Big Batteries Are Coming. One of the leading developers in solar is coming out with big batteries to add to their solar farms. This is no surprise as curtailment becomes an increasing topic and ancillary services add potential revenue. The storage market is getting consolidated quickly, with another acquisition this week of Greensmith by Wartsila. How will projects get executed? Both large scale and behind the meter C&I? Those are questions I am looking to answer on the road show. I have ideas and thoughts but want the market to tell me what they are seeing on the ground. This is the ultimate coordination of software and hardware. Companies have to be really good at both, which is really hard.
But I Thought. News came out yesterday that the majority shareholder of Suniva, Shunfeng, wasn’t supportive of 201 petition. Keep in mind that Shunfeng also owns whatever is left of Suntech. Now Yingli is looking precarious according to reporting. Without a doubt a major brand in module manufacturing, Yingli has gone through tough times. So with all of this talk from Suniva about dumping and cutthroat markets, it doesn’t seem to be limited to US cell manufacturers. Global manufacturers are in the same boat and only those that have the become more efficient in manufacturing can make it. Take a look at the computer chip market. How many manufacturers make up the top 80% of market share? And then compare that to the solar module market.
The Energy Storage Road Show is moving forward now scheduling the week of June 5th in Los Angeles!
A Budget to Forget. Later this summer, Congress has to either pass a budget or go for another continuing resolution to keep the Government open. Last month, President Trump said a shutdown may be required but assuming that doesn’t happen and Congress passes a budget for the first time in a really long time, Trump is looking to cut clean energy budgets dramatically.
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Are Yieldcos making a comeback? CEO and data whiz at kWh Analytics has a unique view of our solar industry. He chronicles the rise, growth and fall of the yieldco environment with a preview of what is yet to come. There may be less yieldco businesses but maybe that can lead to more success with specialty sponsors. A good read and interesting point of view.
Virginia Wants to Lead. We finally find out what is really going on at Monticello! Terry McAuliffe is making a play for a carbon cap. It is rare for Governors to propose ideas with specificity without a way to get to implementation and in Virginia the Republican party was quick to denounce the move. These goals are going to get reached regardless of the policy but as the market shows that ‘regulatory overreach’ actually matches up, people won’t be afraid of setting goals.
The Energy Storage Road Show is happening, starting May 22nd in San Diego!
Big Corporate Invests in Small and Early. It doesn’t surprise me that this headline is coming out, just surprised it hasn’t happened earlier. I pitched this previously because what better way to see what problems you have in your big company than looking for innovation in startups. Forget the upside of the investment, the upside in improving your company is potentially enormous. I challenge more large companies in the solar market to do this, plus it doesn’t have to be expensive. For a few hundred thousand dollars, your company can get great exposure to the next innovative idea.
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Fighting the Suniva Tariff Request. SEIA hosted a call yesterday to outline its opposition to the Suniva 201 petition. First, Suniva has to speak for the industry, in this case the segment of solar that manufacturers crystalline PV in the US. SEIA is stating that it does not, on the basis of Suniva’s market share being less than what has previously been accepted by the trade commission. Furthermore SEIA contends, rightfully, that a few manufacturing jobs are not worth saving at the cost of losing a trove of jobs in the downstream part of the market. What SEIA left out in my opinion was the cost to the consumers and taxpayers. For every penny that modules get more expensive, consumers end up with higher cost of energy, solar or otherwise. Solar drives the cost of energy down across the board and increasing that cost hurts hardworking American families. Moreover, the tax credit remains on the books. As we drive the price of systems up, taxpayers will end up giving higher credits than needed. Last tip to SEIA, let’s not use the phase loan guarantee and US solar manufacturing in the same sentence again.
All in on solar. Good things are happening in Nevada as the net metering bill continues to go through the Assembly. Having previously released the bill from any deadlines, the bill has been passed by committee overwhelmingly. Now, with an important negotiated change, net metering rates and caps have been outline for years to come.
The Energy Storage Road Show is happening, starting May 22nd in San Diego!
Lyndon Rive is out. Lyndon is leaving Tesla in June. It is surprising because no one was thinking about it but it doesn’t seem strange. What else would Lyndon have left to do at Tesla? Even if Elon goes full time to living on the moon or building tunnels in Los Angeles, Lyndon wouldn’t be the CEO of Tesla. Last year, I found a picture of 2007 SPI booths and one of them was Lyndon standing at SolarCity’s 10x20 booth pitching residential solar. Like the model or don’t, SolarCity changed the game in many ways. Best of luck to Lyndon.
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The Chink in the Utility Armor. I interviewed the legislative leader behind Florida’s Amendment 4, Senator Brandes. The news in the interview came from our discussion about what’s next for solar in the Sunshine State. Senator Brandes understands the value of solar and the benefits of having a known 30 year price structure, something that cannot be offered by fossil fuel plants. In our conversation we talked about the strength of the Florida Utility Monopoly and how the consumer’s choice for fixed pricing and clean energy could be the chink in monopoly armor. The Governor is now ready to sign the bill that Senator Brandes helped push through the legislature potentially marking the beginning of the solar renaissance here. Of note, Senator Brandes is the most conservative member of the Florida legislature as rated by the Americans for Prosperity.
Wholesale Power Markets. As we enter an era of low cost centralized solar, storage and end of life fossil assets, we have to broaden and redefine power markets. Solar plants will always produce energy at the same time, naturally increasing available energy and lowering the cost of marginal energy in the market. The markets should start looking at how storage at all levels, central, substation and behind the meter, can be the replacement for fossil stations at the end of their lives. Replacing plants with new central fossil doesn’t make much sense in most areas, time to create the right price signals.
The Energy Storage Road Show is happening, starting May 22nd in San Diego!
Mexico, week after MIREC. Every year during and shortly after MIREC, Mexico becomes the next big market. Having overseen some development in Mexico, I have to say it was a long road and it surely isn’t easy to be patient to cross the finish line. This MIREC was probably different because the market now has some big solar already built and under construction. So hopefully for everyone working on solar in Mexico, here is to the takeoff of your market.
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