This is your SolarWakeup for February 12th, 2019
Climate In Presidential Politics. In prior presidential campaigns climate change was an after thought and many debates skipped over the topic altogether. With half a dozen announced candidates, I can’t think of a single speech that doesn’t touch on climate change within the first few minutes of the announcement. That includes Trump, who comes at it often from the other side of the argument, many times conflating weather with climate. There is more reporting on the fact that republicans are excited about the green new deal for the fact that it may be used against democrats in campaigns.
Listening To David Crane. At the most recent Powerhouse event, Emily Kirsch interviewed David Crane about his career. For those catching up, Crane took an economic and moral stand when he was at the top. Rarely do you see corporate courage because it tends to end poorly for the executive or at least feels extremely lonely. In Crane’s case, his vision did not align with shareholders short term vision for higher stock prices because running a public company includes daily performance reviews with every single shareholder holding a different goal. I personally enjoyed the comment about CEO’s being lonely, I find that part of the job is often to guide in the right direction (quickly) while also providing a safety net in colleagues decision making. On the other hand, the CEO rarely has a place to go to for his or her decisions.
Performance Based Utilities. Keep a close eye on the proceedings in Hawaii about performance based regulations for the utility. This is a topic that is being circulated not only in Hawaii but across the mainland as well. The idea is proposed to enable distributed generation and demand response technologies to have a valuable benefit to the utility. If utilities are the toll collector on the highway, advocates would like the utility to benefit most when renewables, DERs and EVs have equal or prioritized access to the fast lanes. Let EV charging companies interconnect within days or weeks, not months or years. Let DERs compete every minute of every day for revenue.
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Yann
This is your SolarWakeup for February 11th, 2019
Boston Live! Get your tickets to SolarWakeup Live! Boston happening on March 26th. Great event and agenda being put together to make you more competitive. If you haven’t been to a SolarWakeup event, please come out to Boston. I do everything I can to give you the information that I would want if I were in your shoes. Happy to connect you with folks that have come out and like this alternative model of conference conversations.
The BFD GND. Congresswoman AOC and Senator Markey released the draft resolution also known as the Green New Deal. This bill is part green and part new deal, highlighting some of the biggest issues facing the Country and the reasons for proposing the resolution. Note that this is not legislation at this moment, more of a battle cry to create laws that aim to execute on the proposals.
Trump Cries Socialism. The GOP and Trump have come out in favor of the GND being a label for the Democrats seeking to divide the Country on this issue. This is a battle to label the resolution as socialism while the Democrats will seek to message the resolution in its part since clean air, clean water, green jobs, renewable energy and fighting climate change all poll well over 70% favorable.
Justice For All. Green New Deal seeks to highlight environmental, financial and social justice within the policies that will drive action against climate change. The sponsors are not only looking to move forward but also seeking to ensure those that have been left behind are leading the pack.
Renewable Energy. Wonks have been quick to skip to this paragraph. Is it 100% renewable energy or clean energy? Is nuclear included? They are missing the point, this is a vision to get as close to 100% within 10 years, 15 years faster than California’s SB100. It also looks to invest billions in energy efficiency while creating a job guarantee for anyone that would like to work in the expanded fields. Any variation of this would be a big growth for the solar market we operate in, from distributed generation to community solar.
Solar Storage ISO Win. Sunrun won a capacity bid in the ISO-NE grid market. This is a big deal and it reached the twitter account for Senator Whitehouse (D-RI). While this is a big win that generates new revenues for the solar plus storage market, it is an example of the new economy fitting within incumbent markets. The capacity win is meant for fossil fuel power plants that want capacity contracts to pay for their existence while raking in double digit returns for energy sales on top of that. The pros call that revenue stacking. What would be the better way? The better way would be for operators of distributed storage assets to be able to bid into the real time market with the right pricing signals that generate additional cash flows for homeowners and businesses. One day, Sunrun may be sending ‘storage dividend’ checks to their customers who want to let the company maximize the value of their investments.
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Yann
This is your SolarWakeup for February 8th, 2019
Boston. Get your tickets to SolarWakeup Live! Boston happening on March 26th. Great event and agenda being put together to make you more competitive.
What I’m Reading. I’m looking into the details of the Green New Deal resolution released yesterday, the Sunrun capacity auction win and a potential game changing report on utility business models by Rocky Mountain Institute. More in depth coverage on Monday on those topics.
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Yann
This is your SolarWakeup for February 7th, 2019
100% RE Legislation. Another bill has been filed for 100% renewables, this time in Illinois. This follows a recent trend to not only file legislation but actually pass it as California did last year. When it comes to debating ways to transition off 20th century generation, this may be the political vehicle to accomplish this. CleanChoice CEO and former political operative, Tom Matzzie, commented on twitter “100% might be the ONLY politically feasible solution to decarbonize.”
Nuclear Bailout PA Edition. Here we go again. We’ve seen this story in New Jersey and Illinois most recently where nuclear power plant operators required legislation after threatening the plant closures. The closure of more than 3 plants is threatened including three mile island. Legislators are likely to succumb to the pressures, as they have in every case before this, the question is what will come attached to bill. I’d say we should fight for market pricing signals as opposed to simple incentives. Who is running the renewable energy’s response to this?
Grid Operations. We’ve gone from the polar vortex and ridiculous temperatures to spring like weather this week in many parts of the Country. The new grid is more flexible and operators are getting to crawl before they run. It will be important that the market creates pricing signals to the generators and consumers that are faster and broader. It shouldn’t only be about turning a plant on for 4 hours in 30 minutes or turning home AC units off for an hour. The new grid is faster, more responsive and flexible.
Puerto Rico Future. Everything is a bit slower in Puerto Rico but it seems the energy task force was in Puerto Rico last week and new headlines are being made. I look forward to seeing more happening.
SOTU. I wasn’t very surprised that solar didn’t make a highlight in the 82 minute speech, but the paragraph on the oil export was without context and political truth. Oil exports are up because it was a trade for the solar and wind tax credit extensions. Without the legislative change to eliminate the oil embargo, exports would not exist for the most part. That is the power of the political trade, that’s why I highlight the PA nuclear bailout request and search for moments of leverage where solar can go and flex its advocacy muscles.
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Yann
This is your SolarWakeup for February 6th, 2019
Tickets March 26th Boston. solarwakeuplive.com to reserve your seat. Don’t forget to sponsor the event which also includes 4 weeks of newsletter sponsorship and listings in the writeup! Best advertising spend in the solar market by far.
The Corporates. We know corporations want more solar and wind energy to offset their consumption but it’s typically a pilot rooftop or too complicated if the energy is generated offsite. The solar industry doesn’t have the knowledge to really service this in a comprehensive fashion across different markets. I know that community solar is meant to make the access more democratic and simple but why should the solar industry wait to grow within market rules that restrict the growth to the speed that incumbent participants desire?
Making CT Solar Better. We are going to revisit solar rules, namely net metering replacement policies, in Connecticut during this legislative session. Bills sponsored by members of both parties highlight the fact that DEEP under the guidance of the Governor and potentially in a deal with some solar folks threw net metering and distributed generation under the proverbial bus. Let’s watch how this plays out.
Fight Over Energy Security. We are barely into 5G cellular service and the FCC is finding itself in a battle with telecom and utilities on the use and access to 6G. The past grid has been a closed system connecting a small number of large power plants. The future grid is going to have solar on every roof across the Country with electric cars charging to and from the grid with energy storage and central power plants. Access points will be plentiful so you can see why utilities may be concerned about he rules that are being created today.
A Big Market. My friends are Roth Capital see the solar market growing to well over 100GW this year and up again in 2020. This is an unprecedented opportunity to deploy capital and save money for consumers. The key for all market participants will be to be wise around margins and determine how everyone can make money to the tune of BP’s 5.7billion last quarter. We cannot be the industry of the future if the entire value chain isn’t running profitable businesses.
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Yann
This is your SolarWakeup for February 5th, 2019
Jobs, Jobs, Jobs. What do Florida, California, New Jersey, Hawaii, New Mexico Minnesota and Missouri have in common? The fastest growing job is solar installer! The median pay was $18.98 per hour and is project to grow over 100% by 2026. There is very little that these states agree on but every politician talks about jobs during their election. Your conversations with legislators needs to start with jobs and close with jobs. Here is the data that supports the hard work you have all been executing on.
Sign Up Here. The Green New Deal is getting the DC legislative treatment and early co-sponsors are being lined up. Do not overlook the fact that the Green New Deal is entirely marketed by Congresswoman Ocasio Cortez and she has made it a must support for primary candidates in the democratic presidential primary. This legislative feat shows that tenure in DC is being challenged by social media followers and influence. I guess you could say that getting likes online is more important than being liked in DC.
Big Solar Saas Money. Aurora Solar has raised $20million in their series A, a round led by Energize VC. This is one of the largest solar meets tech venture investments which shows the investment community is adopting our view on the longevity and scale of the solar market. Aurora sites 60,000 proposals generated on their platform. Other startups in this field include SolarGraf and Sighten which have also brought in venture investments while non-layout startup Energy Toolbase has bootstrapped itself to date.
What Happens Next. The IREC Vision Summit will convene a broad group of prominent national and state clean energy influencers, industry, advocates and educators for a visionary explanation of the pillar policies, practices and workforce training necessary to enable millions more Americans to benefit from clean energy, while supporting broad climate and equity goals. The outcome of the event – March 6, 2019 in Washington, DC – is a Vision Summit guide to a shared clean energy vision for the future.
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Yann
This is your SolarWakeup for February 4th, 2019
SPI Boston. Good morning from 37,000 feet as I fly cross country to what is being called SPI Northeast in Boston, the decision to make the trip was almost halted watching the snooze fest led by the geriatric duo B&B. Make sure to say hello if you are there. Speaking of Boston, get your tickets to SolarWakeup Live! Boston where I will be interviewing some of the solar leaders in the market and give you the information you are looking for. solarwakeuplive.com for tickets and agenda.
Slow Progress in Georgia. The Super Bowl stadium in Atlanta is powered by more renewables than Georgia Power’s consumers. Without boring you with the details, just look at the picture for their IRP filing which shows nuclear going up and coal declining a year 10% in the next 5 years. Making up that resource will be demand shaving and 1,000GW of renewables. Surely we can think of running a better utility than what is proposed but since Fanning will be speaking at BNEF no doubt in a few months, he has plenty of green credit to his name. Maybe he will write a book about renewables when he retires.
Nevada. Good things are happening in Nevada and the legislature can build on it again this year. Consumers are getting more choice and they are choosing solar. Soon enough, the corporations will have access to energy choice as well. Other states should look at what is happening here and emulate it. Maybe my friends in retail energy can tell me if the retail energy companies can compete with IOUs in terms of political donations.
BP Discloses. With all that cash in the bank, BP is looking for ways to get more retail investors interested in its work because a stock price only moves based on the decision of two parties to buy and sell a stock. Look for more headline renewable and EV investments to put that cash to work which is both for longevity and marketing purposes.
I Have A Podcast. Some of you are still surprised to learn that I have a podcast. With over 50 episodes since I started more than a year ago, most of them are relevant regardless of when you listen to them. You can search SolarWakeup on Apple Podcasts or other podcast apps. Please leave a rating and subscribe! https://soundcloud.com/
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Yann
This is your SolarWakeup for February 1st, 2019
Fast Track Friday. Get your SolarWakeup Live! Boston tickets. Right Now. Have a great weekend!
GE Consolidates. Renewables is getting a new umbrella at General Electric. Revenues are growing and it may become an interesting division within the company.
$20 Billion. That is how much Shell earned in profits over the past year including $5.7billion last quarter. I’m not sure that the solar industry as earned that in profits over the past decade as a sector.
One Of Many. The bankruptcy judge will have a say in the PG&E matter but without the CPUC and FERC, nothing will get finalized. The Governor will likely also get a say along with the judge working the probation issue.
Invest It Faster. Shell gets into the EV charging game, they need to do much more of it.
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Yann
This is your SolarWakeup for January 31st, 2019
Couple Things. If you haven’t yet, please register for SolarWakeup Live! Boston. I am working to make this an even better and more engaging live event than ever before. You can buy tickets and find sponsorship opportunities at solarwakeuplive.com. Second, thank you to the many kind notes about the write up yesterday. Not all days will get 1,500 words on a topic but when the opportunity arises to dramatically change the world, I’ll opine.
PG&E Violates Probation. If you didn’t know it before, PG&E was convicted of a felony and placed on probation after a gas explosion. Yesterday, PG&E was in court to face potential probation violations after their probation officer referred the matter to the court. The whole thing is a bit surreal, given that PG&E is a corporation, and the judge laid into the company as if they were a real person. A fantastic play by play by reporter Matthias Gafni is here and his article is top of the list today.
What Would Harry Reid Say. Imagine if Obama brought nuclear waste to Nevada, secretly and while misleading a federal court, without telling Harry Reid. That’s a real situation and the topic has been a crazy story for a long time but what Trump/Perry did has been a political non-starter forever. It also reminds us that much of the nuclear waste from power plants is sitting in pools in the backyard of those plants.
AOC Will Release GND. Forget California’s 2045 goal of 100% clean energy. Congresswoman Ocasio-Cortez will release the legislative language for the green new deal with Senator Markey next week which includes a much more aggressive timeframe. More importantly it includes an important jobs initiative which is the central argument for our industry’s success.
Do Good Do Well. I spoke with Go Solar Group’s CEO this week about their growth in the Southwest markets of Texas, Nevada and Utah. Part of their founding and ongoing mission is the desire to help families in Africa when they do well locally. Go Solar now has 10 employees in Africa working to provide solar powered lights and other micro-finance products that help families succeed and grow. Check out their trends for the year and I thank them for their world positive initiatives.
Positive Feedback. Freedom Solar in Texas was kind enough to list me as one of the top bloggers they like to follow. I’m in good company and glad to hear that this newsletter is helpful to their mission. Check out the complete list.
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Yann
This is your SolarWakeup for January 30th, 2019
Chapter 11. PG&E has filed for chapter 11 reorganization. This is the second time in less than 20 years that one of the largest investor owned utilities, with a monopoly handed to them by the State, has filed for bankruptcy protection. The company listed $71billion in assets and $51billion in liabilities.
Newsom Reacts. “PG&E today filed for reorganization in federal bankruptcy court. That was PG&E’s choice but it does not change my focus, which remains protecting the best interests of the people of California. My administration will continue working to ensure that Californians have access to safe, reliable and affordable service, that victims and employees are treated fairly, and that California continues to make forward progress on our climate change goals.”
My View. The issues related to PG&E are multi-faceted. First and foremost is public safety, the operator of the grid in the service area needs to do everything possible in building and maintaining a safe grid while understanding the climate change reality that will make wildfires highly likely. Next come the consumers and residents in California. What should they expect from their utility in return for handing over the monopoly which is worth tens of billions of dollars. Given that the utility controls who has access to and the speed of access for things like renewables, what kind of partner is the grid to the consumers goals in fighting climate change? Last is the relationship between consumers that want choice in energy and the transmission portion of the utility. Given the 21st century technologies and options for consumers, is it time for a reset to the monopoly model?
Post Chapter 11. As outline in the chapter 11 filing, PG&E is filing for bankruptcy in anticipation of future liabilities from the 2018 wildfires. These liabilities are largely the difference between the insurance coverage and actual damages. In short, it seems that PG&E was underinsured for the potential risks it faced. This is where the regulators and Governor need to step in and represent the consumers. Some people that lost everything could find themselves being shorted on their damages because of the PG&E bankruptcy. This is the opening that the Governor need to fulfill both of his goals as he outline in the comment above. First, ensure access to reliable service that treats consumers fairly while ensuring progress towards climate change. Through the monopoly regulation, the government will have concurrent jurisdiction on the proceedings, and keep a seat at the table.
The Structure. In order to achieve the goals desired by the legislature, Governor and consumers, the integrated monopoly model needs to glide towards an end. Other states have done this through deregulation where the IOU is focused on building and maintaining the transmission grid. For the solar space it means that the utility would operate the highway that we seek access to and in some instances priority access to the grid both in front of and behind the meter. PG&E is already (basically) out of the generation business so this would be an easy part of the reform. Then PG&E would step out of the retail service business and competition would start at the consumer level, this is already happening with CCAs and could be increased. My last reform would be around the ownership of the utility itself. Given that any reorganization effort would require legislation that would indemnify the utility from wildfire risk, the utility can no longer be owned by 3rd party shareholders. If the ratepayers have to carry the risk they should reap the benefits of proper management. The model for this type of ownership is the cooperative, a successful model running across the Country. PG&E customers would own the grid and would be able to drive the priorities that align with their goals. Through CAISO’s leadership, the new PG&E would enable renewable and energy storage integration and provide retailers a stable market to provide great electricity services to customers.
But Be Real. Risk taking and changes aren’t going to come easy, the Governor is still moving in and the legislature is upset after having bailed PG&E out last year. No-one is in a rush to make changes tomorrow.
Solarcoaster. Cypress Creek is showing that PURPA solar is hard and is cutting the team by 20%. Some of this was evident from the plethora of bounced emails I got yesterday morning. If you were affected by layoffs and looking for help, please send me an email and I will connect with folks throughout the sector. We’re a solar family and I’ll do my part to help.
Supporting Net Metering. A presidential candidate, Elizabeth Warren, name checks net metering at a rally. This may not be the first candidate that understands the policy but it is the first to make a mention of the important policy that gives homeowners the ability to choose solar.
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Yann