This is your SolarWakeup for January 17th, 2018

Listen Closely. I went back and listened to my interview with Amy Harder from Axios yesterday. Inside the conversation there were some things that were coming true in reality. The Goldman group inside the White House doesn’t seem to be having the impact we were expecting, much like the conservative think tanks, Sean Hannity, etc. Also the argument about jobs and job losses don’t seem to be moving those inside the conversation. More than anything, the bad actor label on China seems to be coming to the forefront. Go back and listen to hear what I’m talking about.

Don’t Click The Bait. We are done breaking low cost of renewables records. The conversation needs to drive towards, what do you need in order to have this energy need come from solar, wind with or without energy storage. The data from Colorado says absolutely nothing. Without knowing the ratio of storage to generation, you cannot ascertain anything at all. You also don’t know what they are doing with storage, what grid services they will provide and how many hours of capacity they are proposing. Don’t look at these results for any business metrics. Your cost of money divided into the capital costs minus operating costs will still give you the best view of the bid price. Rant over.

EVs Rule The (Future) Road. I love the additional investments into electric cars by other auto OEMs, Ford announced an $11billion push towards EVs. I’ve been an EV owner since 2012, first a Volt then a Tesla. The Volt buying experience was eye opening and I wouldn’t be surprised if it was the same today. The sales person knew nothing, nobody at the dealership did. How to charge, how many miles of range, what happens at the end of the range? All the OEMs will need to invest in education of the sales force. If I were Autonation, I would have an EV only showroom. Completely separate the force from the traditional vehicles and make it a competition and not a closing exercise. Tesla doesn’t have this problem by only selling EVs. At the end the solar industry wins because EV owners want solar and EVs will drastically drive down the price of batteries.

You Get A Job, You Get A Job. Energy jobs keep growing especially at the labor and middle class level. If you want to make more than the average American in your job segment, then being in solar is a great place to be. On the other hand, you may have to work through the solar coaster, stand at rallies and enjoy the sunshine. I can only imagine how many jobs solar would create in Florida if our policies opened up just a tiny bit. The same is true for Kentucky, West Virginia and Ohio where most of the remaining 60,000 coalminers live.

China Is Dumping Projects Too. $0.3Trillion was invested in clean energy worldwide last year, half of it in solar. Half of the solar investments came from China which begs a curious question relating to the 201 proceeding. Should US capital file a complaint about Chinese capital buying too many projects? Is that unfair as well? Maybe that is the correlation to the real estate market that the White House would understand.

Are You Coming? There is a surprise addition to the SolarWakeup Live! event in New York. We will have an unnamed speaker (for now) that has been in almost all the meetings around the 201 case. By the time we meet in New York, the tariff should be decided and you will get to hear how it happened and we may indulge in some conversation looking back at the process. This is inside a cool theater in midtown, join us. 2 for 1 offers available if you email me.

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Yann

This is your SolarWakeup for January 16th, 2018

Amazing Hypocrisy. A Chinese company complaining about Chinese aggressive path into solar module manufacturing? You’ve got to let that sink in for a minute to realize how pathetic the argument from Suniva and SolarWorld really is. SolarWorld was bailed out by Qatar which is not known as a friendly global actor. Meanwhile Suniva, which couldn’t survive with tens of millions in grants, had to be bailed out by Shunfeng, a CHINESE fund. It was only once management failed to run the business properly that the former CFO saw an opportunity to run a scam on the American people with the 201 filing. Trump is being played by these folks that have misled everyone on their way to this moment.

Label The Opposition. No matter the result of the trade case, solar will look back at its tactics and realize that it played flag football in a full contact sport. There was a level of purity that the good team wanted to maintain and that wasn’t the right way to go. Think about the logic of a bankrupt Chinese company with no money and no path to ever opening up again being given the same credibility in the process as 270,000 solar professionals. In politics, you either brand your opponent or they will brand you and solar made their impact of a bad decision the argument and not the poor messenger that was trying to destroy solar.

Shell Acquisition. A few weeks after BP made the investment into Lightsource, Shell is following suit and acquiring shares in Silicon Ranch. Much of the summaries written by reporters is to hyperbolize the impact this has on the energy markets, an oil company buying a solar company. All that is BS. This is about diversifying investments and revenue streams. It would be managerial malpractice for energy companies not to have exposure into solar and the associated interconnections to the electric grid.

PG&E Must Lead The Way. We may look back on this week in a few years and saw the regulatory start to shifting away from natural gas plants. The CPUC is asking PG&E to solicit energy storage instead of making a deal with Calpine. At the same time solar advocates are pushing Michigan regulators to review the DTE request to build a new gas plant. The fundamental argument I use against regulated gas is the subsidy given to the utilities by consumers. Unless the IOU takes the fuel cost risk, the consumers should be paid for the hedge on the fuel price. The value of that hedge needs to be included in the comparison to long term renewables contracts that have no fuel cost risk.

The Q&A You Wanted. You asked for it and you’ll get it. When SolarWakeup Live happens on January 31st, we should know what is going on with the 201 case. Many of you asked me to include a Q&A so that we can talk about the various issues in the solar industry and my thoughts on the state of the market. We also moved into a larger auditorium that can hold a few extra folks. If you email me, I’ll give you a 2 for 1 coupon code so that we can have a full theater and make the networking that much better. Tickets here.

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Yann

This is your SolarWakeup for January 15th, 2018

New Pod. I am joined by Boris von Bormann, the CEO of Mercedes Benz Energy Americas, in the latest episode of EnergyWakeup. His role oversees the current initial roll out of the Mercedes storage systems for homes but Mercedes also makes cars that you may have heard of. The combination of the two markets intrigues me and we talk about it in this episode. Catch it here.

Last Minute Efforts. Tom Werner from SunPower has an oped The Hill today that pushes back against tariffs and praising Trump in equal parts. I get the sentiment, everything out of DC today shows the need to praise in order to drive the conversation. My larger concern is that Trump’s advisors have treated both sides of the tariff debate equally and this is in no way an equal debate. Most folks expect news to happen this week, I’ll start writing two template emails to send you I guess.

Taking On Gas. In one week, Vote Solar has taken on an anti-solar decision and at the same time a pro-gas decision. The latter is interesting. The argument against DTE Energy’s request to build a $1.2billion natural gas plan is that renewables would be a better deal for customers and DTE should show its analysis to make its case for gas. This is an offensive maneuver by Vote Solar in a State that under Governor Granholm was working hard to be a clean energy leader.

Crypto. ACWA Power is joining the crypto movement with the currency, SolarCoin. I’m going to ask some questions about coins and blockchain during our New York event to the CEO of LO3 Energy, a blockchain expert. This could come up in that conversation.

NYC Agenda Set. We’ve got our agenda set with 5 amazing conversations. I’ll be catching up with NY Green Bank’s CEO, one of the most innovative and successful green banks in the Country. The other conversations are with the manufacturer of the largest solar plus storage integrator in the world, breaking down the REV policy, blockchain in energy and future of community solar in New York. All of the conversations in a great theater setting in midtown. Please consider joining us for this event, discounts for multi tickets if you want to send your team. Here are the tickets.

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Yann

This is your SolarWakeup for January 12th, 2018

Happy News First. Every day there is one article that is read the most. By noon my time, I can tell what you are reading as individuals and figure out what the is driving the days conversations in the solar industry. With SolarWakeup View, you’ll get my thoughts on that event and some more info if we have it. I hope you enjoy this additional memo that can help your business prosper. Check out the article from yesterday’s news.

Daily Tariff Update. Several reporters have Trump receiving the recommendation from his advisors next week. Word has it that the import license is off the table and the question remains what they will be set at. Is it per watt or a percentage? Will there be quotas that hinder import volumes? I am honestly surprised that we are here today and it makes me question what more I could have done. I will refute today, tomorrow and next week that this was based on Trump’s request for tariffs. There is a both sides aspect to this that leaves me uncomfortable but remain hopeful that advisors will keep it under 20%.

Help Michigan Manufacturing Jobs. The grand settlement was my biggest hope in the trade process. When bankrupt SolarWorld filed the first trade complaint and received tariffs, China responded by taxing US polysilicon. Amongst other things Hemlock had to close a $1.2billion plant in Tennessee and shed hundreds of jobs, things at REC Silicon weren’t much different in Washington State. So if Trump cared about jobs more than politics, the argument would be to get rid of all tariffs and make US a silicon powerhouse and grow the solar industry even faster than it has to date.

National Security Threat. Admiral James Stavridis is the current Dean of the Fletcher School of Law and Diplomacy at Tufts University. His resume includes Commander of Southern Command and NATO Supreme Allied Commander of Europe. He writes now that climate change is the greatest threat to America. Have a great day everyone!

Massachusetts Update. Your top article yesterday was the news of the DPU decision in MA and you can find our SolarWakeup View here. At the same time, MA DOER released the block 1 tariffs for the SMART program which came in higher than I expected and with the multipliers from energy storage these should be great deals even with interconnection upgrades. Are you doing one of these projects? Let me know.

Presented By Panasonic. When you install Panasonic HIT® high-efficiency solar panels, you’ll provide homeowners with what we believe are the most efficient solar modules available today. Let’s take your business to profitable new levels together. 

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Yann

Massachusetts DPU Adds over $4,000 in Charges To Residential Solar Customers In Eversource Rate Hike

By Yann Brandt What: Massachusetts DPU Adds over $4,000 in Charges To Residential Solar Customers In Eversource Rate Hike Summary: The MA DPU, currently in the process of creating the SMART rules, raised rates and created drastic uncertainty for solar customers in the Eversource area. The monopoly had requested increase rates and charges for its residential customers, requiring solar customers to pay as much as $9,400 over the life of the solar asset. The decision is being appealed by Vote Solar through its representative, Earthjustice. SolarWakeup View: Not only is this bad for Eversource customers, it seems to go against … Read More →

E033: E-Mobility and Energy Storage with Mercedes Energy Americas CEO and Yann’s SolarWakeup Views

By Yann Brandt What: Interview with Mercedes Benz Energy Americas CEO, Future of e-mobility and Yann’s View On The Topic Summary: In this interview, Yann speaks with the CEO of Mercedes Benz Energy Americas, Boris von Bormann. Boris was previously the CEO of Sonnen in the US and has a background in solar prior to that. The conversation includes information about how the energy and transportation sectors converge going forward. What is the value of solar to the storage industry and how does it relate to the EV sector. This is a fast paced interview with a ton of information. … Read More →

This is your SolarWakeup for January 11th, 2018

Solar From The People. Check out the Energy Future Project recently launched and run by an Obama/SolarCity alumni with a focus on building out the support solar gets from the American people. I often write about the 80%+ support we get from both sides of the aisle and tapping into that is exactly what this group is working on. Great write up from Frank Andorka, who brings some great coverage to the solar industry every day.

Cost And Value. I empathize with the sentiment. If a City wants to have 100% renewables that don’t carry any long term fuel costs and volatility, how does it weigh the cost of the upfront switch with the longterm benefits. Entering into contracts with a 3rd party is one way to do this but existing assets are sometimes beyond their breakeven point and only have to cover their fuel costs. So here is a hypothetical for you. In a City within a competitive power market, how would you provide 100% renewable energy and what would it cost if they gave you a 20 year contract.

Handout. The complaints from local solar companies eludes logic for me. I know that Florida’s solar market has been tough for them and watching a 20mw solar farm be built is painful especially if you are trying to make a living selling 50kw to the local business. Aside from the new argument that community solar is competitive with self generation, solar farms are not a business model for small contractors to work  on. Unless you have the bonding, balance sheet and safety records, you can’t compete with the general contractors that build these assets. This isn’t up to the IPP either, their lenders and tax equity investors require the contractor warranty to be something that can’t be found in a local contractor.

What The DPU. The DPU in Massachusetts is in the process of creating the new SMART program rules but is also tending to new business. Unfortunate to see Eversource ask for, and receive, demand charges for net metering customers. Step in the wrong direction according to policy advocates.

Storage In NY. Energy storage in New York is getting some traction in the news and legislation. Should it be part of the SolarWakeup Live! agenda? If so, what segment should be heard?

Sponsor New York. If you enjoy reading this newsletter, go below and support the SolarWakeup Live sponsors. Now that I’ve gotten you to see who they are, add your company to the list. Contact me to sponsor this and future events. Tickets are also available here, use code WAKEUP25 for a discount.

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Yann

This is your SolarWakeup for January 10th, 2018

Coming Up. Catch me in New York as I host SolarWakeup Live! on January 31st though I will be in town for a few days before and after. Two weeks later, I will be in DC for some solar startup activities. Where should the SolarWakeup Live! after New York go? Best ideas please.

Who’s Coming To Jacksonville. Last week the news came out that a manufacturer was looking to build a factory and hire 1,000 Floridians. A local Jacksonville outlet has it reported that the manufacturer could be Jinko Solar. I’ve been asked by many if this is due to the trade case but I generally remain skeptical that the trade case is causing a 20 year investment. Jacksonville is a strategic port for Europe and has daily arrivals from China as well. Land and labor in Florida is pentiful but the Speaker of the House is on a crusade against economic development and is running for Governor. I would like to see the manufacturer opine on the JEA net metering pullback however, that would be a great incentive for the local community.

SEIA Trade Case. The pro-solar members of the 201 testimony met with Secretary Wilbur Ross of the Commerce Department yesterday in DC. The amount of time that some executives have devoted to helping thousands of solar jobs is commendable and I hope to give you a behind the scenes of the entire process at SolarWakeup Live New York with one of the folks that has been at every meeting from the start. Ross is said to have asked good questions and listened to the solar industry make their case. Ross is a capitalist, dubbed the king of bankruptcy, who is likely to read right through Suniva/SolarWorld attempts to screw over the American public based on the financial state of those companies.

Cause of NOpr. The no on the NOPR came from the audacity of the ask. This wasn’t about policy but about political payback for a few donor companies. Case in point is the pushback by Corey Lewandowski who called the FERC commissioners part of the deep state.

Blame Anyone. I don’t publish much from the Washington Examiner but they have a somewhat entertaining editorial about the 201 case. They call for Trump to reject the tariff (I agree) because SolarWorld is backed by a Democratic megadonor. Much like the Hannity ad, I don’t care what the argument is that gets through to Trump. I only care that the right side prevails, which is no tariffs.

NJ SREC Bill. With the NJ solar market reaching its solar goal a decade early, the legislature pushed for bigger goals in a bill that has now passed the legislature. While Phil Murphy will be inaugurated on January 16th, solar advocates are asked Chris Christie to sign the bill ASAP.

Presented by Mintz Levin. Mintz Levin is an Am Law 100 law firm with a nationally recognized Energy & Sustainability Practice that has completed more than 500 transactions across energy sectors totaling over $7.5 billion since 2006.

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Yann

This is your SolarWakeup for January 9th, 2018

New Pod. See and hear my interview with Axios Reporter, Amy Harder. Amy is the author of the column, Harder Line which covers all the most relevant energy topics. She’s not a focused solar reporter and wasn’t afraid to give the feedback to the solar industry we need to hear. I asked her if the job data matters to politicians, what is going on with the coal tax credit and if the Goldman Sachs contingent in the White House would help solar in the trade case. Listen or watch the interview by clicking here and sharing it far and wide!

FERC Takes No From NOPR. You’ve probably already seen the headline and good news is that nothing will change. Nobody really knew how it would have played out if FERC went with the NOPR. On the other hand you can see how we want to cover the news over at SolarWakeup. When I read articles, I tend to get the first paragraph and move you. You aren’t much different from how you click on stories, especially when I summarize them. Everyone has a short circuit on patience to read even 300 words. I would love your feedback on the SolarWakeup View format.

Storage Data Nonsense. Solar and storage are different. Solar is easy to simply to per watt/per acre/per kWh and compare and contrast. Solar plus storage is completely different. The number of hours, cycle utilization, ratio to size of solar plant are just some of the variables that change the kWh rate. There will never be a cheapest storage cost equivalent to the cheapest solar cost headline. Reporters that don’t get this will keep writing it but nonetheless don’t buy into the simplicity that it intends to create. Storage is complicated because it is.

Two Weeks Out. SEIA sent a message out yesterday to its membership that it had met with the Trade Representative and senior White House advisors. All reporting is making it sound like a decision is coming soon, maybe before the January 26th deadline. Some have asked what happens if no decision is made by the deadline and I don’t have the answer to that.

Cost of Inaction. The cost of natural disasters is rising. Inaction is costly.

Presented By EnterSolar. EnterSolar is a leading provider of solar photovoltaic solutions to the commercial marketplace that is ranked the #1 solar developer in New York State and in the top 10 nationally.  We are currently hiring at our growing company.

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Yann

E032: Discussing The Current Energy Politics with Axios Reporter Amy Harder

By Yann Brandt What: Axios Energy and Climate Change Reporter, Amy Harder, Joins SolarWakeup To Talk Politics and Energy Markets Summary: Amy Harder joined Axios from the Wall Street Journal and writes the Harder Line, part of Axios’ coverage of the energy space. Amy is well versed on the politics of energy and has been based in DC for over 10 years. She joins Yann in this recorded interview from SolarWakeup Live! to talk about coal and nuclear bailouts, COP proceedings in Bonn and impacts of jobs in the solar debate. SolarWakeup View: Amy is not a solar reporter and … Read More →