Over the past few weeks, a lot of the dialogue has been about my comments about utilities joining SEIA in some fashion. And this article summarizes my primary opposition to ANY utility involvement in our trade association and the trend continues in today’s news stories. I want you all to know that I am not sitting here throwing stones to stir things up, I am sincerely hoping for the industry to go into the direction that I believe is in all of our best interests. I want every solar company and trade group to be successful and thrive.

Why Utilities Matter. Here are the talking points from the Duke Energy President in South Carolina. “Duke has invested $6billion in renewables.” “Duke is anti-subsidy.” “Net metering is a subsidy.” All three comments are either outright false, misleading or intellectually dishonest. Taking an oped and trying to drive a wedge into public support by misleading the reader bothers me. Duke may have invested $6billion into renewables but did so mostly through its deregulated subsidiaries because they were allowed to compete. Duke is not anti-subsidy, because if they were they would not saddle their ratepayers with power plant risks, early cost recovery for unbuilt plants and fuel cost risk. Is this a company that you believe would have a voice in your trade groups that advances your business?

The Florida Solar Swamp. First the good news. Frank speaks with Sunnova’s CEO about their announcement to enter the Florida market. This comes on the heels of Sunrun taking the leap of faith and asking the PSC for a declaratory statement. More competition on residential solar will be good for a State like Florida where almost every homeowner wants solar. Keep your eyes on the adoption rate, it will surprise you. On the other hand, we have the start of a giant shady deal in Central Florida. The Florida municipal power companies have contracted in a PPA with NextEra on a 225MW transaction, made up of three 75MW solar farms. We will be looking into this in much greater deal but here is what we know already. Only 7 developers were invited to bid, this was not an open RFP. Of those 7, only two were invited to negotiate and they were not the lowest bidders according to sources. It may also be true that NextEra used FPL’s solar farms, which are paid for using rate base, as a statement of qualifications to win this deal. That raises all sorts of monopoly/deregulation firewall alarm bells. It is also very likely that NextEra has a PPA rate for FMPA lower than the cost of solar to FPL customers in the monopoly rate based solar. This makes my point for me that rate based solar should be put out for bid because the private market because competition is good for everyone. More on this soon, but it’s shady thus far.

Who Cares About NEM? The CT net metering fight worries me. From a press perspective, the media coverage of it has been slim to none. If my inbox is an indication, it almost appears that some groups have given up on the net metering fight in a State that sends an all blue congressional delegation to Washington DC. We can’t just worry about legislation that fixes a state solar market, we have to attack the markets and stop them from taking away the number 1 core value for any solar advocate, full retail rate net metering. Net metering is the rising tide in solar, without it, forget getting the support for interconnection processes that enable large scale RPS or PURPA markets.

Deep Energy State. I indulge in some tv watching and Madam Secretary is one of those Sunday night DVR specials. Normally I pay half attention as I type this newsletter but last week, I sat in awe as the natural gas CEO was in the Secretary of State’s office arguing against renewables and nuclear. Put aside the renewables piece, this was a lobbied influence campaign between natural gas and nuclear as they both argued to be the transition plan. Imagine playing the public influence campaign so thoroughly that you are pitching tv writers on your talking points.

NY ISO ‘Loves’ Solar. First, it’s the lightbulbs. Second, blaming solar for demand reduction is exactly why people consider net metering a subsidy. Demand reduction reduces the cost of infrastructure to ratepayers and therefore is a network benefit.

• The State: Why should the rest of us pay to subsidize people who choose rooftop solar power?
• SolarWakeup: SolarWakeup Podcast – Sunnova Makes Its Move Into Florida – Here’s Why
• Florida Politics: Florida’s municipal utilities go solar in big way
• Tampa Bay Times: Regulators to consider cost recovery for Tampa Electric solar project
• CT Mirror: Energy bill still embroiled in controversy but probably heading to the floor
• SolarWakeup: Madam Secretary – Don’t Just Spout Pro-Nuclear Talking Points
• Utility Dive: New York ISO – Distributed solar largely to blame for declining load
• E&E News: Suniva started a trade war. Now it’s being auctioned off

Opinion

• SolarWakeup: Connecticut Catastrophe, Part 2 – Solar Consumers Are NOT Utilities

Have a great day!

Yann

I hope you have a great weekend. Stay tuned for info about SolarWakeup Live! Chicago, the event you will not want to miss. A full day conversation about the hottest market in solar development..

New Podcast, Live! From Midwest Solar Expo. I speak with Greg Ridderbusch, the CEO of Connexus Energy, one of the largest utility cooperatives in the Country. If you want to learn more about the value proposition coops are looking for, listen to this conversation..

South Carolina Turn Around. Looks like SC is going to get a NEM cap increase. Great that it is happening and shows the legislative skills of the solar folks on the ground there. Hopefully it makes it through the State Senate. May the fourth be with us!.

Connecticut NEM Drama. There is very little outrage about this CT NEM attack from the solar industry. The policy is part of the Governor’s plan so if you are hoping for a veto, that is unlikely to occur..

Tariffs Suck. There seems to be a shift in messaging about the tariffs coming from the national trade association. During a panel with SEIA CEO, Abby Hopper, in San Diego this week, a panelist went unchallenged about the tariff impacts. A panelist said the tariffs have caused no disruption to the business but was not asked what could have happened if we were able to buy modules at the global pricing levels. A facebook post by SEIA yesterday did show some pushback about the tariffs and the issues they cause to the industry.

• SolarWakeup Live!: SolarWakeup Live! – CEO Of Connexus Energy, A Co-Op That’s Saving Money With Solar And Storage
• SolarWakeup: South Carolina Tries, Tries Again To Reach Solar Compromise
• SolarWakeup: Connecticut Catastrophe, Part 2 – Solar Consumers Are NOT Utilities
• New York Times: Trump’s Solar Tariffs Cause a Scramble in the Industry
• Utility Dive: Solar at the crossroads – Is utility-scale, distributed or both the way to go?
• Greentech Media: California Energy Regulators Delve Into Threats and Opportunities of ‘Customer Choice’
• Motley Fool: 4 Things First Solar’s Management Wants You to Know
• San Diego Union Tribune: CPUC judge rejects SDG&E pipeline project between Rainbow and Miramar

Opinion

• San Francisco Chronicle: California’s power grid is changing fast, and ‘we don’t have a plan’

Have a great day!

Yann

NEM Under Attack In CT. Over the next few days, CT solar advocates will have to fight for the future of solar in Connecticut. This is your reminder that democrats can be just as influenced by utilities as republican legislators. Regulated power companies will control as many State Capitals as they can, which is also a stark reminder to SEIA that bringing utilities onto the membership rolls at SEIA is a very bad idea. The idea in CT is to replace NEM with something more like a feed in tariff. All production would flow to the grid and be repurchased by the solar owner. This is a terrible idea, not needed and just an attempt to reduce the value of solar. Step up and beat this thing back solar!

Forget 2017, What’s Coming Up. As I was manning the microphone in Minneapolis talking about growth in the midwest around community solar, some of you were in San Diego talking about growth in solar. Next time, just come with me to Minnesota and you would have seen it first hand. As expected, community solar is a large growth space in our industry and many states are looking at launching new programs around this. I also expect residential to make big strides, if the NEM fights go in the right direction, due to the homeowner’s continued desires to have solar and more states are making the economics look good.

The Money Play In Politics. The headline is more fun than the story. Solar companies give money to republicans and democrats. If you heard what Mulvaney said last week, money in politics means access to the legislators. If you are looking for administrative help to site a project, move an approval along, etc, then you are sometimes better served to make a few campaign donations. Republicans are also in charge of the House and Senate which means that’s a part of the donating strategy. This is a bit of a to do about nothing.

Dominion Is Losing Its Focus. The Virginia utility, which is interested in buying the troubled South Carolina utility, is out with his power plan going forward. And instead of a ton of solar and storage, it continues the trend of monopolies looking for giant rate base that requires ratepayers to hedge fuel costs for the utility. Will Vote Solar and others fight these projects when they’re requested?

Mercedes Stays Mobile. Mercedes, which I spoke to in an episode of SolarWakeup Live! a few months ago, is leaving home energy storage. The idea was to create a channel for batteries after they are used in the cars. The price declines and technological differences mean that batteries will simply be made for both segments.

SEIA DG Vice Chairs. In the effort of full information. Good solar folks Ed Merrick and Deep Patel are also candidates for the position. All the best to everyone that steps up and helps lead our industry.

• SolarWakeup: How To Screw Up Solar With One Horrid Bill (Connecticut Edition)
• Greentech Media: 2017 Was Weird For Solar. What’s Coming This Year and Beyond?
• SolarWakeup: Well-Funded Republicans Get Solar’s Hard-Earned Cash
• Utility Dive: Dominion plans up to 3.6 GW gas, 4.7 GW solar in Virginia
• Energy Storage News: Mercedes-Benz Energy – No economic benefit to basing home storage on EV batteries
• Business Journals: SMUD sells out its 150 megawatts of shared solar power
• Vox: The stunningly unequal growth of wind power in the US, in 4 maps
• Reuters: Clean energy sector swings Republican with U.S. campaign donations

Opinion

• Bloomberg: Germany’s Electric Cars Are Coming for Musk and Tesla

Have a great day!

Yann

Conference Keynote From Rhone Resch. Yesterday, in his first keynote appearance since leaving SEIA, Rhone gave the keynote interview at the Midwest Solar Expo. It was largely tame and focused on his current work to find disruptive technologies in the disruptive solar market, but here are some highlights. Rhone mentions that more trade uncertainty could be on the way including the tariffs on  $100billion worth of Chinese imports. He says “solar is getting its butt kicked in DC” and shouldn’t have been “playing defense” while a major tax reform and spending bill were passed, both presenting opportunities for solar to gain. When it comes to the 201 trade case result, he cautions a need to temper the enthusiasm for the 30% result. “This wasn’t a victory”.

More Solar For Florida. You heard it here first. Sources close to Sunnova are telling SolarWakeup that they will be entering the Florida market. This comes behind the positive statement from the PSC for Sunrun on the fixed price lease. While the PSC statement is specific to Sunrun, I don’t expect others to follow suit and request PSC to bless theirs as well. Here is our coverage.

Spruce Exits Loan Business. Yesterday, a well written commentary on Linkedin explained that Spruce had exited the loan business. It mentioned several reasons for the exit which may leave Spruce as a company largely holding a software as its biggest asset. Word has it that an email went out to staff and a few minutes later the portal was shut down to the partners. The finance business can be as tough as the other segments and this shows the results of harsh competition.

Solar Gains More Roots In Minnesota. A 42MW portfolio of solar assets is being marketed to the residential consumers in Minnesota. Resi off takers offer the combination of highest credit values and the benefit of a FICO score. The reason this is news is most have not focused on residential because of the issues related with having this many customers and the cost to acquire them. I expect more retail energy companies to be in this space, surprised we haven’t seen this already.

• SolarWakeup: BREAKING – Sources Say Sunnova Is Heading To Lucrative Florida Market
• Greentech Media: Spruce Finance to Exit Solar Loan, PACE Origination Business
• Public Radio: New project expands solar offerings for Minn. residents
• Think Progress: States sue EPA over plan to weaken vehicle emissions standards
• Rocky Mountain Institute: When Cheap Doesn’t Cut It – Why Energy Buyers Should Look at Value, not Just Cost
• Post and Courier: Let S.C. solar industry grow in way that helps customers
• Reuters: U.S. moves up to second most attractive renewables market after China – report
• Bloomberg: Tesla’s the `Biggest’ Reason Why Rooftop-Solar Leasing Is Fading

Opinion

• Utility Dive: Lithium-ion domination could block promising storage technologies, MIT finds

Have a great day!

Yann