The Other Factors. It’s not all tariffs and duties when it comes to markets. CFIUS and other regulatory approvals can shape markets as well. This isn’t just a China topic, this is all foreign investment in renewables that could be impacted if CFIUS review takes too long. I don’t expect this to become n too big of a topic but keep your eyes on similar things that happen to your business and supply chain.
Tesla’s New Investor. Lost in the ‘funding secured’ tweet was the other story of Tesla’s day. The Saudi sovereign wealth fund has taken a significant position in Tesla, somewhere north of $2billion. Considering that the money was made on selling oil, you have to acknowledge the success that Tesla has had to show the world that electric cars have a future and oil exporters need to create a hedge by taking a stake in the market segment that will disrupt oil.
Making Local Decisions Count. When I asked Jon Carson how his solar development business was similar to the days when he activated local voters for Obama, he told a riveting story. In a classic way, he tells the story of the local ironworker sitting in an open house held regarding the solar farm. The solar project is the political candidate and getting local support means telling a local story. Thank you, everyone, for the feedback on this podcast, I am glad you enjoyed it thus far.
Opposition To Municipal Solar. This has probably happening in the past but it’s the first time I see it in writing. A utility lobbied a municipal government not to sign a solar contract that would save money. It’s the inside baseball that shows how local incumbent markets will get.
Bad Solar Exhibit A. Keep them coming! I got some great submissions yesterday on bad solar, have you seen bad installs and want to share? Send them my way and send a caption for this solar sail!
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By Frank Andorka, Senior Correspondent
By Frank Andorka, Senior Correspondent
Corporate renewable energy procurement has hit a new record high in 2018, according to the Business Renewables Center, an arm of the Rocky Mountain Institute. Procurement levels reached 3.57 GW, beating the previous record of 3.12 GW in 2015 and increasing nearly three quarters of a gigawatt ahead of last year's number of 2.87 GW.The Business Renewables Center applauds the acceleration of corporate renewable energy procurement and the dedication these companies are showing to turn commitment into action. We are bearing witness to unprecedented growth in this market, which is critical to achieving the goal of a clean, prosperous, and secure low-carbon economy.Unsurprisingly, Facebook led the way, putting corporate procurement into record territory with the deal it announced last month to procure 437 megawatts (MW) of solar energy from Pacific Power for a data center in Oregon. The announcement also claimed:
[This] highlights the growth of corporate-backed renewable energy transactions, which have totaled 13.52 GW in the U.S. since 2008, according to data collected by RMI’s Business Renewables Center. To date, BRC member companies have been involved in 99% of all U.S.-based non-utility transactions for renewable energy, and the number of corporates contracting directly for clean energy has grown from just four companies in 2013 to nearly 60 companies today.The year-over-year growth is not unexpected, particularly given the difficult circumstances the solar industry found itself in last year with the tariff discussions. Corporations were waiting to see how the tariff situation would play out before deciding to move forward with solar procurement. What is most interesting, however, is that not only have the circumstances not changed significantly - the 30% tariffs are still in place - but the situation has gotten worse (with new 25% tariffs being imposed on inverters and modules). And yet corporations are still investing in solar as their future - which is an indication that the Solar Revolution has moved beyond its strictly policy-driven past and into a future driven by pure economics. And that is something we can all agree is best for the solar industry in the long run.
By Frank Andorka, Senior Correspondent
By Frank Andorka, Senior Correspondent
Knoxville, Iowa, has been working on developing a solar plan for the city that would save it nearly $400,000 over the lifespan of a 30-year power-purchase agreement (PPA). But when it came to the final vote, MidAmerican Energy - the city's utility - came in and tried to lobby against it. The last-ditch attempt to keep solar from the citizens of Knoxville failed on a 3-1 vote, according to reports in the Knoxville Journal-Express.Renewable energy is something I care deeply about, so I know how some of these things work. [The utility] didn’t present us with any data that said this wasn’t a good choice for the city. This shows people in our community that we are progressive. We’re excited about renewable energy. We’re taking a leadership role in providing some solar capacity for our city facilities.Even with Knoxville council's blessing, the deal with Red Lion Renewables isn't a 100% done deal. As the newspaper reports, the developer:
...needs to raise $150,000 for the most visible array, to be built as a parking shelter on a city lot just north of the firehouse at 308 S. 3rd St. It would power City Hall, Knoxville Fire & Rescue and the Knoxville Public Library, but nothing will happen if the money doesn’t emerge soon....If MidAmerican read SolarWakeup, they would know they're going to struggle to convince Iowans that renewable energy is not the way to go (although part of their argument was that they weren't against renewables; they were just against non-MidAmerican owned renewables). As we've been reporting recently, one of MidAmerican's competitors, Alliant Energy, has already agreed to pay to shut down a nuclear plant and eliminate coal from its portfolio by 2050. Plus, the last-minute nature of their appeal is suspicious. Council meetings are public record, and you can be sure this issue didn't just crop up on the most recent council agenda. So why were they rushing in at the last minute to attempt to scuttle the deal? Only MidAmerican can answer that question - but Knoxville's city council didn't bite at their argument - and if the money comes through, it looks like Knoxville, Iowa, will become the next city to add solar to its electricity-generation portfolio outside of the utility's grasp. More: City solar plan survives power struggle with utility>
I’m Keeping SolarWakeup Private. If you missed the fun yesterday, Elon announced via tweet that he is thinking about taking Tesla private. The talking heads quickly went to SEC violations, Elon’s desire to burn short traders, or the ability for Elon to pull it off. But when you combine the shorts in the stock, the accounting nightmare that solar can cause to GAAP accounting and what Jim Cramer says about Vivint Solar makes you realize that Tesla would be much better off as a private company. Changing the world is hard and takes time, time that Tesla’s investors are willing to let the company have.
Talking Solar In Politics. I like all my interviews, but talking to Jon Carson was a personal high for me. Jon is now leading a solar development firm, Trajectory Energy Partners, which made the interview relevant for our audience. But prior to solar Jon helped elect Barack Obama to the White House and that’s a story I wanted to hear. Aside from his solar development tactics, which were great, I asked Jon about how solar plays at the highest levels of DC politics. Check out the interview here.
Maryland Forward Motion. Frank gives you some details about yet another pilot project in Maryland. Solar could be so much bigger than it is and yet Maryland still struggles with its politics that tries to play the middle. It’s time for the legislature to act on strong policies that enable a sustainable solar market which will lower the costs of energy for consumers.
Bring Your Solar To MS. A 9% increase in rates for Mississippi energy customers means they’ll pay an all in $0.139/kWh for electricity. In 18 months, expect rates to rise drastically once again which means that solar companies will see a great reason to go there now and build some solar homes with storage. Absent strong policies, use the technology price declines to enable MS residents to make their energy choices.
Solar Wall Of Shame. You’ve been sending me great solar pictures, keep doing that and make sure to add your logo to it and send it along. Some of you have been sending the worst of the worst as well. Let’s put some sunshine on the bad solar installs, I’ll be aggregating this and work with SEIA and others to make consumers ask the right installation questions. Send your worst of the worst install pictures and we’ll see who gets on the wall of shame.
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Yann