This is your SolarWakeup for January 7th, 2020

Senate Switches Control, Goes 50/50. Early this morning and again this afternoon, news outlets confirmed the New York Times needle. Warnock and Ossoff have been elected as the next Senators from Georgia pushing the balance of power to 50/50 with the democrats controlling the floor with the Vice President breaking the tie. Solar stocks had one of the biggest days ever, some going up as much as 25% before an attempted insurrection at the Capitol brought the market down a bit.

What It Means. Functionally the biggest change with the gavel going to Senator Schumer is being in control of what legislation reaches the floor for a vote. It also makes every Senator the most powerful Senator because one vote swinging to the other side is meaningful. That one vote swing may mean that more Senators get what they want when legislation moves especially on the 20 Senators that are in the center of both sides of the aisle. More to come on policy punditry but not today. In the short term, as you saw with the Garland nomination as AG, Schumer is going to be much more powerful pushing Biden’s cabinet nominees through the Senate.

What It Doesn’t. Don’t expect giant climate bills to the tune of $2trillion to be made into law anytime soon. A 50/50 Senate is a balancing act including the effort to make sure Manchin doesn’t switch parties. I would expect Manchin to be heard loud and clear on energy issues and retain his chairmanship of the Senate Energy Committee.

The Platform Value. Carlyle’s infrastructure fund is investing $374million into Amp Energy’s platform for projects around the world. The investment highlights not only the strong desire to invest in renewable energy infrastructure but to do so in partnership with platforms like Amp. Just a few years ago, private equity was interested in projects but not the team and company that makes sure those projects are investable. I think this is a nod to all of you developers and analysts that have been arguing for more value to be put on the platforms.

Highlighting Permitting. I would appreciate your social media elevation of the op-ed on the need to remove permitting barriers for solar. You can find the article here and tag me on Linkedin/Twitter and I’ll make sure to return the favor.

Consolidate Your Power. As you walk back into your offices (remote or otherwise) you will realize that the conversation is about what isn’t available. Modules, inverters, wires, tax equity, labor and other core requirements are in high demand and short supply. On product supply look towards consolidating your purchasing with similar companies to maximize your access and keep your pricing competitive. We’d be happy to give you more information at the SolarWakeup Buyer’s Group. 

Opinion

Best, Yann