This is your SolarWakeup for October 20th, 2020

Solar Permits Discussed. This morning at 10am eastern, join me on a conference call with Chris Collins from Ohm Analytics and Phil Shen from Roth Capital to talk about the trend of solar permitting from across the country. You can register (free) here.

More Racking Acquisitions. It looks like there is more welding of racking companies to happen according to reporting by PV-Magazine. This isn’t surprising, especially on the coattails of the Array Technologies IPO. One of the things that I hope gets revisited in the new administration is the removal of the aluminum tariffs for the raw commodity. This artificial increase in price has been the foundational reason for closing of US manufacturing plants by racking companies and that’s been a bad trend. Until recently, my former company (Quick Mount PV) made almost all of their products in their California plant, now closed by the new owners unfortunately. That being said, accessories to the growing solar markets are a great and profitable business.

How To Electrify. SolarWakeup’s friend and fellow CALSSA board member, Barry Cinnamon of Cinnamon Energy Systems, tells his story of electrifying his home in the Bay Area. Personally, I haven’t quite made it to full electrification at my home but anyone that hasn’t tried induction cooking is missing out. If you’re curious but want to be sold on it, you can get a plug in version for under $100. It does pose the question as to how solar installers will integrate (or not) generators in a generac system. It also becomes a topic of discussion for utilities looking for virtual power plants that include residential generators or grid charged electric vehicles.

Imagine The Memo. In a $10billion transaction ConocoPhilips is acquiring Concho Resources, resulting in one of the biggest footprints in the Permian Basin of West Texas and New Mexico. It reminded me of a discussion I had with a former boss of mine about whether we should buy projects in Argentina. He said, we can only buy this project if we get our money back before the next election. Conoco must be asking itself how fast it can get its money out of this project with continued low pricing and a future where methane regulations, flaring prohibition and environmental inspections actually become a reality.

The LCOE Review. Here is your 14th annual LCOE report from Lazard and their 6.0 of the storage analysis. This annual report has been a long time trend line that shows solar getting cheaper. Here’s your prediction for version 15.0/7.0 and 1.0. Not only will things get cheaper, but more valuable. The 1.0 will be the combined value of both and the benefits it creates for their portion of the grid.

Covering The ITC by M Bar C. In the last 15 years, the Investment Tax Credit (ITC) has allowed organizations to benefit from substantial cost savings to solar installations. This sustainability-driven program has helped revolutionize the renewable energy industry. Regardless, in 2021 ITC benefits will shift; here is what you need to know from my friends at M Bar C Construction and how we can help you and your organization take maximum advantage of these savings while they last.

Opinion

Best, Yann