This is your SolarWakeup for April 26th, 2019
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Yann
This is your SolarWakeup for April 25th, 2019
Earnings Season. Tesla earnings are always interesting because they kick off the residential solar data flow that I am currently personally interested in with my day job given that I run a racking company. Tesla, without really trying, installed 47MW of solar on down from 73MW last quarter. Sunrun and Vivint Solar will be following with Q1 data shortly to see how it plays out. It has been raining in California and Q1 is historically the worst in terms of builds and backlog growth. I am also listening for input on impact from tariffs especially on racking supply given that Sunrun and Tesla both have a big investment in their own racking systems through their (long ago) acquisitions of SnapNrack and Zep accordingly. Their growth also means the growth of the overall solar market which is a market positive and enables other companies to reinvest into their own businesses. Q1 in the books and we’re rolling on Q2, let’s go!
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Yann
This is your SolarWakeup for April 24th, 2019
Showdown In Sacramento. The saga continues but let us back up for a minute. The dramatic increases in return on equity may not actually mean that is what they are looking for. Ask for a 50% increase and get 25% and the shareholders still get what they wanted. My opinion is that the reward should go to the party that takes the most risk so you cannot possibly ask for the ROE increase while also asking for indemnity. The Governor also opined yesterday, saying that “Not gonna get it . It’s jaw droppingly wrong.”
Growing Energy Load. Utilities do better when energy load increases and that is why solar has been viewed as a threat to utilities in the past. Electric vehicles are now growing like crazy and they need to be charged and as I’ve said in the past, represent the first time that utilities are in the same market as oil companies. It also provides a great factor for growth. None of this is news really but it’s no longer a future situation.
Hopkins Goes Solar. My alma mater is going bigger in solar striking a deal with Constellation Energy and a solar farm in Virginia. This will get Hopkins to two thirds of their energy consumption. I hope the other third will come through solar generated in Maryland.
More Info On VDERs. The changes in New York were a hard fought victory by many solar trade associations and there is more coverage on the issues that will grow that market. I look forward to seeing New York fulfill the future that they’ve been trying to achieve.
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Yann
This is your SolarWakeup for April 23rd, 2019
Get That Money. PG&E has filed a normal request with a strange twist at the CPUC. It is asking for a raise for its shareholder return, which is typical, but it’s asking for a raise of over 50% to 16% from 10.25%. Shockingly, and coincidentally, SCE and SDG&E also asked for massive increases to the ROE. I’m still taken aback by the unprecedented ask and can’t help but wonder what legislators are thinking, especially if they’re thinking if there is a better way. The CCAs around the State and utility execs in other States must be in shock by the ask as well, what could possibly warrant a high double digit return for shareholders of a monopoly? What would regulators say if solar came to the table and said we want guaranteed revenue streams at the same ROE as utility shareholders?
In Awe Of the Flaw. Energy Twitter went bananas yesterday for a report from the University of Chicago. The report that is on the way to be peer reviewed has a big headline, RPS policies are very expensive climate policies that are far more costly than carbon taxes. Without going into the details and analysis methodology, do expect more of this report to be discussed and rebutted in the media. I bet that the anti renewables folks will be using this unfortunately to make the case against solar and wind.
But Wait, There’s More. When solar isn’t breaking records or wind is causing negative energy rates, they are causing massive savings to the system. In the latest Duke procurement, the generation will save consumers $375million over the 20 years. I’ll take facts over headlines any day I guess.
Nevada Steps Up. It didn’t take long, Governor Sisolak has signed the 50% RPS, 100% carbon free bill that passed the Legislature. This is the month of 100% clean energy policies, maybe Florida will follow right behind?
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Yann
This is your SolarWakeup for April 22nd, 2019
Two More Pods. Find my conversation with Mary Barber of the Environmental Defense Fund and a discussion on development of solar projects in New Jersey. If you haven’t subscribed to SolarWakeup’s Podcast, I’d appreciate you trying it as we continue to grow this platform. Our interviews from Boston will start populating over the next few weeks, make sure to catch them as soon as they get out.
VDERs Redefined, Applauded. The NY PSC came out with major updates to the VDERs that enable more solar to get done in New York State. Some of the updates include the revision on the valuation for solar generation and provisions that enable more community solar to get done. It also increases net metering to 750kW to get more commercial properties to install on site generation.
Nevada Goes The Distance. Last week we applauded the NV Senate for passing the expansion of the RPS and now we will do the same for the NV Assembly. This is the next step in a long process for Nevada to do the will of the people. The Governor is expected to sign the legislation before it goes back to the voters.
The Climate Mentality. There has been a 50% growth in people thinking that climate change will cause harm to them personally since 2008. 73% of respondents to the poll said that it will cause harm to future generations. Put this into context that we now know that part of the 2016 rhetoric from outside functions was to divide Americans with coal. This means that it’s okay to talk about jobs and economic opportunity at the same time as climate policy. It will now take proper talking points to explain that energy sectors like solar are inherently tied to policy, innovation alone will not do the trick.
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Yann
This is your SolarWakeup for April 19th, 2019
Have a great weekend! New pod out later today.
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Yann
This is your SolarWakeup for April 18th, 2019
A Development Podcast. Check out the new episode of SolarWakeup Podcast with solar developer, Jim Spano, in which we talk about all things solar in New Jersey as well as his new venture to bring REIT capital to solar.
Climate At Fox News. Senator Sanders held a town hall on Fox News and did two things we talk about a lot. When asked about national security he pivoted the answer to include climate change and terrorism in the Middle East, a clear signal that he was speaking to the audience of Fox News. Second, as the article says, “Sanders drew cheers when he said transitioning to renewable energy would create millions of new jobs.”
Duke And Solar. Duke is going to add a lot of solar in North Carolina including projects that it self developed. Now to the residential market, maybe we can do more there in the Carolinas including South Carolina!
Both Sides Of The House. Vistra energy is using its energy storage projects in Texas as a legislative tool in Illinois in order to keep their coal plants economical for a few more years. This transition from coal to solar+storage is interesting especially given the valuation that Vistra seems to be tying to their assets.
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Yann
This is your SolarWakeup for April 17th, 2019
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Nevada Goes For 100. Late yesterday, the Nevada Senate voted unanimously to double the RPS to 50% by 2030 and 100% carbon free electricity by 2050. Vote Solar’s Jessica Scott sent this comment after the passing, “This bold but achievable clean energy commitment will support good jobs, healthier communities and a brighter energy future for our children. We urge Assembly lawmakers to follow the lead of their Senate colleagues to pass the bill and send it to the Governor.”
A Labor Union Endorsement. The Maine version of the Green New Deal got an endorsement from the State chapter of the AFL-CIO which represents 160 unions in the State. The move and commentary is a welcome addition to the fight on climate change which usually sees solar and unions on opposite ends of the legislative fight.
Electric Fleets Financed. Proterra, the amazing company that manufacturers electric buses in the Bay area, has put together a $200million financing package to lease some 1,000 buses. The goal is that the upfront cost is less than the tradition choice. Electric demand may have been flat over the past 10 years, I don’t think (Shell sounds like they agree) that this trend will continue with fleets going electric.
On Bill Financing. This could be a big mover for financing clean energy in Hawaii, I look forward to seeing the results.
Internal Cost Allocation. Microsoft is doubling its overhead allocation to divisions for their own carbon tax. At the same time they are looking for legislators to work on this as well.
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Yann
This is your SolarWakeup for April 16th, 2019
Enphase Registers SunPower’s ENPH Shares. Last year, Enphase acquired the micro inverter business and IP from SunPower for some cash and stock while also receiving a 5 year supply agreement. (This is all in the public filings) SunPower’s shares are now registered by Enphase which means that SunPower could sell the shares if they wish.
Winning The States Though. Axios’ Amy Harder is right that Trump and Perry have tried quite a few tricks to help out nuclear energy. I would also say that State’s have done quite a bit that the DC folks would be supportive of including last week in Ohio which follows New York, New Jersey, Illinois and more. Rick Perry did head down to Georgia with over $3billion in the form of Solyndra loan guarantee dollars for the nuclear plant at Vogtle, over 6x the amount that Solyndra received.
Warren Goes Full Transition. Senator Warren has no more patience for the energy transition and is out with a public lands policy plan. The MA Senator is often out front with policy proposals and this one would halt new leases for drilling of any type while looking to increase renewable energy generation on public lands tenfold.
Inverse Condemnation. The PG&E saga’s next step happened today with the release of Governor Newsom’s Wildfire strike force plan. The 59 page document highlights the risks and costs of wildfires while also saying that something needs to happen with the financial risk caused by the natural disasters, regardless who causes them. The report also says that PG&E needs to do better and withholds an outright endorsement of the inverse condemnation which would pass the risk to consumers and taxpayers instead of shareholders. First, this is largely a reality because a regulated monopoly is almost worthless to the ecosystem without a good credit rating which at this point requires indemnity from wildfire risk. Second, with the political reality that this is bound to happen, I ask again, what is solar going to extract from this bailout of massive proportion?
Subscribe To The Pod. Make sure to go to your Apple Podcast app and subscribe to the SolarWakeup podcast and listen to the latest episode. Three new episodes are releasing this week alone and more to come!
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Yann
This is your SolarWakeup for April 15th, 2019
New Pod, Thomas Byrne. Catch today’s episode with CleanCapital’s Thomas Byrne which we recorded at SolarWakeup Live. We talk about their business focus on small(er) solar and how they are scaling that.
Join The 100 Club. Governor Inslee is getting a little bump for his media strategy with the WA legislature sending the 100% RPS bill to his desk. It is largely expected that Inslee will be signing the bill since climate change is his main issue for his presidential campaign. Personally, I’ve been waiting for a candidate to get on the debate stage and talk climate change for every question. Jobs, national security, refugee crisis, foreign policy, they all lead to climate change. Inslee isn’t at 65,000 donors yet so if you want to hear him on stage, go ahead an donate $1 to his number up.
Illinois Lottery. Did you win? Now that the block grant awards are out, what happens to the projects that didn’t get their award? Will the legislature look to act on the pipeline that is ready to build?
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Yann