This is your SolarWakeup for April 9th, 2019
Quick recap today as the day job takes over my day today.
Covering Climate Politics. Congrats to Julia Pyper of GTM who is venturing out to contributing editor and focus on her Poli Climate podcast alongside her co-hosts. They will be focusing on climate issues in politics leading up to the 2020 election. Supported by Schwarzenegger’s institute and Leonardo DiCaprio’s foundation, the podcast will be covering an important topic in an important time.
I Lose You Lose. Duke wants ratepayers to pay for coal ash cleanup. I have a question about the regulated monopolies. Are there any costs that consumers shouldn’t pay for? At what point do shareholders bear some risk of capital loss? This can’t be a guaranteed growth of capital investment, that’s not a monopoly anymore. That’s privatized government.
Grid Operators Speak Out. Interesting view on a renewable grid in the UK. National Grid is playing lots of cards in the energy deck on multiple continents, that could make for a fun board room at times.
PURPA In Big Sky Country. No-one really wants to open up the PURPA law but maybe the decades old law needs to be reformed so that there is clarity and certainty across the Country.
MD Win. The House in Maryland passed the 50% RPS yesterday. Ball goes to Governor Hogan, let’s see what he does.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for April 8th, 2019
Tax Credit News. Last week was a big week for clean energy incentives with two separate events. First, a bill was filed to add energy storage to the ITC eligibility on a standalone basis. This has been a long requested change in definition by the solar industry. More importantly, over 100 member of the house democratic caucus signed a letter to Chairman Neal asking for amongst other things for an extension of the ITC.
Be Real. With Democrats in charge of the House, any spending bill would need the votes of the House and now a large faction is stating their ask. The clean energy industries also came out in support of the letter. Nothing will happen immediately but keep this in mind as we get into spending season after recess. This type of omnibus spending bill is what got the last ITC extension to become reality.
Replacing Power Plants. Los Angeles is looking to find their way into a renewable future and while LADWP and local politics make it complicate, I give major kudos to Sunrun for offering another plan forward. 75,000 homes with solar and backup power would double the residential solar in LA and offset one of the power plants. To change the status quo barriers to be broken and the technical envelope needs to pushed which means that the keepers of the status quo need as much input as possible to show them what is doable. As of late, Sunrun has been doing a lot of glass shattering with their capacity auction win in ISO-NE with the help of National Grid Ventures, pay equity and their impact report. This helps everyone in the residential market, myself included, as the market is a rising tide floats all boats environment.
Fixing C&I Credit. Check out the new concept for credit security in the C&I market. This was one of the SunShot award winners a few years ago that I found rather interesting, especially if they can commercialize and scale.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for April 5th, 2019
Weekend NCAA Fun. Adam Cavitt is one of the competitors in the SolarWakeup Bracket Challenge and he’s an elite picker of NCAA games. He has 3 of the 4 Final Four teams (I have zero) and he has Virginia winning it all. This puts him in the top 5,000 pickers out of 17million. One bracket does have Texas Tech winning it all so that should make for an interesting weekend.
Have a great weekend and talk to you again on Monday!
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for April 4th, 2019
PG&E Says, Kick Rocks. As expected, PG&E has named Bill Johnson as the CEO and ‘refreshed’ the board of directors. The only name remotely associated with associated with clean energy is a board member of NextGen Climate. Vote Solar came out with statement where Adam Browning said, “White we need a renewable energy leader, TVA, under Bill Johnson’s leadership, is a renewable energy laggard.” PG&E came back with a soft defense of the climate progress by TVA which any solar installer in the territory could easily refute. The most telling aspect of this is the comment from someone that was friendly to PG&E last session. PG&E looks to be taking the approach of most monopolies and expects everyone to get on board with their plan and they will not get on board with anyone else’s.
CCAs Making A Play. The California Community Choice Aggregators are coming together and offering an option to the legislators that want option b instead of bailing out PG&E. The CCAs are saying that PG&E should become a ‘wires-only’ business and let the CCAs serve the customers. This is an intermediary step to retail choice, which I would assume CCAs are not advocating for. I hope that the legislators give this a serious look in the name of safety and let PG&E focus on keeping the State safe.
Grassley Makes Easy Statement. I was hoping that I didn’t have to read this but after Trump said that the noise from wind farms cause cancer, my phone and email didn’t stop. Now that Senator Grassley from Iowa has given a great quote on the topic, let’s highlight the “idiotic” nature of the comment. (Not my words) Solar farms may cause sunburns I guess…
Solar Needs To Do Better. Solar is going to be a marketplace for schemes and sleaze bags that are trying to get rich quick. We see them all of the time and have friends that ask us about the latest ‘rebate’, ‘credit’ and ‘energy audit’ robocall. These scams are easy to point out but we also need to have a conversation about the folks that install solar with the same attitude. I get that I am vested in this as a manufacturer of racking products and while I think everyone should use Quick Mount products, I respect most of my competitors that meet a level of engineering, testing and quality. I am happy to compete for the business of installers that follow the code and work with the building inspectors to give homeowners solar systems that will last the duration of my 25 year warranty. What solar can’t have, and what is happening, are installations that will leak next year when the installer is long gone. I have plenty of solar wall of shame content from social media and we can point to plenty of non-code compliant product being peddled at some of the biggest conferences as well.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for April 3rd, 2019
More Of The Same. Bill Johnson, the former TVA, Progress Energy and Duke Energy CEO, will likely be named as the new CEO for PG&E. Working with three of the hedge funds, PG&E is nominating a new slate of directors that will not include the clean tech names that were floated by another fund. All of this will come in time for the new legislative session where Sacramento will have to decide on the bailout for the utility around the indemnities and liabilities from last years disasters. The legislature should send a strong message by denying PG&E anything and instead going all in on CCAs, solar, storage and more retail competition. First with a return to NEM 1.0 and a higher rate if a C&I project loses the tenant off taker. Maybe PG&E will realize that Sacramento isn’t playing along with more of the same.
BlackRock Goes Clean. CleanCapital is expanding their relationship with BlackRock’s Renewable Power Group with an equity investment. Last year, BlackRock and CleanCapital acquired 60 C&I projects totaling 47MW and now BlackRock will own a piece of the development platform. More to come…
Climate Change Talks Go Mainstream. On Friday, AOC held an hourlong town hall with MSNBC’s Chris Hayes to talk about the Green New Deal and climate change. One of the important notes was AOC’s reiteration that this was a resolution and not the law. That the resolution is aspirational and with the help of Rhianna Gunn-Wright explained how the goals were achievable with the help of solar and wind. I recommend watching the event, it makes the strong case around the urgency and generational need for lofty goals.
EV Critical Mass. Last month, 58% of all auto sales in Norway were Tesla. Ford announced a 370 mile range for their EV SUV and Mercedes is ready to announce a full electric lineup by 2022. Duke Energy is asking to rate base over $70 million in charging infrastructure including for mass transportation. I haven’t seen too many demand models include massive EV adoption to the extent that I expect to become reality.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for April 2nd, 2019
Sorry, Not Sorry. First, SolarWakeup isn’t going premium. Yesterday was an April Fools joke (for now). I hope I don’t disappoint with the newsletter continuing on with the current arrangement you and I have. If you missed it, here is the link.
Quick Mount Expanding. Sometimes the most important news of the day is something I’ve been working on with the amazing team at Quick Mount PV. When we aren’t keeping the largest racking factory operating in the US, we’re looking for ways to expand and help our customers. Yesterday we announced our new warehouse and training center in Florida. Getting closer to our customers is key to our mutual success in addition to making the best portfolio of products in the industry. We won’t stop innovating and will always listen to our partners and installers when they have great feedback.
Storage Portfolio Transacts, Again. Macquarie is selling 50% of the energy storage portfolio to SUSI partners. SUSI is a Swiss investment company that was one of the first in the market with a focused fund on energy storage. Macquarie funded the AMS portfolio of Southern California storage projects a few years ago and is exiting half of that position now that it has been derisked. Macquarie’s GIG is doing some pretty great things around the world including the purchase of my former employer, Conergy, which continues to lead in Asia.
If You Care About Climate Change. Many of the stories today talk about the role of solar in the future energy and climate policies around the world. My biggest frustration with climate policy making now is the amount of money is sucks out of the process. I’ve said it before, and I’ll say it again; there is no industry that does more to advance good policy than solar per dollar spent. If big donors care about climate change and want to do something about it, which means they have to lobby and get involved in policy, they should be putting a large portion of their advocacy spend into solar policy groups.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for April 1st, 2019
SolarWakeup Changes. In the seventh year of this newsletter, it has grown way more than I ever expected. With that growth comes some influence but it also creates costs of hosting, email services, social media and back office. As I look forward to creating a bigger family with more channels, more podcasts (Wakeup Podcast Network is coming), and bigger events, the newsletter has to become a premium product. You’ll still be able to see some of the top stories but the newsletter commentary will be sent daily to paying subscribers. It will be worth the small price and you can subscribe here.
Governor Newsom Speaks Up. Over the past few weeks PG&E has been making moves that very much differ from the goals I was hoping for. Turning down the slate of directors that could have messaged a future focused on safety and clean energy and floating the TVA CEO as the next CEO. California’s Governor wasn’t excited about these moves and in coordination with the CPUC chair sent that message loud and clear. Calling the recent moves “troubling” and focused on short term profits instead of safety and reliability.
Solar Battery Replaces Retiring Gas. Florida Power & Light will be adding a 2hour 900MWh battery to an existing solar farm in Florida. The flexibility will allow for the retirement of 2 end of life natural gas plants. The canary in the proverbial rate base mine.
SC Slow Solar Stall? The solar industry was heading to South Carolina last week with a rally and SEIA representation. Solar has a wonderful opportunity to be the anti-monopoly and anti-corruption market that benefits South Carolina. I hope the legislature can see that future and passes the bill.
LEGO Goes Solar. The family holding company of the toy company, LEGO, has acquired the majority stake of Enerparc US. Enerparc, which is based in my hometown of Hamburg Germany, is a large player in the European market and has been slowly making some moves in the US. I’m curious to see how LEGO sees itself participating in the US market as an investor or developer.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for March 29th, 2019
What An Equinox. Hats off to the Vote Solar team for another great event in San Francisco. This is as important time as any to support Vote Solar. With team members across the Country opening up the markets you’ll be investing in a year or two from now.
Report From Hawaii. Engie is reporting live from the Hawaii Energy Conference in Maui, yesterday the HPUC and CPUC announced an official MOU to share resources. Picker and Griffin signed it on stage together. I hope the progressive HI commission will give a boost to our crusty one. Not sure of all the details but more to come...
What I’m Reading This Weekend. The GND ping pong continues on in DC and in the long run, the debate over 100% renewables is a good debate for solar. In the meantime, Idaho Power is crafting its own 100% RPS. Some pros in solar and renewables are making the NY Times because they have gone from fossils to renewables. One of them is the Sunrunner, Luis Davila. The corporates are coming together for a trade group to make offtaking renewables easier.
Presented by ENGIE Storage. (formerly Green Charge) helps power the world more efficiently and sustainably. As the nation’s number one distributed energy storage company, we serve energy producers, distributors, and consumers, including utilities, network operators, and energy consumers in business and government.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for March 28th, 2019
Join Me At Equinox. The famous Vote Solar event is TONIGHT! Make your way to San Francisco and give to the cause that gives back to you. You can get tickets here, do it now.
Your ITC Feedback. Over 125 responses came back from the SolarWakeup readers on your thoughts for what the ITC means. Many of you jumped right into some of the ways to make it better but the overwhelming majority described what your business looks like without the ITC which for residential installers is just a few years away. Module prices are increasing and the 4% decline will hurt your market if you are in the edge markets that are just starting to bloom. Your fear is that it will never be able to go up again and it will take another 5 years to get your market back on its feet. The feedback also talked about the fairness of ITC having to compromise when oil and gas never seem to have to give their subsidy back. One feedback back to you is that while I share some of your sentiment and make it public, you need to be talking to people that have the ability to make this happen. SEIA may be reading these comments but you need to do the minimum and join at their new Basic Level for $750. This gives you the access and ability to make your voice heard at the national level.
ITC Reality. At the end of the year the ITC goes from 30% to 26% which for project financed projects reduces capital stack by about 5%. For homeowners, this means around $1,000 less from the tax credit. For both market segments, it is real money that causes some markets to fall out of favor. In less than two years, the reduction is double that amount before ultimately going to ZERO for homeowners and 10% for 3rd parties. This is an unacceptable standard of support given the impact solar has on the US economy and fighting climate change.
The Politics Of It. I am going to give you a few examples of the political landscape just this week. Representative Ocasio-Cortez went viral with 11million views on her speech about the immediate threat posed by climate change. I am sure if asked, Rep. Ocasio-Cortez would agree that solar plays a central role in her plan including the Green New Deal. Mayor Pete Buttigieg of South Bend, Indiana, signed the No Fossil Fuel Money pledge for his run for the presidency. Not afraid to shun the money and speaking out forcefully for the need to fight climate change, a generational threat as he states. In the Senate, Senator Brian Schatz of Hawaii made note of the ‘jokes’ his colleague from Utah exhibited on the Senate floor. Climate change is no laughing matter and needs to be addressed immediately. My point is that we should be miles ahead of the politicians on this. I am used to having to drag politicians halfway to my position but in this case we are hesitant to leap with them on the issue of climate change as if solar is now too big to accept our place in the fight.
The Political Reality. When the ITC extension happened, the solar industry was overjoyed. It was a last minute deal in exchange for the oil export embargo ban. The ban was lifted for good and solar was extended with a step-down. But the following years were supposed to be for solar to grow and drive costs down. Instead the entire 2017 year was spent fighting 201 and then a 30% tariff on modules. On top of that the tariffs were placed on aluminum and steel. The solar industry wasn’t in a position to execute to our fullest extent and that is why the support needs to continue longer. The political reality is that many in Congress are expecting solar to play a large role in their fight against climate change and they need to hear from us what we need. The political reality is also that nuclear is out with big asks and oil/gas continue to get big tax breaks. There is plenty to trade in Congress to get solar the tax credit we’ve maximized the value of. It is the only tax credit that has become more efficient over time for taxpayers. In a divided Congress, our lobbyists should be supported by our industry making calls and standing by ready to act. My ask is simple, we need to stand up and say that solar is the industry that will move America forward and stand on the front line to fight climate change. We ask for continued support that we’ve enjoyed over the years and additional equity with other energy sources. Support of the ITC at the continued rate and equity with the rules used for oil and gas is the ask I would personally ask for.
Presented by CleanChoice Energy. The premier community solar and renewable retail energy service provider in the United States. CleanChoice’s marketing, sales, and operations teams offer the most comprehensive customer acquisition, retention and management service to community solar asset owners and developers in the market today. CleanChoice aspires to make renewable energy accessible to all, working with more than 40 partners in every community solar market. Our regulatory team is working to expand the community solar market and uses our relationships in state capitols to benefit our partners. The company is one of the fastest growing businesses in America, as ranked on the Inc. 500 and Deloitte’s Technology Fast 500™. For more information, visit CleanChoiceEnergy.com.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for March 27th, 2019
Join Me At Equinox. The famous Vote Solar event is this Thursday evening. Make your way to San Francisco and give to the cause that gives back to you. You can get tickets here, do it now.
Thank You! I want to thank everyone that attended SolarWakeup Live! and the amazing speakers at the event yesterday. With 10 interviews in 8 hours, the content was packed in tight and the audience had great questions. Please support the sponsors below for their generous support of SolarWakeup events.
This Is How You Lobby. The nuclear lobby is out of the gate and they are taking the climate change savior role. Days after receiving a $3.7billion loan guarantee on top of billions in early cost recovery, the nuclear lobby says that the world will end if State and Federal legislators act short-sighted and don’t give more to nuclear. That’s on top of free insurance and free waste management in addition to the cost recovery guarantees. Meanwhile the solar and wind industries are studying on what they want from Federal legislators and our message is being hijacked. Here is the quote from the nuclear lobby, “Now is the time for federal and state policy that values nuclear, that recognizes it for the reliable, resilient, and emissions-free source of energy that it is.” This message is ours, it’s solars to take and run with but while we are busy acting nice and standing in line, Vogtle nuclear power plant received a loan guarantee 7 times the size of Solyndra which kept solar handcuffed for years. Enough is enough, the climate change fight is too big and the solar industry is too strong to be afraid to stand up and demand our industry be supported. Two AD/CVD duties, one 201 tariff and steel and aluminum tariffs on top means that not only is out ITC declining but the headwinds are strong. Our jobs haven’t increased in over two years. SolarPledge 2.0 is coming your way, get your message in order!
Presented by Pfister Energy. Changing the way energy is generated and delivered. Pfister Energy is a leading turnkey design-build renewable energy solutions company. Servicing C&I, community and utility sectors for solar, storage and O&M. Visit pfisterenergy.com for more information.
News
Opinions:
Have a great day!
Yann