$10 Billion Question. “If someone said, ‘Here’s $10 billion to invest in renewables,’ we wouldn’t know how to do it,” Dudley said. That’s a recent statement from the CEO of BP, Robert Dudley. As crazy as this sounds, he’s not wrong. He doesn’t have the cheapest capital and even if he did, it takes a lot of work to properly invest that kind of money into renewables. Just ask any solar developer what they would consider a good year, even if they disregard the hurdle rate of their private equity capital. Even if an oil company came to the US with an energy trading desk willing to take merchant exposure to solar projects, deploying $10 billion or even $1 billion would difficult to do year over year. That’s the scale problem in our industry that is often distributed and fragmented.
Going 100% Solar. What is it going to take to connect large corporate users with solar generation at the solar sites? That’s the question that could be the key in opening up markets like Texas, Pennsylvania or Virginia. Finding off takers is too expensive for individual developers in low energy value markets so if there is a demand created at the corporate level, solar developers will be able to focus on the work they already know.
Subsidies, Bailouts And The ITC. There is no doubt that all energy sources are still getting multiples of the incentives and non-monetary benefits compared to solar. While the big newspapers wonder how incumbent power and utility companies ready themselves for solar’s growth, I wonder how our industry should look forward the next time they want a subsidy, export change or bailout. At the State level, solar does this week (see Illinois and NJ) but what happens at the Federal level now?
Net Metering Fights. Curious to see a utility ‘pondering’ solar growth in a State that has 500% growth when it goes from 10 systems to 50. The opportunity utilities to be different is so great but the mentality of what worked 20 years ago is deeply ingrained into the utility boardroom. Now expect more fights in low solar penetration States like Arkansas, Michigan, etc and the industry needs to step up.
I’m Hiring. If you or someone you know are looking for an inside or outside sales position for a great company in Quick Mount PV, send me an email. We are doing great things including manufacturing right here in Walnut Creek in the Bay Area.
Resi Highlights Continue. As we enter the first residential solar advisory council survey, I will continue to post images of your installs. Just send your with your logo and location and yours can be highlighted as well.

Have a great day!

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Have a great day!
Yann

By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

So apparently the bailout of nuclear and coal plants is still a thing that is under consideration, so I have to keep writing about it. This time, there's a new study out that says the new bailout is going to cost $34 billion - that's B-illion, with a "b" - to implement. When there are more competitive solutions like solar and wind on the open market. Are we tired of all the winning yet? The Houston Chronicle reported today on the study, which was prepared for pro-solar advocacy group Advanced Energy Economy by the The Brattle Group, which the newspaper points out is opposed to the bailout plan (as are most Americans, based on all the support solar and wind get in all of the polls, Katie). I've included the entire report below, and it is certainly worth reading in its entirety. But I'll post a couple of highlights from the executive summary to whet your appetite:

• "Current and likely future wholesale market conditions will continue to add pressure on some coal and nuclear plants to retire even if a financial support mechanism is put in place."
Damn that INVISIBLE HAND! It seems that no matter how much Donald Trump and Rick Perry want to prop up these failing plants, Adam Smith's Hand will come along to keep them failing.
• "We conservatively estimate that cost-of-service recovery (including embedded capital) could at least double the policy cost to between $20 and $35 billion per year."
Well, now isn't THAT a lovely thought? So we're going to throw good money after bad and STILL not be able to save the coal jobs Trump promised. And as for the nuclear side of things...I have two nuclear plants built in the 1970s and 1980s that are STILL being paid off by me and my fellow ratepayers. Exactly how long are we planning these bailouts to last? And aren't these the same government officials who keep telling us we have to reduce spending so we don't leave an enormous debt burden to our children? Where is that restraint now?

This bailout is the same boondoggle it has always been, a giveaway to the monopoly utilities (another instance of cognitive dissonance that nearly makes my head explode, but that's a discussion for another day) and their wealthy investors, while your average taxpayer and ratepayer get screwed. Tell me again the one about how you love the free market and how the government shouldn't be picking winners and losers? To hell with the lotta ya. More: Well, There Goes That Bulwark: Powelson’s Retirement Puts Coal, Nuke Bailout Back On The Front Burner FERC Commissioners Tell Senate: Coal, Nuke Bailout Unnecessary Despite True Believers, EXPERTS Say Trump Nuke Bailout Could Cost $17 Billion Per Year In Overly High Electric Bills [pdf-embedder url="http://www.solarwakeup.com/wp-content/uploads/2018/07/Brattle_AEE_Final_Embargoed_7.19.18.pdf"]

By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

Washington D.C. is a city full of symbols. Monuments to leaders of the past abound, and as the seat of our national government it carries great symbolic power for the rest of the country. Which is why the fact that it's considering a resolution to move to a 100% renewable energy future as soon as 2032 could provide tangible gravity to the cause and encourage other cities to follow its lead, according to various local and national reports. Tony Clifford, chief development officer for Standard Solar, a D.C.-area national solar company, is thrilled that Washington D.C. is continuing its commitment to clean energy. After all, the company has installed more solar in the District than anyone else and helped the city earn the world's first LEED Platinum certification for a municipality. "For us, it's more than just another city going to 100% clean energy - it's personal for us," Clifford said. "Standard Solar has a number of employees who reside in the District of Columbia, and we have always taken great pride in helping the city be a clean-energy leader. "As longtime participants in the DC solar market, I can only applaud the DC City Council and Mayor Bowser for their continued renewable energy leadership," he added "Setting and attaining a goal of 100% renewables by 2032 will keep DC in the forefront of clean energy cities around the world." That D.C. would join an ever-growing list of cities to pledge a move to 100% clean energy is an enormous symbolic victory for the cause, given its special place in the hearts of many Americans. But as Utility Dive correctly points out, the decision is becoming more common, even at a statewide level. As they wrote:

Among aggressive carbon reduction goals, a 100% RPS may soon become common. While Hawaii was first to declare a 100% renewables goal, several states have considered it, including California, Massachusetts, New York, Oregon, Washington and Pennsylvania.

The importance of having a nation's capital be 100% clean energy can't be underestimated, so we join Clifford in his congratulations to the council and Mayor for their leadership on this issue. Now it's time to get the resolution passed and move forward with putting in into practice.

Go Solar, Save Money. Now that the 5 tech companies make up 50% of the value in the S&P, you have to ask yourself what it takes for the remaining 495 companies to jump on the bandwagon. I know the idea is that those 5 companies make so much money that solar is a nice to have, but I assure you that on a portfolio basis that it is going to make them money. Retail energy companies have been an interest of mine for many years, that’s why I like to continue to highlight CleanChoice Energy. They come up all the time in my work and our customers overlap because they want solar on their house if they can and use renewable energy for everything else. Moreover, corporates want to have solar but it can’t be complicated which is a specialty of the solar industry. I’m interested to see how CleanChoice continues to innovate and how their competitors follow suit. Thus far the copycats have been scarce.
Use Credit To Drive Scale. It was just over a year ago that I had the opportunity to sit with the amazing solar ambassador, Bill Walton, at the PAC 12 Sustainability Summit. Together we spoke about the meaning and opportunity solar presented to the universities. My message was, as it is today, that entities with large usage and good credit can work backwards. Identify the sites (or even think offsite) and outline the energy price that works for the entity, then go big. It is hard to find an entity that has its data together, anywhere in America, that couldn’t save money with solar if they contracted for a large enough portfolio. As Vote Solar’s Thad Culley wisely said yesterday on Twitter (I’m paraphrasing), solar already makes financial sense, this is a question of morality!
Great Logic, Wrong Implementation. Utilities helping customers buy electric cars is the right idea, helps the ecosystem and increases demand, but it is the wrong policy and use of funds for utilities. Consumers already want electric cars but their fear is not knowing where to charge the cars. This isn’t range anxiety, this is fear of the unknown and fear of the logistics required. How do I add a charger to my house? Who installs it? What do I install and where do I buy it? Where else can I charge? Those are the questions that go into the mind of someone that wants an EV but can’t get the answers. Utilities should have a hotline to answer that and if consumers want an EV, utilities should provide and install the charger in their home while at the same time drastically increasing the number of charging stations. Remove the fear and consumers will buy their own EVs.
Fix The AD/CVD. The impact on the silicon manufacturers is one of the worst parts of the overall solar trade war. These were amazing infrastructure investments made by companies in parts of the Country where solar still struggles to get off the ground. Instead of net metering being attacked in Michigan, silicon could be made there and sent around the world, the same is true for Tennessee. Removing the AD/CVD and replacing it with a domestic aid package funded by import fees is exactly the way we need to go. US made silicon would then travel the world once again.
Showing Off Resi Solar. Are you installing awesome systems across America? Let’s show off some pictures on this platform. Send me a picture with your logo and location (city and state) on the image and I’ll post it on the newsletter. Every homeowner is a solar advocate and let’s help them show off their investment in the future!

Have a great day!

News

 

Have a great day!
Yann