This is your SolarWakeup for December 17th, 2018

Creating Known Unknowns. In the latest SolarWakeup Live! conversation I speak with Gabe Philips, a college classmate of mine and an experienced energy trader. In fact, he traded electricity generated from a solar farm I developed and built in the past. We hear about power markets with corporate offtake all the time and deals in PJM, ERCOT and CAISO are announced all the time. There is a lot to these transactions and that is what Gabe and I spoke about in this Live! conversation.
 The Electric Fleet Mobilized. California is taking the solar home mandate and passed the similar version of this for transit buses. 25% of buses purchased in 2023 will have to be zero emissions and 100% of those purchased after 2029 will have to follow suit. This means that within about 20 years, all transit buses will be electric. I like when mandates are slower than what the market will do. Much like solar, electrification of fleets isn’t just something that users want, it also means a deployment of capital. Much like selling solar PPAs to schools, you’ll see companies like Proterra offering electric fleet as a service contracts to school districts across the Country. All of that load will have to be serviced and generation will have to be available, more solar will have to be built. 
Cheeeeap Solar. Texas will be the first State to drop PPAs under 2 cents in a big way. First, because storage is harder to pencil with no capacity market and second because it’s so damn cheap to build there. Land is flat and abundant while permitting will be much simpler than other areas. 
Consumers Matter. Long Island’s utility (LIPA) is taking up a similar consumer protection policy as the State oversight board. This follows many other States that have also done this. The problem with the policy isn’t that solar can’t meet it, it’s that nobody is paying attention to actually making solar companies follow the rules. I continue to be amazed at some of the junk that is put on people’s roofs and buildings just hoping that a problem 3 or 5 years from now is someone else’s mess to deal with. There are still many homes that have racking installed with no desire to meet roofing best practices or even code compliance, taking advantage of the local inspectors lack of solar knowledge. The industry must do more to protect homeowners and keep bad solar from hurting the industry. 

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Yann

The Energy Show: Manufacturing Solar in the U.S. with Auxin Solar

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The Energy Show: By Barry Cinnamon Attention U.S. Department of Commerce: your well-intentioned efforts to help the U.S. solar panel manufacturing industry are not working. Even with 30%+ tariffs on imported solar panels and cells, the remaining U.S. manufacturers are struggling to stay competitive. The good news, as one would expect, is that there is strong demand for Made in the U.S.A. solar panels – both from ordinary consumers as well as government purchases. However, structural issues with the supply chain for solar components puts the remaining U.S. manufacturers at a substantial disadvantage. The reasons for these supply chain challenges … Read More →

This is your SolarWakeup for December 14th, 2018

Tariff Slowdown. Here’s a hot take. A slowdown doesn’t require the market to actually go down in size. The tariffs can have an impact that drags the market in the negative direction while still allowing the market to grow because solar is doing very well. On the other hand if tariffs weren’t in play, AD/CVD tariffs were gone, and the trade war wasn’t happening, solar would be growing much larger and faster. Anytime these things happen, make sure to listen to people that are actually in the market doing things. Punditry is fun and all but being a full time pundit doesn’t help you with your business. Tariffs are causing executives to have to spend time and money on changing manufacturing locations, figure out new supply chain logistics and dealing with new partners in new places. This drags the market in a direction that none of us like. On the upside, this is the first December that I don’t see a cliff on December 31st. No NEM cap, incentive pool or other regulatory barrier ahead that would hurt a big market right now and that is a positive sign for everyone. 
Live! Rewind, Abby Hopper. How much is the right amount of budget for SEIA to do everything they would like to do? Abby answers this and more. Full episode here
Live! Rewind, President Fiordaliso. The New Jersey SREC cap is going to reach the goal sometime in the first quarter of 2019. What does the BPU think is the right approach as the market heads to a brick wall? Fiordaliso answers my question and makes a bold statement. The Conversation Starts Here. 
SMA Job Cuts. SMA continues the corporate restructuring including 100 job cuts in Germany, 300 in foreign locations and the sale of the China business unit to the local team. The consolidation in inverters is real and I worry a bit about the market over consolidating while still sustaining massive price pressures. 
Weekend. We’ll be heading to the aquarium this weekend, I hope you enjoy your weekend as well! Keep calm and solar on!

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Have a great day!
Yann

Tariffs Squeeze Utility-Scale Solar In Third Quarter Of 2018

By Frank Andorka, Senior Correspondent Ah. There it is. After escaping several quarters largely unscathed by the insane Trump tariffs on solar, the Solar Energy Industries Association and Woods Mackenzie report that the third quarter of 2018 saw the 30% tariffs take a bite out of the utility-scale sector. Though not unexpected, the slowdown hurt solar’s overall growth numbers and has Woods Mackenzie analysts predicting that 2018 will finish flat with year on year growth. If most of us are being honest, we consider the solar industry a bit lucky that it hadn’t already felt the bite of the tariffs, … Read More →

This is your SolarWakeup for December 13th, 2018

Hopper On SolarWakeup Live! Abby Hopper is the CEO of SEIA and she joined me on SolarWakeup Live! to talk about the state of the solar industry. She’s been the CEO for an entire solar year, SPI to SPI, and it all started with tariffs. In this conversation we talk about where we are today, what States will take off and how SEIA negotiates for all members, regardless of the segment they operate in. We also talk about the reality of a split government in DC. Listen to the full interview here and make sure to leave a review on iTunes. 
Message To Federal Regulators. Don’t miss the conversation with New Jersey’s BPU President, Joseph Fiordaliso. He has a strong message for the federal regulators and we discuss the role that PJM plays within the NJ solar market. I ask about the reality of New Jersey leaving the PJM system. Full conversation available here, hit reply to let me know your thoughts and pass it on to your colleagues. 
Elon Continues Charm Offensive. I enjoy Elon on the shows, whether it is Joe Rogan or 60 minutes. He is the right amount of real while staying true to the overarching reasons for his businesses. Every CEO knows that if they fail to execute they will die, even the Walmart CEO keeps a list of the top retailers on his phone (hello Sears!). On the other hand, most CEOs would never tell millions of people that the failure would result in the company failing. 60 minutes is under fire for creative editing to release the full interview, this comes from the fact that Elon drama gets many clicks and views. I did enjoy Jay Leno’s 60 second pitch for supporting Tesla. 
UPS Spends To Lead. This may be the first sponsored post that I rebroadcasting but it is interesting and notable for UPS to spend money to talk about their fleet electrification. Transportation is one of the largest sources of emissions by segment and electrifying fleets across the globe would do great things if solar and wind are there to supply the needed generation. 

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Yann

Evanston Becomes First City In Illinois To Commit To 100% Clean Energy

By Frank Andorka, Senior Correspondent Illinois is one of the hottest solar markets in the country, thanks in part to the Future Energy Act of 2016. Solar companies are flooding into the state, and many cities are clamoring to be part of the Solar Revolution in the state. And now at least one city has decided to take its devotion to clean energy that extra step by pledging to become the 102nd city in the United States – and the first in Illinois – to generate 100% of its electricity from renewable sources. [wds id=”3″] Yesterday, the Evanston City Council … Read More →

This is your SolarWakeup for December 12th, 2018

Regulator Talks Policy and Climate Change. Here is the first of the conversations from our sold out event in New Jersey with the President of the BPU, Joseph Fiordaliso. In a conversation that was expected to focus on the regulatory activity in New Jersey (They are busy, and hiring), President Fiordaliso threw me a curveball by speaking in great detail about the reasons behind the important work he is undertaking, climate change. Moreover, he provides some feedback to the folks at DOE and FERC trying to prop up coal and nuclear power plants. Listen to the entire conversation here or on your favorite podcast streaming app. 
Q&A With Governor Inslee. The Governor of Washington, Jay Inslee, is proposing a 100% RPS by 2045 and sees it as a legislative priority for the next legislative session. Frank had the opportunity to get some of the most relevant questions answered about the latest initiative to go 100% renewable. 
Big Day For Big Name. 8minuteenergy is one of the most well known names in solar development. From the day I started in solar, 8minute was out in California developing these unfathomably large solar projects. As the company puts together a new $200million fund with JP Morgan, I’d like to congratulate Martin Hermann for exiting from the company. His partner announced over the weekend that Martin has been bought out. When people ask me what I wish I’d done in 2006 when I entered solar, I look back at the things Martin was saying at solar conferences because he was more right than anyone else. 
Opening Energy Storage. FERC is receiving the filings from grid operators about the Order 841 filed early this year. ISOs and RTOs had to file their plans to implement the order which asked for the enablement of market participation by energy storage systems. More work needs to be done but you can see how this plays out over the next few years. 
Explorer, Escalade. Yes, an electric Ford Explorer would be great. Yes, I know that GM doesn’t own Ford. Yes, I got it wrong yesterday, I am sorry! I am glad to see many of you reading the column emailed me to point out my error. I would recommend GM to make an electric Escalade or Tahoe though!

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Yann

Dusty Baker Wants To Diversify The Solar Industry Just Like SEIA

By Frank Andorka, Senior Correspondent As most of you know, I’ve long been a crusader for diversity. I helped host the first diversity conference in the hotel industry back in 1998. I took the golf course maintenance industry to task for its lack of diversity in an article headlined, “Why Is This Industry So White?” And I sat on the Minorities in Pest Management committee when I wasn’t writing about cockroaches and bed bugs in the pest management industry. So diversity is kinda my thing, which is why I am thrilled with the Solar Energy Industries Association’s work on bringing … Read More →

Q&A: Washington Gov. Jay Inslee Aims For 100% Clean Electricity By 2045

By Frank Andorka, Senior Correspondent Washington Governor Jay Inslee announced his aggressive plans to reduce the state’s carbon emissions. As part of those plans, he has pledged the state to get to 100% clean energy by 2045, following California and several other states who have decided to decarbonize tehir electrical systems. He talked with SolarWakeup about the decision. SolarWakeup: Where does Washington currently stand in its clean energy development? Washington Governor Jay Inslee: Washington’s electricity is about 75% carbon free, predominantly hydro. You can find more information here and here. [wds id=”3″] SolarWakeup: What first inspired you to decide to … Read More →

This is your SolarWakeup for December 11th, 2018

Opening Salvo, Permanent ITCs. Senator Schumer is making an opening statement to the Trump administration and it is both interesting and relevant to our work. Schumer may be in the minority but in order to pass any legislation over the next two years, Trump will have to negotiate with Schumer and Pelosi to get it done. Schumer is calling for a massive infrastructure bill with a heavy emphasis on clean energy. One of the specific issues is to make the solar and wind ITCs permanent, which is exactly what I’ve been calling for on SolarWakeup for a decade. More importantly this drives a legislative process where solar tax writers should allow for the ITC to taken against active income, exactly like oil and gas credits. Don’t get excited, this isn’t a bill yet but it means that New York, which is trying to get off the ground with renewables is telling their senior Senator that the ITC is important to them. (Hello from Wall Street)
Looking At Exxon. This is an interesting write up on the solar and wind deal that Exxon executed for their Texan operations. It digs into the ability to get enough renewable on a constrained grid and the competition between gas and coal. 
The Chevy Volt. In many ways, the Chevy Volt was the introduction of electric cars to the masses. I know this because it was my first electric car and I dreaded any day that I was driving more than 38 miles and would have to turn on the small engine. Last week, GM announced it was halting the production of the Volt as it is ending its entry level stance for electric vehicles. Yes, the Volt was the right car at the right time but now it’s time for GM to lean in and produce all electric vehicles and they should start with the Ford Explorer. Not all EVs need to be electric looking, let’s put a big skateboard of batteries under the existing chassis and give people what they want. 
Dominion Must Try Again. Dominion has been told by Virginia regulators that they need to resubmit their IRP after producing a filing that overestimated load and didn’t consider the impacts of State legislation. As you will hear in a podcast recording this week with the NJ BPU President, regulators are no longer rubber stamping the filings by monopolies and making sure that the policies are well implemented.

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Have a great day!
Yann