This is your SolarWakeup for May 7th, 2018

Over the past few weeks, a lot of the dialogue has been about my comments about utilities joining SEIA in some fashion. And this article summarizes my primary opposition to ANY utility involvement in our trade association and the trend continues in today’s news stories. I want you all to know that I am not sitting here throwing stones to stir things up, I am sincerely hoping for the industry to go into the direction that I believe is in all of our best interests. I want every solar company and trade group to be successful and thrive.

Why Utilities Matter. Here are the talking points from the Duke Energy President in South Carolina. “Duke has invested $6billion in renewables.” “Duke is anti-subsidy.” “Net metering is a subsidy.” All three comments are either outright false, misleading or intellectually dishonest. Taking an oped and trying to drive a wedge into public support by misleading the reader bothers me. Duke may have invested $6billion into renewables but did so mostly through its deregulated subsidiaries because they were allowed to compete. Duke is not anti-subsidy, because if they were they would not saddle their ratepayers with power plant risks, early cost recovery for unbuilt plants and fuel cost risk. Is this a company that you believe would have a voice in your trade groups that advances your business?

The Florida Solar Swamp. First the good news. Frank speaks with Sunnova’s CEO about their announcement to enter the Florida market. This comes on the heels of Sunrun taking the leap of faith and asking the PSC for a declaratory statement. More competition on residential solar will be good for a State like Florida where almost every homeowner wants solar. Keep your eyes on the adoption rate, it will surprise you. On the other hand, we have the start of a giant shady deal in Central Florida. The Florida municipal power companies have contracted in a PPA with NextEra on a 225MW transaction, made up of three 75MW solar farms. We will be looking into this in much greater deal but here is what we know already. Only 7 developers were invited to bid, this was not an open RFP. Of those 7, only two were invited to negotiate and they were not the lowest bidders according to sources. It may also be true that NextEra used FPL’s solar farms, which are paid for using rate base, as a statement of qualifications to win this deal. That raises all sorts of monopoly/deregulation firewall alarm bells. It is also very likely that NextEra has a PPA rate for FMPA lower than the cost of solar to FPL customers in the monopoly rate based solar. This makes my point for me that rate based solar should be put out for bid because the private market because competition is good for everyone. More on this soon, but it’s shady thus far.

Who Cares About NEM? The CT net metering fight worries me. From a press perspective, the media coverage of it has been slim to none. If my inbox is an indication, it almost appears that some groups have given up on the net metering fight in a State that sends an all blue congressional delegation to Washington DC. We can’t just worry about legislation that fixes a state solar market, we have to attack the markets and stop them from taking away the number 1 core value for any solar advocate, full retail rate net metering. Net metering is the rising tide in solar, without it, forget getting the support for interconnection processes that enable large scale RPS or PURPA markets.

Deep Energy State. I indulge in some tv watching and Madam Secretary is one of those Sunday night DVR specials. Normally I pay half attention as I type this newsletter but last week, I sat in awe as the natural gas CEO was in the Secretary of State’s office arguing against renewables and nuclear. Put aside the renewables piece, this was a lobbied influence campaign between natural gas and nuclear as they both argued to be the transition plan. Imagine playing the public influence campaign so thoroughly that you are pitching tv writers on your talking points.

NY ISO ‘Loves’ Solar. First, it’s the lightbulbs. Second, blaming solar for demand reduction is exactly why people consider net metering a subsidy. Demand reduction reduces the cost of infrastructure to ratepayers and therefore is a network benefit.

News

Have a great day!
Yann

SolarWakeup Podcast: Sunnova Makes Its Move Into Florida – Here’s Why

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By Frank Andorka, Senior Correspondent What Happened: It appears Florida is finally getting serious about becoming a viable solar market. Two weeks ago, the Public Service Commission decided, against all odds and the expectations of some seasoned solar observers, to allow third parties to own solar arrays without becoming regulated utilities. In the wake of the decision, at least one major residential solar company has decided to execute a Florida market plan it’s been working on for years and waiting for precisely the right moment to go in—and they’ve decided now is that time. To discuss this development is the the … Read More →

Madam Secretary: Don’t Just Spout Pro-Nuclear Talking Points

By Frank Andorka, Senior Correspondent What Happened: One of my favorite TV shows, CBS’ Madam Secretary, used an entire episode about an energy summit they are attending to spout pro-nuclear talking points. Ironically, the discussion starts because one character is arguing strongly that natural gas needs to be included in a “Future of Energy” pavilion and that nuclear has too big a space. Meanwhile, solar and wind – the two sources that actually are the future of energy – are shunted off into an “annex.” Seriously, my jaw dropped as I watched the episode. The show’s writers are usually so … Read More →

This is your SolarWakeup for May 4th, 2018

I hope you have a great weekend. Stay tuned for info about SolarWakeup Live! Chicago, the event you will not want to miss. A full day conversation about the hottest market in solar development..

New Podcast, Live! From Midwest Solar Expo. I speak with Greg Ridderbusch, the CEO of Connexus Energy, one of the largest utility cooperatives in the Country. If you want to learn more about the value proposition coops are looking for, listen to this conversation..

South Carolina Turn Around. Looks like SC is going to get a NEM cap increase. Great that it is happening and shows the legislative skills of the solar folks on the ground there. Hopefully it makes it through the State Senate. May the fourth be with us!.

Connecticut NEM Drama. There is very little outrage about this CT NEM attack from the solar industry. The policy is part of the Governor’s plan so if you are hoping for a veto, that is unlikely to occur..

Tariffs Suck. There seems to be a shift in messaging about the tariffs coming from the national trade association. During a panel with SEIA CEO, Abby Hopper, in San Diego this week, a panelist went unchallenged about the tariff impacts. A panelist said the tariffs have caused no disruption to the business but was not asked what could have happened if we were able to buy modules at the global pricing levels. A facebook post by SEIA yesterday did show some pushback about the tariffs and the issues they cause to the industry.

News

Have a great day!
Yann

SolarWakeup Live!: CEO Of Connexus Energy, A Co-Op That’s Saving Money With Solar And Storage

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By Yann Brandt, Managing Editor What Happened: In this episode of SolarWakeup Live!, taped live at the Midwest Solar Expo, I speak with the CEO of Connexus Energy, Greg Ridderbusch. Connexus Energy is one of the largest utility cooperatives in the Country and serves over 150,000 members in Minnesota. Connexus is building a 10MW solar farm which will be integrated with an AC coupled energy storage system. This project was done under a PPA and energy storage agreement which work to save money to the members. The conversations shows the power of solar for utilities around the country and we end … Read More →

South Carolina Tries, Tries Again To Reach Solar Compromise

By Frank Andorka, Senior Correspondent What Happened: After utilities snuck in the back door and stabbed a bill that would have eliminated a nonsensical net metering cap to death, solar advocates are trying one last Hail Mary in an attempt to save solar jobs in the Palmetto State. As you know (if you read SolarWakeup, anyway), South Carolina’s House of Representatives voted overwhelmingly in favor a bill that would have eliminated the state’s insanely low 2% net metering cap. Then the utilities did the aforementioned stabbing, lobbying for (and getting) the bill to be changed into a “tax increase,” which … Read More →

Connecticut Catastrophe, Part 2: Solar Consumers Are NOT Utilities

By Frank Andorka, Senior Correspondent What Happened: Yesterday, I promised you more information on why pending legislation in Connecticut that would eliminate net metering would be a disaster for the solar industry. Yesterday, we dealt with the idea of “simultaneous consumption” argument (a compensation scheme so complicated you need an accounting degree to figure it out). Today, we’ll deal with the idea that solar consumerss are utilities. The worst part of it is, the legislative session ends next Wednesday, so there’s little time to scuttle this monstrosity (fire up your phones and get dialing is what I am saying). SolarWakeup’s … Read More →

This is your SolarWakeup for May 3rd, 2018

NEM Under Attack In CT. Over the next few days, CT solar advocates will have to fight for the future of solar in Connecticut. This is your reminder that democrats can be just as influenced by utilities as republican legislators. Regulated power companies will control as many State Capitals as they can, which is also a stark reminder to SEIA that bringing utilities onto the membership rolls at SEIA is a very bad idea. The idea in CT is to replace NEM with something more like a feed in tariff. All production would flow to the grid and be repurchased by the solar owner. This is a terrible idea, not needed and just an attempt to reduce the value of solar. Step up and beat this thing back solar!

Forget 2017, What’s Coming Up. As I was manning the microphone in Minneapolis talking about growth in the midwest around community solar, some of you were in San Diego talking about growth in solar. Next time, just come with me to Minnesota and you would have seen it first hand. As expected, community solar is a large growth space in our industry and many states are looking at launching new programs around this. I also expect residential to make big strides, if the NEM fights go in the right direction, due to the homeowner’s continued desires to have solar and more states are making the economics look good.

The Money Play In Politics. The headline is more fun than the story. Solar companies give money to republicans and democrats. If you heard what Mulvaney said last week, money in politics means access to the legislators. If you are looking for administrative help to site a project, move an approval along, etc, then you are sometimes better served to make a few campaign donations. Republicans are also in charge of the House and Senate which means that’s a part of the donating strategy. This is a bit of a to do about nothing.

Dominion Is Losing Its Focus. The Virginia utility, which is interested in buying the troubled South Carolina utility, is out with his power plan going forward. And instead of a ton of solar and storage, it continues the trend of monopolies looking for giant rate base that requires ratepayers to hedge fuel costs for the utility. Will Vote Solar and others fight these projects when they’re requested?

Mercedes Stays Mobile. Mercedes, which I spoke to in an episode of SolarWakeup Live! a few months ago, is leaving home energy storage. The idea was to create a channel for batteries after they are used in the cars. The price declines and technological differences mean that batteries will simply be made for both segments.

SEIA DG Vice Chairs. In the effort of full information. Good solar folks Ed Merrick and Deep Patel are also candidates for the position. All the best to everyone that steps up and helps lead our industry.

News

Have a great day!
Yann

Well-Funded Republicans Get Solar’s Hard-Earned Cash

By Frank Andorka, Senior Correspondent What Happened: So Reuters reported this morning that solar companies are setting large piles of cash on fire in their parking lots…oh, I’m sorry, I misspoke. They’re actually funding Republicans. Wait, maybe I was right in the first place. OK, I’m not a political naif. I know you have to give money to both sides to get things done, especially when the party that doesn’t support you is in power. But seriously, solar industry? How many times do you have to get sand kicked in your face before you realize that being nice to the … Read More →

How To Screw Up Solar With One Horrid Bill (Connecticut Edition)

By Frank Andorka, Senior Correspondent What Happened: The swath of destruction the Connecticut legislature is about to cut through the solar industry with their latest bill to replace net metering is breathtaking and stupefying to behold. The absurdity of the legislation is so mindblowing I’m going to have to take more than one piece to do it justice, but it includes the illusory cost-shift, a buy-all, sell-all scheme, an arbitrary commercial solar cap….oh, yeah. This legislation is a beaut. The worst part of it is, the legislative session ends next Wednesday, so there’s little time to scuttle this monstrosity (fire … Read More →