Set It And, Set It Again. I’ve said it here before that storage makes solar more valuable and capable because the asset owner determines the time of delivery not the sunshine. That allows for the marginal value of the electron to be maximized and not commoditized, which is especially important when the grid is overproducing demand. That being said, unlike solar, which has all of its complexities determined prior to day 1, storage has capex on day 1 and works to optimize that investment every day starting on day 2. That’s where your operating system gets important, it will tell you what’s happening, how well your asset is performing and how much money you left on the table because your battery is underutilized. I’m just kidding, that’s what you’re expecting but certainly not getting in 80% of the projects out there. You’re also in for a surprise when regulators start to talk about new compliance and revenue streams that your battery needs to be updated for. That’s the basis of my chat with Andy Colthorpe from Energy-Storage News in today’s top story.

Managing Installer Cash Flow. Interest rates are the highest in 22 years, increasing solar financing costs and softening consumer demand for loan products. Businesses are feeling the pain of strained cash flows, labor costs and profitability pressures. Palmetto, a B2B technology company accelerating the adoption of clean energy, has announced a new partnership offering for solar installers to help stabilize cash flows and grow faster in today’s market. Built on top of Palmetto’s Clean Energy Operating Platform, this is a comprehensive suite of tools and services enabling installers to streamline operations, optimize performance, and increase profitability. Visit https://www.palmetto.com/finance or contact capital@palmetto.com for more.

• Energy Storage News: ‘Every energy storage project’ will require regular upgrades to stay in the game
• Utility Dive: PJM prepares shift to scenario-based long-term transmission planning
• Bloomberg: Texas to Revisit Power-Reserve Policies After Grid Watchdog’s Concerns
• Reuters: Enphase Energy to cut about 10% of its global workforce
• Renewable Energy World: More than 100 lawmakers urge Fed, regulators to revise Basel III tax equity provisions
• Canary Media: EV school bus rollout off to slow start despite billion-dollar subsidies
• PV-Magazine: Unprecedented solar and storage growth on horizon with record installations and investments

Opinion

• Axios: Rooftop solar companies are getting crushed

Best, Yann

Retirements And Growth. Last week, independent of each other, we got a report using underlying FERC data that shows nearly double the expected growth in the next five years. This is growth higher than we expected just last year. This is not inconsistent with what we’re hearing in ERCOT, data centers, electrification of the home/business and transportation. At the same time, NERC’s Long-Term Reliability Assessment (LTRA) is highlighting what NRECA calls a “grim picture” of the reliability for consumers. NREC highlights 83GW of planned retirements and 9 states that had capacity shortfalls causing rolling blackouts. They are placing MISO into a high risk for shortfalls [during normal peak] category with pretty much the rest of the Country in an elevated risk category. This is going to create some short term action that doesn’t make much sense for long term reliability or consumers but it’s clear what is needed. Maybe short term actions need to be taken, like California’s rush to add batteries, but also a view on long term policies that match where capital investment is going, i.e. energy transition and consumer pushing behavior.

Managing Installer Cash Flow. Interest rates are the highest in 22 years, increasing solar financing costs and softening consumer demand for loan products. Businesses are feeling the pain of strained cash flows, labor costs and profitability pressures. Palmetto, a B2B technology company accelerating the adoption of clean energy, has announced a new partnership offering for solar installers to help stabilize cash flows and grow faster in today’s market. Built on top of Palmetto’s Clean Energy Operating Platform, this is a comprehensive suite of tools and services enabling installers to streamline operations, optimize performance, and increase profitability. Visit https://www.palmetto.com/finance or contact capital@palmetto.com for more.

• Reuters: US Treasury unveils rules for clean energy manufacturing subsidy
• Utility Dive: Rising peak demand, 83 GW of planned retirements create blackout risks for most of US – NERC
• Solar Builder: Alliant Energy completes 99 MW Wautoma Solar project in Wisconsin
• New York Times: U.S. Climate Envoy Reflects on Recent Deal, and What Comes Next
• Axios: Silicon Valley vets raise $65M for Climactic’s inaugural venture fund
• PV-Tech: EU reaches provisional agreement on electricity market design reforms
• Energy Storage News: UK’s National Grid ESO opens new platform to allow batteries ‘more active role in balancing network’
• Canary Media: Clean energy factories, thermal storage get boost from new tax credits
• PV-Magazine: Unprecedented solar and storage growth on horizon with record installations and investments

Opinion

• Bloomberg: COP28’s Success Was More Than Words

Best, Yann

Quick Question.  Read today’s top article and ask yourself this, what happens if the load forecast is right?

Managing Installer Cash Flow. Interest rates are the highest in 22 years, increasing solar financing costs and softening consumer demand for loan products. Businesses are feeling the pain of strained cash flows, labor costs and profitability pressures. Palmetto, a B2B technology company accelerating the adoption of clean energy, has announced a new partnership offering for solar installers to help stabilize cash flows and grow faster in today’s market. Built on top of Palmetto’s Clean Energy Operating Platform, this is a comprehensive suite of tools and services enabling installers to streamline operations, optimize performance, and increase profitability. Visit https://www.palmetto.com/finance or contact capital@palmetto.com for more.

• Utility Dive: US electricity load growth forecast jumps 81%, led by data centers, industry: Grid Strategies
• New York Times: What’s Missing from the COP28 Climate Deal
• Bloomberg: California Is Less Likely to Have Blackouts Thanks to Solar and Big Batteries
• Axios: A U.S. energy milestone is just around the corner
• Reuters: U.S. grids face greater risks as generators retire, demand rises – NERC
• Renewable Energy World: California NEM 3.0 – Appeals court to hear arguments against rooftop solar policy
• Solar Power World: House Democrats introduce clean energy permitting and transmission legislation
• Energy Storage News: EC, Australia, US and Canada back global initiative to promote battery storage
• Canary Media: Will universally compatible EV chargers ever be a reality in the US?

Opinion

• PV-Magazine: Enphase launches three-phase inverter

Best, Yann

Managing Installer Cash Flow. Interest rates are the highest in 22 years, increasing solar financing costs and softening consumer demand for loan products. Businesses are feeling the pain of strained cash flows, labor costs and profitability pressures. Palmetto, a B2B technology company accelerating the adoption of clean energy, has announced a new partnership offering for solar installers to help stabilize cash flows and grow faster in today’s market. Built on top of Palmetto’s Clean Energy Operating Platform, this is a comprehensive suite of tools and services enabling installers to streamline operations, optimize performance, and increase profitability. Visit https://www.palmetto.com/finance or contact capital@palmetto.com for more.

• Reuters: Europe’s top economies slash carbon intensity of electricity
• Utility Dive: NYC removes zoning restrictions for rooftop solar, energy storage and electrification equipment
• Axios: Tumultuous COP28 heads into overtime as sides battle over fossil fuels
• PV-Tech: IRA tax credits driving new wave of renewable energy “mega” deals
• Energy Storage News: Planning approval granted in Western Australia for state’s flagship 2GWh battery storage project
• Canary Media: What’s behind the epidemic of unreliable EV chargers?
• PV-Magazine: Canadian Solar launches new grid-scale battery
• Bloomberg: There’s a Way to Quit Coal Without Wrecking Jobs and Communities

Opinion

• New York Times: What It Really Takes to Fix a Monstrosity Like Climate Change

Best, Yann