The Energy Show: By Barry Cinnamon
The Energy Show: By Barry Cinnamon
California continues to lead the country when it comes to clean and inexpensive energy. Here is an example – In May the California Energy Commission passed a rule that goes into effect on January 1, 2020 that requires solar on all new homes. The rule applies to all new homes, apartments and condos under three stories tall. The rule also includes an option to include an energy storage system (which we believe will become a standard feature with all solar systems). We have received a number of calls and emails from people both in favor of and against this new rule since it was passed. What we really like about this new rule is that new home buyers will definitely save money. We’ve done hundreds of installations on new homes and the monthly energy savings are always more than the monthly mortgage increase. Always. According to data from the California Energy Commission, the cost of a new solar system would be an extra $40 per month on a typical mortgage. And that’s without the tax credit. The monthly savings on the homeowner’s electric bill would be $80 per month. So the net monthly savings is $40 per month, or almost $500 per year. So every new home that has solar on it is going to come out almost $500 cash flow positive every year. Based on our installation experiences, I think the CEC’s cost numbers are on the high side and savings number are low – so the benefits are even better. This New Solar Homes Mandate is good for home buyers, and will increase the awareness of solar on existing residential rooftops. But there are some negatives about this new rule. Some people have a visceral reaction against mandates. They simply don’t want to be told what to do. Moreover, adding solar will slightly increase the cost of a new home. Nevertheless, our government mandates things like seat belts, clean air, new home warranties and energy efficiency. By mandating popular consumer safety and efficiency benefits, costs generally come down for everyone, to the overall benefit of society. For more about California’s New Solar Homes Mandate, Listen Up to this week’s Energy Show.By Frank Andorka, Senior Correspondent
By Frank Andorka, Senior Correspondent
"In like a lion, out like a lamb." That's how Massachusetts solar advocate Sean Garren characterized on Twitter the whimper of a clean-energy bill that made its way through the Massachusetts legislature on its final day. The Senate voted 36-0 to pass the legislation, while the House had one dissenting vote, 150-1. Advocates offered intensely mixed reviews of the bill, although it was almost universally praised for eliminating the "fixed charge" Eversource had sought to impose on all new solar users. But net metering caps inexplicably remain in place and the renewable portfolio standard (RPS) increases are so tiny you need a microscope to see them.But small commercial and business solar projects across the Commonwealth will remain stalled as the legislation leaves a needless barrier to customer adoption of solar, caps on Massachusetts’ most successful solar program, net metering, in place. With just hours left in the session, it appears the urgent action needed to get solar back to work for the Commonwealth will wait for another year.In the half-victory category, the RPS will rise, by only incrementally over a period of more than 20 years, rising 1% each year until 2020, then 2% per year until 2030 and 1% every year thereafter. Those are tiny rises in a region where New Jersey and New York are leaping forward into the renewable energy future with great gusto, and even Vermont is moving apace. But an increase is an increase, and even under the anemic rise it still will reach 100% - eventually. All in all, a disappointing end to a legislative session that saw a robust Senate bill whittled down to near nothing in the House of Representatives, which had its own four-headed bill amalgamation as the two houses entered into negotiations to reach agreement on this final bill. Garren had it exactly right: A legislative session in which clean-energy advocates had high hopes for significant progress on their agenda ended up with crumbs - important crumbs, some of them, but a far cry from what they'd hoped for. As they have said for decades in Cleveland about the Browns, advocates are left shaking their fists and saying, "Wait until next year!"
By Frank Andorka, Senior Correspondent
By Frank Andorka, Senior Correspondent
Solar power is expanding its reach throughout the country rapidly - so rapidly, in fact, that some communities are struggling with issues like permitting, siting and other ancillary-but-essential parts of the project process. In some states, that confusion is causing communities to reject solar out of hand as being too complicated to do. A group of researchers out of Emory University in Atlanta, seeing the problems that were arising as its own state moved speedily to a solar future, decided to do something to mitigate the struggles by publishing a sample zoning ordinance for municipalities thinking about going solar, which includes a Georgia Model Solar Zoning Ordinance and accompanying educational guide. Publicity for the guide kicked off today with an Op-Ed in the Atlanta Journal-Constitution.We’re started down the right path in Georgia. But to make sure we don’t get misdirected, clear land use standards and good information about solar development are necessary. The Georgia Model Solar Zoning Ordinance we just published paves the way.These are not just issues in Georgia, of course. But the guide comes only a few days after Georgia Power announced it was soliciting 100 MW worth of distributed generation projects, which means more projects in small towns around the state. The guide is an effort to head of NIMBY-ism and help everyone understand best practices when it comes to siting solar projects in the state. As the authors put it in their AJC piece:
We’ve already seen communities push back against solar development planned in inappropriate locations. The question is what comes next. ... Georgia may be running down the right path, but it still can get tripped up. If Georgia wants it keep up the pace, it has to get smart.More states need to come up with similar guidelines because solar is coming soon to your town - and it's best that you be prepared rather than let it take you by surprise.
8minute View On Solar. Frank interviews the CEO of 8minutenergy to discuss how one of the most successful developers views the solar market today. The conversation covers all of the topics that you would think about as a solar pro. It doesn’t matter what segment of solar you cover, you are worried about many of the same things.
Free Market Means Solar For Puerto Rico. I had to read the coverage several times but watching the members of Congress ask questions of the DOE Assistant Secretary on the topic of PREPA and energy in Puerto Rico. The questions are politically motivated and the answers are rooted in truth unable to be wrapped in the normal tone of partisanship.
Helping Grow Credit Unions And Community Banks. I had the pleasure of speaking with the team heading up the Clean Energy Federal Credit Union at the COSEIA conference and the mechanics of the credit union may be complicated but the benefits to the solar industry are immense. The interest alignment and the community benefit fit the vision of most credit unions and someone should find a way to make that deal flow access the local capital more efficient.
Flawed View Of Storage. I try not to be biased by the corporate donor ship to some university think tanks because the money should, in theory, be separated by those academics seeking their truth. As I read the view of the California market and the role that batteries will play, I can’t help but think (at almost every paragraph) who skewed the view of the future for the author. Storage is going to play a massive role in California and it will enable much more solar to be built. EVs and distributed generation will also do a great deal of good for the future but there is no doubt that storage is a massive opportunity for a clean energy future.
SunPower Updates On Impact Of Tariffs. After announcing Q2 earnings, SunPower held their call and some interviews to talk about their views of the solar market. Always great insight from the SunPower call as they are active in many geographies and market segments. The company continues to reduce exposure to large scale solar to focus on DG, announcing Fortune 50 portfolios that added SunPower systems. If you ever wonder where SunPower will be focusing, look at their EBITDA breakdown. Residential solar is where you want to be!
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Yann