By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

Residential installer Sunnova left the Arizona market when it decided the regulatory environment was too unstable for it to function effectively. Now it has decided to return with a solar + storage offering. SolarWakeup wanted to find out what made it change its mind and come back to the Grand Canyon State. SolarWakeup (SWup): What has changed about Arizona that has encouraged Sunnova to come back to the state? Kelsey Smith, Sunnova Director of Public Relations (KS): Two things: The first is that there is more regulatory certainty about how the state plans to value solar. We still believe credits for excess solar generation should still be at retail rate but, although credits are now slightly lower, we at least have a better sense of what they are. And the second thing is that batteries are quickly coming down in price and it makes a lot of sense to pair them with solar in Arizona to help mitigate the cost of things like time of use rates and demand charges. SWup: Why did Sunnova leave in the first place? KS: The regulatory uncertainty in the state and the lack of clarity about how utilities were going to compensate solar customers combined with SRP’s demand charges made it difficult to do business for a while in AZ. SWup: Does Sunnova think batteries are the solution for states that have dismantled/are dismantling net metering? KS: We do. Having a battery to store excess solar generation negates any need to use the grid to absorb that generation. At some point, we think that the majority of customers will have batteries, and utilities will be incenting them to use the grid more by offering net-metering. SWup: Have prices in the battery market finally reached levels that make it a good investment for your average homeowner? KS: Battery prices have continued to improve year over year and the answer to a good investment is really dependent on two different issues. 1) Price of electricity: if the cost for a kWh from the utility is high enough then it can absolutely justify the cost of a battery to defer solar usage during the home’s peak usage or during utility on-peak rates (for TOU). 2) the value a homeowner puts on reliability and peace of mind. So, yes, while the reasons may vary, we see solar plus storage as a solid investment for energy resiliency, independence and reliability in AZ. SWup: What does Sunnova's solar + storage arrangement look like? KS: In Arizona, we are offering our Sunnova SunSafe™ solar plus storage offering as both a lease and a loan, which both come with our 25-year Sunnova Protect warranty. SWup: What makes Sunnova think Arizona is ripe for a solar + storage revolution? KS: Arizona is a legacy solar market – Sunnova’s first solar market—and beyond that, it’s a sunny state with a healthy solar market. With the ongoing tumult in energy policy and pricing, we feel that energy storage provides the flexibility needed to respond to a rapidly changing energy environment. We know customers in Arizona want choices when it comes to their energy and we feel that we can provide them with just that while enhancing their energy service through energy storage as well as smart home products that improve efficiency and economics in the home.

Welcome to August and if you’re European, I hope you enjoy your vacation! Have a great weekend everyone!
Going 100%, Burlington’s RFP. Burlington, VT wants to become a true net-zero city and wants help to do so. The RFP reads like a checklist of legislative goals that are a great guide for other cities at the least and aspirational in the ways that Burlington seeks to achieve its future. Well done.
A PACE Securitization. Congrats to my friends at CleanFund for a $103million securitization of PACE assets that crossed borders and technologies. Most importantly it was rate AAA, which shows the strength that PACE can provide to financings in the C&I space.
Corporate Green Tariffs. Between utility offtake and community, solar/contract for differences in the green tariff. A rate schedule that allows corporations to use their leverage in an economic development process to grow the production of solar generation in the service area. I think that many states that don’t want markets will have to create a quasi QF program for green tariffs.
Public Company Updates. Tesla and SolarEdge filed their quarterly updates yesterday. Tesla short sellers are getting into some pain and SolarEdge continues to show the future of DG solar.
Thoughts On MA? What’s your feedback on the MA legislation that passed this week now that you have had time to review it? Let me know.

Have a great day!

News

 

Have a great day!
Yann

By Frank Andorka, Senior Correspondent

By Frank Andorka, Senior Correspondent

It was the first city in the United States to become powered by 100% renewables. Now Burlington, Vermont, and its radical electrical utility are at it again - they have issued a request for proposals to become the first net-zero (NZE) city in the country. If it succeeds, Burlington could blaze a new trail for cities across the country the way it did with it commitment to renewable energy. After all, until Burlington did it, you never heard anyone else talk about such aggressive and lofty goals, did you? You did not. Now 72 other cities have joined the commitment, according to the Sierra Club's "Ready for 100" list. So how exciting would it be to see the same commitment to net zero after Burlington proves you can do it? First, though, the electric utility - the largest municipal utility in the United States with 21,000 customers - has to complete its RFP, which states:

Our concept of an NZE City encompasses sourcing as much renewable energy as we consume across the electric, thermal and ground transportation sectors (air travel is not included at this time), thereby displacing fossil fuel consumption.

The Burlington Electrical Department says it is already moving in the direction of becoming a net-zero city through its focus on energy efficiency and strategic electrification, while helping its citizens understand the goals and helping them get there. The RFP's authors write:

The success of the NZE effort depends in part on BED continuing to serve as a trusted advisor and partner to customers interested in energy efficiency and technologies such as solar, storage, heat pump technology, electric vehicles, solar + battery storage, weatherization, deep energy retrofits, commercial envelope, and HVAC, and lighting and other offerings.

BED will review proposals using the following RFP Evaluation Criteria:

• Has the necessary analytical and modeling capabilities to conduct energy/environmental/economic analyses to provide BED with multiple alternative pathway scenarios describing how to achieve NZE;
• Has conducted relevant work in the past for municipal or state governments or utilities;
• Demonstrates the ability to take complex data and information and provide it in a way that is useful, and transparent, for a variety of audiences including policymakers, regulators, BED staff, and the general public;
• Outline of a project plan that meets BED’s targeted timeline for an interim report (ideally early 2019) and final report (by July 2019);
• Demonstrates relevant experience presenting similar materials to policymakers, regulators, and the general public;
• Has expertise in utility-led energy transformation work and new business models for utilities, or “utility 2.0”.
• Understanding of electric utility business and financial structures, as well as general utility rate economics
Proposals must be made by Burlington Electrical Department approved vendors by August 31. The full RFP is attached below. NZE Roadmap FINAL RFP 7.27.18

A lightning round recap today on the top news in your solar inbox. Speaking of quick and easy, make sure you check out the junction box with integrated flashing for your residential installs. Available at most distributors across the Country.
Gone With The Wind. An Iowa nuclear power plant is closing in favor of more wind. This comes from one of the largest nuclear power operators, NextEra. Aside is the internal power struggle since CEO Jim Robo is a avid supporter of nuclear power and nuclear engineering. In the Spain wind rush a decade ago, Robo was notorious for his disdain for the money lost by his company in those projects.
Look At This Picture. You saw this article yesterday but when I looked at it again yesterday afternoon the picture caught my eye. It is a stock image of an installation in the Miami area. This is what many homeowners are getting now and it’s a shame. It also shows how much more we have to do to educate the AHJs and getting SEIA and the NRCA to warn consumers about the roofing aspect of solar.
Electrify It All. I can’t wait until the high mileage, route vehicles are electrified. The delivery trucks, transit and school buses, and postal vehicles are on/off or idling all day long. The routes and distances are very precise so the battery sizing is easy to calculate. The other side of mass electrification is how the concentrated charging will cause hotspots and peak power needs that will likely get served by batteries.
More PV Manufacturing. It looks like the Tesla plant in Buffalo is ramping up, good to see this happening. I haven’t seen them in the wild but hope to soon. Maybe some of the Tesla employees can invite me over now that I’m a local to the Bay area.
More FPL, In Florida. Florida solar is growing quickly, this time with more IOU rate based solar to the tune of 300MW from FPL. I think this type of capacity is causing FPL to think bigger than a threat from DG by focusing on EV growth and the upside of rate base for their shareholders.

Have a great day!

News

 

Have a great day!
Yann