Author Archives: Frank Andorka

Well, There Goes That Bulwark: Powelson’s Retirement Puts Coal, Nuke Bailout Back On The Front Burner

By Frank Andorka, Senior Correspondent

Opposition to President Donald J. Trump’s policies seem to be falling away at an increasingly rapid pace – one more obstacle to his nuclear and coal bailout has gone by the wayside.

Federal Energy Regulatory Commissioner Robert Powelson, who had steadfastly opposed the plans to prop up failing nuclear and coal plants unexpectedly announced that he will retire from FERC effective in mid-August. Powelson will be leaving to take over as the president and CEO of the National Association of Water Companies.

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Losing a staunch ally in the fight over the bailout at this stage does not bode well for the future of the opposition and makes it ever more likely that that plan, currently being hatched in secret at the Department of Energy under Secretary Rick Perry, will come to fruition – and that means a significant obstacle for solar’s continued growth.

As we’ve discussed here before, the idea of bailing out failing coal and nuclear plants when viable renewable replacements exist is the height of folly. Studies have shown that instead of lowering electricity costs for average Americans, the bailout plan will in fact raise prices. And in the light of such dire news for their constituents? Crickets from the alleged defenders of the common people.

In fact, Perry recently said that he was willing to put his mythical “energy security” concerns – his argument about the need for “baseload power” is so full of holes it might as well be Swiss cheese – above the financial stability of most Americans. It’s mind-boggling that people who spent a decade decrying bank and automobile bailouts as “picking winners and losers” (something they suggest should be decided instead by a 300-year old invisible hand) are now about to spend billions in taxpayer money to rescue energy sources whose time has long passed – and to whom viable alternatives already exist.

Losing Powelson to the water companies deals an enormous blow to the side of reason in the coal and nuclear bailout debate. Here’s hoping the other opponents remain steadfast in opposing this enormous waste of taxpayer money.

Suncommon’s Expansion Plans Get Boost From New Credit Facility

By Frank Andorka, Senior Correspondent

As the solar industry has continued to grow, it’s easy to forget that Burlington, Vermont, was the first city in the United States to go 100% solar. The Green Mountain State has quietly grown its solar industry somewhat below the radar, but there are signs that it’s beginning to mature as a market.

One such indication is that Vermont-based Suncommon, a residential solar installer, just recently received a credit facility to fund its expansion into the Hudson Valley from Citizens Bank. Earlier this year, Suncommon acquired New York-based Hudson Solar and plans to use the money to expand its operations into New York state.

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Vermont has a long history of environmentally friendly activism and passion, and the growth of its solar industry – and the expansion of its companies into other states – prove that the environmentalist heart of the state continues to beat strongly. But it is also indicative of two other important trends.

First, it proves the solar industry is bicoastal. While everyone focuses on states like California, Arizona, New Mexico and the like, a strong, vibrant and healthy solar industry is taking root in the Northeast, too. Secondly, no matter what coast the solar revolution is happening on, it’s the smaller states like Vermont where the most interest should be focused. States like California, New York, Arizona and Massachusetts are already well into the solar revolution and are, naturally, setting the curve.

But it’s in states like Vermont and Wyoming, where the state’s first major solar installation is about to happen in the real hear of U.S. coal country, where the revolution is the most remarkable. As those markets begin to mature and money starts to flow into those states, that’s when we’ll know the solar revolution has finally taken hold and won’t be shaken. Suncommon’s ability to get funding for its expansion is one more positive sign that we are rapidly moving toward that day.

SEIA Updates Residential Guide To Solar, Emphasizing Consumer Protection (As It Should)

By Frank Andorka, Senior Correspondent

It’s easy to talk consumer protection, but it’s another thing to actually do something about it. The Solar Energy Industries Association (SEIA) has taken it upon itself to be the most vocal advocate for consumer protection in the solar industry – and now they’ve got a residential consumer guide to match the rhetoric.

The national solar organization has updated its SEIA Residential Consumer Guide to Solar Power to reflect a focus on creating a positive buying experience for residential solar consumers with a one-stop guide to the ins and outs of purchasing residential solar, including what red flags should send residential consumers running for the hills.

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Any solar consumer can download the guide from SEIA’s website and includes the basics of solar energy and ownership options available to them – but goes one step further to include key questions consumers should ask solar installers before signing a contract. The guide is a result of a joint effort of the leading companies across the solar industry and goes hand in hand with SEIA’s existing Solar Business Code by which all SEIA members abide.

“The residential solar market is expanding into new states at a rapid pace, and because of that it’s critical that potential solar customers have the tools they need to fully understand solar transactions,” said Tom Kimbis, SEIA’s executive vice president. “By demystifying the buying decision solar can find its way onto millions of new American homes.”

But the guide doesn’t just stop with questions to ask about the system as it will serve the homeowner – it also includes questions about what consumers need to know before they sell the home with solar modules on it. It also addresses solar + storage, which is a new consideration for most solar consumers. SEIA’s decision to lead on the solar + storage issue shows how closely they are monitoring the market and trying to protect consumers throughout the solar-purchasing process.

“My company has been involved with solar installations since 1980,” said Ed Murray, president of Aztec Solar, based in Rancho Cordova, Calif. “The new SEIA consumer protection guide shows the strong commitment of our industry as solar has become a mainstream energy choice for Americans.”

Other industries I’ve worked in talk about consumer protection – the solar industry is the first I’ve seen try to do something to marginalize the bad actors before they have a chance to give the industry a black eye – an effort for which they should be applauded.

Open Energy Creates Competition With Its Commercial Financing Exchange

By Frank Andorka, Senior Correspondent

Commercial solar is the most challenging segment of the solar industry in which to find low-cost financing. Open Energy, a commercial financing provider, is trying to fix that problem by creating the first lending exchange for commercial scale solar developers and installers.

Called The Open Energy Finance Exchange, it allows more than 60 lenders to compete to fund a project, driving down costs and improving terms for project developers. The exchange reportedly will provide access to $5 billion in capital.

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The key to the exchange is the loan quote tool, which helps project developers get financing estimates, which provides them a better idea of how much money might be available to them with a PPA-based project or a direct-owned system and can plan accordingly. The quote is the first step for developers to access the Open Energy Finance Exchange and applies to power purchase agreement-based and direct owned projects from 50 kW to 50 MW.

According to the company, there are already more than $75 million worth of deals active on the exchange, with $35 million already matched successfully. By the end of the year, Open Energy targets $250 million of solar financing matched between lenders and developers.

Open Energy CEO Graham Smith said:

We want to take the search for finance off the developer’s plate and bring the market to them. The commercial solar market continues to have an immense potential but numerous obstacles, such as the time taken to source financing and a lack of financing choices, has hindered its growth. Over the last few years, we have worked hard to expand commercial solar financing and now we are taking the next step in growing the market with the Finance Exchange. With direct access to significantly more financing, we believe we can help the market truly take off.

Thanks to more difficult risk profiles and market fragmentation, the commercial market is still struggling to find its financing footing. The innovation of the Open Energy Finance Exchange is a welcome addition to the segment.