This is your SolarWakeup for April 8th, 2021
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Yann
This is your SolarWakeup for April 7th, 2021
Defining ClimateTech. ClimateTech is the nexus where technology meets software to aid in the fight to reverse climate change. The ‘tech’ sector is largely software and at some point it meant having a photo sharing app to become a billionaire but it also brings us to what I’m learning about energy storage. Batteries systems are a set of hardware parts which include the battery racks, power electronics, inverters and transformers but they are complemented by controls run by software. In reality, no battery project is complete without that software component meeting the need of your project, i.e. what do you plan on doing with the battery post install, and qualifying that software with the ISO/RTO and potentially meeting the NERC regulations depending on how big the project is or your portfolio is. For solar plus storage projects, you need to install the site software, beyond the battery EMS, to coordinate the generation on site and plan, sometimes daily based on forecast, when to charge and discharge the system. My point is that we, as a solar industry, have jumped into the deep end of the ClimateTech sector. But that’s a good thing because we will become key market makers instead of constantly being at the mercy of whatever the market price for energy is. More to come…
Infra Bill Path. Biden’s infrastructure proposal includes a corporate tax rate increase to 28% which Joe Manchin has said no to. He did open the door for a 25% tax rate which is a preview to how Biden could get his vote. A tax increase means that this is unlikely to be bipartisan but Schumer got the green light for a third reconciliation this year thus creating the path for the infrastructure bill. Wait and see…
Canary In The CleanTech Mine. It wasn’t long since GTM shut down the news site for the team to get back together. Supported by RMI, the one and only Eric Wesoff is leading the team as Managing Editor and is joined by former GTMers Emma Foehringer Merchant, Jeff St. John, and Julian Spector. Additionally, former Grist/Vox climate journalist, David Roberts, is added to the group as Editor at Large. Canary Media will be a new name you see most days on the SolarWakeup, a rather poorly edited newsletter which I’ve known since Eric told me I need an editor 8 years ago. Great to see this effort get off the ground and hats off to RMI for their continued leadership in the sector. Between this and SolarApp, RMI is at the center of the more important efforts in our industry. Eric writes their mission here.
Electric Pick Ups. I’m all in on the EV Silverado and F150 face off. The Rivian and Cybertruck are due to hit the streets before Detroit’s OEMs do but pick up trucks are the key to America’s hearts.
Back To Court. PG&E has been charged criminally for their role in 2019 wildfires.
It’s Official. Forbes billionaire list was released this week and we have our first US billionaire from solar on the list. Shoals’s Dean Solon hits the list at #1444. Congrats Dean!
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Yann
This is your SolarWakeup for April 6th, 2021
The Digital Energy Era. Over the past few years the capital has been coming to the software side of solar and when the funding rounds reached marks over $10million, the question had to be asked, how could any software company in our industry ever be worth multiples of that. In the past year we’ve seen acquisitions and valuations that explain that rationale, companies like Geli, SofDesk and Energy Toolbase were acquired in part of entirely. This also comes when valuations of hardware companies like Shoals, Enphase and Array Technologies is well over 100x current earnings creating entire eBOS categories. The most indicative of what is yet to come is Generac acquiring Enbala because the energy transition is not as simple as coal to solar crossing the gas bridge. A renewable grid is a complicated slinky that is managed on supply and demand sides of the energy market with energy storage acting as the dampering traffic cop. Consumers of electricity will also be a dampening agent, learning to adjust behaviors, mostly without realizing it, through programs led by companies like cPower and OhmConnect. Tomorrow, I will tell you my biggest learning thus far in energy storage and why this storyline of digitization is one we all need to embrace.
A Utility Survey. UtilityDive has the results of this years utility survey with highlights on how to get more renewables. It also gives some views on how the industry should be regulated, whether states or FERC should be leading on that.
Newsom’s Time To Shine. California’s solar installers, representing tens of thousands of jobs in and out of the State are asking Governor Newsom to make his views known. More than 20,000 have signed a petition calling for strong policies that will enable distributed solar and storage to be a valuable asset to help manage the grid which continues to be hamstrung by power shutoffs, wildfires and heat related demand outages. CALSSA is on track to install 1million solar plus storage homes matching the million solar rooftop challenge from a decade ago.
The Corporate Voice. 5 years ago, SolarWakeup podcast recorded an episode with a Google energy director just before the company announced it was going 100% renewables. The 3 phase plan would seek to match renewable energy purchasing/generation with their geographic AND time shaped consumption. I.e. they wanted to have solar and wind where and when they were using it. This is a complicated challenge that has to be met by cost reduction in energy storage, market expansion and policy efforts. We have seen the ability for corporations to be a powerful voice in politics, through their PR prowess as well as their fundraising capabilities.
Claim Your Prize. Baylor has defeated Gonzaga and this year’s March Madness bracket comes to an end. “No Idea What Im Doing” has won the SolarWakeup bracket and while I share your sentiment I’d like to recognize you and invite you to write the column one day. Hit reply and announce yourself.
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Yann
This is your SolarWakeup for April 2nd, 2020
Same But Not. Some years I do better than others with the April Fools joke and I think after last year, I may never get a good reaction again. You didn’t quite fall for the batterywakeup joke but some of you still think I am a Florida PSC Commissioner, a job I am somewhat shocked I haven’t been offered yet. It’s not that this page shouldn’t be called batterywakeup or evwakeup or energywakeup, I just like it being SolarWakeup. Thanks for playing along in another annual edition of the April Fools charade, I’ll try again next year.
Infra Bill, Day After. It’s better than I thought and more important than we can imagine. I really want to see the political machinery in action to see it become law.
Expanding Storage. I want you to tell me what inning energy storage is in for your business and what it will take for it to get into the primetime. More importantly I want to understand what you consider the most important choice when planning your project. I’ve enjoyed the storage conversations with the solar community and want to keep hearing from you.
Weekend. Have a great weekend, there’s a good chance that Monday is a no newsletter holiday depending on how few pieces are written over the weekend. Enjoy the holidays, celebrate if you do, find some eggs with your kids and wish Joe Manchin an enlightened weekend thinking about infrastructure!
Free Series for Solar EPCs. I’ve teamed up with EagleView to host their Solar Business PowerSeries. Each month, we’re talking with experts on topics like LEAN and TQM, streamlining the solar permit process, deploying technology in solar, and more. This month, I’m talking with Jake Wachman from SunPower Corporation about how his company uses technology and automation to drive growth. If you’re a small- or mid-sized EPC who’s looking to improve your operations in 2021, sign up to join us live on April 8th. Registered users also gain access to the first two episodes on-demand.
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Yann
This is your SolarWakeup for April 1st, 2020
The Jobs Plan. Joe Biden went to Pittsburg last night to pitch his vision for the infrastructure bill, dubbed the American Jobs Plan. You can see what’s included in the $2trillion spending bill here, or read the White House official bullet point fact sheet. This plan separates physical infrastructure from social infrastructure, a clear indicator that the White House hopes to get bipartisan support. Given that the spending is partially paid for with a proposed increase of the corporate tax rate to 28%, don’t expect smooth sailings.
A 10 Year ITC. For our industries, there is an unprecedented vision for EV charging infrastructure, likely to get charging companies excited about the future. More importantly, it proposes a 10-year extension of the ITC, expands the ITC for stand-alone energy storage, and likely brings it back to the 30% rate. All of this will be confirmed by the House version of the bill yet to be filed by leadership. A decade-long certainty for our industry will create a certain maturity overnight, no longer planning year by year and planning for the cliffs that leave us breathless during every extension fight.
The DC Fight Ahead. This is a bill without a roadmap, how and when it gets passed is TBD, but everyone knows it’s a good thing to build new and improved physical infrastructure. The GOP isn’t about to give Biden an easy win and they are surely not about to give back half of the corporate tax cut that they passed in 2017. Manchin stands out as the middle man, likely having orchestrated the split between physical and social infrastructure legislation leaving some room for the possibility that this gets passed on a 50/50 vote through reconciliation. McConnell is digging his heels in on the point that this type of spending can’t move forward without ways to pay for it and not allowing for it to be deficit spending which is exactly what every member of the republican party will likely say. There will be pressure on them, however, from their local communities that this is money well spent which will drive new economic growth and therefore pay for itself. It’s the climate bill for Biden’s legacy and I can see the inside game moving already, especially with 2 trillion reasons for businesses to get excited about the work coming up.
Big Wakeup Update. As many of you know, my new day job has me at FlexGen, the leading energy storage integrator in the Country. It’s early days but things are on a rocket ship for battery storage development and execution. I’ve been writing the ‘solar’wakeup for almost nine years and I think given that I am more of a solar+ guy these days, I thought we should brand the next nine years more appropriately. So I bring you to the big news, introducing batterywakeup.com, the most influential newsletter in all of the clean energy. It’s a great day for all of us and I’m excited about all the new stuff coming at us.
Free Series for Solar EPCs. I’ve teamed up with EagleView to host their Solar Business PowerSeries. Each month, we’re talking with experts on topics like LEAN and TQM, streamlining the solar permit process, deploying technology in solar, and more. This month, I’m talking with Jake Wachman from SunPower Corporation about how his company uses technology and automation to drive growth. If you’re a small- or mid-sized EPC who’s looking to improve your operations in 2021, sign up to join us live on April 8th. Registered users also gain access to the first two episodes on-demand.
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Yann
This is your SolarWakeup for March 31st, 2020
Infra Day. Biden is set to unveil the 2 trillion dollar infrastructure plan today. Expect to get some exciting solar and storage headlines. More tomorrow!
Free Series for Solar EPCs. I’ve teamed up with EagleView to host their Solar Business PowerSeries. Each month, we’re talking with experts on topics like LEAN and TQM, streamlining the solar permit process, deploying technology in solar, and more. This month, I’m talking with Jake Wachman from SunPower Corporation about how his company uses technology and automation to drive growth. If you’re a small- or mid-sized EPC who’s looking to improve your operations in 2021, sign up to join us live on April 8th. Registered users also gain access to the first two episodes on-demand.
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Yann
This is your SolarWakeup for March 30th, 2020
When A Market Is A Market. IHS reports that 2021 is going to be a record year with 181GW of solar installed across the world, growing 27% over last year. This is a good thing for the planet and creates a reality that we can’t question where this is going. Our baseline no longer includes a possible fossil first energy market. Driven by cost, demand and policy, the energy transition has entered the full court press which means that any grid planning and market design has to re-evaluate the what the generation portfolio looks like going forward. There is still untapped value in how generation is used, designed or valued by those making those investments but I would bet my career that every energy market is making changes in real time to adjust to the new reality.
What’s In A Name. The car of the people is becoming the car of energy units. Let’s see if the leaked VW press release is real or not…
Not Green Or Alternative. In the upcoming months you’ll see the world of political PR twist roads and bridges into the green new deal, renaming the infrastructure bill as the green stimulus. The counter has to be by the people and for the people and you can have an impact on this. Start building a relationship with your local TV and newspapers to show the jobs that you created in post covid months. Focus on great stories where an employee was trained by you and created a new opportunity for them. There is no need for hyperbole, I know that you have great stories and great team members that are excited to be working in solar having come from a different industry. This can’t just be led by DC groups or large corporations, you need to be changing the hearts and minds of people watching your local news. Just search for your local tv ‘news desk’ and you’ll find a form or phone number.
Free Series for Solar EPCs. I’ve teamed up with EagleView to host their Solar Business PowerSeries. Each month, we’re talking with experts on topics like LEAN and TQM, streamlining the solar permit process, deploying technology in solar, and more. This month, I’m talking with Jake Wachman from SunPower Corporation about how his company uses technology and automation to drive growth. If you’re a small- or mid-sized EPC who’s looking to improve your operations in 2021, sign up to join us live on April 8th. Registered users also gain access to the first two episodes on-demand.
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Yann
This is your SolarWakeup for March 29th, 2020
Almost Infrastructure Week. On the Sunday shows, the White House revealed that the $3trillion infrastructure bill will separate actual infrastructure from social infrastructure. This means that the more popular roads, bridges, and energy-related topics will likely be packaged in hopes to get bipartisan support. From a behind-the-scenes standpoint, you can feel Manchin’s fingerprints on the split possibly with support for a reconciliation vote in the later package. Much is being made of the 10-year extension for the ITC, possibly back to 30%, the inclusion of stand-alone storage, and a shorter-term direct pay.
The Amazon Of Solar. With Sunpower’s CEO, Tom Werner, retiring after some 18 years at the helm of the company, the board brings in a new face to solar. Peter Faricy is viewed as a direct-to-consumer pro, sits on the board of Blue Apron, and spent over 12 years at Amazon, from 06 to 2018. Sunpower has spent quite a bit of money trying to reach homeowners and get them to view the company as a brand without much success, relying on their dealer network to do the more grassroots approach. With the company pivot in full swing, I’d expect the company to give that another shot. Here’s the interesting thing about the CEO hire, it doesn’t matter that there is no solar experience, the hire shows a pivot to mainstream consumer marketing instead. So I ask you this, is solar mainstream enough that it’s become a marketing-first industry?
Renewables Means Profits. Public companies are leaning in and sometimes relying on renewables to create shareholder value. Look at the tailwinds in the industry, from the first two paragraphs, as well as the ability to start creating a 10-year company plan due to regulatory certainty that the ITC extension will provide. It will show the maturity of an industry that things in real-world time horizons instead of peaks and valleys that we’ve become used to. It also means that the multiples that public companies like Enphase, Array Technologies, Shoals, Solaredge and Generac have are justified given the long-term growth ahead for the markets; in all segments and markets around renewables and grid resilience.
A Global Climate Summit. Biden and Xi are publicly thinking about having a climate summit. Alignment on this issue to sort through the other diplomatic rifts would be good for our industry.
Free Series for Solar EPCs. I’ve teamed up with EagleView to host their Solar Business PowerSeries. Each month, we’re talking with experts on topics like LEAN and TQM, streamlining the solar permit process, deploying technology in solar, and more. This month, I’m talking with Jake Wachman from SunPower Corporation about how his company uses technology and automation to drive growth. If you’re a small- or mid-sized EPC who’s looking to improve your operations in 2021, sign up to join us live on April 8th. Registered users also gain access to the first two episodes on-demand.
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Yann
This is your SolarWakeup for March 26th, 2020
Have A Great Weekend. We have a SolarWakeup entry in the March Madness bracket that has reached the top 1000 of all ESPN brackets, reveal yourself!
Financing The Plus+. Solar + Storage PPAs continue to gain momentum among commercial energy consumers. My C&I solar friends at Sustainable Capital Finance (SCF) have a great solution for schools, municipalities, non-profits, and commercial & industrial projects. SCF will be hosting a webinar on March 31st, covering industry trends, SCF's new storage pricing & transaction features, as well as challenges and solutions when executing Solar + Storage PPAs. You can sign up here or contact the SCF team at info@scf.com for more information.
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Yann
This is your SolarWakeup for March 25th, 2020
Build Back Better. Biden’s White House is working the PR on the build back better infrastructure bill. It’s going to have a rather large price tag but in reality, it’s like any project at home. You can either pay for the ongoing maintenance or you’re going to get a lump sum surprise when it breaks. The good thing is that investing in infrastructure, it enables new and more efficient commerce to occur. Build millions of EV stations? Get a whole new auto economy that’s cleaner and more fun to drive. Build new transmission lines? Achieve 100% clean energy in the next 15 years and save the planet. See what I mean? It’s not a cost when the dynamic cost analysis says it is a GDP driver.
Texas Recap. One thing you will learn about energy storage is that the battery is not even half the battle. It’s an entire electrical integration exercise and how you intend to use or trade the asset has to be factored into the design. More importantly, how is the battery controlled after it’s commissioned so that you don’t void the warranties and actually generate electricity requires a complex overlap of hardware controls and robust software that has to be approved by the ISO and compliant with national regulatory requirements. We’ll dig into that more in the future and even host a series of calls to pass along that education. We’ll probably kick it off with a ‘does storage work for me and my project?’ tutorial and how to answer that.
Granholm Speaks. Secretary Granholm is hosting a special online meeting on how DOE’s solar investments will help achieve decarbonization goals. You can register for that here.
Financing The Plus+. Solar + Storage PPAs continue to gain momentum among commercial energy consumers. My C&I solar friends at Sustainable Capital Finance (SCF) have a great solution for schools, municipalities, non-profits, and commercial & industrial projects. SCF will be hosting a webinar on March 31st, covering industry trends, SCF's new storage pricing & transaction features, as well as challenges and solutions when executing Solar + Storage PPAs. You can sign up here or contact the SCF team at info@scf.com for more information.
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Yann