Arizona Coverage. Frank has your recent news coverage from Arizona. Don’t forget that you can send tips to frank@solarwakeup.com or by hitting reply here. If you want to stay anonymous, head to solarwakeup.com and click the tips link, you can even upload files without revealing your identity.

Don’t Forget Puerto Rico. It’s been 6 months that Hurricane Maria hit Puerto Rico and many are still without power. The recovery effort has failed many Puerto Rico that have now had to relocate to other States across America.

Reducing Property Taxes. Florida had a big ballot initiative to eliminate property taxes that could be due after installing solar on commercial properties. An Arizona judge also ruled on this issue this week. Of all the headwinds that face C&I solar, property tax can be one of them and removing it makes it easier. Much like the cost and structure of loans to do solar, C&I solar has to do all it can to overcome cheap energy rates it is offsetting. Speaking of debt for commercial solar, many of you are in Denver for a PACE conference. PACE has lowered the cost of capital quite a bit but more importantly for C&I solar is a better structure for many businesses. Most of the time, the debt is for the property and not the operating business which makes it a better fit for balance sheets.

Equinox 2018. This is your last call to join me and many others at Vote Solar’s important fundraiser on Thursday. You can buy your ticket at equinox2018.splashthat.com.

Presented By ‘You’. Do you want the SolarWakeup community to hear your message? You can sponsor this paragraph for an entire month leading up to our event in San Francisco. Join the many sponsors that were able to message, recruit and gain more exposure on this platform. Email me for more details.

Have a great day!

News

 

Have a great day!
Yann

By Frank Andorka, Senior Correspondent What Happened: Yesterday, the Arizona Supreme Court ruled that homeowners that lease rooftop solar systems do not have to pay state property taxes on that home improvement.

By Frank Andorka, Senior Correspondent What Happened: Yesterday, the Arizona Supreme Court ruled that homeowners that lease rooftop solar systems do not have to pay state property taxes on that home improvement.

• The court found that since the homeowners don't own the "electrical generation facilities," they have earned a state property tax exemption
• It refused, however, to offer an opinion on whether counties could levy property taxes on the solar arrays.
• The case stretches back to 2013, when the state's Department of Revenue, with the support of APS (the state's largest utility), decided it could collect property taxes on the arrays.

SolarWakeup’s View:  The Arizona Supreme Court's decision yesterday to provide a property tax exemption for homeowners who lease their rooftop solar arrays was not only the right decision, but I believe it will go a long way toward restoring a residential rooftop solar market hammered by Arizona Corporation Commission (ACC) decisions over the past two years. As you may or may not recall, the ACC ended a bruising three year battle over net metering in December 2016 by deciding to end retail net metering (a 1:1 exchange for electrons at the retail rate) for all new rooftop solar installations (in fairness, it did eventually grandfather current users, but not without a huge effort on the part of the state's solar industry). The state's rooftop installers worried it would devastate their market, and the ACC's decision certainly slowed down the market, all while APS started building utility-scale solar at an ever-increasing pace. The utility-scale building could be seen as a direct challenge to the rooftop industry and as a blatant attempt to maintain their monopoly generation power. Yesterday, the Arizona Supreme Court evened the playing field a bit, at least for companies that lease panels to their customers. Frankly, it would have been a much bigger victory had the rule applied to all rooftop solar installations (like Florida did two years ago for commercial rooftop installations), but right now Arizona rooftop installers will take anything they can get. Sometimes a small victory can blossom over time into a much bigger one. The Arizona Supreme Court decision yesterday could be the start of just such a process. More: Solar customers don't have to pay some taxes, state Supreme Court rules (AZ Central) Natural Gas Plans Hit Snag For Arizona Utility

By Frank Andorka, Senior Correspondent What Happened: In a move the surprised many, the Arizona Corporation Commission (ACC) told APS, the state's largest utility, to get more of its electricity from renewables instead of natural gas.

By Frank Andorka, Senior Correspondent What Happened: In a move the surprised many, the Arizona Corporation Commission (ACC) told APS, the state's largest utility, to get more of its electricity from renewables instead of natural gas.

• The plans presented by APS submitted to the commission planned to add 5.3 GW of natural gas generation by 2032.
• In contrast, APS planned to add only 183 MW of renewables to the portfolio.
• The commissioners, who are sometimes accused of being too chummy with the utility they regulate, told APS unequivocally to stop fooling around and add more renewables to their generation portfolio.

SolarWakeup’s View:  When I first read about the Arizona Corporation Commissioners' decision to halt (at least temporarily) the Arizona Public Service (APS) plan to almost double its natural gas portfolio in favor of renewables, I thought it must have been a typo. Most of what I've read out of the state in recent years has centered on the sometimes cozy relationship the commissioners have with the state's biggest utility. After I realized Yann Brandt was not, in fact, punking me, I stood and cheered. Instead of going along with APS' 15-year resource plan, the commissioners instead told them to join the 21st century and draw up plans to acquire more renewable energy in its portfolio. And let's be honest: With the highest insolation rates anywhere in the country, solar is just a natural fit for the state. From E&E News and writer Benjamin Storrow comes the following note from an environmental activist:

“I don’t want to overstate national implications, but I do think it’s recognition that continued investment in natural gas is risky,” said Stacy Tellinghuisen, a senior climate policy analyst at Western Resource Advocates. “Commissioners are seeing clean energy is cheaper. They’re seeing that’s what the public wants. So I think this decision reflects all those factors.”

The battle over solar - particularly rooftop solar - has been bitter and brutal in The Grand Canyon state, with one commissioner saying that the fight over net metering (one that ended with significant changes being made that have made residential rooftop solar a harder sell) was something he never wished to be involved in again. Over time, many solar advocates in the state have worried aloud about what the state would do in terms of building a sufficient reneweable infrastructure or hold APS responsible. It's only one instance, this temporary natural gas moratorium, but maybe it signals a longer-term vision by the ACC that will place solar at the front and center of the clean energy infrastructure debate in Arizona once again. More: Regulators freeze new gas projects, demand renewables Some states block plans for new power plants The Trump Energy Cabinet and the Fight in Arizona

Clean Energy Credit Union. A new podcast for your listening pleasure. Recorded live at COSEIA’s conference last week, I sat with Clean Energy Credit Union’s CEO and Board Chair. Terri and Blake walked me through the start of this endeavor and the solar problem they are looking to solve. The whole concept is to show that a true lower cost of capital is possible for solar lending and this could lead the way. If you enjoyed this podcast, consider leaving a review on iTunes.

South Carolina. There are some things happening in South Carolina. With the embarrassing nuclear escapade by SCANA, the State should consider making a shift into the solar future. Frank breaks it down for you with some information from local coverage. For me, South Carolina is a great political bellweather that could show red, southern states on how solar can be an economic engine for the future. The entire solar industry should push for South Carolina to find a victory for our industry.

Nat Gas, The End Is Near? I’ve written about speaker plants in California having a hard time getting capacity contracts extended and the CPUC has been negative on letting PG&E repower some plants. LADWP also put a large project on hold pending more analysis. What I wasn’t expecting is hearing that the Arizona Commission would put new natural gas on a moratorium to give solar + storage further review. Remember, TEP entered into a contract for $45/MWh on a solar plus storage plant. A moratorium now means that gas may have reached the end in Arizona, what State will drop next?

EV Growth And Consolidation. EV growth in China has been quite quick and maybe too quick (more on that soon). Europe and North America have been far more measured in its growth and it may have been for the best. Too much investment too early may cause for a market disruption instead of sustainable market stability.

San Francisco. This town is becoming my second home. While many of you are in San Diego for the finance conference, I’ll be in SF. Hopefully many of you will be coming up for Vote Solar’s equinox this week and to SolarWakeup Live! on April 10th. I’ll be in SF to continue figuring out how PACE financing can help C&I solar grow. Access to low cost, long term debt is a great way for the business owners to go solar. Send me an email if you’d like to be connected with the great team at CleanFund.

Have a great day!

News

 

Have a great day!
Yann