This is your SolarWakeup for May 15th, 2018

Join me in Chicago on June 21st. This event builds on the success of previous SolarWakeup Live! events and expands to a full day. In addition, we are hosting a matchmaking series where developers and investors will be strategically matched with conference room space available for the right kind of business development. Get your tickets at solarwakeuplive.com.

Buying Solar The Right Way. When FMPA, which is the buying organization for much of the Florida municipal entities, announced the 225MW solar project with NextEra I was a bit taken aback. I’ve got several concerns but my first one was how NextEra won a competitive RFP. Come to find out that FMPA didn’t solicit the procurement widely, quite the opposite, it went small. Three of the bidders were the Florida IOUs and the others are listed in the article, SolarWakeup is the first to publish this list. My other concern is the technical issue of FMPA having to work with FPL on joint power plant ownership and other regulator transactions. It was also a longstanding understanding in Florida that NextEra would not do business in Florida. All the backroom dealing is not unexpected but my biggest concern is that solar isn’t showing its best foot here. The price could have been exponentially better, Florida is one of the cheapest solar states to build in and a real RFP would have benefitted FMPA customers in a really big way. Maybe folks should file protests with the members.

Just Tell Me The Rules. Amy Harder has interesting reporting about the administrations many deregulation efforts, this week the CAFE standards being in the spotlight. While industry is mostly in favor of less regulation, they also understand that their investment horizon is longer than the Trump White House expected lease in DC. What most in industry are looking for is a regulatory system that is more of a straight road than a yo-yo. Everyone also understands that pigs get fat and hogs get slaughtered so eliminating regulations may be good for the bottom line today, it may crush you later.

Can’t Take Utility Out Of Utility Regulator. At some point, can we talk about the value generated by distributed generation instead of only the bad stuff. Does it lower demand on the grid? Yes, it does. Does it require less investment by the grid operator for future upgrades on the system? Yes, it does. So why do we only worry about the by passable charges?

Buying Anti-Solar Support. In this case, it was a power plant hearing where a utility hired a PR firm which in turn hired actors or paid protestors, whichever way you want to look at it. This is the stark contrast where solar has rallies where we may not have the paid for political influence but we have the numbers. Look at CT as an example. Who, besides the utility, wanted net metering to be killed? In MA, the same utility (Eversource), is seeking fixed charges for distributed generation. Solar pros are hosting a protest to show the regulators that this is not what the regulation intended when SMART was put into effect. The rally details are here.

Rooftop Solar Mandates. It was titled the solar battle of our times but I don’t see that much controversy in the California mandate for rooftop solar on new homes. Even at today’s rates the numbers work based on the cost of mortgage financing. On the other hand the homebuilders are good at building with volume pricing and no customer acquisition costs it should all get much better to the upside.

Opinion

Have a great day!

Yann