IRS Regifts Utility-Scale Solar Four More Years Of 30% ITC

By Frank Andorka, Senior Correspondentthey

Four more years! Four more years!

That’s the mantra some utility-scale solar developers are chanting today after the Internal Revenue Service (IRS) decided to extend the 30% investment tax credit (ITC) through 2023 as long as they have broken ground or spent 5% of the total expected investment in the project by the end of 2019.

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Bloomberg reports the opinion, issued by the IRS late last week, came as something of a surprise to most utility-scale developers. As the reporters noted:

“The news is positive for utility scale solar developers who can now avoid solar tariffs imposed on imports through 2021, procure majority of their solar panels in later years, and still qualify for the higher tax credits, analysts led by Michael Weinstein, said in the note.

If developers break ground on January 1, 2020 or beyond, the credit drops to 26%.

The decision, combined with China’s unexpected decision to halt construction on its own domestic industry, could help move some utility-scale projects that had previously been shelved back into an active status with developers.

China’s decision to scotch its domestic industry means inexpensive modules could soon be flooding the U.S. market, with utility-scale projects benefiting the most.

kWh Analytics Launches Searchable Solar Financing Database

By Frank Andorka, Senior Correspondent

Leading solar risk management firm kWh Analytics has launched Solar Lendscape, a searchable database designed to connect project developers with financing solutions.

The Solar Lendscape catalogs the solar industry’s most active lenders, including their check sizes, target market segments, and product type. This list will be updated regularly.

kWH Analytics is also offering to provide introductions to any of the lenders on the list if project developers need it. Interested developers should send an email with details of the project to lendscape@kwhanalytics.com.

The database can be found here.

An analysis of the data indicates the number of active solar lenders has increased nearly 25-fold over the past 11 years, according to kWh Analytics.

Solar Lendscape

Jinko To Reuters: Our Jacksonville Factory Is Still On Track

By Frank Andorka, Senior Correspondent

Jinko Solar, being a public company, has to be as positive as possible. So when Reuters asked the Chinese module manufacturer whether the new round of tariffs imposed by the Trump Administration – 25% on modules and cells on top of the 30% the administration already imposed on all imported cells – my old friend Jeff Juger had a ready answer.

He told the news service that the Jacksonville factory, which was originally supposed to double as the company’s U.S. headquarters, will be producing modules by the fourth quarter based on cells manufactured in Malaysia, which may be true now. But sources close to the factory say the original plans involved cells manufactured in China. Trump’s tariffs sent those plans into a tailspin, however, despite China being the most cost-effective source for the cells.

Juger also told Reuters he hoped Trump’s administration would exempt the Malyasian cells from the tariffs under the exemption plan included in the original tariff pronouncement. He maintains the Jinko factory in Malaysia is the only factory that produces the necessary cells and discussed how much the success of the Jacksonville factory could turn on getting the exemption, telling the news service:

The 2.5 gigawatt exemption gives us quite a bit of headroom to import tariff-free cells. If the government grants that exclusion request and lets us import these cells, it will allow us to further scale up the factory in Florida.

Therein, of course, lies the rub. It’s worth noting that initially, the factory was going to be double the size than what it’s currently projected to be and was supposed to support twice as many jobs. If the company doesn’t get the exemption it’s seeking, it’s fair to ask when, if ever, the Jacksonville Jinko factory will be running at full capacity.

For Jacksonville’s sake, we hope Jinko gets the exemption. It would be shame if that much ballyhooed factory ends up being more of a whimper than a bang.

Nevada Ballot Initiative To Increase RPS Appears To Be Headed To Voters, Reports Say

By Frank Andorka, Senior Correspondent

A report from the Reno Gazette Journal brings the heartening news that the Tom Steyer backed Nevada ballot initiative to bring Nevada’s RPS to 50% by 2030 likely has enough signatures to go to voters.

As of Monday, organizers told the paper they had nearly double the number of signatures necessary to put the initiative on the ballot. Typically, ballot initiatives need to have at least double the actual number of signatures to account for ineligible signatures being thrown out by the certification body.

The measure, backed by liberal billionaire Tom Steyer, would amend the Nevada Constitution to require electric suppliers provide at least 50 percent of their total electricity from renewable sources, like wind, solar and geothermal by the year 2030. Currently, only around 20% of Nevada’s electricity is produced by renewable sources.

As the spokesman for Nevadans For A Clean Energy Future said in a press release, referencing the 20% number:

For one of the sunniest states in the nation, that is not good enough. Currently, Nevada spends $700 million annually to import fossil fuels from out of state to power the grid.

The initiative is the latest attempt by the Silver State to get itself back into contention as one of the top solar states in the nation. Since unceremoniously ending net metering in 2015 – a policy blunder that the legislature has since reversed – Nevada has struggled to regain its place as a solar state.

Gaining enough signatures to put the issue on the ballot is a big victory for Tom Steyer, who was actively supporting similar legislation in Michigan until a deal surrounding a controversial billion-dollar natural gas plant was signed. Both DTE Energy and Consumers Energy have pledged to be coal-free by 2040 and have at least 50% of their electricity generation come from renewable resources within the same timeframe.

Recent polling suggests that if Steyer’s measure gets on the ballot, Nevadans will pass it.