This is your SolarWakeup for December 23rd, 2016

Hawaii will make solar easier. HECO is looking to increase rates by almost 7% to invest in some grid infrastructure. As rates increase, the proposition for the new version of net metering, which favors storage implementation, will become more attractive. As energy rates increase consumers will be more attractively compensated to produce their own energy, and coupled with dropping costs in energy storage should make the market interesting again.

Brazil solar market auctions. Companies have been hoping for positive results in Brazil for several years. Starting with auctions in 2014, Brazil was looking to break through as the largest market in South America. Combined issues in the political and economic sectors, ability to execute on the contracts were hindered. Those same conditions are leading a lag in growth in energy demand. Companies appear to be bullish on the future of the market nonetheless.

Solar’s competition. The headline may lead you to think that some slides will be explaining solar’s rapid cost decline which it does but the main takeaway from the article is more important. Who is solar’s actual competition? When was the last time solar competed against a natural gas plant? Utility scale solar has a different value proposition and competes against avoided cost while rooftop solar competes against delivered energy. Comparing rooftop to utility scale solar costs makes as much sense as comparing avoided to delivered energy.

Let me add one more. I think this is a pretty good list but there is another policy topic I look forward to. What State(s) will be seeking to do a nuclear bill in 2017? We have seen a rather attractive environment to push microgrid, efficiency, and RPS topics in those bills. As is true in most policy, compromise legislation yields happy parties on both sides of the issue.

Opinion

Have a great day!

Yann