This is your SolarWakeup for August 20th, 2018
SB 700 Advances In CA. After a great day of lobbying by the 200 solar pros in Sacramento, SB 700 came out of the House Appropriations committee with a positive vote on Thursday evening. This means that the bill heads to the House floor and is expected to come to a vote. If successful, the bill may head to the Senate before going to Governor Brown. This is a fantastic bill that extends the SGIP funding for 5 years and lays the groundwork for future Governor Newsom to lead solar further down the road. A 5 year SGIP is key to solar’s growth given the importance of storage within a solar value proposition in time of use rates. California would lead the volume that drives the cost of storage down for States that are a bit more aggressive on net metering than pro-solar markets.
SC Utility Board Ousted. As I often do, I go to Twitter to see what is happening and a story made its way through energy Twitter on Saturday. A shareholder meeting of a co-op utility in South Carolina was gathering a crowd that was far bigger than any before it. When it was all done, shareholders voted to fire the board by an overwhelming margin for abusing their positions and excessive pay amongst other things. It’s an incredible story that could be a precursor for utilities across the Country if they abuse their positions.
Module Costs Decline. I’ve stopped guessing what happens to the stocks, especially solar stocks but this review of First Solar takes the view of module costs which is interesting. What happened to the pricing after tariffs and where is it going? I’ve heard not only Chinese pricing but all module prices dropping consistently into a market favorable way. Let me know what you’re seeing.
The Impact Of Policy. Utah is a strong solar market and has shown great residential solar growth. Some of the largest residential solar companies are based there. But with limited local advocacy support there was a change in net metering that has caused a bit of a reset. I’ll be looking at the State chapters a year after speaking with many of the State chapter directors to see how the industry can prop them up.
Solar Compared To Homebuilders. Homebuilders have national brands but for the most part they are quite fragmented like the solar industry. Jon Carson uses homebuilders as an example of a market that does very well in DC. Here’s my discussion with him.
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Yann
This is your SolarWakeup for August 17th, 2018
Let’s Talk About Money. As you head into the weekend think of this positive victory. CALSSA let the industry know that SB700, a 5-year extension of SGIP, has cleared committee and is headed to the Assembly floor. This victory is due to the lobbying of the industry and the daily advocacy of CALSSA and a few larger companies with dedicated policy staff. We’ve all heard about the complaints from me and the advocacy groups is that there isn’t enough money flowing to the trade organizations. The typical response and justification is that we’re the solar industry and we won’t fight money with money, we will never have enough of it. I’ve bought this line over the years but I think it’s also become a self-fulfilling prophecy. Let me elaborate. Inside the industry, not enough companies are paying enough dues to State chapters and solar advocacy groups. I get it, money is tight in an industry that is stingy with margins. At the same time, 260,000 people in solar and if each paid $10 per month in advocacy dues, we’d have $30million more per year. Companies that do pay advocacy dues should go out of their way to support other solar companies that do as well and given the choice of two, should choose to support the one that stands side by side with us. But there is another source of money that should be supporting solar groups, groups like Vote Solar. The millionaires and billionaires that talk about climate change and renewable energy should endow our industry with hundreds of millions of dollars. That money would go to ensuring a solar advocate at every town hall, County commission and regulatory body on a full-time basis. It would also push objectives like ‘instant permits’ and electing politicians that support our industries. If they want solar to really thrive, it is incumbent on us to educate them on the political and regulatory nature of our business. We can fight power with money, we just have to ask for it more forcefully.
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Yann
This is your SolarWakeup for August 16th, 2018
What It Takes, To Win. I had the incredible pleasure of spending the day with more than 200 solar professionals and the world class leaders from CALSSA in Sacramento yesterday. The annual ‘Solar In The Capitol’ lobby day allows groups of 6 to meet with legislators, including the members that represent the companies and individuals. Legislators thanked us for coming and helping them as they push for solar policy, the in person lobbying is irreplaceable and there should have been a thousand of us. I can’t thank Bernadette Del Chiaro and her team enough. There would be no solar industry in California without them and CALSSA and now I had the pleasure to see their work up close and personal. If you are not a member, join by clicking here.
Taking The Case To WTO. In a move that surprises nobody, China is taking the US to the WTO to review the tariffs imposed during the 201 case. It is important to note at this point that Suniva is no longer operational and SolarWorld USA is under contract to be acquired by SunPower. Don’t expect much to happen but its a process.
Free Markets. Subisidies. Sitting with republicans to talk about solar often starts with a comment about subsidies and that the free market should choose the technologies. That is complete and utter bullshit and now Rick Perry breaks down why the free markets in energy are really not free markets. Quite the contrary, energy markets are advantaged to the incumbent monopolies against competition and new technologies.
Storage Is Inevitable. In our lobby day, we spoke up for SB 700, the CA bill that would extend the SGIP program for 5 years. After the PG&E announcement to build over 1.5GWh of storage and the solar industry’s move to include storage in more systems, the future of energy storage is unstoppable.
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Yann
This is your SolarWakeup for August 15th, 2018
SEIA’s Hopper Makes Hires. Abby Hopper, CEO of SEIA, is adding two senior hires to the team. A VP of business development will join based in the Bay Area and Jon Smirnow will join as well. Smirnow is a name you’ll recognize given that he has been an executive at SEIA before and he was active during the 201 trade case. The new executives will be joined by a VP of federal affairs that has yet to be hired.
Local Policies, Local Outreach. Policy and solar advocates have been taking the solar to the local level. The Million Solar Strong Campaign took to Long Island City with State and local elected officials to grow solar in New York and add solar to 100,000 low income households by 2023. While this was specific to New York, you could be doing this right in your backyard. As an example, 200 solar pros including 12 from the Quick Mount PV team will be heading to Sacramento to lobby for solar policies including SB 700 and SB 100. Why do we send 12 employees to lobby for solar? First, we actually shut one of our manufacturing lines down for the day so that solar pros from all aspects of our business can be heard from. Second, if we don’t stand up for our jobs and market, then who will?
Utility Choice Creates New Formulas. The first iteration of customers leaving investor owned utilities was municipalities leaving to form munis. Then it was the start of the CCAs (community choice aggregators) and energy choice initiatives like in Nevada. The issue at hand is always what happens when a customer leaves and who pays for the infrastructure that was built to serve the customer.
Yea, But What If? Bloomberg has an interesting post that shows that installed cost of solar for public companies is declining in spite of the Trump tariffs. The message is that look how great the market is working. Let me be really clear, the market would be growing faster and more broadly if the tariffs didn’t exist including the AD/CVD charges. What if, that’s the question we need to show data for.
Congrats To Conergy Team. A quick word to the team of Conergy pros remaining in Asia. I spent a great two years with many of them and now they are joining Macquarie as their solar development and EPC platform. The Conergy team is top notch, based out of Singapore, and this is well deserved corporate development.
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Yann
This is your SolarWakeup for August 14th, 2018
Why CA Is 50% Of Solar Market. Good policy doesn’t happen by accident, it comes from effective policy representation. Tomorrow the solar industry is heading to Sacramento to push for the next year of policy including SB 100, the 100% RPS for California. I know your time and money is valuable but CALSSA has a PAC to help drive money into the political process. Please consider making a contribution.
Learning Lessons. Without knowing the details, you would expect NV Energy to stay as far away from the distributed solar policy as possible. After what happened a few years ago, it appears that NV Energy will continue to think in very short time spans about only itself. That’s why the headline about Sierra Club and NRDC joining NV Energy against energy choice seemed so wrong on the face of it.
Another Trillion To Go. Solar and wind have reached 1 terawatt in cumulative capacity which means that more than a trillion dollars have been invested. For most of those projects that means an interconnection, land rights and off-taker agreement are making that capital some of the most secure investment portfolios in the world. Let’s do it again, this time in less than a decade!
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Yann
This is your SolarWakeup for August 13th, 2018
Oklahoma Is Prime For Free Markets. The news out of Oklahoma is that the AG (not Scott Pruitt anymore) says that providers of third party solar contracts are not to be classified as utilities. The reality is that it’s Oklahoma and that the AG opinion may change as required by the politics. But, there is little that I want to see more than the State of Pruitt and Inhofe to have to wrestle with cheap solar and wind especially cheap solar and wind with cheap batteries.
A Step Backward. The politics of fossil fuels is really the politics of the incumbent markets. When we electrified the nation the deal was that monopolies were carved out and private capital was guaranteed a profit. The incumbency is the struggle here, not just the fuel source. The DNC wrestled with the wrong problem, which was not enough money, instead of wrestling with the issue of taking that money from the fossil companies solar subsidiaries. How great would it be to have a $10million donation from an oil company coming from solar company X?
SB100 And CA Lobby Day. California needs to show the nation and the world that the future is 100% renewable energy. Amongst other things, the California solar industry is coming to Sacramento this Wednesday to lobby for the local industry with CALSSA. If you are in solar it means you are likely doing business in California. Couple ways that you can help. First, come to Sacramento this Wednesday. If you’re not local and can’t make it then take the $1k that it would have cost you in time and travel and send a check. I’ll take that from you and deliver it to the CALSSA PAC that helps advance our market here. We talk about how we cannot compete on money but I’m not asking you for $10k, just $1k that you spend every time you travel for a meeting. Hit reply and I’ll give you the details. Let’s get at least $12k together today as a SolarWakeup team.
A Better Way To Splice. We all use rail to mount our modules but while most rail is created equal, there is a way to use rail to save money on labor. With the Quick Mount PV QRail you get an internal splice that requires not hardware that needs to be screwed in and the clamps won’t fall out when placed in the channel. Check out this quick video to see the difference!
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Yann
This is your SolarWakeup for August 10th, 2018
Nevada’s Story Of Solar Revival. This was the most contentious national solar fight a few years ago, documentaries featured the famous fight between solar and the Nevada PUC. Fast forward a few years and the market is thriving with the first NEM cap being hit at 80MW. Jobs are being created and supplies are flowing, helping the supply chain economy thrive as well. Nevada has become the market to point to and one that could be mirrored in South Carolina and other States that attempt to keep residential solar choice away from consumers.
Sunrun’s Steady Rise. Sunrun wasn’t always the flashiest residential home solar provider but they’ve reached the top now. Part of what makes the company unique is that it has stuck with the long path of policy centric market development, it’s rare to be at a legislative event or industry conference that a Sunrunner is not at. The financial presentation continues to tell Wall Street a narrative on how solar and public company accounting can coexist, while still be complicated for many. The company announced 91MW of solar deployed, 12,000 customers and an increase of $27million in cash over the last quarter. Congrats to the team.
Juicy PPA In Hawaii. Couple of highlights that I’d like to point out about the solar plus storage project in Hawaii. The project is 5MW of solar with 3MW / 15MWh of storage. The PPA is for $0.17/kWh over 22 years. At the core, this is a great project for the investor and likely for the consumer as well. At 5 hours of storage, the batteries have the ability to shift the entire day’s production even at the peak of summer (or very close to all of the production). This plant is the solar version of baseload to the extent that such a feature is needed on the grid. Dispatchable solar such as this is the future and creates tremendous opportunities for power players across the grid.
New FERC Commissioner. Damn the free market! That’s my paraphrase of the nominee’s comments at a July hearing when asked about market distortions being considered by the administration to bailout coal and nuclear plants. Commissioner Powelson voted against the FERC bailout for coal but McNamee seems a lot more willing to do the bidding required. Stay tuned.
Have You Seen The Rafter? In today’s edition of solar wall of shame, please see the following work of art. This is a direct deck attached flashing mounted on top of the shingle roof. Add some caulking and this installer is happy with the result. Make sure to send your shameful solar pictures alongside your beautiful images to be featured.
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Yann
This is your SolarWakeup for August 9th, 2018
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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Yann
This is your SolarWakeup for August 8th, 2018
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
This is your SolarWakeup for August 7th, 2018
New SolarWakeup Podcast Coming. The first of the interviews from Chicago is coming out on podcast today. Make sure you are subscribed to the SolarWakeup Live! podcast available on iTunes or your favorite podcast stream platform. Jon Carson managed the campaign for Senator Tammy Duckworth before becoming the National Field Director for then-Senator Obama. Now he is a solar developer and a great interview.
Making The South Better For Solar. I had this conversation yesterday, why isn’t solar growing faster across the South? States like Louisiana could do really well with a robust solar policy. It used to be that an RPS had a rate cap of 2% but now you would have to put a cap on the savings because renewable energy is going to save consumers money.
Focus On Local Leaders. This is a great story about a leader that has to look forward. An Illinois town that has its roots in coal looking for a future in solar. All it takes is a young mayor to start with a solar farm project that could yield a much brighter future. I’d love to see a future where solar professionals are talking to every mayor in America, with less than 20,000 local governments across the Country, that puts 10 solar professionals in each office. On that note, who will be joining me at the CALSSA lobby day next week?
Incumbent Market Dynamics. This isn’t directly solar related but what is happening in Florida right now is bad. There are millions of dead fish washing up ashore due to a toxic algae bloom. Goliath grouper and even manatees have been found dead. There is a limit to the power of the incumbents, we must always remember that.
Unshift The Fuel Costs. The real story about the new fuel cost incentive in Hawaii is the subsidy that the current utility regulations hide. When utilities rate base the new power plants, the cost of fuel is covered by the ratepayers. If the fuel costs go up, consumers have to foot the bill regardless of how high they go and there is no reason for utilities to worry about this because there is no risk to the shareholders.
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Yann