This is your SolarWakeup for February 13th, 2015

Happy Friday the 13th! Let’s go back to the question from yesterday. How does Apple’s 130MW procurement of a 280MW project end up with a $850million price tag? You responded with great possible reasons, some with more conspiracy than others. The most likely is that Apple actually bought all of the output from the 280MW system over 25 years with an LCOE of 7cents, quite possibly in a tax deal that would make the energy an asset to Apple’s balance sheet while reducing US taxable income? The other tax deal is that Apple is the offtaker and investor at the same time with unrelated entities causing a double cost perhaps? Unless Apple has a really really good tax equity team, it is unlikely that the company paid a basis of ~2.5/Wdc for the 280MWac project that has a cost basis of well under $1.50/watt.

News

Have a great day!
Yann

This is your SolarWakeup for February 12th, 2015

I love that Apple is buying solar energy for their stores and headquarters but let’s be realistic about this. Apple is buying solar because its likely the cheapest source of energy AND it makes them look really good. What I don’t understand is the $850million. All of the data refers to 130MW at a cost of $850million. The articles also mention a PPA, so even if Apple paid an exorbitant $0.07/kWh, the 25 year total would be in the low to mid $400millions. I’m not a fan of mismatching numbers, so will someone please fill me in.

News

Have a great day!
Yann

This is your SolarWakeup for February 11th, 2015

Let’s face it, utilities are the central part of today’s energy system and play a vital role to make sure that the light turns on when I flip the switch. So while every home installing solar is clearly a goal of mine, I see the need to recognize that a decrease in sales slows investment growth. Like a solar yieldco, growth in investments is how most IOUs make money. Peter Rive points out DSM which may require high levels of trading capability. I think that EV charging stations offer the most upward potential for demand growth. So let’s once again propose an EV charging station for every home that goes solar.

News

Have a great day!
Yann

This is your SolarWakeup for February 10th, 2015

News of the day comes in the majority investment of REC Solar by Duke Energy. This follows a long stream of commercial solar developers purchased or majority owned by other utilities; NextEra/Smart Energy, NRG/Solar Power Partners, Edison International/Socore to name a few. Also Total’s large investment in Sunpower Corp. The question is what is the motive? And why is it always a purchase or majority ownership? It definitely isn’t always a distressed purchase so the reason must be something else and is it the best move for the utility?

News

Have a great day!
Yann

This is your SolarWakeup for February 9th, 2015

If you look back at the last 10 or so years in solar, you can see a ramp up of innovation followed by capital. The first phase was expensive capital into ‘risky’ ideas. The second phase was huge manufacturing plants funded by billions in venture capital, driven in large by the government policies that the capital was chasing. The third phase was the de-risking of solar and lower cost capital looking to invest in the sun. The next phase will be about solving the little problems, the problems we are largely ignoring because we have a status quo fixes for them. Part of what I hope to accomplish is finding the clean tech innovator that can improve my competitive edge.

News

Have a great day!
Yann

These are the top 10 most read solar articles by your peers this week!

News

Have a great day!
Yann

This is your SolarWakeup for February 6th, 2015

(Event occurring at utility) An analyst walks into his lawyers office and says: I think we should rethink the way things are done and go after the oil business by giving every solar user an EV charging station. Lawyer (being the executive’s trusted advisor) says that’s not possible and that’s not how things are done.  Let’s all work on getting lawyers and analysts to see things a little bit differently and figure out how to make the new things, the new normal. “Cheap oil does not affect solar growth. But solar growth affects cheap oil”.

News

Have a great day!
Yann

This is your SolarWakeup for February 5th, 2015

Crazy fact: less than 5% of global electricity is produced using oil. So can someone please tell me why solar stocks and solar headlines are correlating to oil prices? Makes me hopeful to see the rise of value investors that don’t give up value for values. Instead millennials expect that business is profitable while being beneficial to society. Being sustainable or winning in politics requires capital, and capital seeks out profits otherwise it’s called a charity.

News

Have a great day!
Yann

This is your SolarWakeup for February 4th, 2015

Pipeline growth, geographic diversity, new market channels and the richest man in China. Today’s rundown is filled with deal news with companies looking for a way to compete in a more global market so they can flatten out the solar-coaster. The ups and downs within a market will have to continue to be looked at closely. For example, headlines in Germany seem disappointing but you have to look at the fundamentals. Self-consumption in the distributed market in Germany is growing nicely, more utility participants are getting involved which shows the stamp of approval solar is getting.

News

Have a great day!
Yann

This is your SolarWakeup for February 3rd, 2015

Not everyone may agree with my position on the ITC extension and the premise of the #solarpledge. But after a slew of e-mails, I see that a lot of you agree and most importantly, the President sees a permanent extension of the ITC as a vital part of investing in the jobs of the 21st century. The ITC isn’t holding back solar development, it is enhancing the quality of solar projects and long term O&M. It is a job support mechanism that pays for itself many times over. It is a revenue center for the Country’s largest banks and law firms, and those industries tend to do well in Congressional negotiations.

News

Have a great day!
Yann