This is your SolarWakeup for December 15th, 2020

How Fast Will EVs Grow? Mercedes announced that it is adding 8 EVs to the lineup including an Alabama built large SUV by 2022. By the time your next lease ends, this could be a reality and most likely this will be one of many. While it is still surprising to me that Ford isn’t fast tracking an electric F-150 and Explorer we are embarking in something that will seem incredibly obvious a few years from now. The electric consumer vehicle is going from 0-60 in the next replacement cycle, it won’t just be Tesla and Rivian but every brand you love today. Part of the reason for this is also what creates the growth in residential solar. A consumer goes from uneducated to skeptical with some particular characteristic, i.e. range anxiety or solar is too expensify. Then, all of a sudden, a neighbor puts solar on their roof and buys a Tesla and skepticism is potentially eliminated. That network effect becomes a flywheel effect when more than one neighbor changes their behavior.

Executing The Clean Power Plan. Gina McCarthy was the principal architect of the Clean Power Plan as the EPA administrator. She was highly effective, part of the reason it took the Senate 136 days to confirm her nomination. Biden is eyeing her as the Domestic Climate Coordinator and if you’re wondering how the dumbest, newly elected members of Congress feel about it, read the tweet. (Clicking the tweet will reveal a part of the internet you may regret visiting, do so at your own risk)

Will All Transport Electrify? California has 2035 as the goal line for the end of sales for new internal combustion vehicles but a group of European truck manufacturers are setting another bar. The group includes Daimler, Scania, Volvo and Ford are pledging to end ICE for trucks in favor of other sources like battery and hydrogen by 2040. American trucking is one of the largest job creators in the Country and how this industry evolves with fuels and self driving technology will shape the future in a big way.

Adjusting Power Generation. Economic growth used to mean that power needs and electricity consumption increased, heat maps would tell you which areas of the country are growing their economy. Energy efficiency has largely muted that correlation but when transportation electrifies, we will need to plan for a significant increase in energy need and the appropriate increase in generation. You cannot legislate this shift in consumption behavior by moving towards EVs without also including in the same policy guidance and requirements for ensuring the grid is ready for it.

Using Rooftops Better. Rooftops remain the most valuable and underutilized real estate in the Country. This will require regulators to create a long term rate schedule for C&I rooftops because capacity potential will often be larger than the consumption in the building. Leases for large buildings will always be less than the 20/25 years that it takes to get a solar deal done. Those two variables require the downside scenario of a PPA agreement to provide enough cash flow for the solar project.

Hot Jobs. Starting this week you will see the return of the jobs listings on our daily newsletter. This popular feature which was too difficult for us to maintain in house will now be a partnership with our friends at EnergeiaWorks. I invite you to check out their jobs listings which will be updated weekly and support SolarWakeup partners. At any point, if you’d like a personal introduction, please let me know.

Solar For Clubs. My friends at Sustainable Capital Finance (SCF) have seen an uptick in interest for solar PPAs from schools, country clubs, and golf courses, as these off-takers have been impacted differently than other C&I energy consumers during the COVID-19 crisis. Golf & Country Clubs have seen increased revenue from golf and other outdoor activities, while schools would install solar while students aren’t on school grounds. In both scenarios, savings from a solar PPA are extremely attractive. Click here to learn more about how their subscription-free, proprietary software, the SCF suite, can help to speed up your PPA pricing and transaction process.

Opinion

Best, Yann