EnergyWakeup – Episode 2 – Bryan and I discuss the Trump Energy Cabinet and the fight in Arizona

In this episode, Bryan and I go over the latest in the Trump cabinet and how those picks affect the solar and cleantech space. When it comes to politics, there are inside and outside influences that can affect the outcome, listen to this episode to see where companies should be paying attention. California is transitioning to NEM 2.0 and Arizona may be setting a precedent on how utilities could slow play their attacks on solar.

This episode is sponsored by MMA Energy Capital, provider of development, construction and project level debt. If you are searching for a great partner with capital, let them know you heard about them on EnergyWakeup.

Tax Equity Unicorns – New Fund Invests $150 million From A Fortune 500 To SunRun

Large tax equity announcements usually include US Bank, State Street, Goldman Sachs, or Bank of America and not a boutique advisory firm. These tax equity providers are syndicating pools of investments into the solar market. But it seems that things are changing with a new $150 million investment for a Sunrun fund by a new firm, Tax Equity Advisors (TEA). The biggest difference is that the capital is coming from an unnamed Fortune 500 corporation, making a direct investment into tax equity for solar. In other words, tax equity supply may have just gotten the early adopter, the unicorn that solar developers have been seeking for years.

SolarWakeup spoke to Jonathan Silver, the managing director for Tax Equity Advisors about the investment and what’s next for the firm. Silver told us that TEA has been working with Fortune 500 companies for over a year, an education process that meant going through many levels of understanding then approvals. Silver said, “We formed TEA to bring the opportunity of solar tax equity to corporate America. Corporations are interested in the returns solar represent but it needed to be easier for them to get the scale they need.” Corporations look at tax equity to offset their estimated liabilities, so sculpting the right investment size was a key part of the process.

The $150 million first investment is just the start. The Fortune 500 that TEA is managing the investment for is looking to deploy another $250 million, of which $150 million is already allocated. In response to why a single corporation was deploying $400 million, Silver said, “Seeing an opportunity to deploy significant tax advantaged capital at attractive returns without needing to build an investment management team was a key value proposition.” The boutique advisory group is managing the investment over the span of the partnership with the sponsor, handling the compliance for the years after the initial investment is made.

Last week’s announcement with Sunrun was for $150 million for the tax equity portion of the fund, meaning that Sunrun will be able to deploy at least a total of $300 million worth of solar projects. The projects are split between 2016 and 2017 placed in service and could continue a new trend away from the banks, that have long cornered the market for solar tax equity especially in the above $50 million bracket.

So what’s next for the firm? Silver told us that they are talking with other corporations with differing amounts of investment needs. Through managed accounts, TEA is matching the right investment with the right investor. With TEA in the market offering a new supply, solar can be hopeful that other corporations could be looking to deploy tax equity into a market that also offers positive publicity for their brand. In a tax code filled with opportunities to invest in the economy, growing the solar market is a worthy cause for corporations that meet the hurdles of the double bottom line.

By Yann Brandt, December 11th, 2016

EnergyWakeup – Episode 1 Sponsored by MMA Energy Capital

In our first Podcast, you’ll go behind the headlines to examine the Trump transition on energy and climate change. You’ll learn about a leaked internal memo laying out Trump’s step-by-step plan to reverse the 8 years of progress under President Obama. You’ll hear about a witch hunt Trump has launched at the Department of Energy for civil servants who work on climate issues. You’ll meet the key players who Trump has already appointed. And you’ll get a preview of the scariest potential appointment of all, which is about to become reality.

It has been a historic week (for the worse) on energy and climate. This podcast will catch you up on the critical events that will impact our energy future.

Illinois Energy Bill Makes Progress – Demand Charges Are Dropped

Senate Bill 2814 introduced during the regular session came back during the latest special session with a new amendment, House Amendment 2. This amendment had multiple objectives but the primary one is a mechanism to keep two nuclear power plants in operation. The two plants, Clinton Power and Quad Cities, were announced to be closed on June1st 2017 and 2018, respectively.

The Zero Emission Standard is the vital part of the bill that Exelon has stated would allow the plants to remain in operation. The bill also includes a fix of the renewable portfolio standard and energy efficiency investments, both touted as a positive step forward by the environmental lobby.

Two sections of the amended SB 2814 are worrisome to the solar industry, the net metering changes and demand charges. The demand charge section is onerous in its complexity, it would render the ability for consumers to know how to use energy cost effectively impossible. At the same time, it would be increasingly difficult for solar installers to explain the potential savings to homeowners or business that want to invest in solar.

Yesterday, the Governor’s Policy Advisor on Energy, Jason Heffley, found the demand rates to be “insane rates” and should be rejected. On a policy call, Representative Will Guzzardi, who sits on the Energy Committee currently reviewing the bill, said that he would not be surprised that the bill would pass without dropping the demand charge language.

Today, Governor Rauner’s team met with officials from ComEd and Exelon to discuss the issue of the demand charges. Shortly after the meeting, ComEd announced that it was dropping the demand charge provisions from the bill. The nuclear power plants, the company stated, will stay open for at least another decade.

In a statement from TASC spokesperson, Amy Heart said about the agreement, “There may still be important tweaks needed to the bill, including ensuring a full stakeholder process at the Commission when the 5% net metering cap is reached to guarantee a fair valuation of the benefits of rooftop solar, ensuring distributed solar can continue to thrive, creating job opportunities and improving Illinois’ environment.”

By Yann Brandt, November 22nd, Updated 10:07pm