This is your SolarWakeup for April 2nd, 2018
No April Fools. Use APRIL40 for 40% off your ticket to our exclusive event in San Francisco. There’s a single sponsor interview slot left if you are looking to reach the SolarWakeup audience with your message. As anyone that has come to our previous events will say, this isn’t the biggest crowd but its the most influential. Again, use APRIL40 to get 40% off your tickets.
Cheap Solar, Now Value. The BNEF report pretty much confirms reality. The battle for price of energy output has been won by renewables. No fuel cost assumptions make certain of that fact. There is no longer the need to battle for cheaper now that we’re sub 3 cents in sunny areas. Now is the time to talk about system value, value of DG, value of storage and putting some of that value into the ecosystem. That means contractors investing in higher margins for higher quality. Buying better roof mounting that doesn’t leak. Most of all we all need to invest in margins.
Legacy Power, Legacy Tricks. First Energy has been pushing for coal and nuclear subsidies through all the avenues, FERC, DOE and the White House. On Friday, it asked for emergency bailouts for the power plants that are not providing value to the system and have the Trump administration guarantee profits to the ailing power plants. After no positive response on the request, First Energy went to bankruptcy court late on Saturday to file for chapter 11 and look to restructure debt. Within the last 12 months I still had conversations with private equity firms that were open to acquiring these types of power plants but I have to think that those days are quickly ending.
Subsidized Manufacturing From Jinko. I enjoy the irony of the solar manufacturing plant receiving subsidies from the Florida government in response to a global tariff against solar modules because the foreign manufacturers are…subsidized. Explain the nuance of a State that is anti-solar, anti-competition for solar projects that is making the headlines by putting together subsidies with guarantees from ratepayers. This isn’t Jinko’s fault, they are a bystander in this and I want them in Florida. But more importantly, I want solar to be allowed to compete here.
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Yann
This is your SolarWakeup for March 30th, 2018
Happy Passover to all getting together for some family gathering, this is the thanksgiving for jewish families filled with plenty of loud cross talk. Happy Easter to all of you as well, enjoy those golden goose eggs. Have a great weekend.
Compete On Price. BNEF’s newest report should go on every State Legislator’s desk. I don’t know how many there are but assuming 7,500 legislators, printing and mailing costs, that would be a $75,000 expenditure that could yield some interesting feedback. Renewables are cheaper, the goal we were told would get solar into the game. In Florida, regulators now go with the more expensive version of solar but that’s an argument for another day.
The Market Trump Ignores. In all of this trade talk, when has the silicon manufacturing been mentioned? It was forgotten during 201 and it doesn’t come up now. These are billion dollar plants that are sitting idle because the product is being lost in the trade war. Time to get Hemlock and REC onto a pedestal and get them to scream a bit louder.
EPA Lunacy. First class flights, soundproof booths, forgetting the word climate change are all minor compared to the regs that have been pushed aside by Pruitt. Now that it has come out that Pruitt is renting an apartment from a lobbyist, I wonder if you can smell the swamp as well.
Let’s Meet. Couple of events planned. SolarWakeup Live! in San Francisco on April 10th, on the 13th I’ll be at the TomTom Festival in Charlottesville moderating a panel on solar financing and I’ll be interviewing Greg Ridderbusch CEO of Connexus Energy at the Midwest Solar Expo on May 2nd. I always enjoy meeting you in person, come on out.
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Yann
This is your SolarWakeup for March 29th, 2018
Insanity. You know what they say about the definition of insanity. Now you can say the same about SolarWorld. Apparently the Qataris have lost their appetite for giving Asbeck money to run a solar company. The newly founded SolarWorld Industries Gmbh has filed for insolvency after less than a year since acquiring some of the SolarWorld AG assets. This does not affect the SolarWorld USA entity except for the brand value which is testing the limit to zero.
Zombie Lie, Take 72,431. Just when we get this amazing data from CAISO and how net metering helped reduce costs to the California ratepayers, a UC Berkeley professor comes out with some “why am I paying for solar” blog post. I don’t this for a fact but I am sure that some digging would reveal the foundation of the professor’s motive that caused this blog post to come out. Thanks to the reporters at the Mercury News for listening to my response and reviewing the CAISO data point for a follow up piece. Frank gives you his take on yesterday’s top story.
Did You Listen? An engaging interview guest makes any interview easy, sometimes trying to get 30 minutes of content is difficult but sometimes its hard to keep 30 minutes to under an hour. That was my conversation with Ryan Popple, the CEO of Proterra. Most cars drive less than 40 miles per day which means the energy impact from EVs is less than a third of a mass transit without accounting for the scale of the energy density. If every bus were electrified, we’d all be better off and Proterra would be a big winner. Listen to my conversation with Ryan, here.
Big Storage, Big Money. What if I put out a press release saying that I was investing $8billion into energy storage over the next 17 years, think Reuters would pick it up? No, because it’s not news. Solar did north of $20billion last year and there aren’t enough projects for real capital providers out there. EDF could do $8billion, likely will do $8billion but if they don’t someone else will.
Do You Geothermal? Sometimes your friends leave solar and that’s sad. But sometimes they go and do cool things like join a Google X spinout and change the geothermal world. Congrats to the team at Dandelion for a big capital raise. Maybe geothermal wakeup is next?
Using PACE? It’s never been easier and more accessible. With States jumping on the PACE bandwagon, check your area and get a CleanQuote to see the latest pricing for PACE right from solarwakeup.com, just click on the link below.
Close To Last Call. Only 20 seats left for SolarWakeup Live! SF. Come spend the afternoon hearing our podcast get taped live and get yourself onto the podcast by asking questions to the guests. We’ll be in Pier 17, in a wonderful intimate space. Tickets here, WAKEUP20 for 20% off.
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Yann
This is your SolarWakeup for March 28th, 2018
Proterra Electric Buses, Podcast. Sometimes a 30 minute interview goes an hour, and it could go another 3 hours. That’s when you know you have the right conversation on track. This is what happened when I interviewed Ryan Popple, the former Kleiner Perkins partner and CEO of Proterra. Proterra makes electric buses, which if you think about it, has the potential of changing transportation. Buses are the most predictable vehicle in the Country, same routes every day. Engineer them to perfection and you have a golden ticket to removing idling diesel vehicles from this segment. Frank breaks down the conversation and I hope you enjoy this episode.
What’s New At Suniva? Filings are fun, sometimes tidbits are dropped about issues that impact our industry. SQN Capital gave a cryptic update that could give some hints as to what is next for the Suniva assets. Frank has the story and we’re keeping a close eye on for you.
Postcard From Down Under. When Audrey Zibelman left NYSERDA to head to Australia, I was hopeful that this day would come, and her point is spot on. She says it makes no sense that a grid built before the internet would have the right rules for the grid of tomorrow. In the 90’s it was okay to use a dial-up modem and have rolls of fax papers while using trunk mounted cell phones. Now is time to create rules that enable today’s technologies from using their full potential.
Come On AZ. If you ever think our industry is without really powerful adversaries, you are mistaken. Our adversaries are embedded all over the place, legislatures and Governor’s mansions. That’s why nuance matters and why legitimizing opposition is something I call out. When I see someone posting on LinkedIn that sitting on a panel with EEI’s Tom Kuhn is an honor since he’s an icon, I cringe. Especially when this person is supposed to look out for the best of the solar industry. It’s important to remember these aren’t peace times in policy, solar, storage and renewables are threatening an industry worth trillions of dollars and have been untouched for a century.
There Will Be Opposition. Why are EVs bad for unions? The Hyundai union head has some harsh words about the disaster they represent to the existing workforce. Labor that builds transmissions and engines are going to find themselves looking for new parts of the supply chain to work on. Good prospect is that we can see this coming and it won’t be abrupt from one year to another.
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Yann
This is your SolarWakeup for March 27th, 2018
Corporate, Startup, Research Partners. Great coverage of a corporate incubator being run by Wells Fargo. Wells was one of the first and remains an active tax equity investor in the solar space. It’s a quiet group but they get their MW done year after year. This incubator has an interesting tweak. It provides a grant to startups, most of which is used to leverage the team at NREL to provide research to the startup. No equity exchanges hands and the side effect is revenue to NREL which is always suffering from potential budget cuts.
Net Metering Works?! During net metering fights, we present studies and engineering reports that show distributed generation helps lower costs to all ratepayers. Studies are one thing, reality is another. CAISO is canceling over $2.5billion in transmission based on efficiency and distributed resources like solar. This saves all consumers money and proves our point. This also shows by net metering is fought against because it stops utilities from investing more into the rate base.
States And Cities. You can make the case that even when the Federal government is on your side, the States make the markets. Within the States you can argue that the Cities decide how good the market can be. Whether the market is within an IOU or a City owned municipal power company. If the muni is pro-solar or decides to go the opposite route. That is why I always argue that solar needs to focus on legislators that go from County boards to State seats, or attempt to. If they get away with being anti-solar at the local level to make friends with corporate influencers, they’ll do it even bigger. I’ve mentioned reaching out to your legislator, this doesn’t have to be your Congressman. Go meet with your City council member or County Commissioner, they’re very accessible to you and love to learn about local businesses, your issues and how they can help.
Gas, A Hope Or Pattern? Sometimes I write based on personal thesis especially when the headlines match my macro themes. Taking a step back, when facts fall into place several times over a pattern emerges. Everything around natural gas is moving so quickly, California pushes back on replacing peakers, Arizona moratorium, and suits moving forward. This isn’t about making a prediction around timing but I’d be hard pressed to see a future where gas isn’t replaced by renewables. I hope the regulators pause and review the trends.
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Yann
This is your SolarWakeup for March 26th, 2018
In a rude turn of events, I have taken the lead in the SolarWakeup March Madness challenge. GE’s Ian Manchester and kWh Analytics’ Jason Kaminsky had a tough break with Duke’s loss. I am trailed closely by DSM Advanced Solar’s Nathan Arbitman and we have differing national champion selections.
Capital And Projects. Now that the uncertainty has been lifted from our industry from 201 and tax reform, I’ve been getting a lot of questions from you about project deal flow and seeking capital. Putting projects and capital together is the main way that this platform is able to sustain itself. If you are in the market for projects, some completely papered, or have projects looking for capital, then send me an email so I can try to connect the right people together.
SolarWakeup Live. Having met with the speakers from SolarWakeup Live! San Francisco last week, I am excited for the conversation. Marin Clean Energy is seeking more solar energy as well as storage contracts. CalCEF continues to create markets for innovative startups and giving them access to capital. Of course, CalSSA is hard at work to drive solar and storage policy forward in California. This is going to be a intimate gathering with California solar leaders that you don’t want to miss. Use WAKEUP20 as a way to get your ticket for 20% off. Register Here.
Are You In Illinois? Frank covers some of the Illinois news from Friday and I have the follow up. What are you focused on in Illinois? Grabbing land and securing interconnects? Working on the regulations for community solar? Or something altogether different? Help us guide the discussion about the market by letting us know.
EV Future. Most of the EV news have been positive, endless growth and investments. BMW is delaying their output however, which is likely just a bit of honesty in the cutthroat world of auto. Stay tuned for more podcast talk this week about electric vehicles.
A Right To Store. Congrats to the policy folks in Colorado for what I can only call the net metering of storage. More breakdown from Frank in the rundown.
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Yann
This is your SolarWakeup for March 23rd, 2018
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Vote Solar. Big congrats to the entire team at Vote Solar and thank you for everyone that came to the Equinox fundraiser. The solar champions will continue to speak up for our industry and we are lucky to have such great supporters in and out of our sector. Consider putting more policy in your schedule and budget. Your time and money is needed to achieve the 10 - 10 - 10 efforts that will make our industry sustain itself against all attacks.
Steyer’s Ballot Initiatives. Frank has a great story from Arizona about the RPS ballot initiative. APS is looking to preemptively cut the legs off the voters efforts to make their energy system more sustainable. Always sad to see the will of the voters reduced by a monopoly. Steyer is backing ballot initiatives in three States - NV, AZ and CO. I like this move and the timing is perfect.
All About Illinois. Together we will start the road to learn more about the Illinois market. We will be announcing great SolarWakeup Live! news including plans to head to the Land of Lincoln and site of a solar gold rush. Some news from my friends at EDF on the topic.
Now The 301 Tariffs. I can’t keep up with the near weekly trade tariffs on China from the Oval office. The 301 tariffs could impact the solar industry and I will reserve more comment and detail until an expert has given me the details.
Microsoft Solar Non-Resi Deal. Microsoft has signed a corporate off take agreement for 315MW of solar. Under the new SEIA solar market insight, I guess this is the Virginia version of community solar (the deal is likely under a contract for difference) since it sells energy to a corporate customer. Have a great weekend!
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Yann
This is your SolarWakeup for March 22nd, 2018
Short opening today, long day of meetings and jet lag are getting the best of me.
See You Tonight? Make sure you say hello tonight at Vote Solar’s Equinox in San Francisco. This is a great event to celebrate solar and those that fight on the front lines of the regulatory battles for us all. It is not too late to buy your ticket to the event and toast our industry.
Going For 100. Last year, California’s legislators got close to passing a 100% RPS. This year it could actually happen. 27 organizations including Vote Solar have banded together to push for the legislation to become law. Read Frank’s coverage here and look forward to more commentary as discussions begin.
Southeast Solar. The top story yesterday was the headline of more solar in the Southeast. This is the reminder that Florida has massive capacity growth with essentially no market. Only the IOUs are building substantial capacity and ratepayers are footing this bill with no transparency on how much it would cost if this was a competitive process instead of utility owned.
Wakeup Live. Get your tickets to our event. Hear my interview with the contract manager looking for solar projects in California.
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Yann
This is your SolarWakeup for March 21st, 2018
Arizona Coverage. Frank has your recent news coverage from Arizona. Don’t forget that you can send tips to frank@solarwakeup.com or by hitting reply here. If you want to stay anonymous, head to solarwakeup.com and click the tips link, you can even upload files without revealing your identity.
Don’t Forget Puerto Rico. It’s been 6 months that Hurricane Maria hit Puerto Rico and many are still without power. The recovery effort has failed many Puerto Rico that have now had to relocate to other States across America.
Reducing Property Taxes. Florida had a big ballot initiative to eliminate property taxes that could be due after installing solar on commercial properties. An Arizona judge also ruled on this issue this week. Of all the headwinds that face C&I solar, property tax can be one of them and removing it makes it easier. Much like the cost and structure of loans to do solar, C&I solar has to do all it can to overcome cheap energy rates it is offsetting. Speaking of debt for commercial solar, many of you are in Denver for a PACE conference. PACE has lowered the cost of capital quite a bit but more importantly for C&I solar is a better structure for many businesses. Most of the time, the debt is for the property and not the operating business which makes it a better fit for balance sheets.
Equinox 2018. This is your last call to join me and many others at Vote Solar’s important fundraiser on Thursday. You can buy your ticket at equinox2018.splashthat.com.
Presented By ‘You’. Do you want the SolarWakeup community to hear your message? You can sponsor this paragraph for an entire month leading up to our event in San Francisco. Join the many sponsors that were able to message, recruit and gain more exposure on this platform. Email me for more details.
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Yann
This is your SolarWakeup for March 20th, 2018
Clean Energy Credit Union. A new podcast for your listening pleasure. Recorded live at COSEIA’s conference last week, I sat with Clean Energy Credit Union’s CEO and Board Chair. Terri and Blake walked me through the start of this endeavor and the solar problem they are looking to solve. The whole concept is to show that a true lower cost of capital is possible for solar lending and this could lead the way. If you enjoyed this podcast, consider leaving a review on iTunes.
South Carolina. There are some things happening in South Carolina. With the embarrassing nuclear escapade by SCANA, the State should consider making a shift into the solar future. Frank breaks it down for you with some information from local coverage. For me, South Carolina is a great political bellweather that could show red, southern states on how solar can be an economic engine for the future. The entire solar industry should push for South Carolina to find a victory for our industry.
Nat Gas, The End Is Near? I’ve written about speaker plants in California having a hard time getting capacity contracts extended and the CPUC has been negative on letting PG&E repower some plants. LADWP also put a large project on hold pending more analysis. What I wasn’t expecting is hearing that the Arizona Commission would put new natural gas on a moratorium to give solar + storage further review. Remember, TEP entered into a contract for $45/MWh on a solar plus storage plant. A moratorium now means that gas may have reached the end in Arizona, what State will drop next?
EV Growth And Consolidation. EV growth in China has been quite quick and maybe too quick (more on that soon). Europe and North America have been far more measured in its growth and it may have been for the best. Too much investment too early may cause for a market disruption instead of sustainable market stability.
San Francisco. This town is becoming my second home. While many of you are in San Diego for the finance conference, I’ll be in SF. Hopefully many of you will be coming up for Vote Solar’s equinox this week and to SolarWakeup Live! on April 10th. I’ll be in SF to continue figuring out how PACE financing can help C&I solar grow. Access to low cost, long term debt is a great way for the business owners to go solar. Send me an email if you’d like to be connected with the great team at CleanFund.
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Yann