Republicans v. Democrats: Who’s Installing More Solar?

By Frank Andorka, Senior Correspondent What Happened:A recent study by an outfit called Priceonomics reports that Republicans in California have installed more solar than Democrats. While the study found that Republicans in the state have installed solar at a 5 to 1 ratio may surprise some, the study itself has some methodological flaws that make it impossible to generalize its findings beyond California. It also has a couple of “Well, duh” conclusions, too. SolarWakeup’s View:  When you’re deciding what conclusions you can draw from any given set of data, one of the first questions you should ask yourself is: “Is … Read More →

This is your SolarWakeup for May 9th, 2018

SEIA’S CT Thoughts. "While we are in favor of legislation that genuinely advances solar energy, we have concerns about this bill. We support stronger renewable portfolio standards, yet it is not clear to what extent the bill would open significant large-scale or community solar markets. And importantly, any approach that doesn't also protect customer choice and provide for reasonable compensation for the value of customer-generated electricity is not acceptable.” - SEIA Press Release

I Called This. When Tom Werner wants to retire, I’m ready to step in. SunPower is leaving utility scale and focusing on distributed generation. It’s been clear to me and I believe this to be the correct move for SunPower given the market share and value proposition that the company has through its dealer network. Also with Tom Starrs leaving the SEPA board to focus on his SEIA position, this aligns the values with corporate goals. I wonder if my next strategic assumption becomes true as well.

Ratebased Utility Solar. Tampa Electric customers are seeing an increase to their bills because of a solar farm. This is part of the rate base due to the utility investing its shareholder capital for the project, a 600MW plant. Think of the developers that would come in and bid this deal, imagine TECO signing up 10, 60MW, projects. If the company signed a PPA, it wouldn’t require rate base and therefore likely not increase the bills to consumers. But then TECO shareholders wouldn’t get double digit returns either.

There’s A Better Way. I spoke with the CEO of Connexus Energy last week, he describes the better way of adding value to consumers. Maybe we need to change all IOUs to member owned cooperatives.

Everyone Wants EVs. AAA says that 1 in 5 Americans is looking to buy an EV as their next car. Tesla shorts will begin shaking in their space boots once again.

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Have a great day!
Yann

@DrVox On Climate Policy: “Go As Hard And Fast As Possible, Forever And Ever. Amen.”

By Frank Andorka, Senior Correspondent What Happened: I’ll tell you all what: David Roberts, aka Dr. Vox, knows how to capture your attention. Last I saw him, he was claiming battery storage had a “dirty secret,” about which we, well…you might say we disagreed. But he’s back, and this time I agree with him. The key takeaway: “So the only rule of climate policy that really matters is: go as hard and fast as possible, forever and ever. Amen.” (As a retired Catholic, I couldn’t resist adjusting the punctuation a bit.) In today’s piece, Dr. Vox discusses how humanity can … Read More →

Connecticut Catastrophe, Part 3: Ugly? Solar Is NOT Ugly – But The Battle In The CT Legislature Is

By Frank Andorka, Senior Correspondent What Happened: The Connecticut Senate voted on the horrifically anti-solar SB 9 yesterday and passed it. It now moves on to the House today, with a vote scheduled for tomorrow. This is our last chance to stop this monstrosity, so get on your phones TODAY and call a Connecticut House member to urge them to vote against this bill. But let’s focus today on the blatant hypocrisy of Democratic Rep. Lonnie Reed, who had no problem taking solar’s shine when it suited her, but called solar “ugly” during yesterday’s debate. SolarWakeup’s View:  Here’s Part 3 … Read More →

This is your SolarWakeup for May 8th, 2018

Hello? Anyone Watching CT? The CT Senate has passed the controversial net metering bill that will turn the NEM policy into a sell all scheme. It is now up to the CT House to do the right thing and kill this portion of the bill. One State Senator had the audacity to call solar “ugly” after speaking on solar’s behalf at the solar rally just a few weeks ago. This is becoming a frustrating situation given the lack of attention this is getting nationally with the local companies struggling to show the national outrage that this should cause. There is a press release issued by active solar companies and trade groups with notable entities missing from this release or having their own. I will repeat myself. Net metering is the most important issue for solar nationally, regardless of the market you participate in. If you develop PURPA or RPS deals, you want a net metering policy in place because that is the grassroots support for solar you need from customers.
Was It All For Nothing? There are several reports of Suniva asking the bankruptcy court to allow it to sell the equipment it owns. This essentially spells the end of the manufacturing entity that could have been acquired to make premium cells within the US. With a large need for tariff free cells, this was believed to be the avenue to relief for SQN. If anything, it now seems that interested buyers will be looking to buy the capability without the corporate entity. At this point it seems like none of those exits are going to happen and it will all have been for nothing except for causing heartache to the solar industry.
Solar On Every Home. California is implementing its new building energy codes which push the envelope on net zero homes. All new homes will have to include efficiency and solar features to push cumulative consumption to zero. Some builders had voiced concerns that on efficiency alone, the code could be met but alas the solar requirement will remain. As we pick up speed on residential solar, we must remember the key for installers and financiers and that is a happy homeowner. Positive reviews and customer referrals are the best marketing and if you install it improperly, causing roof leaks, you will not have a happy customer and you will spend money fixing the leak. Going cheap on the install will always come back to bite you, install the right products the right way and ensure no roof leaks.
Don’t Assume The Inevitable. It was long thought that net metering changes would drive value towards the fixed demand charge section of the energy bill. For years, the general thought was that if NEM changes are made, energy storage would become that much more cost effective. Of course that is much more nuanced now that storage is cost effective and NEM changes are either focused on non-bypassable charges or time shifts that require too much storage to make financial sense. The solar adversaries play a long game, don’t underestimate them.
The Florida Story. It’s not going away, there is a lot going on with multiple story lines that will intersect. If you have any documents or information about the various solar RFPs in Florida, please send me an email.

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Have a great day!
Yann

Net Metering Is NOT A Subsidy, No Matter How Loudly Duke Energy Says It

By Frank Andorka, Senior Correspondent What Happened: Duke Energy penned an opinion piece for The State boldly arguing the cost-shift, which I have to admit is a gutsy move. It’s particularly gutsy since, as I’ve written so many times my fingers can type it without any guidance from my brain, THE COST SHIFT ARGUMENT IS A LIE. To make my life easier later in this piece, I’ll just note here that the Solar Energy Industry Association (SEIA) says South Carolina receives 0.21% of its electricity from solar sources, a fact that, as always, is essential when trying to kill the … Read More →

Could California Become The First State To Require Solar? Yes.

By Frank Andorka, Senior Correspondent What Happened: California could become the first state to mandate all new-build homes be powered by solar energy. The state’s energy commission (CEC) will vote this week on the proposal, which would require virtually all new-build residences to be outfitted with solar modules. Reports say around 20% of new builds in California are currently solar-ready. SolarWakeup’s View:  The California Energy Commission could completely revolutionize what it means to go solar if they approve rules later this week that would mandate solar modules be included on all new-build homes three stories or higher. According to a … Read More →

This is your SolarWakeup for May 7th, 2018

Over the past few weeks, a lot of the dialogue has been about my comments about utilities joining SEIA in some fashion. And this article summarizes my primary opposition to ANY utility involvement in our trade association and the trend continues in today’s news stories. I want you all to know that I am not sitting here throwing stones to stir things up, I am sincerely hoping for the industry to go into the direction that I believe is in all of our best interests. I want every solar company and trade group to be successful and thrive.

Why Utilities Matter. Here are the talking points from the Duke Energy President in South Carolina. “Duke has invested $6billion in renewables.” “Duke is anti-subsidy.” “Net metering is a subsidy.” All three comments are either outright false, misleading or intellectually dishonest. Taking an oped and trying to drive a wedge into public support by misleading the reader bothers me. Duke may have invested $6billion into renewables but did so mostly through its deregulated subsidiaries because they were allowed to compete. Duke is not anti-subsidy, because if they were they would not saddle their ratepayers with power plant risks, early cost recovery for unbuilt plants and fuel cost risk. Is this a company that you believe would have a voice in your trade groups that advances your business?

The Florida Solar Swamp. First the good news. Frank speaks with Sunnova’s CEO about their announcement to enter the Florida market. This comes on the heels of Sunrun taking the leap of faith and asking the PSC for a declaratory statement. More competition on residential solar will be good for a State like Florida where almost every homeowner wants solar. Keep your eyes on the adoption rate, it will surprise you. On the other hand, we have the start of a giant shady deal in Central Florida. The Florida municipal power companies have contracted in a PPA with NextEra on a 225MW transaction, made up of three 75MW solar farms. We will be looking into this in much greater deal but here is what we know already. Only 7 developers were invited to bid, this was not an open RFP. Of those 7, only two were invited to negotiate and they were not the lowest bidders according to sources. It may also be true that NextEra used FPL’s solar farms, which are paid for using rate base, as a statement of qualifications to win this deal. That raises all sorts of monopoly/deregulation firewall alarm bells. It is also very likely that NextEra has a PPA rate for FMPA lower than the cost of solar to FPL customers in the monopoly rate based solar. This makes my point for me that rate based solar should be put out for bid because the private market because competition is good for everyone. More on this soon, but it’s shady thus far.

Who Cares About NEM? The CT net metering fight worries me. From a press perspective, the media coverage of it has been slim to none. If my inbox is an indication, it almost appears that some groups have given up on the net metering fight in a State that sends an all blue congressional delegation to Washington DC. We can’t just worry about legislation that fixes a state solar market, we have to attack the markets and stop them from taking away the number 1 core value for any solar advocate, full retail rate net metering. Net metering is the rising tide in solar, without it, forget getting the support for interconnection processes that enable large scale RPS or PURPA markets.

Deep Energy State. I indulge in some tv watching and Madam Secretary is one of those Sunday night DVR specials. Normally I pay half attention as I type this newsletter but last week, I sat in awe as the natural gas CEO was in the Secretary of State’s office arguing against renewables and nuclear. Put aside the renewables piece, this was a lobbied influence campaign between natural gas and nuclear as they both argued to be the transition plan. Imagine playing the public influence campaign so thoroughly that you are pitching tv writers on your talking points.

NY ISO ‘Loves’ Solar. First, it’s the lightbulbs. Second, blaming solar for demand reduction is exactly why people consider net metering a subsidy. Demand reduction reduces the cost of infrastructure to ratepayers and therefore is a network benefit.

News

Have a great day!
Yann

SolarWakeup Podcast: Sunnova Makes Its Move Into Florida – Here’s Why

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By Frank Andorka, Senior Correspondent What Happened: It appears Florida is finally getting serious about becoming a viable solar market. Two weeks ago, the Public Service Commission decided, against all odds and the expectations of some seasoned solar observers, to allow third parties to own solar arrays without becoming regulated utilities. In the wake of the decision, at least one major residential solar company has decided to execute a Florida market plan it’s been working on for years and waiting for precisely the right moment to go in—and they’ve decided now is that time. To discuss this development is the the … Read More →

Madam Secretary: Don’t Just Spout Pro-Nuclear Talking Points

By Frank Andorka, Senior Correspondent What Happened: One of my favorite TV shows, CBS’ Madam Secretary, used an entire episode about an energy summit they are attending to spout pro-nuclear talking points. Ironically, the discussion starts because one character is arguing strongly that natural gas needs to be included in a “Future of Energy” pavilion and that nuclear has too big a space. Meanwhile, solar and wind – the two sources that actually are the future of energy – are shunted off into an “annex.” Seriously, my jaw dropped as I watched the episode. The show’s writers are usually so … Read More →