Tag Archives: Daily Rundown

This is your SolarWakeup for July 7th, 2020

Sunrun And Vivint Solar. The big news of the day, the week and the year is that Sunrun has agreed to acquire Vivint Solar. We’re going to talk a lot going forward about what this $3.2Billion transaction means for the industry. In the meantime, before I get the chance to listen to a call hosted by the companies in 90 minutes, we know that it is an all stock transaction where Vivint Solar shareholders get 0.55 shares of Sunrun. This means that Sunrun shareholders will control 64% of the combined company. All of this has been signed off by the board of directors and is expected to close late this year. Closing will require regulatory and shareholder approvals to get this done.

First Thoughts. This long rumored transaction brings together the two largest residential solar installers. In a year where COVID is hammering markets, residential solar is saying we’re growing, we’re profitable and we’re no longer waiting to get deals done. There are going to be questions by regulators, should the top 2 installers be allowed to merge? Vivint Solar shareholders are controlled by the Blackstone Group but Sunrun shareholders will have to understand the value of the acquisition. It is notable that they are acquiring the VSLR at only 10% premium to yesterday’s close and it’s an all-stock deal. The bet is that scale is a winning variable to the upcoming decade and that having 500,000 customers (many of whom don’t have storage yet) is a value that isn’t being monetized today. I hope all of the service and product suppliers to both companies have a fruitful day of meetings figuring out what this means to their business.

SCOTUS Pipelines. If the Atlantic Coast Pipeline wasn’t enough for oil and gas news, a judge stopped fast track progress for the Dakota Access pipeline and shortly thereafter the Supreme Court affirmed that decision in a roundabout way. Fast-tracking for projects can proceed except for the Keystone XL application requested by the Trump administration.

Stationary vs Mobile. The batteries are the ballgame in this decade. You can look at the key talking points in the Sunrun press release, listen to their messaging, or read the news from car companies. Whether the batteries are stationary or mobile, the only difference is who gets to sell them to homeowners. Keep your eye on the pilots for V2G, vehicle to grid, programs and how they interface with homes and codes.

Nonprofits Want Solar Too. My friends at CollectiveSun can help you sell more solar to nonprofits. By working with CollectiveSun your nonprofit prospects get easy $0 down financing and a 12% or more tax-like credit for their systems. Now, more than ever, solar can help nonprofits save on their critical operating expenses. If you are a solar installer or developer, this is a great solution for you to sell more solar and ignite more deals with nonprofits. Click here to learn more about working with CollectiveSun.

Opinion

Best, Yann

This is your SolarWakeup for July 6th, 2020

Buffett Goes Shopping. Berkshire Hathaway is buying the Dominion Energy for $4Billion plus about $6Billion in debt. This is the first deal that Buffett has done since the start of the pandemic and now gets Berkshire control of 18% of the interstate movement of natural gas. That’s something that should be considered. Keep in mind that Berkshire is heavy in the railroads which make a lot of money with coal transportation and natural gas are part of the fuel that is hindering coal’s future success.

Dominion’s View Forward. The obvious question is why Dominion would give up its natural gas assets. After a legal decision regarding the Atlantic Coast Pipeline, Dominion and Duke called the pipeline development off. With electrification and EVs on the horizon, corporate announcements on renewables rising, Dominion saw this as a graceful exit for their shareholders.

Is This A Larger Shift? The headlines will read, “utilities skip the natural gas bridge and go from coal to renewables instead.” I do believe that we are close to utilities saying that natural gas peakers are no longer competitive or the best thing for ratepayers. Most of the coal to gas power plant replacements have already occurred, the majority of ratebase has already funded the construction and we can rotate into solar plus storage mass adoption. I’m all for that last bit but wouldn’t mind regulators doing the math for ratepayers on whether the assets should be built on the utility balance sheet or by 3rd parties with a PPA. 

Something I’m Watching. India elevating their fight with China on imports of renewable products amongst others.

Mayor Pete On Clean Energy. Today, Clean Energy For Biden is hosting Mayor Pete Buttigieg on Clean Energy and Climate Change. The event is at 7:30pm EST. You can RSVP on the link and donate here.

Nonprofits Want Solar Too. My friends at CollectiveSun can help you sell more solar to nonprofits. By working with CollectiveSun your nonprofit prospects get easy $0 down financing and a 12% or more tax-like credit for their systems. Now, more than ever, solar can help nonprofits save on their critical operating expenses. If you are a solar installer or developer, this is a great solution for you to sell more solar and ignite more deals with nonprofits. Click here to learn more about working with CollectiveSun.

Opinion

Best, Yann

This is your SolarWakeup for July 3rd, 2020

Time To Reload. Hannon Armstrong acquired 49% of the 2.3GW Engie portfolio consisting of wind and solar assets. This type of transaction allows both parties to benefit. Hannon, as a public company, is looking to deploy capital into assets that are yielding consistent returns. Engie also gets to retain control and return capital to the teams for future deployment. Hannon is the REIT that will put solar assets on the map for dividend focused investors.

Truth Starts Coming. NERA, the probably front group trying to federalize rate regulations, is trying to argue it’s way back into a case to be heard by FERC. With near unanimous dissent on the original filing, we now have at least some information on membership including an individual tied to a firm that has several IOU clients. There are 15 members of the group, ten of which pay $20,000 per year. Think about that, what group are you part of that has 75% of its members paying $20,000.

Utility Virtual Power Plants. Portland’s utility is getting into the virtual power plant market that is going to drive more headlines over the next few years. This pilot allows for over 500 homeowners that either have a battery or would like to buy one to benefit financially from interacting with the utility. Not for nothing, Portland’s utility was also the partner on my first large rooftop projects some 12 years ago.

Happy 4th of July. Stay safe, stay home and think of the things that make America great. We’re lucky to be here and working in the industry doing really great things. 

Opinion

Best, Yann

This is your SolarWakeup for July 2nd, 2020

More To Come. Come back tomorrow for more analysis of the solar news. Make sure to listen to my interview with Nick Chaset of the EBCE CCA as we talk about the Virtual Power Plant. Next week, we talk with Orison CEO, Eric Clifton about their upcoming launch and recent capital raise. 

Opinion

Best, Yann