This is your SolarWakeup for September 20th, 2016
Yesterday, Terraform and Terraform Global had to file extensions on the notice of delisting from NASDAQ. The stay of the delisting and request for a hearing have been approved by the exchange and the hearing is schedule for November 3rd. Of course this is stemming from Sunedison’s bankruptcy and the inability to issue proper financial results even though some have been trickling in. The yieldcos also have begun to work to get a new sponsor in place or seek strategic alternatives to Sunedison as the sponsor. Advisors have been engaged by both entities which include Centerview Partners, Morgan Stanley, AlixPartners and Greentech Capital Advisors. This summer some players began to make moves including Brookfield Asset Management, which acquired a significant stake in Terraform Power. The saga continues…
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Yann
This is your SolarWakeup for September 19th, 2016
The Arizona Attorney General told the Utilities Commission that a single Commissioner had the authority to subpoena a utility. In this case, Commissioner Burns has been asking APS/Pinnacle West to disclose its lobbying expenditures and political donations to campaigns and non-profits. Burns is trying to identify or confirm that APS/Pinnacle West were behind the dark money that went to support anti-solar commissioners that ultimately won the elections. APS/Pinnacle West response is nothing short of arrogant and abrasive, they moved to cancel the subpoenas and asked for Burns to pay for their legal fees. Last week the Commission voted to allow Burns to hire an outside lawyer to fight this. Keep in mind that the FBI is still investigating and the US Attorney has issued grand jury subpoenas as well. This story keeps getting better and I will keep writing about it to show you what happens at these State level Commissions. This may sound crazy and uncommon but you will find this to be much more common across the Country than it should.
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Yann
These are the top 10 most read solar articles by your peers this week!
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The Top 10 is ranked by the number of SolarWakeup.com readers that clicked on the news article during the previous week. It is the poll of the most relevant solar news of the week as judged by your colleagues and competitors.
Have a great day!
Yann
This is your SolarWakeup for September 16th, 2016
No national press is covering this but it’s becoming the biggest story in regulated power. If you recall complaints that APS was acting during the last Arizona Commission’s election, especially about answering questions about funding dark money groups, you will like this update. The FBI has been investigating and the prosecutors have convened a grand jury to go over some subpoenas. In Parallel, a single Arizona Corporate Commissioner has asked for further information about the utility’s funding of elections through dark money groups. The utility is hitting back at the commissioner and the entire accusations, which text messages released to journalists appear to be confirming. In short, there’s some crazy stuff happening in Arizona and the solar industry has been right about how they were being treated unfairly. Stay tuned for more…
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Yann
This is your SolarWakeup for September 15th, 2016
If you have been reading SolarWakeup for the past 4 years, you know that I am a HUGE fan of the SunShot program. The team is amazing, has accomplished their targeted goals of bringing solar to $1/watt well before their self imposed deadline. More importantly, SunShot has deployed taxpayer money in a intelligent way, monitored each project to great detail, audited the results and ensured cost sharing. My favorite part of the program is that it has resulted in $22 of private capital for every $1 of public money. We all know that there is not enough VC and angel money in our sector, but SunShot is doing their part. If you see the new head of SunShot, Charlie Gay, at SPI make sure to say hello and thank you for the team’s great work.
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Yann
This is your SolarWakeup for September 14th, 2016
SPI has kicked off and according to the opening keynotes, it is time for us to get up and sit at the adult table, grow up and recognize what we have accomplished as an industry. Let’s remember that SPI is a partnership between SEIA and SEPA, in a 50/50 venture called SETS. SPI should generate about $10million of profits this week which gets split between the groups. This year is also the first year that SEPA no longer has the word solar in it which makes me wonder. The 51st State initiative released a new report about how utilities will work with DG which I have yet to read but keep that in mind as you walk around SPI. Take it slow, Vegas is a marathon, much like the solar industry.
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Yann
This is your SolarWakeup for September 13th, 2016
One way to help a transaction get done before a crucial vote is to bring some cash to the table. As everyone is on their way to Vegas for SPI, SolarCity ‘sold’ some of their future cash flows from 230MW for $305million dollars. A so called cash equity transaction which likely lets the company keep the long term potential value of the contracts in the case of renewals. 5 lenders made up part of the capital transaction that showed a weighted cost of capital of 7.4% which is a nice mark for the solar industry as a whole. In recent times, secondary markets for solar assets have traded above this number. A George Soros fund advised on the deal which will surely rile some of the GOP up on the ‘green’ topic as we enter the debates. Recall 4 years ago when Governor Mitt Romney got very close to calling Elon Musk a loser. Going forward, Sunrun and Vivint Solar will likely seek to replicate this with smaller portfolios or find a larger partner as well.
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Yann
This is your SolarWakeup for September 12th, 2016
You are likely on the way to SPI for a week of solar fun. We have now finished almost 3 quarters of 2016, a year that was supposed to bring uncertainty to the forefront. With the ITC extension everything has slowed down a bit, including the speed of interconnection applications being approved (a topic for another day). Policy and smart strategy will be key for businesses going forward, whether you are a module manufacturer, installer, developer or finance company; you have to understand how the outside factors impact your work. SPI is a good time to reset on your focus and see what everyone is working on. Of course I will be checking in to everyone remotely. If something interesting comes up, feel free to drop a line.
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Yann
These are the top 10 most read solar articles by your peers this week!
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The Top 10 is ranked by the number of SolarWakeup.com readers that clicked on the news article during the previous week. It is the poll of the most relevant solar news of the week as judged by your colleagues and competitors.
Have a great day!
Yann
This is your SolarWakeup for September 9th, 2016
I didn’t really want to get into it but with so many of you asking my opinion, so apologies for the long thought. Two letters came out simultaneously about the direction SEIA is or should be going. One from the Chairman of the Board of SEIA which I thought gave an eloquent view of where the association is and where it has come from. Keep in mind that SEIA is deep in the search for a new President having retained a search firm to do so. The other letter came from two industry veterans and included a petition. In summarizing the petition, it calls for a change to the board structure, which is pay to play right now, giving the biggest contributors a seat and a vote on board issues. Only a few seats are voted by the membership. While this reduces the voice of smaller installers, I haven’t seen the smaller companies suffer from it. There have been cases when large scale focused members were not in favor of net metering or bigger issues, but each time outside influences and voice of the industry were able to ensure SEIA advocated for the right policy. Changing the board structure will drastically lower revenues and shifting to State level policies will drastically increase spending. Those two are mutually exclusive, they cannot be done in unison. I would go about it differently, I would focus on a code, a solar code, amongst the board. The focus would be the same as the solar pledge I started two years ago, ensure fair and competitive net metering that does not favor incumbent market participants and increase consumer choice. The media is making this about a divisive topic but it isn’t and shouldn’t be viewed as such. Focus more on getting involved and having your voice heard instead of thinking a 180-degree turn is necessary.
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Yann