This is your SolarWakeup for April 30th, 2019
New York Incentive For Storage. NYSERDA is making things going forward and with these incentive levels, expect a lithium rush to the Empire State. ‘Retail’ projects will start with incentives of $350/kWh and larger projects will start at $110/kWh. Both create a major catalyst for the market to expand and with the pool of available capital, it should be able to last for sometime. I actually worry that the incentive is too high as battery costs are declining rapidly. In the meantime, let’s see with integrators are best positioned to serve the developer markets. My interview with Engie Storage CCO is coming soon to the podcast and catch my interview from last year with FlexGen CEO, Josh Prueher on the topic.
But We Need More. With reporting from down under, it shows that energy storage is a vital part of where we need to go. That is why you’ve seen CalSEIA and COSeia change their names to include storage, CALSSA and COSSA respectively now. The next decade will decide what the technologies of storage with be, including pumped hydro when possible. With California and New York going big on incentives to drive the markets, expect the storage sector to develop robust pipelines and drive the price down alongside the auto OEMs.
Beto Takes On Climate. The former Congressman from Texas that took the nation by storm last year during his race against Ted Cruz has outlined the first policy for his Presidential campaign. The policy is a $5 trillion climate plan that gets us to reach ‘net-zero’ by 2050. In some ways this is the ‘I have my own plan so I don’t need the green new deal, plan.’ Beto has been quiet but with 20 candidates in the primary, it’s going to take some work to stick out. In other climate news, Congressman Seth Moulton is calling for a moonshot to develop nuclear fusion technology to solve climate change.
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Yann
This is your SolarWakeup for April 29th, 2019
Weekend Rundown. Many great stories today with thoughts from me, keeping it brief but make sure to catch the stories that hit your notes. Don’t forget to subscribe to the SolarWakeup Podcast on Apple Podcast to keep up to date on the latest happenings.
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Yann
This is your SolarWakeup for April 26th, 2019
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Yann
This is your SolarWakeup for April 25th, 2019
Earnings Season. Tesla earnings are always interesting because they kick off the residential solar data flow that I am currently personally interested in with my day job given that I run a racking company. Tesla, without really trying, installed 47MW of solar on down from 73MW last quarter. Sunrun and Vivint Solar will be following with Q1 data shortly to see how it plays out. It has been raining in California and Q1 is historically the worst in terms of builds and backlog growth. I am also listening for input on impact from tariffs especially on racking supply given that Sunrun and Tesla both have a big investment in their own racking systems through their (long ago) acquisitions of SnapNrack and Zep accordingly. Their growth also means the growth of the overall solar market which is a market positive and enables other companies to reinvest into their own businesses. Q1 in the books and we’re rolling on Q2, let’s go!
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Yann
This is your SolarWakeup for April 24th, 2019
Showdown In Sacramento. The saga continues but let us back up for a minute. The dramatic increases in return on equity may not actually mean that is what they are looking for. Ask for a 50% increase and get 25% and the shareholders still get what they wanted. My opinion is that the reward should go to the party that takes the most risk so you cannot possibly ask for the ROE increase while also asking for indemnity. The Governor also opined yesterday, saying that “Not gonna get it . It’s jaw droppingly wrong.”
Growing Energy Load. Utilities do better when energy load increases and that is why solar has been viewed as a threat to utilities in the past. Electric vehicles are now growing like crazy and they need to be charged and as I’ve said in the past, represent the first time that utilities are in the same market as oil companies. It also provides a great factor for growth. None of this is news really but it’s no longer a future situation.
Hopkins Goes Solar. My alma mater is going bigger in solar striking a deal with Constellation Energy and a solar farm in Virginia. This will get Hopkins to two thirds of their energy consumption. I hope the other third will come through solar generated in Maryland.
More Info On VDERs. The changes in New York were a hard fought victory by many solar trade associations and there is more coverage on the issues that will grow that market. I look forward to seeing New York fulfill the future that they’ve been trying to achieve.
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Yann
This is your SolarWakeup for April 23rd, 2019
Get That Money. PG&E has filed a normal request with a strange twist at the CPUC. It is asking for a raise for its shareholder return, which is typical, but it’s asking for a raise of over 50% to 16% from 10.25%. Shockingly, and coincidentally, SCE and SDG&E also asked for massive increases to the ROE. I’m still taken aback by the unprecedented ask and can’t help but wonder what legislators are thinking, especially if they’re thinking if there is a better way. The CCAs around the State and utility execs in other States must be in shock by the ask as well, what could possibly warrant a high double digit return for shareholders of a monopoly? What would regulators say if solar came to the table and said we want guaranteed revenue streams at the same ROE as utility shareholders?
In Awe Of the Flaw. Energy Twitter went bananas yesterday for a report from the University of Chicago. The report that is on the way to be peer reviewed has a big headline, RPS policies are very expensive climate policies that are far more costly than carbon taxes. Without going into the details and analysis methodology, do expect more of this report to be discussed and rebutted in the media. I bet that the anti renewables folks will be using this unfortunately to make the case against solar and wind.
But Wait, There’s More. When solar isn’t breaking records or wind is causing negative energy rates, they are causing massive savings to the system. In the latest Duke procurement, the generation will save consumers $375million over the 20 years. I’ll take facts over headlines any day I guess.
Nevada Steps Up. It didn’t take long, Governor Sisolak has signed the 50% RPS, 100% carbon free bill that passed the Legislature. This is the month of 100% clean energy policies, maybe Florida will follow right behind?
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Yann
This is your SolarWakeup for April 22nd, 2019
Two More Pods. Find my conversation with Mary Barber of the Environmental Defense Fund and a discussion on development of solar projects in New Jersey. If you haven’t subscribed to SolarWakeup’s Podcast, I’d appreciate you trying it as we continue to grow this platform. Our interviews from Boston will start populating over the next few weeks, make sure to catch them as soon as they get out.
VDERs Redefined, Applauded. The NY PSC came out with major updates to the VDERs that enable more solar to get done in New York State. Some of the updates include the revision on the valuation for solar generation and provisions that enable more community solar to get done. It also increases net metering to 750kW to get more commercial properties to install on site generation.
Nevada Goes The Distance. Last week we applauded the NV Senate for passing the expansion of the RPS and now we will do the same for the NV Assembly. This is the next step in a long process for Nevada to do the will of the people. The Governor is expected to sign the legislation before it goes back to the voters.
The Climate Mentality. There has been a 50% growth in people thinking that climate change will cause harm to them personally since 2008. 73% of respondents to the poll said that it will cause harm to future generations. Put this into context that we now know that part of the 2016 rhetoric from outside functions was to divide Americans with coal. This means that it’s okay to talk about jobs and economic opportunity at the same time as climate policy. It will now take proper talking points to explain that energy sectors like solar are inherently tied to policy, innovation alone will not do the trick.
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Yann
This is your SolarWakeup for April 19th, 2019
Have a great weekend! New pod out later today.
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Yann
This is your SolarWakeup for April 18th, 2019
A Development Podcast. Check out the new episode of SolarWakeup Podcast with solar developer, Jim Spano, in which we talk about all things solar in New Jersey as well as his new venture to bring REIT capital to solar.
Climate At Fox News. Senator Sanders held a town hall on Fox News and did two things we talk about a lot. When asked about national security he pivoted the answer to include climate change and terrorism in the Middle East, a clear signal that he was speaking to the audience of Fox News. Second, as the article says, “Sanders drew cheers when he said transitioning to renewable energy would create millions of new jobs.”
Duke And Solar. Duke is going to add a lot of solar in North Carolina including projects that it self developed. Now to the residential market, maybe we can do more there in the Carolinas including South Carolina!
Both Sides Of The House. Vistra energy is using its energy storage projects in Texas as a legislative tool in Illinois in order to keep their coal plants economical for a few more years. This transition from coal to solar+storage is interesting especially given the valuation that Vistra seems to be tying to their assets.
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Yann
This is your SolarWakeup for April 17th, 2019
New Podcast drops at 1pm EST. Subscribe on your favorite platform.
Nevada Goes For 100. Late yesterday, the Nevada Senate voted unanimously to double the RPS to 50% by 2030 and 100% carbon free electricity by 2050. Vote Solar’s Jessica Scott sent this comment after the passing, “This bold but achievable clean energy commitment will support good jobs, healthier communities and a brighter energy future for our children. We urge Assembly lawmakers to follow the lead of their Senate colleagues to pass the bill and send it to the Governor.”
A Labor Union Endorsement. The Maine version of the Green New Deal got an endorsement from the State chapter of the AFL-CIO which represents 160 unions in the State. The move and commentary is a welcome addition to the fight on climate change which usually sees solar and unions on opposite ends of the legislative fight.
Electric Fleets Financed. Proterra, the amazing company that manufacturers electric buses in the Bay area, has put together a $200million financing package to lease some 1,000 buses. The goal is that the upfront cost is less than the tradition choice. Electric demand may have been flat over the past 10 years, I don’t think (Shell sounds like they agree) that this trend will continue with fleets going electric.
On Bill Financing. This could be a big mover for financing clean energy in Hawaii, I look forward to seeing the results.
Internal Cost Allocation. Microsoft is doubling its overhead allocation to divisions for their own carbon tax. At the same time they are looking for legislators to work on this as well.
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Yann