This is your SolarWakeup for November 27th, 2018
FERC Nominee Showdown. Look for more under the radar news about the nominee to join FERC after Bernard McNamee was videotaped saying “renewable energy screws up the grid” amongst other anti renewable rhetoric. This is up to the republican leadership in the Senate but given some Senators support for wind and solar energy, this could spell some trouble for the nomination. Look for solar supporter, Senator Thom Tillis (R-NC), to potentially step into the sunshine given his 2020 re-election date.
Good For Me, Not For You. Some markets have great amount of solar especially within rate based approvals but lack the uptick of distributed generation. The likely reason is that the market policies work against consumer choice that stop consumers from being able o put solar on their roof. Frank takes you through the story out of Georgia.
Get Some Energy (Storage). The utilities have taken over the cap tables across the energy storage space and many European utilities have been more active than some US utilities. The most notable energy storage company in the market for acquisition is FlexGen which we covered a few weeks ago and who has been active providing storage solutions to IPPs like Vistra Energy.
Trump Refuting Trump. Mainstream political reporter from the Washington Post goes line by line of the most famous Trump speeches and refutes them with the National Climate Assessment. Worth a read.
Who Gets Hurt. Whether it was the 9th ward in New Orleans during Katrina, firefighters on Long Island during Sandy or folks living in Paradise during the Camp Fire, those that are harmed by the effects of climate change are everyday Americans; often lower and middle income. The cost benefit for many Americans is largely obvious, given that the people that can most take advantage of the opportunities of the clean energy future also benefit from less dramatic climate events. Like some people say, the worst that can happen is a great new economic opportunity is created.
Where To Next? Where should SolarWakeup Live! go to next? What market is opening up and you want to learn more about?
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for November 26th, 2018
What You Missed. While you were recovering from your turkey coma, the Trump administration dumped volume II of the National Climate Assessment on black Friday. In the hopes that no-one would see it, it caused quite the weekend on Twitter. On Thursday I was wondering why Trump was busy tweeting twice about the climate change hoax and how cold it was on Thanksgiving. Obviously this was in anticipation of the release the following day. Today is a day to talk about climate change, the reality being that solar is so bipartisan that neither side wants to make it an issue to debate in an election and until solar makes politicians pay for voting against solar, climate change is the issue that will lead us. I’m not saying this is the best path for solar but it is the political reality.
The Friday Dump. In 1990, Congress passed a law requiring the executive branch to release a climate change assessment every 4 years, volume II of which was released in the proverbial Friday trash. You can read the full report here. The report comes a month after the dire warnings of the IPCC and is no less dire in the wording and impact to the economy. If America and the world don’t start acting on climate change the world will be a different place and any legislator that ignores it will likely be thrown out of office over time (how much time is the question).
The Takeaways. Vox gives you the three biggest takeaways in of the 1,500+ page report below. Moreover, the New York Times gave two columns on the front page on the issue.
Right’s Reaction. Climate change made the top issues on the Sunday shows. Senator Mike Lee and conservative talking head, Danielle Pletka, knocked down the report with “I’m not a scientist” and doing something about climate change would be “harmful to the economy.” You no longer need to be a scientist, you can simply believe the Trump administration’s report and their warnings about the impacts of climate change. On the other hand dealing with climate change not only isn’t harmful to the economy, it is helpful as the report says that failing to deal with climate change is a 10% drag on the US GDP.
Left’s Reaction. The loudest voice online, in my timeline, was Senator Amy Klobuchar of Minnesota. Senator Klobuchar was on the Sunday shows and lightly dodged the questions about running for President, it’s not a no but no decision is made. Klobuchar rightfully highlighted the impacts to the midwest and how climate change will hurt farmers across America. Politicizing the impacts is the right step forward for politicians that find issues that they care about and their opponents do not.
From The Author. There are many authors but I urge you to read the Katharine Hayoe’s twitter feed on the topic. She is well versed as a climate scientist and speaks clearly about the issue ahead and what your takeaway should be. If you’re not planning on reading the National Climate Change Assessment, read this tweet story.
Political Next Steps. As I mentioned above, climate change is the political reality for everything within solving climate change. Solar should politicize 100% RPS across the Country and talk about clean energy job creation. But when it comes to the political reality, don’t expect solar to be the wedge issue that makes politicians do pro-solar on both sides and ignoring this fact would be political negligence by our trade associations, (i.e. no more solar awards to republicans for now). Don’t take this is as a negative however, the report also broke down the demographics of who is most concerned about climate change. Hispanic Catholics, who have been historically hard to rally for the left, are most concerned about climate change. More than anything, climate change now created a wedge issue for a key political demographic.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for November 20th, 2018
Today is the last newsletter before the Thanksgiving break as I once again look to escape the smoke and hunker down for the first rain of my Bay area living. I am thankful for your continued support and readership and hope that I am able to give you valued content every day.
What Is The Value Of Solar? Every time this happens, a PSC looking to understand the value of solar that is, the report comes back showing that solar is worth more than the retail rate offered by net metering. This is the fundamental argument against calling NEM a subsidy. So you may ask yourself why solar never asks for a NEM rate above even credit and the answer to that is simplicity. Homeowners understand what they pay and they understand that it doesn’t matter when they produce versus when they consumer. Simplicity is the face of solar the utilities look to break in their opposition to our industry.
The Fate Of PG&E (Once Again). There was a non-solar policy battle in California this summer centered around the liability (and ability to charge consumers for) the cost impact caused by fires in 2017. Before the fires in Paradise and Malibu are even put out, the issue is coming up again. The camp fire is the worst fire in California history and early news reports appear to question what caused the fire to spark. Look for PG&E to look at ratepayers to bail the company out which makes one wonder whether PG&E wouldn’t be better post restructuring as a wires company focused on transmission and get out of the generation and retail side of the business. I do expect that Wall Street is paying close attention and ready to make a move.
A Green New Deal. I don’t want to debate the Green New Deal. I want to talk about the political strategy of the Select Committee on Climate Change and Green New Deal. I think America will view both of those ideas as partisan. How about the Select Committee On Clean Energy Jobs and a Wind and Solar New Deal instead?
Get That Load. An offer to municipalities and other fleet operators to sign up for special rate schedules for their electric vehicle fleet. This is a direct attack on the oil customers and make it easier and cheaper for fleets to electrify. This is going to be copied across the Country by every utility desperately looking to growth their base load of consumption.
Make It Easy. The New York PSC is right, “if you want people to do something, make it easy.”
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for November 19th, 2018
Escaping Smoke. No column this morning as the family and I have escaped the smoke that has enveloped the Bay area from the Camp Fire in Paradise, CA. We are now busy in Tahoe raking up the leaves.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for November 16th, 2018
Opinion
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for November 15th, 2018
Let Mayors Help You. Mayors want to do big things because at the city level, big doesn’t take a lot. I’ve passed plenty of policy through the local council and that is where the solar industry should go more often. Let’s get some bright minds in solar together and draft the resolutions that are important in a State, take those resolutions and put them in your hands so that you can show it to your Mayor. Overnight, we’d be on the agenda for hundreds of municipalities and doing some important work at the local level. Solar permitting perhaps?
Be Aware Of Bad Solar. Florida will be ground zero for this, plenty of people want to make money overnight. Having spent the past 4 months talking to installers across the Country, I share their frustration about bad actors in solar because homeowners always call the right contractor after something has gone wrong. I don’t say this with bias, but you can tell a lot about a contractor by what type of solar mounting hardware they use.
Let’s Make A Deal. Will folks in Arizona make a deal around an RPS type structure? I am surprised at the headline given how handily APS won the ballot amendment, I would have thought they would be entrenched in doing nothing.
Alanis Would Be Proud. The irony is thick as the oil coming out of the ground. But when the land is available and the sun is shining, why not use solar energy to pull dead dinosaurs from the ground. Obviously add some energy storage to ensure top notch power quality and your solar power oil pump is ready to go!
Here We Go Again. Initial reports are coming in about the cause of the Camp Fire in Paradise, CA. The fire that has claimed more than 8,500 homes and 250 businesses. It has burned over 110,000 acres and is the deadliest fire in California history. According to those reports, power lines could be the reason that the fire initially started, a topic that was loudly debated in the California legislature this summer.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for November 14th, 2018
Your Help Is Still Needed. Dozens of solar workers have lost their homes due to the fire north of Sacramento. CALSSA has set up a donation page and your generosity is greatly appreciated, any amount helps get solar pros that lost everything back on their feet.
I’ll Take The Usual. Can’t argue with the data on new generation, solar and wind are the default fuel when it comes to every day interconnections. The issue sits with the existing portfolio of generating capacity especially within ratebased portfolios at the utilities across the Country. A lot of the portfolio is not that old either, which means replacing it will take decades unless regulatory oversight chooses to sunset the plants early. That being said, that would require an insane increase of solar generation to be built including distributed resources that likely includes power dense fuel cell or generating equipment alongside TWh of storage. Point is, it’s doable but difficult to execute within today’s regulatory environment.
Fight For Your States’ Rights. Here is your typical letter from 5 State Attorneys General saying that they will fight for clean energy if the Trump administration tries to slow the progress. One of those AGs works in a State (MD) that has a republican Governor. Reality is that this is not typical but notable progress for the clean energy issue to be taken up within a week of the election. Yesterday, a climate change sit-in happened in Nancy Pelosi’s office and Congresswoman-elect Ocasio Cortez joined in. More to come on the creation of the Select Committee on Climate Change.
The Almighty Pricing Signal. Locational pricing, short term pricing, and anything that else that allows intermittent and solar plus storage to create revenues without offtake agreements would be the fastest way to increase adoption of solar. The reason is that it decreases the gap between PPA and default scenario. It also eliminates some of the risk for post term energy valuation in qualifying facilities. How to make this happen however…
It’s Not What, It’s How. I see plenty of articles about solar on farm land across America. Illinois has this conversation right now and I discussed this with Jon Carson of Trajectory Partners. The key in my opinion is not that NIMBYism on the solar farm but the desire for neighbors to know who will be their neighbor during construction and for the next 25+ years. If the development team does it properly during the initial process, they are much more likely to be successful.
Making Utility Changes (Staffing Update). RMI and Advanced Energy Economy are out with a report on the future business models for utilities. Also of note, former SEIA Chairman, Nat Kraemer, was announced as the new CEO of Advanced Energy Economy this week.
Be Subscribed. Good reminder to make sure that your colleagues are subscribed to this newsletter. They can do it with an email by clicking here.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for November 13th, 2018
Your Help Is Needed. The solar family is looking for your help during the tough times impacting some of our colleagues in the Camp Fire in Paradise California. CALSSA has set up a donation page and your generosity is greatly appreciated, any amount helps get solar pros that lost everything back on their feet.
008.3 Solar Bonds. Duke Energy is going out for the poorly marketed green bonds. I look forward to seeing the spread between these and the corporate bonds and hope that they are aligned given the risk profiles.
Does Resilience Sell? Last week I asked what the sales pitch was for energy storage and many of you responded that the recent storms are part of it. I agree that storms cause people to think about it but pulling the trigger for backup power alone is a 1% problem. Unless I am wrong, I don’t think resiliency is a sales tool but more of a lead generation tool.
Barrier In Community Solar. Community solar is growing rapidly and with that comes innovation. Some folks have said that the hardest part is the subscriber enrollment and management which equates to new companies coming up with ways to service developers looking for off takers. Frank fills you in.
IOU To Retail Market. This may not be a serious endeavor, I hope the Arizona readers fill me in on what this really means politically. But any PUC looking at the value of IOUs and allowing retail competition seems like a giant leap in the right direction, undoubtedly where we end up anyways. In order for a 100% renewable future, we must have wires companies and retail competition, rate basing generation means staying stuck in antiquated transactions.
Solar Jobs In Midwest. This is a great time to look for a great job in the midwest, at the jobs fair you will see hundreds of solar jobs competing for installers, electricians, sales consultants and more. This means higher wages and a great future for Americans in the midwest.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for November 9th, 2018
Corporate Ventures. It is true that the most active investors in clean tech startups are the corporate venture arms. Utilities have historically been the most active in the space while oil majors have recently been very active, especially in solar. All of this activity is a positive sign not just for the funding but the inevitable stream of acquisitions that follow the successful ventures. A path to liquidity is what drives early stage capital so the industry needs as much of both as possible.
100% RPS Plan. There’s been much written about the Gubernatorial races where the winning governor-elect supports 100% clean energy. It’s hard to put them all in the same bucket and when appropriate, the idea could be a good legislative plan. In other cases, depending on the State’s current success with solar, the goal should be to put the right market mechanics in place. Uncapped net metering and interconnection access may be more valuable to focus on. Keep in mind that very few States, given fair market access, have a negative financial return on rooftop solar.
Utility Spiral. It’s been some time since we talked about the utility death spiral. This time I’m not bringing it up either, it’s a report based on utility executive sentiment talking about earnings pressure. At least they’re thinking about this 6 years in advance but if yesterday’s ACC vote in Arizona is a signal, it could come before. The ACC voted unanimously to study the idea of deregulating utilities and allowing retail energy choice. The effort is expected to be supported by corporations and opposed by the monopolies.
NYTimes Analyzes. In only the way that national media can. States matter. Feds don’t. Carbon tax doesn’t work. Bipartisan support failed. That last one got me, Curbelo (from South Florida) didn’t fail to get re-elected because of his support for climate change reality. His district was the second largest margin of victory for Clinton in 2016. It also includes the Florida Keys and the results probably say that his acknowledgment and work on the climate change caucus kept him close. He even received an award from SEIA this year. It’s so easy to take solar and throw it into the blue bucket but then you’ll fail to acknowledge the political and market realities of SC, TX and FL.
News
Opinions:
Have a great day!
Yann
This is your SolarWakeup for November 8th, 2018
Presented by Aten Solar. Your single source in adding value to your supply chain and procurement. Aten Solar is your go-to source for the best closeout pricing on new and surplus modules for your project needs.
The Wins. Solar was on the ballot in a couple of ways on Tuesday so I wanted to give you my initial thoughts. On the plus side, clean energy executive was a career that was embraced. Several candidates ran on their clean energy experience and a few won which means that there will be members of Congress that understand our work and provide some insight to our trade groups. The biggest win may have been the ballot question in Nevada which was a direct question of more solar for corporations. The voters supported the motion and will have to do so once more at a future election. Another notable plus is the number of Governors that won while supporting a 100% clean energy future, the list includes CO, OR, MI, WI, CA, IL, and ME.
The Losses. First, you have to note that the RPS in Arizona was overwhelmingly defeated and the eulogy on carbon tax may have been written in Washington State. Notable is the $23million spent by NextGen to push for the RPS in Arizona and I can only imagine the policy that could have enabled the market if solar advocates were given $23million into their advocacy platforms. I’ve said it before, solar advocates are some of the most effective advocates in the process and are largely hampered from being able to fight more fights by financial resources. The candidate for NC-9, Dan McCready, was as solar as a candidate that was running across the Country and he almost won his race, losing by less than 2,000 votes.
The Trends. Solar as a political issue continues to be non-existent, these political times mean that secondary issues get little focus. However, with the solar favorability index, it is important to let all legislators know the political reality of supporting or opposing the issues important to us. More trend discovery by GreenBiz in the rundown.
GE Sells Current. GE has sold their esco/lighting/sometimes solar business to an investment firm. The notable solar transaction was for Home Depot. Best of luck to the team.
News
Opinions:
Have a great day!
Yann