Decision On Fate Of $1 Billion DTE Natural Gas Plant Looms

By Frank Andorka, Senior Correspondent What Happened:The clock is ticking on the future of DTE Energy’s $1 billion natural gas boondoggle, with a decision expected by Friday. Links on the Michigan Public Service Commission website to rebuttal testimony over the next three days are broken, so the public doesn’t have access to them. Solar advocates across the country are watching what happens in Michigan to see if the aggressive tactics will succeed in stopping the plant. Proposed natural gas plants are increasingly being denied in various states as unnecessary, particularly in solar-friendly states like California and Arizona. But the DTE … Read More →

This is your SolarWakeup for April 24th, 2018

Trump Tariff Impacts. In Germany, a company must file for insolvency at a much earlier date than the comparable situation in the US. While the German division of Schletter has been in self-administration for a little over a month, it appears that Schletter US has closed its doors, at least temporarily. Several employees and sources close to the situation advised that they were told to stay away from work. Emails and phones have been disconnected or go unanswered. Schletter has been a racking provider for as long as I’ve been in solar but with a large staff, 201 and commodity tariffs, it may have been too much for the parent company to continue funding. We’ve reached out to Schletter representatives without success and will update you once we hear from them. Overall, this appears to represent a broader need for consolidation in the racking market. While selling widgets is a profitable venture, there may be too many to choose from and too many with a market share that is too small causing margin pressure for large companies like Schletter.

MA Wants Storage, Needs To Act. MA may have the best market setup for energy storage after California with the start of the SMART program. That being said, the regulators and interconnecting utilities still have a lot of work ahead for them if they actually want storage to be built. If they do this correctly, storage will be built on every single solar project and I’d be happy to finance every storage installation in MA and elsewhere. (If you need me call me) Especially when it comes to DC-coupled energy storage, the interconnection is already in place, requiring a new filing makes no technical sense and only serves to dissuade developers from adding storage. So if MA wants more storage, then align rules with goals.

$1.9Billion For Solar Infrastructure. (Just kidding) From here on out, when I see a request for infrastructure improvements like a $1.9billion gas plant, I am going to point out the interconnection improvements to the network, like building a new substation, solar has to take on. I understand that energy is central to our economy and it must be reliable but it must also be clean and cost effective in the long term. Investing into infrastructure for 50 years going forward at consumer expense is not the most effective way to use rate base capital.

Bloomberg Donates Yesterday’s Earnings. Hopkins alum and notable environmental leader, Michael Bloomberg, is making up the $4.5mm shortfall that is left behind after the US departure from the Paris agreement. The money goes to the UN Climate Change Secretariat.

Certain Companies’ Power Plants. Axios’s Amy Harder has the inside the White House look at how Trump views the energy markets. Sometimes what you expect to hear is exactly what Amy is reporting in this article. Certain power plants by certain companies. When solar is generated on my roof, at least you won’t expect the government to shine light on the modules to generate more electricity. Libertarians rejoice.

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Have a great day!
Yann

Source: As Parent Company Struggles, Schletter Eyes Closing U.S. Operations

By Frank Andorka, Senior Correspondent What Happened:Sources close to the situation have told SolarWakeup that Schletter, the German solar racking company going through insolvency (what bankruptcy is called in Germany) at home, is close to closing its U.S. operations. Calls to company’s main number and to the marketing manager go directly to a generic voicemail. Calls to the office and cell phones of the company’s vice president of sales reach recordings saying they have been disconnected. SolarWakeup’s View:  Though there has been no official announcement, multiple sources close to troubled racking company Schletter say the U.S. subsidiary has closed its … Read More →

Could Decade-Old Florida Report Finally Be Relevant? Let’s Hope So

By Frank Andorka, Senior Correspondent What Happened:After languishing for a decade in relative obscurity, it might finally be time to dust off a Navigant Consulting report on the solar capacity of Florida, now that the Public Service Commission (FPSC) has made third-party leasing a reality. The Florida report, prepared for the FPSC in 2008, reported that the state’s potential solar production could reach nearly 56 GWh annually by 2020. While the goals of the Florida report are impossible to reach in the original timeframe, the mind boggles at how quickly Florida could transform itself into one of the leading solar … Read More →

This is your SolarWakeup for April 23rd, 2018

Two major thoughts for the day. If you have additional insight, please send us a note. Everyone should think about joining me at the Midwest Solar Expo next Tuesday and Wednesday in Minneapolis.

Florida Reaffirms The Law. On Friday morning, the Florida PSC voted unanimously to approve the declaratory statement requested by Sunrun. The request, which included a solar lease template, was to ensure that Sunrun wouldn’t be considered a utility if they marketed and contracted in Florida using this structure. More importantly, this was a preemptive defense before entering the market. What Sunrun and others couldn’t do is come into Florida, sell a lot of leases and invest millions just to face a complaint by one of the investor-owned utilities. Just the process of defending the structure without this declaratory statement is a corporate risk that nobody could take.

The Market Potential in Florida. It’s been 10 years since the PSC in Florida asked for a report to be issued on the technical potential for solar in Florida. Navigant reports showed that rooftop solar had a 52GW technical potential at 2008 solar module efficiencies. With barely any capacity installs since the report, Florida’s technical potential is still intact, maybe greater than it was a decade ago. A sidenote, Florida will have higher than every other State adoption. Every Floridian wants solar on their home and showing off to our neighbors is everything for the Floridian mentality. Even though our energy rates are low, don’t be surprised how quickly the market grows in Florida. This market could give California a run for its money.

Consumer Scare Tactic. An interesting quote from the Office of Public Counsel, OPC, the entity that represents the consumer at PSC proceedings. They say that the consumer will not be represented by OPC since Sunrun (and others) will not be considered a utility. What they fail to mention is that the DBPR (licensing agency) represents consumers for all licensed contracting work which this falls under.

SunPower’s New Power. It’s been several days since SunPower announced the acquisition of SolarWorld. Most of the coverage is about 201 tariffs and we first wrote about the potential this has on their business lines. Now that the CEO has given interviews, there is another topic that hasn’t been discussed. SolarWorld USA is the sole petitioner of the AD/CVD cases and the co-petitioner of the 201 case. SolarWorld USA is now SunPower which means that any global settlement talks are now represented by SunPower folks. Trump mentioned global settlements when he signed 201 tariffs and those could be ongoing with a new team in the room. A sidenote, Tom Starrs (of SunPower) is the Chairman of SEIA and director at SEPA and is based in Oregon according to his Linkedin profile. Has SEIA started to lobby its board chair to settle the tariffs?

Tom Werner’s Focus. With all of the moving parts, it is important to remember that Tom Werner’s fiduciary duty is to his shareholders, not the solar industry. I am optimistic, however, that pendulum of success swings farthest when the market thrives. Removing barriers to silicon trade could make SunPower’s supply chain more efficient since Hemlock is seeking access to the China market once again. Definitely, a lot more to come on this story.

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Have a great day!
Yann

Bipartisan Tariff Repeal Bill Introduced In Congress – Any Chance It Passes?

By Frank Andorka, Senior Correspondent What Happened:Five Congresspeople – two Democrats and three Republicans – have sponsored the Protecting American Solar Jobs Act (HR 5571). If the bill passed, all duties and tariffs revert to previous rates and allow companies that imported any affected solar products under this new tariff to receive retroactive reimbursement. Under the current leadership in the House of Representatives, it’s unlikely the bill will even make it out of committee – but that doesn’t mean the willingness to fight the noxious tariffs is insignificant. SolarWakeup’s View:  Showing an unusual level of bipartisanship, five Congressman have introduced … Read More →

The Energy Show – Regional Energy Policy Leadership with Tim McRae

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The Energy Show with Barry Cinnamon Public policies have a tremendous influence on the energy we use, as well as the condition of our environment. State and Federal legislators make these policies with input from private citizens and businesses. The solar industry quite frankly has thrived with policies in favor of clean renewable energy, and it’s no accident that California is a leader in solar and clean renewable energy. The Silicon Valley Leadership Group (SVLG) helps advocate for favorable business and citizen policies in Silicon Valley and they have made a tremendous impact not only in California but also in … Read More →

Interest Rates Are Rising, But Solar Is Still A Good Investment (For Now)

By Frank Andorka, Senior Correspondent What Happened:Bloomberg Technology reports that despite rising interest rates, banks are still finding money to invest in solar. According to Bloomberg, “While the cost of borrowing has been increasing since 2016, some banks are taking a smaller cut to win deals from solar developers. How long solar is able to withstand the headwinds of higher costs of capital remains to be seen. SolarWakeup’s View:  Interest rates are on the rise after years at being near zero. While normally such increases in capital costs would inhibit investments in solar projects, Bloomberg Technology (BT) reports that is … Read More →

Florida Public Service Commission OKs Sunrun’s Petition – So It’s Full Speed Ahead

By Frank Andorka, Senior Correspondent What Happened:On a vote of 5-0, the Florida Public Service Commission has approved Sunrun’s request that its third party leases not be considered a sale of electricity and that: Offering its solar equipment lease to customers in Florida will not cause Sunrun to be deemed a public utility under Florida law; The residential solar equipment lease described in its petition will not subject Sunrun or Sunrun’s customer-lessees to regulation by the Commission. SolarWakeup’s View:  In a victory for third-party leasing in the state of Florida, Sunrun has JUST been granted the right to sell its … Read More →

This is your SolarWakeup for April 20th, 2018

What a week for the solar industry! As we begin the cycle once again in the storage industry, descending to the storage conference, I hope you enjoy your weekend.

Watch The Florida PSC. Starting at 9:15am, the Florida PSC will be hearing the request by Sunrun to have their lease ‘approved’ for use in Florida without being considered a regulated utility. Stay tuned for the result and a refresher on the issue here.

Solar’s Dilemma. I feel that most in solar have a set of values that many struggle with when solar argues against environmentalists on regulations. This is the case in the BLM land siting issue where solar is left with little available space to develop projects in due to environmental concerns. We’re going to need more solar going forward and we have to find where to put it but we want to do so responsibly, hence the dilemma.

The Little Story. This isn’t a big story but it’s the local victory that keeps us going. With the help of DOE SETO, the artist formerly known as SunShot, the municipality was able to move solar forward its own rules to promote solar. SETO is out with another solicitation for $105million.

Interest Rate Pressures. Over the past year interest rates have been creeping up, the 10-year yield is up to 2.91% as of yesterday. That’s over 1% higher than just a few years ago and that kind of debt cost increase hurts solar, where many projects are back levered. The positive side of this is the risk, the spread, has decreased to less than 2% more than the treasury rates. We’re still a long way from mortgage rates however.

SolarWakeup Live! Chicago. The event will occur at the end of June, dates to be announced soon. This will be a day long SolarWakeup Live and continue the SolarWakeup Live tradition of great content that helps drive the market. If you have a good idea for content that you’d like to hear, reach out. We will also have some special sponsorship opportunities if you are interested.

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Have a great day!
Yann