Minnesota Splits Difference On Residential Community Solar Incentive

By Frank Andorka, Senior Correspondent

In the wake of a Minnesota Public Utilities Commission decision to add an incentive to attract residential customers to the state’s booming community solar program, neither side – the utility or solar advocates – were particularly happy.

On the one hand, the utility argued the incentive was too generous, shifting costs (there’s that mythical cost-shift argument raising its ugly head again) to non-community solar customers.

On the other hand, solar advocates argued the incentive wasn’t generous enough, saying it won’t be enough to encourage more residential customers to subscribe to what are called in Minnesota “solar gardens.”

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Traditionally, Minnesota has had one of the most successful community solar programs in the country. But according to the Minneapolis Star Tribune, the program is having trouble attracting residential customers because the compensation rates for credits on the customers’ bills are lower than the retail rate.

Previously, solar was net-metered at the retail rate, but under a successor Value of Solar rate, the compensation rate is lower than it had been. This has had the effect, at least according to one installer, of making community solar less attractive to residential customers.

“Without a residential [incentive] we’ll just have to sell it all to commercial,” [the installer said].

The same installer also argued the the 1.5-cent current incentive wasn’t enough (advocates had asked the PUC to institute at 2.5-cent incentive):

“My fear is that it’s not going to be enough to move the needle in driving the market toward more residential,” Ross Abbey, of solar garden developer U.S. Solar, said after the vote. “It’s disappointing.”

As usual, the utility in question was trying to divide solar from non-solar customers, using the zombie lie that solar users don’t pay their fair share of costs for grid upkeep and the like (i.e. the “cost shift,” which doesn’t happen until a state reaches 10% or higher solar penetration rate and even then only accounts for fractions of a penny per kilowatt-hour).

It’s not clear that the PUC has done the right thing, even though both sides aren’t happy with the outcome. Only time will tell.

More:

Incentive approved for residential customers who choose solar gardens for energy

SolarEdge Moves Into The Energy Storage Business

By Frank Andorka, Senior Correspondent

In the ever-competitive microinverter business, even the slighest innovation or acquisition can tip the scales in favor of one company or another. SolarEdge is hoping its acquisition of a majority stake in a South Korean lithium-ion battery maker will give it just such an edge.

SolarEdge announced that it has entered into definitive agreements to acquire a major stake in Kokam Co., Ltd. Headquartered in South Korea, Kokam is a provider of Lithium-ion battery cells, batteries and energy storage solutions.

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“Our technological innovation combined with Kokam’s world-class team and renowned battery storage solutions, will enable seamless integration with our current solutions, taking us a further step toward making solar installations smarter and more beneficial.”

“The acquisition of Kokam will enable us to grow our offering, adding already proven battery storage to our product portfolio,” said Guy Sella, CEO, Chairman and Founder of SolarEdge. “Our technological innovation combined with Kokam’s world-class team and renowned battery storage solutions, will enable seamless integration with our current solutions, taking us a further step toward making solar installations smarter and more beneficial.”

The acquisition of approximately 75% of outstanding equity shares of Kokam reflects an aggregate investment of approximately $88 million, including related transaction expenses. The transaction is subject to customary closing conditions and is expected to close in the coming weeks.

Over time, the Company intends to purchase the remaining outstanding equity shares of Kokam that are currently listed on the Korean over the counter exchange through open-market purchases and otherwise, eventually resulting in Kokam becoming a wholly-owned subsidiary of SolarEdge.

As battery storage becomes more commonplace in the residential sector, microinverters will have to become micro-storage devices as well. SolarEdge’s major competitor Enphase has moved aggressively in this realm, prompting moves like today’s announcement from the other side.

Watch for this battle to continue to heat up.

East Meets West: Boston Expands Community Solar Access To New Territories

By Frank Andorka, Senior Correspondent

Massachusetts is still working out its solar future, but at least for residents of Boston and the eastern part of the state, community solar has become much easier to access, thanks to the efforts of a company called Ampion.

Under a new agreement with Eversource, the area’s primary utility, residents living in the eastern half of Massachusetts will now be able to purchase solar electricity from community solar farms in the western part of the state. Prior to this agreement, the two segments of Eversource’s customer base were considered separately, severely hindering the spread of community solar programs throughout the state.

Ampion facilitates community solar farms by working with current Massachusetts solar developers. As these farms produce power, subscribers receive “solar credits” on their electric bill that offset their balance. In addition to supporting clean power, subscribers save money through the program, as each credit is sold at a discount from their value on the electric bill.

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“This is one of the most advantageous customer programs the Commonwealth has ever seen,” said Nate Owen, CEO of Ampion. “Bostonians can simply sign up for a clean energy offering that cuts their utility costs. The benefits of solar are now available to people who never before had the option: lower prices, cleaner air, and safer energy. We’ve already had hundreds of residents and businesses sign up.”

Eversource customers can learn more and sign up by visiting signup.ampion.io. Capacity is limited, so residents and businesses are encouraged to enroll their meters while there is still availability.

“As a Bostonian, I can experience the benefits of community solar as both an advocate and a customer,” says Chris Mills, head of outreach at Ampion. “As a tenant, I could never go solar, but now it’s easier than ever. Even if I move, I can take my subscription with me anywhere in the city. It’s a point I like to make to my friends who rent their apartments.”

Duke Energy Plans To Invest $500 Million In Energy Storage

By Frank Andorka, Senior Correspondent

It may not seem like much. After all, it only works out to 37.5 MWh per year. But Duke Energy’s decision to invest $500 million for energy storage in conjunction with its solar portfolio in the Carolinas is still big, given the utility’s ongoing love/hate relationship with solar energy.

The investment will take place over 15 years and will increase battery capacity in North Carolina from its current 15 MW capacity and in South Carolina, well – right now you need a microscope to see its battery storage, so any increase would be immense.

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“Duke Energy is at the forefront of battery energy storage, and our investment could increase as we identify projects that deliver benefits to our customers,” said Rob Caldwell, president, Duke Energy Renewables and Distributed Energy Technology. “Utility-owned and operated projects in North Carolina and South Carolina will include a variety of system benefits that will help improve reliability for our customers and provide significant energy grid support for the region.”

This week, the company filed for a Certificate of Public Convenience and Necessity with the North Carolina Utilities Commission for a solar facility in the Hot Springs community of Madison County as part of a microgrid project.

The Hot Springs Microgrid project will consist of a 2-megawatt (AC) solar facility and a 4-megawatt lithium-based battery storage facility. The microgrid will provide a safe, cost-effective and reliable grid solution for serving the Hot Springs area, and provide energy and grid support to all customers. The project will defer ongoing maintenance of an existing distribution power line that serves the remote town.

The Hot Springs project is part Duke Energy’s Western Carolinas Modernization Project, which involves on-going conversations with community partners to help advance a cleaner energy future for the region. It includes closing a half-century-old, coal-fired power plant in Asheville in 2019. The plant will be replaced with a cleaner natural gas-fired plant and distributed energy resources like solar power and battery storage.

Duke Energy’s long-term solar strategy has traditionally been a “solar for me but not for thee” formulation, building large-scale utility solar farms it controls while both subtly (and not-so-subtly) undermining rooftop solar in the Carolinas.