Join Me At Equinox. The famous Vote Solar event is TONIGHT! Make your way to San Francisco and give to the cause that gives back to you. You can get tickets here, do it now.
Your ITC Feedback. Over 125 responses came back from the SolarWakeup readers on your thoughts for what the ITC means. Many of you jumped right into some of the ways to make it better but the overwhelming majority described what your business looks like without the ITC which for residential installers is just a few years away. Module prices are increasing and the 4% decline will hurt your market if you are in the edge markets that are just starting to bloom. Your fear is that it will never be able to go up again and it will take another 5 years to get your market back on its feet. The feedback also talked about the fairness of ITC having to compromise when oil and gas never seem to have to give their subsidy back. One feedback back to you is that while I share some of your sentiment and make it public, you need to be talking to people that have the ability to make this happen. SEIA may be reading these comments but you need to do the minimum and join at their new Basic Level for $750. This gives you the access and ability to make your voice heard at the national level.
ITC Reality. At the end of the year the ITC goes from 30% to 26% which for project financed projects reduces capital stack by about 5%. For homeowners, this means around $1,000 less from the tax credit. For both market segments, it is real money that causes some markets to fall out of favor. In less than two years, the reduction is double that amount before ultimately going to ZERO for homeowners and 10% for 3rd parties. This is an unacceptable standard of support given the impact solar has on the US economy and fighting climate change.
The Politics Of It. I am going to give you a few examples of the political landscape just this week. Representative Ocasio-Cortez went viral with 11million views on her speech about the immediate threat posed by climate change. I am sure if asked, Rep. Ocasio-Cortez would agree that solar plays a central role in her plan including the Green New Deal. Mayor Pete Buttigieg of South Bend, Indiana, signed the No Fossil Fuel Money pledge for his run for the presidency. Not afraid to shun the money and speaking out forcefully for the need to fight climate change, a generational threat as he states. In the Senate, Senator Brian Schatz of Hawaii made note of the ‘jokes’ his colleague from Utah exhibited on the Senate floor. Climate change is no laughing matter and needs to be addressed immediately. My point is that we should be miles ahead of the politicians on this. I am used to having to drag politicians halfway to my position but in this case we are hesitant to leap with them on the issue of climate change as if solar is now too big to accept our place in the fight.
The Political Reality. When the ITC extension happened, the solar industry was overjoyed. It was a last minute deal in exchange for the oil export embargo ban. The ban was lifted for good and solar was extended with a step-down. But the following years were supposed to be for solar to grow and drive costs down. Instead the entire 2017 year was spent fighting 201 and then a 30% tariff on modules. On top of that the tariffs were placed on aluminum and steel. The solar industry wasn’t in a position to execute to our fullest extent and that is why the support needs to continue longer. The political reality is that many in Congress are expecting solar to play a large role in their fight against climate change and they need to hear from us what we need. The political reality is also that nuclear is out with big asks and oil/gas continue to get big tax breaks. There is plenty to trade in Congress to get solar the tax credit we’ve maximized the value of. It is the only tax credit that has become more efficient over time for taxpayers. In a divided Congress, our lobbyists should be supported by our industry making calls and standing by ready to act. My ask is simple, we need to stand up and say that solar is the industry that will move America forward and stand on the front line to fight climate change. We ask for continued support that we’ve enjoyed over the years and additional equity with other energy sources. Support of the ITC at the continued rate and equity with the rules used for oil and gas is the ask I would personally ask for.
Presented by CleanChoice Energy. The premier community solar and renewable retail energy service provider in the United States. CleanChoice’s marketing, sales, and operations teams offer the most comprehensive customer acquisition, retention and management service to community solar asset owners and developers in the market today. CleanChoice aspires to make renewable energy accessible to all, working with more than 40 partners in every community solar market. Our regulatory team is working to expand the community solar market and uses our relationships in state capitols to benefit our partners. The company is one of the fastest growing businesses in America, as ranked on the Inc. 500 and Deloitte’s Technology Fast 500™. For more information, visit CleanChoiceEnergy.com.
- Greentech Media: Nuclear Energy Institute Seizes on Climate Momentum to Push for Policy Boost
- Think Progress: McConnell’s Green New Deal ‘stunt’ shows how little GOP has to offer on climate change
- CleanTechnica: Puerto Rico Passes 100% Renewable Energy Legislation
- Utility Dive: Electricity costs from battery storage down 76% since 2012 – BNEF
- Denver Post: Can solar power, agriculture and beehives co-exist? A farm outside Longmont is trying to find out.
- AZ Central: SRP approves rate decrease as directors argue about solar power and batteries
- Department of Energy: Department of Energy Selects $36 Million to Advance Solar Energy Integration
Opinion
Have a great day!
Yann