Tag Archives: Daily Rundown

This is your SolarWakeup for July 9th

Inflationary Loss Of Tax Credits. The loss of the ITC causes the increase of off take cost by something like $20-$30 per MWh depending on where you are. One side will argue that that’s the market cost, i.e. a data center or utility pays for the energy that is produced without influence. On the other hand, if a solar deal goes up by $20, so will the pressure on the wholesale market because the value will levelize across the entire grid. The argument for the ITC extension is straightforward, it lowers the cost to consumers and businesses and spreads that cost, i.e. the cost of the tax credit, across the entire Federal balance sheet. 

BYOP. Bring your own power, of course a concept that is helping data centers get connections faster. But I am more interested in the concept that the BYOP is all in DC, solar to the servers with every electron, including the grid (converted to DC), running through giant BESS systems. Batteries aren’t a backup, they are the supply chamber that regulates all of the needs and inputs that alleviates and warns the data center operator well in advance of any issues. 

Opinion

Best, Yann

This is your SolarWakeup for July 3rd

The Cost Of Inaction. What happens when cost of solar goes up $20-$30/MWh? Does it slow development? Construction? Legal work? All the while reducing more work from the tax equity bankers and their consultants. This is part to the conversation we’re having about the ITC but some headlines in action. 

Deeper On Shoals IP Case. In today’s deeper dive, there’s some messaging from the parties that I want to try to dissect having spoken to some folks close to it. Shoals won the IP case on their BLA eBOS system. Voltage is now prohibited to sell it without security being posted in the form of bonds. The alternative design is really irrelevant to this case. If Voltage releases another eBOS system, it’s kind of like saying a donkey is a replacement for a horse. A new product is a new product, doesn’t mean it’s the same thing, it’s just a new thing. 

Summer Programming. Starting next week, I will be working from different time zones, aka on vacation. SolarWakeup may be a bit more sporadic but I’m sure we’ll find the time to keep you up to date. Since no young solar pros have asked to ghost write for me, I will remain available to keep you posted with my opinions on the solar news of the day. Apologies in advance for some reduced publications. 

Opinion

Best, Yann

This is your SolarWakeup for July 2nd

Certainty And Security. This week Shoals won a long fought battle to protect its IP in the eBOS segment at the International Trade Commission. This underpins an important factor that I’ve heard over and over again from IPPs and EPCs alike, the value is in a good product but more importantly for the project execution, it’s the certainty of delivery with minimal risks. Shoals sits at that forefront of having a great product but also mitigated risk in upstream supply chain and delivery given its now expanded domestic manufacturing. 

95% AI. Amazon is spending 95% of its time on AI says Jeff Bezos. And that’s a quote from a year ago. Building the compute that it needs for itself and selling the excess compute or enhancing its need by leveraging the needs of others. Yesterday, Meta’s stock popped 10% on the same premise of selling excess compute. The funny thing about excess compute or any compute for that matter is that it is meaningless if the power for the data center isn’t there. And the backup systems, i.e. batteries, aren’t available and working as designed. The entire GDP growth right now is based on power being available for this need, regardless of the growth rate. The value of that compute is many multiples over current wholesale and retail rates, data centers would still get built if electricity prices increased 2,3,4x from current levels and while that’s an interesting signal for our industry, it certainly sucks for the retail consumer. 

ITC Thoughts. Your feedback on the ITC question came back almost unanimous. Solar should be ready to let go of the ITC and move forward without asking for things from policymakers. A rational thought, which I happen to disagree with wholeheartedly. The foundation of solar is such that we know we can grow our market without the ITC and that we can deliver the most affordable energy without the ITC. But the reality is that politically speaking, the ITC is possible, definitely not easy, but why would we give up the credit now instead of asking for a 2 year extension. Some of you made the point that the cost transfers from the power markets to the treasury, sure so what, the tariffs go right into the treasury as well. Having power deals and homeowners get access to a credit means cheaper operating costs for business, grids and homeowners alike. I don’t see this as a question of whether solar can succeed without it, it’s about having the political power to sit at the table and get our plate filled. That’s life in the big leagues and when our industry supplies 91% of the Q1 power additions to the grid and the GDP needs energy to grow, let’s be the solution that also lowers the cost of electricity for consumers in the battle for affordability. 

Opinion

Best, Yann

This is your SolarWakeup for June 30th

Partisan Agencies. In yesterday’s SCOTUS opinion re. Slaughter, the executive branch, i.e. the President, got the right (it seems) to fire commissioners of the FTC (or FERC) at their discretion. Any attempt by Congress seems to be seen by this Court as an unlawful infringement on presidential powers. The future seems to be one where a party wins the White House and then goes on to fire Commissioners across the agencies and then duke it out with the Senate as necessary to put in place their preferred people. Maybe the TVA is in play too? 

More Chargers Please. Uber drivers love driving EVs but hate the lack of charging, interesting how the last few years have progressed in the electrification of miles driven. Can EV infrastructure become a profitable business? 

The ITC Thoughts. Well this topic woke you up and your thoughts came in. If you missed yesterday’s SolarWakeup go back and add your opinion on the ITC. Note for those asking my opinion, I disagree with about 98% of the emails I got so far. 

Opinion

Best, Yann