This is your SolarWakeup for October 21st, 2020

A Look Ahead. With Biden ahead in the polls a lot of talk is heading into the what if and how things would look in solar so let’s partake in the punditry on the various topics in today’s news.

Mad Money Returns To Solar. Jim Cramer is no stranger to talking about the next big thing in solar, here he is with David Crane 5 years ago. Couple of things are different today, solar has a lot more to offer in the public markets and some of the hottest stocks in solar have great positive cash flow, GAAP EBITDA and the benefits of a growing market. No doubt that the solar stocks are benefitting from the what if valuation that expect 2021 and beyond to be the start of the solar decade. If you listened to our market call yesterday you saw the underlying data that showed 2020 was off to a greater than 20% growth and lagged only from April to July and is back to 2019 levels. What’s happened at the same time is a massive growth of backlog both in residential contracts and interconnection queues.

Roofs And Parking Lots. This is the goal, how do we get solar on every roof and parking lot in the Country that has the technical potential for it. That’s what a Maryland siting report is confirming, we can meet a lot of the goals with existing infrastructure. For presidents, the first 100 days and getting actual results in the first term is key. For Biden, and planet earth, increasing the pace of solar construction at the start of the administration would be a key indicator of a change. And for executives, KPIs are a great way to measure success.

Climate Change, AKA King Tide. Miami has become one of the leading examples of how climate change will impact everyday life, we even have a word for it that doesn’t scare everyone. There are days in the month and times of the year when the water levels are so high that docks are under water and water comes out the storm drains. Right now, we are at the peak season and you wouldn’t believe it but roads to the most expensive beachfront homes in Broward County were closed. Why, you ask? The roads were underwater.

EPA Is Ground Zero. Trump’s EPA may be trying to change coal ash regulations but it’s doubtful that those regs would stay intact if Biden wins in a few weeks. The follow up to that is what might a Biden EPA do for coal ash regulations to have cleaner air and ultimately make sure that coal plants close at a much faster pace. Rumors of Inslee getting tapped for EPA administrator are a signal of where climate would reside from an executive function but names like Mary Nichols also open up the possibility that electrification of transportation is a priority as well.

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