equipped to adapt,” said Jonathan Nieuwsma, President of Citizens’ Greener Evanston.