By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

Commercial solar, one of the most underserved segments of the solar industry, is taking off in Wisconsin, according to a report by the Milwaukee Journal-Sentinel. The driver of the push is falling solar prices, which takes the decision to add solar out of the realm of "it's a nice thing to do" and into the realm of "from a business perspective, this is a must do." In other words, the money-saving aspect of it has become so overwhelmingly compelling that there's now an undeniable business case for it. As Larry Schmidt Jr., chief financial officer of Lakeland Supply, told the paper:

I’m a numbers guy, and I wouldn’t be doing it if the numbers didn’t make sense. Obviously we want to be conscious of our energy use and things like that, but this definitely makes sense even if you say 'I don’t care about our Earth.' This is a financial decision, too.

Lakeland Supply put around 500 solar modules on its roof, which will supply the building with 61% of its electricity needs. But they aren't the only ones. The paper writes:

The most current data from the Public Service Commission of Wisconsin shows that between 2008 and the third quarter of 2017, the number of solar photovoltaic installations on commercial and industrial buildings in the state increased almost ninefold, to 1,030 from 118.

The Journal-Sentinel attributes the majority of the segment's growth to falling module prices, which makes it more economically feasible for companies to move ahead with solar projects. They also say falling payback times - the amount of time it takes for businesses to recoup their investment - has provided a business rationale for putting solar modules on the roof. Ten years ago, a story like Wisconsin's would have been nearly unheard of, but with the success of other Midwestern states like Minnesota and Illinois, the growth of Wisconsin's solar market now almost seems inevitable. And what makes them stand out from their Midwest competitors is that it's the commercial segment that seems to be leading the way. More: Here's why more Wisconsin companies are adding rooftop solar energy panels

41. “The United States is strongly committed to the IPCC process of international cooperation on global climate change. We consider it vital that the community of nations be drawn together in an orderly, disciplined, rational way to review the history of our global environment, to assess the potential for future climate change, and to develop effective programs. The state of the science, the social and economic impacts, and the appropriate strategies all are crucial components to a global resolution. The stakes here are very high; the consequences, very significant.” - President H.W. Bush on February 5th, 1990
Tariff Update. Trump had a trade talk dinner with China over the weekend and the two Countries have come out with a momentary pause to the trade war escalation, waiting to increase the tariffs from 10% to 25% while talks continue. For solar this would have larger impacted the raw material increases which could have trickled up to the end product costs that you pay every day for your projects.
Trickle Up. David Roberts from Vox uses comparison to economic theory to highlight the future potential of a grid centered around distributed generation instead of central power plants. This flows with the goals of the solar market and also plays into the future where electric vehicles are the default condition in the auto market. Good to see this in the mainstream media.

Have a great day!

News

 

Have a great day!
Yann

DC Goes 100%. This has been talked about for some time but now it’s becoming law and it makes DC the 3rd State to go 100% renewables. DC has some limitations on how to execute on this but being in the PJM market it does have the flexibility, much like the deal for the solar output by George Washington University. The rooftops are not widely available but we saw a community solar project announced yesterday as well. Local sources sound optimistic about the opportunities in Maryland as well with a legislative path to an increased RPS. Frank speaks to MDV-SEIA’s executive director about the victory in DC. 
Empower Ratebase, Not Thoughts. I appreciate the sentiment from Rocky Mountain Institute in the 1st part of the 4 part serious about empower utilities to participate in the clean energy transition. The problem isn’t that they are against the clean energy transition, the problem is the lack of short term, quarterly profits within the current regulatory framework. Utility execs like other execs will tend to do what their compensation is aligned against. If utilities were to be told that they would make money to participate in the clean energy transition, execs would sing a different tune. The issue now is that the clean energy transition is trying to replace and eliminate utilities, not make them more money. 
In-no-va-tion. I meant to write about this last week but this is an important topic within the political conversation on climate change. Climate change is not a bi-partisan topic which originally was a hoax. When hoax stopped working with the American people, skeptics went with the unsettled science and not being scientists. The public has largely stopped buying the unsettled science line and we have advanced to the latest political talking point. “Climate change is here, it doesn’t matter who causes it but whatever we do can’t impact the economy.” Then, to buy time, politicians will pivot to the need to drive innovation within the demographic of their audience. Innovation is such a broad topic that clean coal and 50% efficient solar modules could fall into the category. Additionally, everyone loves innovation which gets listeners of the talking points to nod in agreement that we need to find more solutions. I call BS though, we need more execution and less talk about innovation because innovation is driven by larger markets and the hopes by people to disrupt the market with new products, services and ideas. 
Have a great weekend! Please send me a note when you travel to San Francisco, always great to meet you in person and stay tuned for great new podcasts dropping next week.

Opinion

News

 

Have a great day!
Yann

By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

Earlier this week, Washington D.C. announced it had passed a law saying that it would produce all of its electricity from renewable energy by 2032. Though the bill still has to be passed on a second reading, signed by the mayor, approved by Congress and pro-coal President Trump - so who knows if it will actually get approved - it is the most aggressive 100% renewable energy mandate in the country. SolarWakeup decided to discuss the plan's chances with someone whose offices are right in D.C.'s backyard - David Murray, executive director of MDV-SEIA. Here are his responses. SolarWakeup: (SWup): What precipitated the decision to pass the 100% RPS mandate? David Murray: Starting in 2017, the District Department of Energy and Environment (DOEE) developed the Clean Energy DC plan, which outlines recommended steps for the District to cut greenhouse gas emissions 50% by 2032. The 100% RPS is one aspect of the Clean Energy DC Omnibus Amendment Act of 2018, which is largely based off of DOEE’s plan. After Councilmember Mary Cheh introduced the legislation, a coalition of business, social, and environmental advocates came together to support the bill. For the solar industry, a strong RPS is the main driver for strong investment and job growth. The 2016 50% RPS increase precipitated the District’s recent solar industry growth. Last year, we hit a milestone of over 1,500 solar workers here in DC, which marks a 33% increase in the last two years. A strong solar carve-out within the RPS is crucial to continue this job growth in coming years.

[wds id="3"]

SWup: Where is the city now, and how realistic is it to get it to 100%? David Murray: The DC Office of People’s Counsel (OPC) issued a study last year which estimated the technical feasibility of solar potential in the District at 2.4 GW, which does not include parking lots. The bill seeks to increase D.C.’s solar target from 5% by 2032 to 10% by 2041. Expanding solar capacity in the District to reach the OPC’s higher estimate of solar potential would result in 26 million tons of carbon dioxide, sulfur dioxide and nitrogen oxide emission reductions. The current target in the RPS of 10% by 2014 is certainly achievable, being on the conservative end of the OPC study estimate. SWup: What are the steps they will need to take to get there? David Murray: The comprehensive nature of the Omnibus bill is the right approach because a full transition to a low-carbon economy is going to need to come from emission reductions in several areas. Specifically, the transition to 100% renewable energy must include District ratepayers from all economic backgrounds. Solar energy is the only true form of local renewable generation in the RPS and it produces local benefits. The solar carve-out maximizes equity through programs like Solar For All, which benefit low-income residents by offering solar at no cost to homeowners who quality for the program. Reducing soft costs is another key priority: working in a heavily-trafficked city of just 68 square miles has a unique set of challenges. Thus, MDV-SEIA is engaging DOEE to streamline the permitting process, increase market transparency, and creditworthiness of solar installers. SWup: What role do you think solar will play in DC's transformation? David Murray: Solar has been a constant area of growth for the District’s energy portfolio. In addition to exceeding the goal of creating over 1,200 local jobs by 2020 three years early, D.C. based solar generation helped the District become the first city in the world to be certified as LEED platinum. Community solar, Solar For All installations, and public-private solar partnerships will only increase with the 10% standard. SWup: Are there any downsides to the potential transformation? David Murray: There aren’t many downsides to a cleaner energy economy but there are certainly opportunities. Our transmission and distribution infrastructure needs to be upgraded to the 21st century including increased distributed generation, battery storage, advanced metering, and electric vehicle infrastructure. These infrastructure upgrades yield long term payoffs in the form of a stronger, more resilient system and solar will play a huge role in a modern grid. SWup: Do you think Congress will allow this mandate to go forward? David Murray: The Congressional review process did not affect the 2016 RPS increase. It is unlikely federal lawmakers will challenge the merits of this legislation, either. SWup: How do the national politics affect the local politics? David Murray: No doubt the abdication of climate leadership from the federal government spurred local lawmakers to act. We are seeing it in the three other states MDV-SEIA represents: Virginia is poised to join RGGI, our 50% RPS bills in Maryland and Delaware are likely to pass next year as well. DC has always been progressive: it is no coincidence the City Council put forth a 100% RPS while the White House is looking to bailout coal and nuclear.