Friday Funday. Another great week as we wrap up Q2, cross it off your calendar and go into Q3 without anymore excuses. Drop ‘in these times’ ‘because of corona’ from your vocabulary and do your work. Everyone is in a similar situation, just get it done. No more column today, have a great weekend.

Virtual Power Podcast. Check out the latest episode of SolarWakeup Podcast as I interview East Bay Community Energy’s CEO Nick Chaset. We talk about CCAs, CPUC’s ruling and the future of virtual power plants. 

• Greentech Media: Democratic Lawmakers Include Renewables Incentives In US Infrastructure Bill
• The Verge: Amazon is renaming the Seattle NHL stadium Climate Pledge Arena
• Fresno Bee: California first in the nation to require diesel vehicle manufacturers to go electric
• Axios: Study shows consumers save long term with electric vehicles
• PV-Magazine: Duke creates REC program for individual retail customers in North Carolina
• Utility Dive: California’s storage limbo – Over $300M in projects are stuck on a CPUC waitlist, but there’s an easy fix
• Bloomberg: Solar-Power Costs Falling Even Faster Than Expected Due to Virus
• Reuters: Trump administration wind and solar approvals lag Obama record – study

Opinion

• Los Angeles Times: California’s clean energy programs are mainly benefiting the rich, study finds

Best, Yann

Shale Revolution Was A Loser. The shale gas revolution was supposed to be something special, lots of money being made and littered around. According to a Deloitte report the reality is the total opposite and the numbers are staggering. Over the past 15 years, the US shale industry has returned $300billion in negative cash flow and impaired $450billion in invested capital.

Climate Change Polls Improve. In the latest Pew research on climate change, results continue to show that our industry and the broader clean energy space has excellent bipartisan support. That support is greater than 80% on most issues when you remove conservative republicans from the analysis. Invest more in ‘alternative energy’ is 81%-97% and the big winner is planting a trillion trees which polled at over 87% for all political groups. At the end of the day the polling is much better on the solution than the issue.

Young People Know. The GOP has an internal generational problem on the issue of climate change and renewable energy. Boomers support renewable energy at 55% versus the millennials at 79%. You may be surprised to know that there are republicans working in solar and they tend to be my age or younger. That’s the upside of solar, it’s fundamentally a bipartisan issue. You can support it for a variety of reasons that align with your ideology.

Revenue Stacking Goes Distributed. It was a recent switch that went off in my mind but virtual power plants are a huge new segment for our market. Batteries will not just be there for homeowners that are looking to shift energy consumption or to have backup power. Owners of storage will be able to monetize by partnering with load service entities just like East Bay Clean Energy did for their pilot program. Keep your eyes on this space, I’m intrigued.

SEBANE Annual Awards. Join SEBANE for our Third Annual Summer Solstice Celebration and Awards Event, being held virtually today. The Summer Solstice and Awards Celebration will feature remarks from SEBANE President Mark Sylvia, public officials, and industry stakeholders, will include a virtual happy hour.

• Oilprice.com: U.S. Shale Has Lost $300 Billion In 15 Years
• Vox: US public opinion supports action on climate change — and has for years
• Axios: The GOP faces a generational gap on climate change
• PV-Tech: Adding intelligent storage can boost solar project revenues by 50%, Stem claims
• GreenBiz: Lyft’s 100% EV strategy requires a policy blitz
• Reuters: Wells Fargo signs multi-year contracts with Shell for clean energy
• Greentech Media: Could Flex Services Draw New Players to the Energy Sector?
• Rocky Mountain Institute: Five Trends – US Cities and Counties Are Going Renewable

Opinion

• Utility Dive: Hard truths about net metering and the perils of regulatory nihilism

Best, Yann

PAC12, Bill Walton and SolarWakeup. Today at 4pm PST/7PM EST, I will be talking solar with Bill Walton. This Zoom event will talk about how PAC-12 schools can be more renewable and sustainable. Registration Link

A Bill In The House. It’s infrastructure week in the House of Representatives. H.R. 2 was introduced as the Moving Forward Act and includes the greatest hits for solar professionals. Extension of the ITC at 30%, a storage ITC, and other tax benefits. It also includes a direct pay at 85% of the ITC for section 48 qualified projects, section 90404 of the bill if you’re interested in bill reading. Let’s see where McConnell takes this and how the White House tweets about infrastructure week. The House is planning on passing the bill before July 4th.

A Side Of Fossil Bailouts. Of all of the kinds of bailouts that the administration could engage in, they are buying up bonds including junk bonds of failing companies. If the bond bailout program stays on track, the government will end up investing $19billion into fossil fuel companies. Of this, $4billion could be in bonds that are expected to go to zero. So let’s save our Solyndra headlines and cost of solar ITC for others, because this is and has always been about political payback.

Amazon Joins VC Crowd. On the heels of my write-up yesterday, Amazon got into it with a $2billion fund pledge. Led by their corporate development team, the $2billion fund will invest in sustainable technologies and services that help the company reach its 2040 goals. I’d like to add a recommendation to Amazon and other VCs, you should house an investment partner or better yet the lead office in Miami. This is ground zero for climate change in America and Florida has all of the market dynamics that companies will have to be good at. Strong utility incumbents, a need for political understanding, a vibrant farming community, warming seas, and of course roads that fill with water during high tides as the city succumbs to rising oceans.

Support CALSSA. Trade associations have lost quite a few revenue opportunities and CALSSA needs your help. You can support the team that supports your business by bidding on a silent auction with some good items. Please do what you can! Here is the link for the silent auction.

Advertise On SolarWakeup. The advertising space for Q3 is filling up, contact me if you are interested in supporting this platform and reaching the solar audience on a daily basis. 

• Solar Power World: Solar, storage included in $1.5 trillion ‘Moving Forward Act’ introduced in House
• Huffington Post: The Fed’s Coronavirus Spending On Fossil Fuel Could Dig A $19 Billion Money Pit
• TechCrunch: Update- Amazon announces $2 billion Climate Pledge Fund
• Utility Dive: Will regulators allow utilities to reap a windfall because of COVID-19?
• Grist: A prescription for a post-COVID economy – A national climate bank
• Greentech Media: 5 Major Trends Driving the $80B US Distributed Energy Resources Market Through 2025
• Axios: The persistent racial disparities in U.S. energy expenses
• Reuters: Spain pushes clean energy decree to speed renewable rollout

Opinion

• GreenBiz: Let’s incubate the Green Swans hatched by the COVID-19 Black Swan

Best, Yann

VC In Solar. We need some exits to really feed the excitement. With a recent wave of new climate tech venture capital funds being announced, some that have been investing for 2 years, I am looking forward to hearing about the exits and hopefully the next IPO. There’s been early investing in the software space and plenty of private equity action in the hardware and project side of the business. My expectation is that this really takes off but with a focus on margin, revenue and exits.

Margins For Stars. When you’re a contractor, service provider or other retail business then you make plenty of decisions based on the online reviews that will follow your decision. The biggest problem in residential solar has been bad equipment and the underpayment (or nonpayment) of labor related costs for a warranty claim. When an inverter goes down, the installers goes to the job to determine the cause of the issue. That truck roll is not paid for but required by the contractor. Then the inverter(s) get a return authorization from the manufacturer and gets replaced. Most of that time and cost of the replacement (material aside) gets covered by the installer. My point is that lower failure rates are worth far more than the original cost of the inverter.

TVA As The Leader. The TVA was a missed opportunity for our industry during the Obama years. First, it could have created a network of solar professionals, advocates and experts that have real utility work experience. Keep in mind that the TVA CEO came to California to take over PG&E as their CEO. The other part would have been the board of directors that guide the utility into the 21st century. If and when Joe Biden wins, this is where I am going to focus and I will be vocal about my desire to see some of you nominated to the board at TVA. This is a public entity and it should be shaped to our goals. Stay tuned for how you can get involved with Clean Energy For Biden.

Support CALSSA. Trade associations have lost quite a few revenue opportunities and CALSSA needs your help. You can support the team that supports your business by bidding on a silent auction with some good items. Please do what you can! Here is the link for the silent auction.

Bill Walton And Friends. In a fun event on this Wednesday, join me and basketball and broadcasting sensation Bill Walton at the virtual PAC-12 Sustainability Conference. This is a free event and if you’ve never seen Bill talk about solar, it’s a huge treat. Pass along the registration link to anyone that may want to join you. Don’t you think that every PAC-12 school should be 100% solar?

Clean Energy For Biden Event Alert. Today. Please Join Dr. Jill Biden along with Governor Kate Brown, Attorney General Ellen Rosenblum, and Labor Commissioner Val Hoyle for a virtual conversation! Sign Up Here!

• Greentech Media: $50 Million Prime Impact Fund Launches to Invest in Early-Stage Cleantech
• PV-Tech: Inverter failure and auction prevalence pressuring solar O&M costs, report finds
• Utility Dive: Could the aspirations of a small Memphis utility signal the beginning of the end for TVA?
• Solar Power World: Government groups work together to mitigate cybersecurity risks in solar development
• Axios: Shale’s uncertain future amid coronavirus pandemic
• PV-Magazine: Tesla now claims the ‘lowest price for home solar’ – but process is ‘full of pitfalls’
• GreenBiz: The 2020 GreenBiz 30 Under 30
• EDF: Mexico can rebuild a cleaner, stronger energy economy post COVID-19

Opinion

• Indianapolis Star: Op-ed – Republicans must lead on clean energy jobs

Best, Yann