Existing California solar customers may get blindsided with net metering cuts

By the decade’s end, data centers in the United States are projected to account for as much as 35 GW of demand and about 9% of the country’s electricity consumption. Though these are merely forecasts, to power the 24/7, 365-day operations, utilities plan to finance dozens of GWs worth of new generation resources from clean energy to natural gas.

According to a Goldman Sachs study, natural gas could supply 60% of the expected data center demand. This significant increase in gas is reflected in many utility integrated resource plans, including Dominion Energy in Virginia, which wants to build more than 2.9 GW of new long-term gas capacity in the next 15 years as a short-term solution to load increase. Some utilities have also resorted to proposing new payment structures in addition to planned generation resources. AEP Ohio proposed a unique tariff structure that, if approved, would require new large-capacity data centers to pay for their own transmission needs, and Duke Energy is considering contract agreements for data centers that would require them to provide upfront financial contributions to construct new generation resources to help power them.

Besides natural gas, nuclear is also seen as an option to power data centers, with various developers and data companies already examining this alternative. For example, Oklo, a California-based advanced nuclear company, has committed itself to providing its clean energy solution in response to increasing demand for AI adoption and data centers. The company announced a non-binding partnership in late May with Wyoming Hyperscale, which wants to use Oklo’s microreactor design to power a state-of-the-art data center campus using 100 MW of nuclear energy. As for data-heavy companies, Amazon Web Services bought a 960 MW Cumulus data center campus in northeast Pennsylvania in early March that will be powered by the 2.5 GW Susquehanna nuclear power plant. Nevertheless, with the construction price for compatible small modular reactors (SMRs) rising and SMRs and microreactors still far from commercialization, this reality may not come to fruition anytime soon. Plus, if new large-scale reactors are considered, the estimated $7.6 billion cost to ratepayers of the now-operational Vogtle Units 3 and 4 – which increased residential rates by about $9 a month – might dampen the prospects of nuclear as an option as well.

Either way, new resource proposals will persist as artificial intelligence and other significant data sources enter the equation as a catalyst, partly because heavy-data users like Google are experimenting with technology like AI-infused internet browsing. For context, compared to a Google search that consumes approximately 0.3 Wh per request, a single AI-powered Google search request may even consume about 23x to 30x more than, according to worst-case scenarios and research estimates published in late 2023. It is important to note that these estimations are dependent on a number of factors staying the same, including the availability of AI-based chips and the 24/7 operations of data centers at max capacity. However, as data center efficiency grows and operation procedures change, these estimates will shift.

Moreover, while the national impact of data centers is expected to take up a significant chunk of the nation’s overall electricity consumption, the most significant ramifications will be seen on a state-to-local level, especially as growth continues to concentrate in specific pockets of the country. State by state, Virginia is far ahead in the number of current data centers. The northern part of the state is considered the nation’s most significant data center market, even the world, with 35% of the globe’s hyperscale data center share – a type of data center facility that typically supports the business activities of massive data-driven companies like Google, Amazon, Meta, and Microsoft, just to name a few. The state legislature has responded by introducing bills this year to limit the provision of sales and use tax exemptions to only centers that demonstrate certain energy efficiency requirements, requiring localities to assess the grid impacts of proposed center sites, and disallowing utilities from recovering costs through their customers from electric grid infrastructure that mainly services the load coming from data centers.

Other state responses have been more mixed in their reaction, with Massachusetts – a state with about 50 data centers – introducing legislation courting new centers with a sales and use tax exemption, Michigan pushing forward with an extension of their existing data center tax exemption until mid-century, and New York – with almost 130 data centers – wanting to create an energy benchmarking program to account for high-energy infrastructure.

While the legislative and utility actions mentioned address the potential grid and energy impacts of data centers, they also touch on the future downstream cost issues associated with a utility’s response to the massive amount of incoming load growth and the capital recovery that customers, especially those that are low-income, will have to deal with.

Map of energy consumption from data centers in states with significant 2023 load. Data center consumption data depicts the highest-growth scenario states are projected to see in 2030 relative to total electricity consumption. Data Source: EPRI

Low-income load bearers

As utilities attack the projected data center load growth issue with additional investments and emerging technological applications, the customer is positioned to help subsidize the cost through rate increases as part of these utilities’ cost recovery processes. In the case of Duke Energy in North Carolina, the utility can recoup about 10% from new construction.

However, while wealthier households have the financial cushion to protect themselves from these rate increases, low-income customers do not, so the weight of frequent or significant bill increases bears greater financial struggle. The lack of financial security for low-income households is exemplified by one’s energy burden. In the United States, the national average energy burden, or the percentage of gross household income spent on energy bills, for low-income households is 6%, according to the Department of Energy’s Low-Income Energy Affordability Data (LEAD) tool. This average is based on an estimated 51 million households that identify as low-income, which is about 42% of all households in the country.

Depending on a person’s locality and household income, the energy burden can even be higher than 30%, particularly if you live in the Southeast. Even the financial toll from trying to keep cool during the summer heat can spike a household’s energy burden, which the National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty and Climate (CEPC) reported will increase by 7.9% this year. With the expected increase in utility bills in the coming years, such a high and localized energy burden rate may become more widespread and prevalent.

Low-income utility bill assistance

Since the reality of the energy burden in the country is not a new phenomenon, there are a number of financial assistance programs and approaches that the federal government, states, and investor-owned electric utilities have either implemented or are currently examining as options. For example, modeled after Maine’s “Project Fuel” program and created in response to the OPEC oil embargo in the early 1970s, the federal government established the Emergency Energy Conservation Program later in the decade to provide weatherization-focused assistance and eventually direct bill assistance for low-income households. It was one of the earliest programs of its kind. It would end up turning into what is now known as the Low Income Home Energy Assistance Program (LIHEAP), operating in every state, the District of Columbia, and most tribes and territories, to prevent energy-bill payment emergencies by providing payments to fuel suppliers/utilities and/or households.

Map depicting the national energy burden distribution for low-income households based on state median income; Source: U.S. Department of Energy Low-income Energy Affordability Data Tool

LIHEAP is commonly used to determine income eligibility for several other state and utility assistance programs. However, access to the federal program has been severely limited. Federal funding for fiscal year 2024 was cut by $2 billion compared to 2023, reducing the number of low-income households served by 1 million in addition to the program’s benefits. Because of the severe budget fluctuations that each state program faces due to federal decision-making, state and utility assistance programs are critical to help fill in the gap and then some.

Many additional state and utility programs exist and vary in terms of approach and scope and can take the form of an income-based discount, a percentage of income payment plan (PIPP), and an income-graduated fixed charge, among other types of payment assistance, like late payment fee and utility shut-off exemptions. Income-based discounts entail a utility or a state providing a continuous or one-time payment attributed to an income-eligible customer, either removing the mandatory fixed charge from a bill or providing a percentage reduction of the overall monthly bill according to a specific income range, among other offers.

Then, there are PIPPs, which refer to income-specific payment plans that allow certain customers to pay only a portion of their utility bill based on a percentage of their overall income. Existing PIPPs vary in terms of their price cap. Still, no program in the country inches above 10% of a household’s income, and some programs may also determine percentage payments based on the primary heat source, electric or otherwise. This payment plan is comparable to a student loan income-driven repayment plan. It can be a helpful tool to limit a low-income household’s monthly energy expenditures and allow households to dedicate a higher share of their disposable income to pay off other bills and to put food on the table, or perhaps allow a household to establish and/or grow their savings.

There is also the income-graduated fixed charge approach, which has only recently been implemented in California. This novel method of equitable ratemaking mirrors progressive taxation, in which the lower your income, the less you must pay, and is a significant departure for investor-owned utilities in the state impacted by this change, which did not impose fixed charges before this.

Part Two of this blog will look at the utility perspective on equitable ratemaking.

Justin Lindemann is a policy analyst at NC Clean Energy Technology Center.

This article originally published by NC Clean Energy Technology Center. Click here to learn about our DSIRE Insight subscriptions, custom research, and consulting offerings on various clean energy technologies for interested individuals or organizations. 

From ESS News

The U.S. Department of Energy (DOE) has announced a $325 million funding opportunity with the goal to improve community-level energy resilience for vulnerable populations across Puerto Rico.

The new Programa de Comunidades Resilientes, funded by a second tranche of DOE’s Puerto Rico Energy Resilience Fund (PR-ERF) will provide funding for solar and battery storage installations for community healthcare facilities as well as community centers and other common areas within public housing and privately owned subsidized multi-family properties.

“Every municipality in Puerto Rico has a facility that could be eligible for an installation through the Programa de Comunidades Resilientes,” said Maria Robinson, Director of DOE’s Grid Deployment Office. “This program will be a key tool in improving community-level resilience, ensuring that emergency rooms stay powered, residents of multifamily housing can refrigerate medicine and food, and vital services remain available during outages within low- and middle-income communities.”

DOE anticipates awarding between $70 million and $140 million to fund solar and battery installations for federally qualified healthcare centers, dialysis centers, and diagnostic and treatment centers.

Between $93 million and $185 million is expected to go to solar and battery installations in multi-family housing properties, subsidized by the U.S. Department of Housing and Urban Development and the U.S, Department of Agriculture. This includes community centers and common areas within public housing or privately owned multi-family housing properties available to all residents or shared building infrastructure that depends on electricity, such as elevators.

Applications to this funding opportunity are due on October 22, 2024, at 5:00 PM EST. Potential applicants may access an online Teaming Partner List to express their interest to other applicants and explore potential partnerships.

After devastating hurricanes and decades of underinvestment in the island’s electric grid, the U.S. government introduced the $1 billion funding package called PR-ERF to support residential solar and storage projects in Puerto Rico. In July this year, DOE announced its first installations of subsidized residential solar and battery storage systems through the PR-ERF’s Programa Acceso Solar.

Puerto Rico’s distributed solar capacity reached 842 MW by April this year, while residential storage has reached 1.6 GWh. Consultancy Wood Mackenzie has projected that over the next ten years more than 90% of Puerto Rico’s solar additions will be distributed solar.

Puerto Rico’s Act 17 calls for reaching an ambitious 40% renewable generation by 2025, followed by 60% by 2040 and 100% by 2050.

The U.S. Department of Energy (DOE) released the 2024 U.S. Energy and Employment Report (USEER), which shows that the energy workforce overall added over 250,000 jobs in 2023; 56% of those were in clean energy.  The clean energy sector now accounts for more than half of new energy sector jobs and is growing twice as fast the rest of the energy sector and the U.S. economy overall.

The report finds that unions are playing a huge role in the clean energy sector, with unionization rates at 12.4%, compared to the average rate in the energy sector of 11%. Unionized job growth is driven by construction and utility industries. The energy construction sector, for example, was found to have added nearly 90,000 energy jobs, growing 4.5%, almost double the economy-wide construction employment growth of 2.3%. The utilities sector saw the fastest employment growth of 5.0% in 2023, adding nearly 30,000 jobs.

Geographically, clean energy jobs showed growth in all 50 states and the District of Columbia. The fastest growth (7.7%) was seen in Idaho, followed by Texas (6.0%), and New Mexico (5.9%).

Jobs in the solar industry grew 5.3%, and the DOE expects this to double the share of electricity generation from clean energy sources by 2030, as the country moves closer to the goal of carbon neutrality by 2050.

As the move to onshore the domestic supply chain steps up, more manufacturing jobs are becoming available.  The report found that solar and battery and other clean energy manufacturing facilities have added another 28,000 jobs in 2023. Also included here are jobs in ports for offshore wind, and warehouses to store and transport clean energy products.

“Our policies are working. We are now starting to see the job impacts of investments made through the infrastructure and inflation reduction laws – first in construction and as America builds more of these factories, we’ll see hundreds of thousands more,” said U.S. Secretary of Energy Jennifer M. Granholm. “The data clearly show that clean energy means jobs – good jobs, union jobs, and jobs retained – in communities across the country as we race to dominate the global clean energy economy.”

This year’s report reflects a record number of survey responses from 42,000 business nationwide. To read the full 2024 USEER National report, go to U.S. Energy & Employment Jobs Report (USEER).

Canada to impose 100% tariff on Chinese EVs The tax will apply to electric and certain hybrid passenger automobiles, trucks, buses, and delivery vans as well as fuel-cell vehicles. A 25% tariff will be applied to steel and aluminum from China.

Back to school on electric buses Operator First Student committed to deploying 30,000 EV school buses by 2035.

New process to recover silver from end-of-life solar cells achieves 98% efficiency  Scientists have used hydrometallurgical and electrochemical processes to recover pure silver from solar cells. The proposed technique also utilizes a method known as electrodeposition-redox replacement, which reportedly increases the silver recovery rate.

Clearway closes $550 million financing for solar-plus-storage project in Kern County The 140 MW solar and 472 MWh storage  project is expected to generate enough electricity to power 63,000 homes.

Construction begins at Arevon 192 MW solar project in Indiana Along with a 73 MW project, the two Pike County projects represent almost $400 million in investment.

It’s back to school for many of the nation’s students. Big yellow school buses are back on the roads, and an increasing number of them are electric powered.

Cincinnati-based First Student, the largest operator of school bus fleets in the U.S. and Canada, said it plans to deploy 110 new electric school buses in 10 districts this year, bringing its total to 465. The company has received more than $400 million from the Environmental Protection Agency’s Clean School Bus Program and other federal and state programs for its deployments.

Kevin Matthews, head of electrification at First Student, said school bus fleets are excellent candidates for electric vehicles because of their operating patterns and schedules. The average routes are about 80 miles a day – 40 in the morning and 40 in the afternoon – which is well within the range of current technology, he said.

“As we look at the routes we operate today across our 45,000 units, we think we could easily accomplish 75% of these with electric school buses,” Matthews told pv magazine USA.

Last week, the company unveiled six electric school buses for the Steelton-Highspire School District in Pennsylvania that will be charged with a 1.7 MW solar array on the campus that also powers every school building in the district. First Student has a plan in place to deploy 30,000 electric school buses in North America by 2035.

According to Matthews, the overwhelming majority of electric buses his company fields are new builds rather than conversions from diesel-powered vehicles. Three legacy producers of full-size school buses in North America make electric versions: Bluebird; IC Bus, a division of Navistar; and Thomas, a division of Daimler. In addition, new companies dedicated to electric technology are entering the market, notably Quebec-based Lion Electric. Matthews said the Infrastructure Investment and Jobs Act signed into law in 2021 has motivated a lot of this investment in electric technology.

Most school districts contract out their school bus acquisition, maintenance and operations to specialized companies like First Student, which employs nearly 50,000 drivers. Matthews said when his company looks to bring electric vehicles into one of its school district operations, it evaluates 27 factors that bear on the district’s suitability. These factors include length of the routes, the operating temperatures, topography and others that might be considered traditional issues.

“But then we have to get to the cost of electricity and potential issues and logistics related to the installation of charging infrastructure,” he said. “The very first thing we do is contact the local utility. Part of the attractiveness or even the ability to do electric buses is dependent on the cooperation of a utility that has policies to help support that.”

A growing number of states are enacting policies that support the deployment of electric school buses. In New York, for example, Governor Kathy Hochul recently announced that an additional $200 million is being made available to school districts and bus operators for zero-emission school buses through the New York School Bus Incentive Program, which provides support for the purchase of electric buses, charging infrastructure, fleet electrification planning and utility coordination.

In California, school bus service provider Zum announced is deploying 75 electric vehicles to the Oakland Unified School District for the 2024 to 2025 school year, making it the first major district in the U.S. to transition to a 100% electrified student transportation system. Zum said Pacific Gas and Electric cooperated on the charging infrastructure, which involved 74 bi-directional EV chargers. The utility was able to provide 2.7 MW of load to Zum’s Oakland facility, allowing the project to be deployed one year ahead of schedule.

First Student’s Matthews said its electric school buses are proving to be very popular with all concerned, citing lower fuel and maintenance costs when compared to traditional diesel units.

“The drivers like them better,” he said. “The anecdotal evidence is growing that the students are better behaved because the bus is quieter. So, they’re not yelling just to talk. Admittedly, we do not have a peer-reviewed study on this, yet.”

A state entity, the California Public Advocates Office (PAO), released a report suggesting that residents who have invested in rooftop solar should be force-shifted onto a regulatory scheme that would greatly diminish the value of their investments. 

The PAO released a fact sheet claiming that rooftop solar net metering will create an $8.6 billion cost for non-solar customers in the state, and that this number is increasing. As a result, it has advised that net energy metering (NEM) 1.0 and 2.0 customers are forced to shift to the far less advantageous NEM 3.0 rate structure.

The issue at hand is justified based on the “cost shift” problem, a claim backed by utilities that electric bill payers that do not have rooftop solar are subsidizing their solar-installed neighbors. By paying solar customers a retail rate for electricity exported to the grid from a rooftop solar array, utilities say they are incurring a cost that must be paid in the form of raised electric rates.

The California Solar and Storage Association (CALSSA) released a factsheet in response to PAO, debunking PAO’s assumptions about the cost shift. Specifically, it rejects that self-generation of electricity poses a cost to utilities, rejects the assumption that grid infrastructure costs are fixed, and challenges the foundation of the Avoided Cost Calculator, which is used to set the rate for solar exports. More details can be found here.

“For years, the State of California has encouraged people to invest in rooftop solar for the benefit of all. As a result, two million consumers have invested $40 billion to collectively build 12 gas power plants-worth of clean energy. If California goes back on its word, it would not only anger millions of people, it would undermine the solar market going forward as well,” said CALSSA.

The PAO is an agency designed to be a voice for California residents, interacting with the Public Utilities Commission (CPUC) on energy related regulatory issues. It has historically repeatedly released guidance that dovetails with the demands of the state’s three multi-billion-dollar private electric utilities. 

“This cost burden – commonly referred to as a cost shift – to non-rooftop solar customers of Pacific Gas and Electric, Southern California Edison, and San Diego Gas & Electric has risen from $3.4 billion annually in 2021 to $8.5 billion annually by the end of 2024, and it will continue to grow in coming years,” said PAO.

This was the central argument that led to the passage of NEM 3.0, a regulatory structure which transitioned the state from paying lucrative retail rates for solar grid exports to “avoided cost” rates that are roughly 80% lower. The change led to a nosedive in installations in the state, dropping it out of the number one spot for installations for the first time in over a decade.

California has since suffered numerous solar installer bankruptcies and lost tens of thousands of jobs. Solar advocates have argued that while a full retail rate could not be paid forever, the move to NEM 3.0 was too steep of a cut. It’s an issue so contentious that ongoing litigation has brought the issue of NEM 3.0 to California Supreme Court.

For solar owners, PAO suggested the shift from NEM 1.0 and 2.0 to 3.0, also known as net billing tariff (NBT), would occur upon the sale of a home, or after 10 years of interconnection. Most homeowners signed a net metering agreement along with their 25 year loan or lease with the expectation that their agreement would span the life of the solar array. However, net metering agreements do not have any legally binding requirement to grandfather in existing customers for their system’s life.

The PAO also suggested that NEM 2.0 customers have their compensation rates frozen to the time in which they signed the agreement. Rather than being paid a retail rate that increases with the ever-rising electric utility rates, it would remain fixed, cutting down on the benefit of solar.

Silver linings?

However, NEM 3.0, while a shot to the hamstring for the solar industry, has come with some benefits. More than half of solar installations are now opting to include battery energy storage, up from 20% or less in 2023. This may provide critical for California’s clean energy transition, as the intermittent cycles of generation of solar do not match up directly with when power is being used.

This mismatch can be best described with a chart known as the “duck curve,” which shows the daily imbalance the California grid struggles with. Battery energy storage allows this duck curve to be smoothed out, delivering power when demand reaches a high point. This helps grid managers avoid building out inefficient natural gas “peaker” plants to serve those high-demand hours.

Vincent Ambrose, chief commercial officer, FranklinWH told pv magazine USA about the many ways batteries can help solar evolve and continue to serve California residents’ power demands.

“You can think of PV like a knife, it cuts one way, does one thing, and does it efficiently. It produces electricity,” said Ambrose. “When you take a look at an energy management system with a battery, now you’ve got a Swiss Army Knife. It serves all kinds of functions, whole-home backup, peak shaving, load management, even grid-interactive services.”

While batteries offer customers at home a lot more flexibility, those that were sold a solar array with no battery during NEM 1.0 and 2.0 may find themselves in a financially precarious position on their investment should the PAO’s suggestion become reality.

From pv magazine Global

Meyer Burger has canceled plans to open a 2 GW solar cell manufacturing facility in the United States. In a statement, the Swiss-German PV manufacturer said construction of the plant at Colorado Springs is no longer financially viable.

The board of directors has also instructed company management to draw up a comprehensive restructuring and cost-cutting program for the business. A planned 0.7 GW expansion of Meyer Burger’s 1.4 GW module production plant in Goodyear, Arizona, has also been put on hold.  

The decision means Meyer Burger’s existing cell production site in Thalheim, Germany, will continue to form the backbone of the company’s solar cell supply, according to the manufacturer – a reversal on previous plans. Meyer Burger said cells produced at Thalheim represent the most economical option in the current market conditions. 

The manufacturer had sought a debt financing package backed by the monetization of tax credits available through the U.S. Inflation Reduction Act (IRA). Regulations in the United States allow an additional 10% bonus investment tax for U.S. solar projects. Announcing the Colorado production facility in July 2023, Meyer Burger said it planned to monetize up to $1.4 billion in tax credits from the start of production in 2024 until the end of 2032.

In the restructuring announcement, it said it will continue to seek debt financing on a reduced scale by monetizing the tax credits available to its US module production facility. It added its financing requirements will be “significantly lower” due to halting the Colorado Springs plant.  

In addition to announcing a “comprehensive” restructuring and cost-cutting program, Meyer Burger has postponed publication of its half-year financial result, previously announced for Sept. 16, 2024, to Sept. 30, 2024. The company said it could potentially postpone to an even later date, subject to regulatory approval.

Personnel changes are also expected at board level. Mark Kerekes has stepped down from the board of directors, with the company stating that its realignment will require a “new composition” of the board of directors.  

“We would like to thank Mark Kerekes for his very constructive cooperation and significant contributions during his membership of the board of directors,” said Franz Richter, chairman of the board of directors of Meyer Burger. 

12 GW of utility-scale solar deployed in first half of 2024, doubling 2023 

The Energy Information Administration reports that 20.2 GW of electricity generation capacity was deployed in the U.S. in the first half of 2024, with solar energy leading and energy storage also seeing significant deployments. Fossil fuel retirements exceeded new fossil constructions more than tenfold.

Google invests in 800 MW solar project in Illinois

The Double Black Diamond Solar project may be the largest solar installation east of the Mississippi when complete in 2025.

U.S. module manufacturers seek “critical” retroactive tariffs

Led by First Solar and Hanwha Q Cells, U.S. solar module manufacturers have filed allegations with the Commerce Department, citing “critical circumstances” and suggesting increased module imports due to their previous lawsuit filings.

Most states with renewables targets are meeting them

Nearly all states with a renewable portfolio standard have met or nearly met their current standard. Four states have yet to meet their solar carve-out requirements.

We must onshore the supply chain

With the introduction of the American Tax Dollars for American Solar Manufacturing Act earlier this month, senators are trying to close this work-around and put American manufacturing back on a level playing field.

Nevados announced that its all-terrain solar solar trackers will qualify for domestic content with delivery by Q2 2025.

Nevados is known for its All Terrain Tracker, a single-axis tracker that is designed to fit undulating terrain by integrating the driveline and articulating capability into the same components. Last November the company announced a manufacturing partnership with Priefert Manufacturing, an East Texas family-owned business that has long supplied the ranch and rodeo markets.

Priefert has begun manufacturing torque tubes, structural fasteners, controllers, and rails from American-made steel at its 23-acre factory and expects to expand as a result.

“Nevados was already working on a domestic supply chain before the inflation Reduction Act. We had set the groundwork before the IRA was released,” said Scott Troy, vice president of operations & global supply chain at Nevados. “Our partnership with Priefert has allowed more reliable production, shorter shipping times, and a lower overall carbon footprint for our customers.”

Domestic content enables developers to qualify for the 10% additional tax credit under the Inflation Reduction Act. According to guidance released in May by the U.S. Treasury and Internal Revenue Service, to receive the bonus, all manufacturing processes for steel and iron components and 40% of manufactured products must take place in the United States..

Nevados reports that its domestic content trackers will fully comply with both Treasury’s new elective safe harbor and pre-existing direct cost requirements, helping developers qualify for a 10% domestic content tax credit, which is in addition to the 30% base investment tax credit.

“We’ve found partners who believe in the same things that we do. We have helped our customers get the details they need to file,” said Yezin Taha, CEO and founder of Nevados. “As a result we’re proud to be able to launch an American-made solar tracker so early, and we have an industry-leading product.”

By the close of 2024, Nevados reports that it will have shipped enough trackers to supply more than a gigawatt of solar generating capacity in the U.S., of 1.3 GW total contracted with client partners such as Ampliform, Cupertino Electric Inc., BlueWave, Cogent Renewables, CS Energy, Cupertino Electric, Inc., D. E. Shaw Renewable Investments (DESRI), Energix Renewables, Nexamp, Primoris Services Corporation, and SOLV Energy.

The company plans to begin taking orders for domestic content trackers in Q4 2024 and to ship them by Q2 2025. For developers not seeking domestic content incentives, Nevados will continue to offer non-domestic supplies.

While the PUC will ultimately rule on net metering, a group of interested parties—including the state’s utilities and the Granite State Hydropower Association—agreed on a settlement that calls for the rate to stay the same for two years.

The settlement also calls for the electric utilities to file a NEM time-of-use rate two years from the approval of what they’re calling NEM 2.1. In response to claims that NEM shifts costs to non-solar ratepayers, the settlement calls for the utilities to impose application fees for net metered projects to reduce the administrative costs borne by non-net-metering customers. Fees suggested range from $200 to $1,000 per project.

The state’s leading clean energy advocacy group, Clean Energy NH, has sent a rallying cry in support of the settlement. Executive director, Sam Evans-Brown told pv magazine USA that he’s hopeful that the commissioners won’t cut the current compensation rate, but he said “we have seen with this commission that they are hostile to certain types of utility programs. This was most evident in their order in the Energy Efficiency docket from 2020, which was overturned unanimously on a bipartisan basis by New Hampshire lawmakers.”

Much evidence has been entered into the record for Docket 22-060, yet Evans-Brown said in the past, the order in the previous docket was not based on any evidence that was entered into the record, so Clean Energy NH is afraid that history may repeat itself.

The history of net metering in New Hampshire goes back to 1998 when NEM, a policy that provides credit to rate payers on utility bills for the amount of solar energy sent to the grid, was first enacted in New Hampshire. At the time it supported both solar generation as well as small-scale hydropower and it provided net credits at the retail rate which was 17 cents per kWh.

In 2017 NH’s NEM was cut to around 14.7 cents per kWh for small (<100 kW) systems and 10 cents per kWh for large projects compared to between 13 and 25 cents per kWh in Maine, and about 16 cents per kWh in Vermont.

Source: Clean Energy NH

While the net metering rate has been low in NH, the cost of electricity is high. New Hampshire currently has the 8^th highest electricity rate in the country, averaging 23.1 cents per kWh.

Furthermore, while solar would ease this cost burden for many ratepayers, the state is not known as a solar energy powerhouse. The state currently gets 1.94% of its electricity from solar, compared to neighboring Massachusetts that gets 23.75% of its electricity from the sun. NH and is ranked 41^st in the nation according to the Solar Energy Industries Association. That rank is expected to drop to 45^th over the next five years.

If the NH PUC chooses to reduce or eliminate net metering in New Hampshire, solar in the state may be affected. pv magazine USA spoke with Dan Weeks, vice president at ReVision Energy, New Hampshire’s largest solar installer. Weeks said that net metering has been “the critical foundation for thousands of families, plus housing authorities, nonprofits, businesses, and towns to go solar and get at least a portion of the value that they provide to the grid back in net metering credits.”

Weeks noted that right now net metering in NH is good through 2040, which is only 15 years away. With 20 years being the “minimum accepted duration for investing in projects,” he said ReVision is hoping the PUC leaves net metering in tact and extends the duration.

“We think that’s a very modest task,” said Weeks. “And the fact that all of the regulated utilities, as well as the consumer advocates, plus industry and environmentalists are in alignment should make it an easy decision for the PUC commissioners. But we’re also reading the signals showing that they could go in a very drastic direction, and that concerns us very much.”

California’s current solar conundrum is an example of what could happen to New Hampshire’s solar market. The updated net metering rule that was implemented in April 2023, called NEM 3.0, cut compensation for exported rooftop solar generation by roughly 80%. Since then interconnection queues show an 80% drop in installation applications. The California Solar and Storage Association (CALSSA) reported that nearly 17,000 rooftop solar jobs, about 22% of the workforce, were lost this year as a result. Solar Insure, which backs many installation companies in the state, told pv magazine USA that its data shows 75% of solar installers are now in the “high risk” category following CPUC’s decision to implement NEM 3.0, with SunPower being the most notable bankruptcy among many.

Comments on the potential rate change can be emailed to ClerksOffice@puc.nh.gov. Clean Energy NH advises that comments be sent by August 30, 2024.

Most states with renewables targets are meeting them Nearly all states with a renewable portfolio standard have met or nearly met their current standard. Four states have yet to meet their solar carve-out requirements.

U.S. module manufacturers seek “critical” retroactive tariffs Led by First Solar and Hanwha Q Cells, U.S. solar module manufacturers have filed allegations with the Commerce Department, citing “critical circumstances” and suggesting increased module imports due to their previous lawsuit filings.

12 GW of utility-scale solar deployed in first half of 2024, doubling 2023  The Energy Information Administration reports that 20.2 GW of electricity generation capacity was deployed in the U.S. in the first half of 2024, with solar energy leading and energy storage also seeing significant deployments. Fossil fuel retirements exceeded new fossil constructions more than tenfold.

We must onshore the supply chain With the introduction of the American Tax Dollars for American Solar Manufacturing Act earlier this month, senators are trying to close this work-around and put American manufacturing back on a level playing field. 

U.S. solar car race success for two Canadian teams Solar car teams from Canada outperformed in two categories of the latest Electrek American Solar Challenge.

According to the U.S. Department of Energy’s Energy Information Administration (EIA), the U.S. connected 20.2 GWac of utility-scale power plants to the grid during the first half of 2024. This capacity includes 12 GW from solar power, which represents 59% of the total additions. Additionally, 4.2 GW of this new capacity was attributed to energy storage.

Florida and Texas led the nation in utility-scale solar development, contributing 38% of the new solar capacity. Notable projects include the 690 MW Gemini Solar facility in Nevada, which integrates solar and storage, and the 653 MW Lumina Solar Project in Texas.

Energy storage was the second most significant technology by capacity with a total deployment of 4.2 GW. California led the charge, contributing 37% of the total energy storage capacity, followed by Texas (21%), Arizona (19%), and Nevada (13%). Together, these states accounted for 90% of the energy storage capacity added, with the 380 MW battery at the Gemini facility being the largest of the period.

Fossil fuel retirements far outpaced new fossil capacity deployments. The EIA noted that 5.1 GW of capacity was retired, with 53% from methane (2.7 GW) and 41% from coal (2 GW). In contrast, only 0.4 GW of new gas capacity was deployed.

The U.S. energy sector’s growth trajectory is expected to continue its upward trend. For the second half of the year, the EIA forecasts an additional 42.6 GW from new capacity deployments, including 25 GW from solar and an additional 10.8 GW of energy storage. Combined with the first-half capacity of 12 and 4 GW, the nation could finish 2024 with 37 GW of new utility-scale solar and 15 GW of new energy storage facilities. 

Is 37 GW real or a mirage?

Whether we can actually reach the projected record capacities of solar will be dependent on politics. The nation is currently debating the imposition of new AD/CVD tariffs, which if implemented at the rates suggested by the filers, would lead to the United States paying three times the international price for solar panels. Historically, similar AD/CVD tariffs led to delays and cancellations for about 20% of utility-scale solar capacity in 2022.

Solar industry analyst Roth MKM has suggested that developers are proceeding cautiously, potentially deferring some 2024 projects to 2025 due to these tariff risks. Just last week, U.S. module manufacturers filed a petition with the U.S. Department of Commerce seeking critical retroactive tariffs.

In 2023, the U.S. added just over 18 GW of utility-scale solar, according to the EIA. Including all capacities, from residential to utility-scale, Wood Mackenzie significantly adjusted their capacity estimations upward to just over 40 GWdc of solar power deployed in 2023. At the start of 2024, the EIA projected about 36 GWac of new utility-scale solar capacity. Combined with small-scale solar projections from various groups, it was suggested that nearly 53 GWdc of new solar capacity might be deployed in the United States in 2024. The EIA indicated that if the current pace continues, then 37 GW of utility-scale solar will be deployed in 2024, more than doubling last year’s record capacity.

Two years ago, the Biden Administration and Congress worked together to begin the process of reshoring solar manufacturing.

For the last 20 years, China has been working hard to secure a monopoly over this critical technology. While China has mostly succeeded, the Inflation Reduction Act (IRA) created a set of incentives to get us back in the game. But, one critical piece may undermine our progress – we are letting China-headquartered companies locate final manufacturing in the United States, taking advantage of those same incentives while preserving their supply chain monopoly over the fundamental components.

Fortunately, with the introduction of the American Tax Dollars for American Solar Manufacturing Act earlier this month, senators are trying to close this work-around and put American manufacturing back on a level playing field.

Solar energy was invented in the United States, but right now nearly all of it, and about 99% of the fundamental component (the wafer), is being manufactured elsewhere, specifically, by Chinese-controlled companies. As our government works to invest in clean energy, we’re incentivizing companies to build back their operations in the U.S. so Americans can benefit from good-paying jobs, foster innovation from our world-leading R&D abilities, and establish energy independence in the critical technologies for our future.

Congress created a remarkably far-sighted system to reshore solar, batteries and wind technology. Policymakers not only created supply-side incentives in the advanced manufacturing production incentive that encourage manufacturers to build big factories quickly, but they paired them with demand-side incentives to give developers who use the products a bonus if they buy the products of those factories as they build solar and wind farms.

Unfortunately, the guidance for that bonus issued by the Treasury Department so far has missed the mark and has now become one of the biggest obstacles to jumpstarting the onshoring of American solar manufacturing. As it stands, Chinese companies can continue to leverage their monopoly power over the fundamental components of solar, produced with weak environmental and labor protections as well as massive direct subsidies, and sell to projects claiming the “domestic content bonus.” The clock is ticking to get this right as billions of investment dollars and thousands of jobs in solar manufacturing hang in the balance. In a very real sense, the future of solar energy depends on it.

China has dominated the solar manufacturing sector for a decade, and they’ve done it using a familiar playbook to those of us who’ve watched what the OPEC cartel has done to oil markets. OPEC’s ability to control price was legendary and it wasn’t limited to keeping prices high. Much more importantly, they could crash prices when they wanted to in order to run out competition. From “heavy oil” in Venezuela, to oil sands in Canada, to fracking in the US, OPEC has demonstrated again and again that you can either join them like Venezuela or be run over, with the attendant economic crash that people in Colorado, New Mexico, and Texas have seen many times over.

Now, China is doing the same thing in solar – as we are currently seeing the lowest prices in history, far below production cost – to stifle our manufacturing renaissance before it gets a chance to take off. Stymying competition and, thus, innovation is chapter one of the cartel playbook and China has perfected their execution.

Look no further than our friends across the pond: nearly all of the European solar manufacturers have closed operations due to insufficient protections from below market Chinese products. Many are even looking to the United States, but that will quickly change if our policies don’t keep pace.

To build a robust solar supply chain in the United States, our government must prove that we have the backs of our manufacturers. Companies will not invest here if they do not think they will be protected. How are U.S. manufacturers supposed to compete when China is setting prices far below the cost of production?

The fact is, international competition is not for the faint of heart. Our companies can hold their own, but only if the government has their backs and helps build the foundation for successful competition. This means leveraging our strengths; our unmatched innovation apparatus, strong investor base, and our brutally efficient market that forces constant improvement. But this only works if we don’t ignore the fact that China simply doesn’t have a free market economy.

Unlike the U.S., where most of our economy is us selling products and services to each other, their entire economic system requires exports, because their consumer class doesn’t have the ability to support their economy. This means, the U.S. government must work to produce a level playing field for U.S. manufacturers through the three legged stool of production support, demand incentives, and tariffs and other trade remedies. For the first time in several generations, we’re on the path to building the supports our economy needs to thrive in these all-important industries – as long as we don’t lose our will to succeed,

No one action can unwind the years of investment that Chinese-headquartered solar firms have made to control the solar industry, but we must act now with every tool at our disposal. By updating the domestic content bonus, enforcing smart trade policy, and standing up to the Chinese-controlled monopoly trying to protect their dominance by doing the minimum possible in the U.S. we can reshore the domestic solar supply chain, ensure the United States is clean energy independent, and secure a future for solar manufacturing in America that will benefit workers, businesses and the environment.

 Mike Carr is the executive director of the SEMA Coalition. Prior to joining SEMA, Carr served as the principal deputy assistant secretary for the Office of Energy Efficiency and Renewable Energy and the senior advisor to the director of energy policy and systems analysis at the U.S. Department of Energy from 2012 to 2015.  Prior to serving the President at DOE, Mike served as Senior Counsel to the Senate Committee on Energy and Natural Resources from 2004 to June 2012. He holds a law degree, with a Certificate of Specialization in Environmental and Natural Resources Law, from Lewis and Clark College and a Bachelor’s from the University of Colorado – Boulder.

Solar panel manufacturers First Solar, Hanwha Q Cells, Meyer Burger, Mission Solar, REC Silicon, Convalt, and Swift Solar, grouped under the American Alliance for Solar Manufacturing Trade Committee (AASMTC), have filed a new complaint by the Wiley Rein law firm with the U.S. Department of Commerce alleging increased solar panel imports from Vietnam and Thailand as a result of the Alliance’s prior antidumping and countervailing duties (AD/CVD) legal filings.

The AASMTC, citing “critical circumstances,” has filed for retroactive tariffs on all solar panels imported since their filing in April.

The filing states that, due to the April AD/CVD actions, “several China-based companies operating in Thailand and Vietnam appear to have actively accelerated their U.S. solar exports, likely to evade impending duties.” The filing suggests that solar module imports from Vietnam have increased by 17%, while those from Thailand have grown by nearly 40%. In total, the increase relative to the prior months was about 2.6 GW of module capacity.

At the beginning of 2024, the U.S. Energy Information Administration (EIA) and other groups suggested that the U.S. might install 53 GWdc of solar in the upcoming year. If realized, this would represent a 32% increase over the 40 GW of solar deployed in 2023.

Roth MKM, a solar industry analyst, provided insights on the complexities of the situation with an industry lawyer:

The data Wiley is using is not accurate, as it includes product subject to Solar I (i.e., the China case, because of circumvention). So, we have to wait to see what the accurate data says. And, even if DOC ultimately goes affirmative, the ITC also has to reach an affirmative finding, and the ITC rarely finds critical circumstances. So, this will cause (is already causing) havoc in the industry, but will likely turn out to be a flash in the pan.

In 2022, the EIA reported that the threat of AD/CVD tariffs had prompted delays or the cancellation of around 20% of utility-scale solar generation capacity. Solar industry analyst Roth MKM has suggested that solar developers are currently slowing project deployments due to the AD/CVD tariff risks associated with solar module procurement, pushing 2024 installations into 2025.

If the Department of Commerce were to implement the tariffs suggested by the group, it would lead to the United States paying three times the international price for solar panels. ACORE (American Council on Renewable Energy) president and Chief Executive Officer Ray Long said a finding of AD/CVD violation “could unintentionally cede U.S. leadership in the solar industry to other countries.”

Last week, the Biden administration maintained a 14.5% tariff on imported solar cells and increased the volume of cells allowed from 5 GW to 12.5 GW to keep up with growth in solar module manufacturing facilities.

All but three of the 29 states plus DC that have a renewable portfolio standard (RPS) are meeting their current targets, according to an analysis by Lawrence Berkeley National Laboratory.

Vermont’s current RPS target of nearly 60% is the highest of any state, as shown in the featured image above, provided in the analysis. Every bar in the image without a light blue segment at the top means that state has met its current RPS.

The study says that “large shortfalls” in New York and Illinois are “expected to close” as contracted projects come online.

The study counts a state as meeting its RPS if the state’s utilities have retired renewable energy credits (RECs) equal to the amount of the RPS requirement. States award RECs for renewable power generation.

A state may also permit utilities to comply with its RPS by submitting “alternative compliance payments.”

Delaware’s “large shortfall,” the study says, is due to its low cost for alternative compliance payments compared to other states in the region.

Puerto Rico is not included in the analysis but also has a large shortfall in meeting its renewables target. The territory stands at 12% renewables, compared to its current target of 20% by 2022.

Solar carve-outs

Of the 15 states plus DC that have RPS carve-outs that require a certain amount of solar and/or distributed generation, all but four have met or nearly met the goals, as shown in the nearby image.

 Drivers

While the study says that “parsing out the incremental impact of individual drivers” for the growth in renewables generation is “challenging,” it observes that RPS policies have been a “larger driver” of renewables deployment in three regions:

• The Northeast, where almost all renewable capacity additions—mostly onsite and community solar in recent years—are serving RPS demand
• The Mid-Atlantic, thanks to solar carve-out capacity and RPS-certified projects with corporate power purchase agreements, which “potentially sell RECs into compliance markets”
• The West, where added renewables are driven by “aggressive” long-term RPS and clean energy standard (CES) targets throughout the region, and where non-RPS additions are mostly onsite solar.

Regions where RPS standards have been a “smaller driver” are:

• Texas, which achieved its final RPS target in 2008, so that all renewables growth since then is not influenced by the RPS
• The Midwest, where there is “lots of wind development,” some of which is contracted to utilities with RPS needs
• The Southeast, where renewables growth is primarily driven by utility procurement and qualifying facilities under the Public Utility Regulatory Policy Act (PURPA).

In all but two regions, renewable generation well exceeds the combined RPS targets for the states in the region, as shown in this graph from the study:

Ultimate targets

Across the 29 states plus DC with an RPS, 16 have ultimate RPS targets of at least 50% of retail electricity sales, and 4 have a 100% RPS. Sixteen states have adopted a 100% clean energy standard, which can be met by renewables and typically also nuclear and hydroelectric generation as well.

RPS and CES policies will require 900 TWh of new clean electricity by 2050, the study says, “equivalent to roughly 3x the historical rate of RPS buildout.”

Berkeley Lab is hosting a webinar on August 28 to present the study’s complete findings. The study is titled “U.S. State Renewables Portfolio & Clean Electricity Standards: 2024 Status Update.”

Which solar inverter manufacturers are most financially stable?  Sinovoltaics, in its latest financial stability ranking of inverter manufacturers lists Hoymiles, Eaton and others at the top. 

Biden issues new proclamation on solar cell tariffs  Tariffs on solar cells remain, but volume increases from 5 GW to 12.5 GW.

What happens when solar is installed without homeowner’s permission A Connecticut couple and several companies including Sunrun have been sued by the state’s Attorney General for forging signatures, faking a voices, and unlawfully installing solar panels on a home without the owners’ consent.

Ebon Solar to invest nearly $1 billion in U.S. solar cell factory The solar cell manufacturing facility is to be located in New Mexico and expected to bring over 900 jobs to the area.

IRA 2-year anniversary: A look at its successes and failures David Burton, attorney with Norton Rose Fulbright and specialist in energy tax law, looks at tax credit transfer, domestic content, energy communities, prevailing wage and more.

A look at IRA successes and failures David Burton, attorney with Norton Rose Fulbright and specialist in energy tax law, looks at tax credit transfer, domestic content, energy communities, prevailing wage and more.

Jimmy Carter, champion of solar energy At the age of 92, President Carter’s dedication to solar energy came full circle when his family decided to convert 10 acres of their peanut farm into a 1.3 MW solar farm.

Making perovskite solar PV circular from the start Department of Energy’s National Renewable Energy Laboratory researchers used a circular economy framework to determine how to scale, deploy, and design metal halide perovskite solar panels to be easily recyclable in the future.

Heliene to procure U.S.-made solar wafers from NorSun The NorSun wafers will be supplied from the company’s planned 5 GW wafer factory in Tulsa, Oklahoma.

It has been two years since the passage of the Inflation Reduction Act of 2022 (IRA), and like any complicated and multi-faceted policy, the IRA is a mixed bag of successes and failures. Let’s start with the successes.

The IRA created a tax credit transfer market, and it is thriving.  Our firm has closed almost $5 billion in tax credits transfers across over 40 deals. For our deals, the high price is 97 cents on the dollar and the low is 83 cents on the dollar. Much of the difference in price depends on the quality of the indemnity that backstops the buyer’s purchase of the tax credits. The high end of the range has investment grade indemnitors/guarantors or a tax credit insurance policy, while the low end of the range has an unrated indemnitor that is not backstopped by tax credit insurance.

The Treasury issued final regulations about tax credit transfers, but “the credit” really goes to Senator Joe Manchin (I-WVa) who decided that such things were better handled by the private sector than the IRS. In contrast, the activity around “direct pay” (i.e., a refund from the IRS) for tax-exempt project owners, clean energy component manufacturers, carbon capture and hydrogen projects is anemic. The eligible participants are, generally, avoiding direct pay due to concerns about the time it will take the IRS to process the direct pay requests and potential haircuts.

Tax credit transfers have been a success despite Treasury’s regulations consistently favoring tax policy over stimulating clean energy. Examples of that include the approach to the passive activity loss rules that limit the ability of individuals to buy tax credits that is even stricter than the passive activity loss regulations themselves: the transfer regulations preclude an election to “group” hours for an individual to reach the active threshold, while the passive activity loss regulations actually allow such an election for activities the combination thereof is an “appropriate economic unit.”

Further, Treasury’s regulations prohibit combining a lease pass-through (also known as an inverted lease) investment tax credit election with transferability (or direct pay), even though that election is provided for in the tax code.

The other gaps in the Treasury regulations are (i) that we don’t know whether the IRS is going to audit tax credit buyers or sellers (sellers make more sense, but buyers have the money) and (ii) we don’t know whether transaction costs for tax credit transfers are deductible.

Further, Treasury’s online registration portal is backed up, and Treasury is telling registrants that it can’t process registrations for 2024 until October because it has 2023 registrations it needs to process before the extension the buyers and sellers of tax credits that accrued in 2023 have to file their 2023 tax returns are up in September for partnerships and October for corporations.  The resourceful tax credit transfer industry is finding ways to work around these issues.

A related goal of the IRA was to democratize tax equity. The IRA has made progress in that direction but has not fully succeeded.  Thinly capitalized solar developers may be able to access the tax credit transfer market after paying a tax credit insurer, a tax credit transfer broker, a law firm and for investment credit deals, an appraiser.  While well-capitalized solar developers can probably pull it off with a law firm and for investment credit deals an appraiser.  Thus, the well-capitalized developers likely raise five cents or more on the dollar versus their thinly capitalized competitors.  It may sound small, but over time it compounds and leaves the well-capitalized miles ahead.

The 10% tax credit adder for projects built in “energy communities” appears to have been mostly successful. For the most part, developers are able to determine whether their projects qualify for that adder and are able to monetize the adder in the tax credit transfer market. This is due to Treasury publishing guidance that is relatively clear and based on objective standards. Further, we are seeing projects developed on closed coal sites and in communities with a history of significant fossil fuel employment.

At the moment, the 10% domestic content tax credit adder is a split decision.  The domestic content adder appears to have spurred the construction of a flurry of factories making solar modules and batteries, but most of those factories are not online yet.

Treasury’s original guidance on the domestic content adder was unworkable. To address that safe harbors were promulgated for solar, onshore wind and batteries. The safe harbors for solar and onshore wind seems to be viable. There is some cautious optimism about the safe harbor for storage. Technologies like geothermal heat pumps, fuel cells, renewable natural gas and offshore wind do not currently have a safe harbor and find themselves unsure about how to determine eligibility for the domestic content tax credit adder.

IRA failures

Grab a stiff drink and let’s turn to the IRA’s failures.  First, based on anecdotal evidence, the prevailing wage and apprentice rules are not creating much value for the nation.  Most folks building solar projects are already being paid wages not much different than the Department of Labor’s prevailing wage due to a tight market for skilled labor.  Therefore, the prevailing wage rules are burdening the solar industry with concerns about a foot fault in their record-keeping resulting in large penalties or worse yet a reduction in the tax credits a project is eligible for by 80%, while not stimulating higher wages for skilled tradesman needed to build solar and other clean energy projects.  It has created a cottage industry for consulting and accounting firms to verify the appropriate wages are being paid, but the nation was already facing a shortage of accountants.  Let’s not even discuss the shortage of tax lawyers.

In terms of apprentices, it appears most projects are qualifying for an exemption from the apprentice requirements because apprentices are not available. Therefore, the well-intentioned rules do not appear to be spurring America’s young people to forego video games for learning a trade. Thus, the apprentice rules create a concern for project developers and their contractors about a costly tax credit foot fault while not spurring a renaissance in the trades.  If solar and the other clean energy technologies are needed to save the planet from climate change, should we be burdening projects deploying these technologies with cumbersome requirements that are not resulting in more skilled tradesmen?

Finally, there are the proposed investment tax credit regulations.  Those regulations fail to clearly answer some basic questions the industry has been asking for years like how much of a solar parking canopy qualifies for the investment credit.  Further, Treasury has gone out on a limb requiring all equipment integral to a project to have a common owner and only allowing tax credits for repairs and upgrades if less than 20% of the improved project has its origins in the original equipment.

However, the investment credit regulations appear to have what is something of an unexpected gift. The Department of Energy (DOE) seems to have prevailed upon the Treasury to broadly interpret the rule about the investment credit for interconnection costs.  The apparent motivation for this is to spur improvements to the nation’s anachronistic grid.

The statutory allowance for the investment credit on interconnection costs has a 5 MW capacity threshold. However, the proposed regulations appear to say that threshold is applied at the inverter level for solar and the turbine level for wind. For instance, it appears that a solar project that most industry participants would say has 200 MWs of capacity (i.e., it exceeds the 5 MW threshold) would qualify, so long as no inverter is serving 5 MW or more (e.g., there are 50 inverters each serving 4 MW).  This interpretation appears to have been confirmed by the proposed section 48E regulations (i.e., the tech neutral investment credit).  However, many law firms’ tax opinion committees are by nature conservative and are waiting to bless “will” level opinions under the traditional section 48 until Treasury confirms the favorable interpretation in the final section 48 regulations.

The implementation of the IRA has resulted in a range of policies outcomes. However, as is usually the case, the nimble and creative have faired well, while concerns about whether the nation is doing enough to address existential threat of climate change remain unabated.

David Burton is a partner at Norton Rose Fulbright. He advises clients on a wide range of U.S. tax matters, with an emphasis on project finance and energy transactions. He has extensive experience structuring tax-efficient transactions for wind and other renewables with particular expertise with respect to flip partnerships and sale-leasebacks. Earlier in his career, David was the managing director and senior tax counsel at GE Energy Financial Services (GE EFS) where he oversaw all of the tax aspects for more than US$21 billion in global energy projects. 

Tariffs on solar cells remain, volume increased The Biden administration issued a proclamation stating that the tariff rate quota of 14.25% on solar cells will remain but volume increases from 5 GW to 12.5 GW.

Agrivoltaics for corn Researchers have created a novel model that can help developers asses corn growth in agrivoltaic facilities. They also proposed to use spatiotemporal shadow distribution (SSD) to optimize crop yield and power production.

World’s highways could host 52.3 billion solar panels, say researchers Researchers from the Chinese Academy of Sciences, Tsinghua University, Chinese Academy of Geosciences, and Columbia University have concluded that solar-covered highways could meet more than 60% of the world’s annual energy needs.

ChargePoint introduces Omni Port universal EV charger The connector is compatible with all major electric vehicle brands, including Tesla and non-Tesla vehicles.

U.S. President Joe Biden issued a proclamation to holds tariff on crystalline silicon PV cells that at 14.25% while allowing up to 12.5 GW to be imported, up from 5 GW. These include cells whether or not partially or fully assembled into other products, and is effective as of August 1, 2024.

The solar tariffs date back to 2018 when signed into law by former President Donald Trump. The purpose of section 201 of the 1974 trade act was to limit imports while giving the U.S. time to ramp up a domestic solar supply chain. It wasn’t until four years later after the Biden administration passed the Inflation Reduction Act (IRA) of 2022 that a domestic solar supply chain began its upward trajectory.

In April the American Alliance for Solar Manufacturing Trade Committee coalition, made up of a group of manufacturers led by Qcells, signed a petition that alleged that four Southeast Asian nations are exporting dumped goods from China, making it difficult for domestic manufacturers to compete on cost. The companies said the current “manufacturing renaissance” in the United States is under threat from heavily subsidized Chinese cells and modules that are alleged to be in infraction with antidumping and countervailing duty (AD/CVD) law.

The IRA’s tax credits and incentives have encouraged clean energy manufacturing in the United States with many companies announcing solar module manufacturing facilities. Earlier stages in the supply chain, however, like raw polysilicon, ingots, wafers, and solar cell manufacturing  have lagged, creating gaps in the domestic supply chain. The new proclamation is intended to “further facilitate positive adjustment to competition from imports of certain crystalline silicon PV cells,” while U.S.-made solar cell capacity ramps up.

IRA-driven battery projects face delays amid economic headwinds: report A Financial Times report has found numerous IRA-driven projects announced or under construction have been placed on hold or cancelled, including the battery industry, due largely to an EV slowdown.

Solar inverter manufacturer financial stability ranking updated The latest financial stability ranking of inverter manufacturers from Sinovoltaics lists Hoymiles Power Electronics, Eaton, Enphase, Kstar and Delta Electronics as the top five.

Rhode Island passes new consumer protections for solar industry amid rising concerns Governor McKee has signed new legislation protecting consumers from aggressive sales practices by door-to-door solar salespeople. Compliance includes federal background checks, disclosure of savings documentation, and detailed breakdowns of lease versus cash system pricing.

DCE Solar “roof-friendly” solar mount passes key safety certification The Eco-Top rooftop mounting structure is designed for commercial and industrial rooftops.

Near $1 billion solar cell factory announced in New Mexico Ebon Solar will invest $942 million in a solar cell manufacturing facility, bringing over 900 jobs.

Rhode Island has enacted the “Residential Solar Energy Disclosure and Homeowners Bill of Rights Act” to protect homeowners from predatory door-to-door sales tactics in the solar industry.

The law applies to any individual selling a solar system purchase agreement, a lease agreement, or a power purchase agreement (PPA). It covers anyone soliciting a homeowner or selling a solar project for up to four individual housing units simultaneously. Notably, the law does not apply to solar lease deals with payment terms of less than five years, transactions that involve a generator, or commercial systems.

The law requires all parties selling residential solar to register with the state and renew the registration annually. For the solar company, at least one person in charge of residential sales must have their name and address on file with the state. Additionally, all individuals directly selling to homeowners must undergo a national background check, including fingerprinting, which must be submitted to the Federal Bureau of Investigation. The registration process will be managed by the Rhode Island Division of Taxation.

The Department of Business Regulation is authorized to investigate complaints, impose administrative penalties, revoke registrations, and order violators to cease operations. The department can also impose fines of up to $5,000 per violation for up to four years after the violation has occurred.

The law mandates that specific documents be provided to homeowners. A hard copy or email of the solar agreement must be given to the homeowner. Additionally, the state will issue a standard disclosure form that must include the following information:

• A statement indicating whether operations and maintenance are included in the agreement.
• A written estimate of projected savings over the system’s expected lifespan.
• An estimate of savings beyond the system’s anticipated useful life.
• Data fields used to calculate the savings projections.
• The electricity escalation rate applied in the savings assumptions.
• Information on tax credit eligibility.

Additionally, the new law gives residential customers the right to rescind or cancel the deal for seven days after entering the agreement.

The law goes into effect in March 2025.

The bill was prompted by an increase in consumer complaints regarding aggressive and misleading sales tactics by some solar companies. By implementing these regulations, the state aims to build public trust and encourage the adoption of solar energy while protecting consumers from unscrupulous actors. Attorney General Peter F. Neronha, along with other state officials, has emphasized the importance of these protections in fostering a reliable and transparent solar industry in Rhode Island.

Several other U.S. states have taken action against door-to-door sales companies. Minnesota recently sued four of the nation’s largest solar finance companies. Vision Solar has been sued in multiple states, including Connecticut and Arizona, while Vivint Solar, prior to its acquisition by Sunrun, was sued in New Mexico. Sunrun, along with several other solar door-to-door companies, has also been sued in Connecticut.

(Read: “U.S. government announces resources to protect solar customers“)

From ESS-news.com

Key battery manufacturing projects initiated in response to the Inflation Reduction Act (IRA) are facing setbacks, according to a Financial Times (FT) investigation.

The IRA, signed into law by President Biden in August 2022, proposed a $369 billion injection into the US clean energy economy. The industrial policy focused on reshoring manufacturing for the renewable energy transition, and significant announcements have been made for U.S. manufacturing in batteries and materials, solar manufacturing, hydrogen, and more.

Yet the FT reports, when including semiconductor manufacturing as well, that of the projects worth more than $100m, “a total of $84bn have been delayed for between two months and several years, or paused indefinitely.” The FT notes some delays are public knowledge, while others have not been formally announced, citing interviews with more than 100 companies and state and local authorities to determine project statuses.

In terms of batteries and public announcements, LG Energy Solution’s $2.3 billion battery storage facility in Arizona is on a construction suspension after being quadrupled in March from its first announcement.

Read the complete article at ESS-news.

SunPower goes bankrupt The company, one of the longest running solar companies in the U.S., spun off its manufacturing business in 2020 to focus more squarely on rooftop solar as demand surged. Since then, demand cooled considerably, and, under a high interest rate environment, the strategy proved fatal for the company.

Goldman Sachs invests $440 million in renewable independent power producer  The strategic investment in BrightNight will support the development of utility, commercial, and industrial solar and energy storage projects.

More money is going into solar than all other forms of generation combined, reaching $500 billion in 2024 The International Energy Agency projects that solar will attract more investment than all other electricity generation sources combined. Global energy spending is set to surpass $3 trillion for the first time this year.

Republicans request continuation of IRA post-January Eighteen Republican members of the U.S. House of Representatives have urged House Speaker Mike Johnson to preserve the Inflation Reduction Act (IRA) if their party takes control of the political reins in January.

Sunrun stock rises on strong cash generation in Q2 earnings The residential solar and energy storage provider increased its battery attachment rates and net subscriber value of its customers.

U.S. government announces resources to protect solar customers  Treasury, Consumer Financial Protection Bureau and the Federal Trade Commission have partnered on developing consumer advisories and educational resources to help people navigate the solar buying process while avoiding deceptive practices.

O&M executives seeking underperforming solar assets Zack Hobbs and Casey Gilley are seeking to purchase, repower and maximize solar power farms that asset owners don’t have the time or resources to redevelop.

Republicans request continuation of IRA post-January Eighteen Republican members of the U.S. House of Representatives have urged House Speaker Mike Johnson to preserve the Inflation Reduction Act (IRA) if their party takes control of the political reins in January.

New bidding strategy for PV asset owners operating in spot market Conceived by an international research team, the new bidding strategy applies to the day-after and the intraday markets. It uses a technique that transforms results from probabilistic models into actual scenarios. Their method showed its ability to yield increased revenues and reduced imbalance.

Jera Nex acquires U.S. solar sites from Lightsource bp Jera Nex has purchased two US solar arrays totaling 395 MW from Lightsource bp. The acquisition marks Jera Nex’s first deal since it launched in April. Lightsource bp will continue to manage assets and provide maintenance services at the projects.

U.S. DOE announces $1.45 billion loan for Qcells solar panel factory The Department of Energy announced a conditional commitment to loan Qcells for its Georgia factory producing solar ingots, wafers, cells, and panels.

Eighteen members of the House Republican Conference have written to Speaker Mike Johnson, emphasizing the need to “prioritize business and market certainty” amid calls to repeal or amend the Inflation Reduction Act (IRA).

Signed into law by President Joseph Biden on August 16, 2022, the IRA was approved by both the Senate and the House of Representatives the previous week without any Republican support.

Even though no Republicans voted for the bill, investments stemming from the bill have predominantly flowed into Republican Congressional districts, according to their historical voting patterns.

Source: Environmental Entrepreneurs

The letter was delivered on August 6, 2024, just one day before the two-year anniversary of the IRA’s passage through the Senate, which was finalized by a tie-breaking vote from Vice President Kamala Harris.

The letter critiques the bill as flawed, arguing that it will distort energy markets. Yet, it also asserts that “American energy dominance increases national security, and creates American jobs,” indirectly suggesting that the IRA supports ‘American energy dominance’. The Representatives report that many companies have leveraged the energy tax credits to fund significant investments in new U.S. energy infrastructure. Furthermore, they express concerns from industry leaders and constituents alike, who fear the existing energy tax regime may “once again be turned on its head due to Republican repeal efforts.”

Prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing. A full repeal would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return.

The Republican Representatives are:

• Andrew R. Garbarino – New York’s 2nd District
• David G. Valadao – California’s 22nd District
• Lori Chavez-DeRemer – Oregon’s 5th District
• Marcus J. Molinaro – New York’s 19th District
• Erin Houchin – Indiana’s 9th District
• Anthony D’Esposito – New York’s 4th District
• Michael V. Lawler – New York’s 17th District
• Jen A. Kiggans – Virginia’s 2nd District
• Nick LaLota – New York’s 1st District
• Young Kim – California’s 40th District
• John R. Curtis – Utah’s 3rd District
• Don Bacon – Nebraska’s 2nd District
• Thomas H. Kean, Jr. – New Jersey’s 7th District
• David P. Joyce – Ohio’s 14th District
• Mariannette Miller-Meeks, M.D. – Iowa’s 1st District
• Juan Ciscomani – Arizona’s 6th District
• Earl L. “Buddy” Carter – Georgia’s 1st District
• Mark E. Amodei – Nevada’s 2nd District

The letter was spearheaded by Representative Andrew R. Garbarino of New York, who in August 2022 voiced his opposition to the IRA, labeling it as misleading and potentially harmful to the economy:

I voted AGAINST the deceptively named ‘Inflation Reduction Act’ just like I voted against the reckless Build Back Better scheme. Two hundred and thirty economists agree that the so-called Inflation Reduction Act is expected to contribute to skyrocketing inflation and burden the American economy. Aside from completely failing to reduce inflation, this bill fails to address the SALT deduction cap while raising taxes that will impact the middle class.

The debate over the IRA’s naming and its effectiveness is debated. Political pundits suggest that Senator Joe Manchin’s rationale for the name was a politically palatable counter to the criticized “Green New Deal,” not an effective anti-inflation measure. While it is clear that the peak of the nation’s recent inflationary peak aligned with the IRA’s signing, and that inflation has since fallen precipitously since the signing, economic analyses have not demonstrated a causative impact on inflation.

Harris names clean energy advocate Governor Tim Walz as VP pick The Harris-Walz ticket wins on climate, according to clean energy supporters.

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New discovery paves the way for more efficient perovskite solar cells Researchers from University of Texas have used computational methods to study the formation of polarons in halide perovskites. The findings revealed topological vortices in polaron quasiparticles.

SunPower goes bankrupt The residential solar installer has filed for bankruptcy, among the largest in a series of major bankruptcies in the industry.

Atlanta Motorsports Park goes solar The motorsports club with an F1-style track is installing a solar array that is expected to power about 60% of its operations.

A drone’s eye view helps find the perfect solar site Drone Drafting brings an array of aerial sensors to project planning and engineering.

Kamala Harris announced Tim Walz, governor of Minnesota, as her running mate in the 2024 presidential election–a choice that’s considered by experts as the winning ticket on climate.

Under Waltz’ leadership, Minnesota jumped ahead of the clean energy curve when he signed into law a climate bill that aims for 100% clean energy by 2040.

The Minnesota climate bill establishes a standard for utilities to supply Minnesota customers with electricity generated or procured from clean energy resources. He has also supported many other clean energy initiatives, signing over 40 into law in 2023 alone, including expanding Minnesota’s electric vehicle infrastructure, providing a tax credit for electric vehicle purchases and supporting clean energy job growth. 

Environmental groups including NRDC Action Fund and Sierra Club have spoken up in support of Walz’ nomination. Manish Bapna, president and CEO of the NRDC Action Fund, a national environmental advocacy and political organization, voiced his support:

“Tim Walz has made Minnesota a national climate leader. Under his leadership, the North Star State committed to 100 percent clean energy by 2040 and became the first Midwestern state to adopt California’s tailpipe emissions standards,” said Bapna. “He brings sound judgment and a solid commitment to protecting the environment and public health in a way that advances equity.”

Sierra Club executive director Ben Jealous welcomed Governor Waltz to the ticket:

“Like Vice President Harris, Governor Walz knows that climate change is the existential threat of our time,” said Jealous. “The Harris-Walz ticket is one that understands the fight before us, isn’t afraid to tackle climate change head-on, and will continue to build upon the legacy of the Biden-Harris administration moving forward.”

Walz has served as Governor of Minnesota since 2019 and is a former seven-term Congressman. He is also a retired command sergeant major in the Army National Guard and former public high school teacher who taught for a year in China. 

The evolving art and science of agrivoltaics At Bluewave, integrating solar technology with traditional farming practices isn’t just a concept, it’s the new standard. Jesse Robertson-DuBois, director of sustainable solar development, shares insights on the transformative journey of agrivoltaics within the industry.

Renewables “cheaper and faster” than methane, says nation’s largest utility NextEra’s Q2 2024 quarterly earnings report shows significant growth in the company’s renewable pipeline. However, the group, which is typically exacting, refused to put a hard number on their future demand growth expectations.

Battery fire shuts down California highway A utility-scale battery delivery overturned on a highway after the truck carrying the batteries collided with a car, overcorrected, tipped to the side and dumped its cargo, leading to a fire that lasted more than 24 hours.

Bill aims to cut 45X tax credits for Chinese solar makers While the lucrative tax credits has attracted clean energy manufacturers from around the world to build factories in the U.S., the fact that many of the new manufacturing facilities are from Chinese companies has created a controversy that this new bill aims to solve.

Massive 900 MW solar project designed to preserve agricultural land Brookfield Renewable Partners filed a notice of intent for a 900 MW solar project in Oregon that will be installed in ribbons along the edge of a field to allow for continued agricultural use of the land

Three small changes that can make a big difference to your energy bills  There are a few ways to make efficiency-minded changes at home that reduce energy bills now and in the future.

8 GW of solar-plus-storage at resilience hubs in California could save lives Solar and storage at almost 20,000 community sites across California could help protect its population during power outages, especially during heat and smoke events, a study found.

Battery fire shuts down California highway A utility-scale battery delivery overturned on a highway after the truck carrying the batteries collided with a car, overcorrected, tipped to the side and dumped its cargo, leading to a fire that lasted more than 24 hours.

Senate committee approves bill to improve permitting of energy projects The bipartisan legislation is designed to speed up permitting by setting deadlines and doubling production targets for renewable energy permitting on federal lands while not compromising environmental review or community needs.

Bill aims to cut 45X tax credits for Chinese solar makers While the lucrative tax credits has attracted clean energy manufacturers from around the world to build factories in the U.S., the fact that many of the new manufacturing facilities are from Chinese companies has created a controversy that this new bill aims to solve.

Data center power loads threaten corporate net-zero goals The International Energy Agency (IEA) projects that by 2026, data centers will consume more than 800 TWh annually, more than double their consumption in 2022.

A bipartisan group of U.S. lawmakers introduced the American Tax Dollars for American Solar Manufacturing Act, aiming to prevent Chinese solar module manufacturers from claiming subsidies for their American factories.

The Inflation Reduction Act, passed in 2022, offers manufacturing 45 X tax credits for solar components made in America. While the lucrative tax credits have been attracting clean energy manufacturers worldwide to build factories in the U.S., the fact that some of the new manufacturing facilities are from Chinese companies has created a controversy that this new bill aims to solve.

The bill was introduced by Senators Sherrod Brown (D-Ohio), Bill Cassidy (D-LA), Jon Ossoff (D-GA) and Rick Scott (D-FL), seeks to protect U.S. solar manufacturing by removing the tax incentives for Chinese companies and from other “foreign entities of interest” would not be able to receive the 45X tax credits.

“By reshoring the solar supply chain, we can bolster solar manufacturing in the U.S. and ensure our country is not dependent on China for a technology that was invented here and accounted for half of our new grid energy additions last year, said Mike Carr, Executive Director of the Solar Energy Manufacturers for America (SEMA) Coalition.

The Defend Solar USA Alliance also supports the new legislation. The Alliance said in a release that while the 45X tax credit has contributed to the largest investments in factory production in nearly 100 years, it’s estimated that Chinese-controlled companies could collect more than $100 billion in federal tax credits. These credits, the Alliance contends, were “designed to support U.S. clean-energy manufacturers”.

“We shouldn’t be in the business of rewarding China at the expense of our domestic solar industry,” said U.S. Army General John Adams (ret.), and Board Member of the Defend Solar USA Alliance. “The bipartisan bill would ensure that Americans’ taxpayer dollars stay right here at home rather than help subsidize a foreign government’s efforts to put domestic manufacturers out of work. By building a successful domestic solar industry, the U.S. can break from its reliance on foreign energy sources, strengthen our supply chain and reduce our vulnerability to geopolitical conflicts.”

The Senate Energy and Natural Resources Committee voted to advance the Energy Permitting Reform Act of 2024, a bipartisan piece of legislation aimed at improving permitting for energy infrastructure projects.

The solar permitting process has been named as one of the greatest bottlenecks to the deployment of solar projects in the U.S. The process can be challenging due to complex regulations and reliance on manual input methods.

The Permitting Reform Act, developed by Senators Joe Manchin (I-WV) and John Barrasso (R-WY), chair and ranking member of the Senate Energy and Natural Resources Committee, is designed to shorten permitting timelines a 150-day statute of limitations from the date of the final agency action on a project; requiring courts to expedite review of legal challenges. It also sets a 180-day deadline for federal agencies to act on remanded authorizations.

Manchin called the legislation “a commonsense, bipartisan piece of legislation that will speed up permitting and provide more certainty for all types of energy and mineral projects without bypassing important protections for our environment and impacted communities.”

The bill sets deadlines and doubles production targets for renewable energy permitting on federal lands, and it streamlines environmental reviews for low-disturbance renewable, electric grid, and storage projects. It also makes several changes to accelerate the permitting processes for fossil fuel projects.

Abigail Ross Hopper, CEO of the Solar Energy Industries Association applauded Senate passage of the bill:

Today we are one step closer to overcoming systemic roadblocks to the solar and storage industry and unleashing America’s clean energy sector. Voices on all sides of this issue agree that we need to reform the permitting process so we can rapidly build out transmission capacity and deliver abundant, low-cost renewable energy to the homes and businesses that need it. There are many positive elements in this bill, including fair transmission cost allocation and provisions to simplify clean energy development on public lands.

Find details of the legislation here.

Six states offer grants to help local governments automate solar permitting  Solar trade groups in Washington, Colorado and Minnesota advocated for grant programs to speed permitting for rooftop solar, using software such as SolarAPP+. Three other states also offer grants, with two requiring automated permitting.

Community solar needs to embrace urban rooftops and brownfields RE+ Mid-Atlantic solar conference panel: While developers prefer greenfield projects, state regulators target other project sites.

Reactive power management key to advancing grid stability  A look at the regulatory frameworks and practical applications, underscoring the essential role of reactive power management in maintaining a stable and efficient power grid.

U.S. Bureau of Land Management advances over 6 GW of solar projects  Once complete, the projects would generate enough electricity to power roughly 2 million homes.

U.S. clean energy tax credit market to reach $25 billion in 2024  A mid-year report from tax credit marketplace Crux showed that deal volume is expected to come in higher than previously expected at $20 to $25 billion this year.

The U.S. Department of the Interior announced that the Bureau of Land Management (BLM) is advancing nine solar projects on public lands that would add over 6 GW of combined electric generation capacity to the grid. Together, the projects would generate enough electricity to power roughly 2 million U.S. homes.

The BLM manages over 245 million acres of public land mainly in 12 western states, including Alaska. To date, the BLM has permitted more than 25 GW of clean energy projects, enough to power about 12 million homes. This includes solar, wind, and geothermal projects as well as gen-tie lines on public lands that are essential for connecting clean energy generation projects on both federal and non-federal lands to the grid.

“As we continue to review clean energy projects, we are committed to collaborating with states, Tribes and stakeholders to ensure that we are building lasting opportunities to create jobs and stimulate the clean energy economy,” said BLM director Tracey Stone-Manning.

The latest round of BLM project advancements include the Esmerelda 7 solar project, among the largest solar projects in the world. Esmerelda 7 is a set of seven proposed utility-scale solar facilities with battery energy storage systems near Tonopah, Nevada. The projects are proposed to be developed on 118,000 acres of BLM managed land.

BLM is now opening a 45-day public comment period on the draft environmental impact statement and resource management plan for Esmerelda 7. The environmental impact statement will provide the foundation for individual environmental analyses of each project, after which the BLM will decide whether to grant rights-of-way for some or all of the projects.

If all Esmerelda 7 projects are approved, the portfolio would add 5.35 GW of electricity, or enough to power about 1.6 million homes.

Along with the BLM-supported Esmerelda 7 is the Libra Solar project, a 700 MW solar and 700 MW battery energy storage project with a 24-mile generation tie-line, planned for development in Mineral and Lyon Counties in Nevada.

The BLM is also opening a 30-day public comment period for the Elisabeth Solar Project near Dateland, Arizona. The project would add 270 MW of solar and 300 MW of battery energy storage.

“With today’s advancement of nine solar energy projects on public lands, we are taking a significant step towards these efforts and President Biden’s ambitious clean energy goals,” said principal deputy assistant secretary for Land and Minerals management, Dr. Steve Feldgus.

As of July 2024, an additional 70 utility-scale clean energy projects are in process by the BLM throughout the Western United States. These projects have the potential to produce almost 32 GW of renewable energy. In addition, BLM has begun the preliminary review of approximately 166 applications for solar and wind development, as well as more than 40 applications for solar and wind energy site testing. 

The Biden-Harris administration has set a goal to achieve a carbon pollution free power sector by 2035.

A panel discussion on community solar at the RE+ Mid-Atlantic solar and energy storage conference in Philadelphia made the point that developers many have to embrace opportunities close to the intended customer, even in difficult terrain.

While state regulators design programs to encourage solar development on rooftops and brownfields of urban New Jersey, developers often prefer to build projects on undeveloped greenfield sites. Leslie Elder, vice president of policy and public affairs at Summit Ridge Energy, a Virginia-based solar developer, said that companies don’t always agree with state priorities, but that’s where the project opportunities are.

New Jersey’s Solar Act of 2012 includes provisions for streamlining and permitting and providing financial incentives for developers to construct utility-scale solar projects “located on a brownfield, on an area of historic fill or on a properly closed sanitary landfill facility.” The idea was to turn urban lots, commercial flat roofs and fallow industrial areas into productive sites for clean energy.

Greenfield sites, such as unused agricultural land or other undeveloped properties, generally are easier to deploy solar on and have required less specialized site preparation procedures than brownfields. However, the New Jersey BPU restricts grid-connected projects of 5 MW or larger on many categories of greenfield-type land. Waivers may be applied for but are often rejected.

“There is a real opposition from the state [New Jersey] for a wide variety of reasons to greenfield development, mostly because of population size and past sparring,” Elder said, adding that New Jersey’s community solar policy focus is on urban development and low-income beneficiaries.

Elder contrasted New Jersey’s approach to community solar with Maryland, which defined “buckets” for different types of projects. For example, there was a greenfield bucket; a brownfield bucket, landfills and “cleanfields” (landfills with no toxicity); and a low- and moderate-income bucket. These sorts of definitions for community solar opportunities enabled developers to bid on projects based on their experience, specialization and preferences.

State siting requirements are just one aspect of the community solar puzzle. More intractable, perhaps, are the labyrinthine subscription and billing policies needed to attract customers and have them see real economic benefits. And, as always, developers committing to building community solar projects need to see the financial rewards for doing so.

Eric Wallace, an attorney at the Virginia-based firm of GreeneHurlocker, PLC, with a focus on energy law and energy regulation, said successful community solar program design hangs on the statutes that set them up on a state-by-state basis.

“There are a lot of different policy tools out there, but finding the right solutions for each state is a challenge,” Wallace said. “In each of these markets there are interconnection proceedings and discussions happening. That’s definitely a key component of community solar in the Mid-Atlantic.”

Justin Felt, director of policy analysis and development at Exelon, which is parent to six utilities, said it would be beneficial to incorporate the utility perspective at the association level rather than making that the opposition view.

“Getting sort of that collaboration I think would be better,” Felt said, echoing comments made by SEIA CEO Abigail Ross Hopper earlier that morning. “Let’s also be honest, politics – purple state versus blue state – is going to be a big impact on this. If you’re in a red state, maybe it’s a little bit different. So, we have to follow our jurisdictions in a lot of ways. You have to appreciate that the broader political and policy landscape is going to be a prime driver as well.”

If state policies are important for developing grid storage capacity, as was discussed in an earlier RE+ panel, they are likely even more so for community solar, which is arguably more complicated a proposition.

Automated permitting for distributed solar and storage is set to expand well beyond California, as five states follow California’s lead in offering grant support to localities to help them switch to automated permitting.

An automated process can issue a permit “instantly” to a distributed solar project that meets all permitting requirements, according to the U.S. Department of Energy. Standard permitting can take months, says the New York Solar Energy Industries Association, “resulting in delays and higher costs for homeowners and solar companies.”

The best-known automated permitting software for solar and storage is SolarAPP+, developed by the National Renewable Energy Laboratory. NREL provides free support to local governments before and during implementation of SolarAPP+, and a spokesperson said the software will always be free for local governments to use, while solar installers pay user fees.

While the software is free to local governments, grants can help them meet the costs for staff time to transition to automated permitting. Once the transition is completed, automated permitting can save substantial staff time.

NREL reports that SolarAPP+ is now used by 138 local governments in California and 14 local governments in nine other states, including several large cities and counties. The software is also being pilot tested by 56 local governments.

California has been helping local governments make the switch to automated permitting by offering them grant support and technical assistance, in a program launched in 2022.

Five other states are now following California’s lead in offering grants and technical assistance to local governments adopting automated permitting.

In Washington, state legislators early this year allocated $600,000 for a grant program. The state’s solar trade group WASEIA provided written testimony to the Washington House Appropriations Committee and a policy brief supporting the budget provision “to help speed rollout of SolarApp+,” said Bill Will, the association’s senior policy advisor.

Colorado has launched an “Automated Permit Processing for Solar” grant program with $1 million in funding for local governments. The state’s solar trade group COSSA “was the main advocacy organization to push for” a state law that created the grant program, said Mike Kruger, president and CEO of COSSA, as the group worked with bipartisan sponsors and other stakeholders “to lower red tape and speed up solar permitting,”

Minnesota has budgeted $2 million to support a grant program for local governments to adopt SolarAPP+. Passing the legislation “was a multi-year, bipartisan effort,” said Logan O’Grady, executive director of the state’s solar trade group MnSEIA. The group “was proud to collaborate with advocacy partners on this initiative, boosting the residential solar market and enabling Minnesotans to go solar faster and easier,” he said.

Illinois plans to use a portion of its federal Solar for All grant to fund a program to help communities automate permitting, according to Environment America.

Maryland has announced an upcoming SolarAPP+ Implementation Grant Program.

Automation requirements

California and Maryland have also set requirements for local governments to automate solar permitting.

California requires all but the smallest local governments to use either SolarAPP+ or another automated permitting software. Larger cities and counties were required to comply by last September, and medium-sized cities and counties are required to comply by this September.

The California Energy Commission says that “enforcement lies outside of CEC jurisdiction but may be enforced through private claims.”

California last month completed awards of $19 million in grants to 334 cities and counties to make the switch to automated permitting, according to an analysis by Permit Power, a new advocacy organization dedicated to advancing automated permitting.

Maryland’s Brighter Tomorrow Act, enacted in May, requires local governments to adopt automated solar permitting software, according to the law firm Saul Ewing. Montgomery County, Maryland, with a population of 1 million, already uses SolarAPP+.

In New York, the solar trade group NYSEIA recently called for automated permitting in the state.

Advocacy partners

The nonprofit group Solar United Neighbors joined with others in advocating for the automated permitting grant programs in Minnesota and Maryland, said a spokesperson.

Environment America Senior Campaign Director Johanna Neumann said the nonprofit group’s Maryland director identified legislative sponsors for the state’s automated permitting policy, recruited allies, and helped guide the legislative strategy.

Permit Power also contributed to the Maryland effort, Neumann said.

Residential solar company SunPower stock crashes 70% The company’s share price fell below $1 as it announced it is halting some operations and ending its lease and power purchase agreement offerings, among other actions.

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U.S. Senators introduce comprehensive energy permitting reform act Joe Manchin (I-WV) and John Barrasso (R-WY) released the Energy Permitting Reform Act of 2024, promising to accelerate the permitting processes for energy and mineral projects of all types in the U.S.

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The role of battery storage on the grid was a major focus of the RE+ Mid-Atlantic conference in Philadelphia last week. In addition to numerous storage vendors and consultants on the show floor, a panel of experts assembled to discuss storage strategies for the PJM interconnection area, covering the Mid-Atlantic region.

There was broad agreement that successful storage implementation requires clear and purposeful policies at the state level. At the same time, the levels of storage capacity envisioned as an aspect of the clean energy transition may exceed the experience of policymakers, utilities and developers.

“I think it’s fair to say that in PJM there’s been less storage deployment than in other areas that we’ve seen, such as California, New England and New York,” said panel moderator, Nitzan Goldberger, director of policy and business development at New Leaf Energy, a Massachusetts-based renewable energy developer. “We’re going to try to understand not only why that’s happened – what are the obstacles and challenges to getting storage in the ground in the PJM footprint? – but also what are we doing about it?”

From a utility standpoint, the problem seems to be ambitious targets with no clear roadmap showing how to achieve them. Erik Henlon, senior manager of distribution planning at Baltimore Gas and Electric, one of the utilities under the Exelon umbrella that serves the PJM region, said the conversations with stakeholders is still at the early stages.

“From a distribution planning perspective, we look at how we’re enabling all these new technologies to help meet the Maryland goals of 3,000 MW of storage by 2033,” Henlon said. “I think that we starting on the journey, right? And we’re putting the right foundations in place because for us to be able to utilize this much storage on the system takes a certain level of planning and it takes a certain level of collaboration with different stakeholders.”

If there is a tendency to view storage technology as a solution not only for achieving clean energy targets but also for rectifying what some see as community inequities in legacy generation, this can sometimes obscure the practical steps needed to achieve these results. Tyler Wakefield, associate executive director of the Energy Policy Design Institute, a Baltimore-based non-profit focusing on turning clean energy goals into projects, said specific policies are responsible for a state storage markets, or the absence of them.

In the case of Maryland, Wakefild said the recent passage of the Drive Act mandating utilities support bi-directional charging of EVs and time-of-use tariffs enables customers with behind-the-meter storage to realize energy savings on their bills, promoting EVs and residential storage.

“Unless those time-of-use tariffs are in place, those savings opportunities aren’t really there,” he said. “And then we get into what revenue opportunities are available for private storage assets to take advantage of on the distribution system. And right now, there’s really not much there, and that’s why a lot of the conversation at Maryland is, how do we create a mechanism by which resources can get paid directly for the services they can provide on the grid?”

Specific policies make the difference between storage as a mandate and possible burden on the utility and opportunities for all stakeholders to come out ahead with rate and demand stability. According to Wakefield, other states with healthy storage markets have focused on reducing the distribution system peak. That can save a lot of money for utilities and a lot of money for ratepayers. “But if there’s not a clear mechanism by which storage assets can discharge against that peak, get paid for doing that work, there’s not a revenue generating opportunity that’s meaningful enough to deploy,” he said.

Greg Geller, CEO of Massachusetts-based Stack Energy Consulting, agreed that states that have seen a lot of storage deployed have been willing to allow owners to monetize those services storage enables.

“For instance, in the Northeast, there’s a number of programs, whether it’s Massachusetts, New York, Connecticut, Rhode Island, that recognize storage can do things to reduce the bulk level capacity requirement,” he said. “Or it can reduce distribution level costs, or it can help with emissions, right? So, each of those states has some kind of mechanism in place that allows storage to say, ‘Hey, if you dispatch during these periods and you provide the service and everyone benefits from it, we’re going to pay for it.’ That really doesn’t exist in the PJM region.”

Geller pointed out that targets are nice but if you just have a wholesale market, developers are going to find investors very reluctant to finance storage projects. He said states have to step up and make sure storage is compensated for the different services it can provide.

BG&E’s Henlon said utilities in the PJM region are essentially at the ground floor when it comes to implementing storage, despite ambitious targets like Maryland. However, success in other states and regions could be applicable to the PJM service area.

“Each state is in a different place, right?” he said. “A lot of us look at what’s happening out West or in the Northeast. It takes some time for different states to catch up. So, I think that’s a key thing when we’re thinking about the opportunities to grow storage in our area.”

The New York Solar Energy Industries Association has called for “high-impact policy interventions” to move the state beyond its distributed solar goal of 10 GW by 2030 to reach 20 GW by 2035. The call comes in a report seeking to influence state policymakers.

Of New York’s current 5.8 GW of solar, 93% is rooftop and community solar, which NYSEIA counts as distributed solar. New York has about 3 GW of rooftop solar and nearly that amount of community solar.

Utility-scale solar is lagging in the state, and has faced “recent setbacks,” says NYSEIA. Those setbacks have created “a significant gap between New York’s pipeline of clean energy projects and what’s needed to comply” with the state’s legislated 70% renewables mandate by 2030, the report says.

Yet New York is “ahead of schedule toward the state’s goal of deploying 10 gigawatts of rooftop and community solar by 2030,” and the state’s distributed solar industry is “well-positioned to help New York close the gap” by deploying an additional 10 GW of solar “while delivering significant benefits.”

The largest projected benefit would be $50 billion in customer savings over 25 years, as 10 GW of additional distributed solar would provide about $1.65 billion in annual electricity bill savings for New Yorkers who install solar panels or subscribe to a community solar project.

Increasing the amount of distributed solar plus storage to help meet New York’s 2030 renewables goal would also result in lower costs than relying “heavily” on large-scale renewables and transmission buildout, saving a projected $28 billion, the report says, citing a 2021 analysis by Vibrant Clean Energy.

To to accelerate distributed solar deployment, NYSEIA calls for new approaches to local permitting and utility interconnection, “targeted” incentives, “smart” electric rate design, and virtual power plant programs. The group’s 11 policy recommendations could, in aggregate, “transform and accelerate New York’s clean energy progress,” the report says. Specific recommendations  include:

• State-level permitting support for community solar projects that face restrictive local laws
• Automated permitting for residential solar plus storage, using software such as the National Renewable Energy Laboratory’s SolarAPP+
• Faster interconnection
• Flexible interconnection, to address hosting capacity constraints and mitigate costly grid upgrades
• Grid investments to support solar plus storage deployment that can supply clean power to new loads
• Improvements to New York’s Value of Distributed Energy Resources electric rate tariff
• Support for virtual power plant programs
• Continued improvements in the state’s community solar programs
• Improvements to the residential solar tax credit and the distributed solar incentive program.

NYSEIA’s report is titled “Raising New York’s Distributed Solar Goal: 20 Gigawatts by 2035.”

U.S. Senators Joe Manchin (I-WV) and John Barrasso (R-WY), chair and ranking member of the Senate Energy and Natural Resources Committee, released the Energy Permitting Reform Act of 2024. Find the full bill text here.

The Act is designed to shorten timelines, before, during, and after litigation on federal authorizations for energy and mineral projects.

Manchin called the legislation “a commonsense, bipartisan piece of legislation that will speed up permitting and provide more certainty for all types of energy and mineral projects without bypassing important protections for our environment and impacted communities.”

The bill establishes 150-day statute of limitations from the date of the final agency action on a project; requires courts to expedite review of legal challenges; and sets a 180-day deadline for federal agencies to act on remanded authorizations.

The bill sets deadlines and doubles production targets for renewable energy permitting on federal lands. It also streamlines environmental reviews for low-disturbance renewable, electric grid, and storage projects. It also makes several changes to accelerate the permitting processes for fossil fuels projects.

The act also reforms existing backstop siting authority for interstate electric transmission lines sets requirements for interregional transmission planning. The provisions are designed to provide two pathways for transmission development that include clear standards for cost allocation among customers that benefit from a project. The legislation creates an interregional planning requirement that ensures regions jointly address needs and a process that allows individual applicants to propose national-interest projects.

Find a section-by-section breakdown of the legislation here.

“We have the technology, workforce, and financial capital to build great things, but we lack a governing process that is designed to succeed. This legislation changes that,” said Jason Grumet, chief executive officer, American Clean Power.

The Solar Energy Industries Association (SEIA) welcomed the legislation.

“For years, SEIA has been calling for a fundamental shift in the way we build transmission capacity and has long advocated for reforms that fairly allocate costs. While we’re still reviewing the details, this is a conversation worth having,” said Abigail Ross Hopper, president and chief executive officer, SEIA.

The Center for Biological Diversity warned that too many important environmental review processes are stripped in the legislation, particularly for the development of new fossil fuels infrastructure. In a letter to Senate majority leader Chuck Schumer, the Center warned:

“Weakening our bedrock environmental protection laws doesn’t help renewable energy. It only serves to enrich the fossil fuel industry,” said Camden Weber, climate and energy policy specialist at the Center for Biological Diversity. “Permitting reform is one of the most insidious euphemisms on Capitol Hill.”

A national study from the University of Texas found that from 2010 to 2021, less than 5% of solar and wind projects required a comprehensive environmental bill under the National Environmental Protection Act (NEPA).

The Massachusetts House of Representatives has passed H.4876, a bill to address solar and energy storage development challenges in the state. The bill will next go to the state Senate to finalize a compromise bill.

The bill includes provisions to incentivize solar and storage development, streamline siting and permitting processes at both the state and local levels, and address grid interconnection challenges.

“House Bill 4876 will accelerate the build-out of solar and energy storage technology and address permitting and interconnection red tape that has been holding the Massachusetts solar and storage market back,” said Valessa Souter-Kline, northeast regional director, Solar Energy Industries Association (SEIA).

The reforms include time limits for authorities having jurisdiction (AHJ) to authorize permits. It also creates a pathway for a streamlined permit appeal process.

The bill also creates a statewide procurement of 5 GWh of energy storage.

“Massachusetts’s solar and storage industry has been surpassed by its regional neighbors in recent years, but these reforms are the spark the market needs to reach the Commonwealth’s bold clean energy vision,” said Souter-Kline.

Find the full bill text here.

The $7 billion Solar for All program administered by the U.S. Environmental Protection Agency (EPA) as part of the Inflation Reduction Act (IRA) seeks to support solar, storage and energy efficiency projects that benefit low-income and disadvantages communities. A panel of stakeholders at last week’s RE+ Mid-Atlantic conference in Philadelphia discussed how the program that aims to expand access to solar faces pending deadlines, possible shifting political winds and complications arising from its compliance requirements.

Solar for All is an aspect of the EPA’s $27 billion Greenhouse Gas Reduction Fund made possible by changes in the Clean Air Act authorized under the IRA. In this sense, the allotment is a creation of the Biden Administration and the RE+ panelists were cognizant of a potential change in administration coming next year. Although as signed legislation, the IRA has the force of law, individual provisions and allotments, particularly those originating from rule changes in federal agencies, that could be affected by new priorities.

Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), a key sponsor of the conference, noted in her introductory remarks that she was fresh from the Republican convention in Milwaukee and found a substantial cadre of support for renewable energy there. At the same time, she indicated prudence dictates that the solar industry should “regime proof” the money Solar for All makes available.

In her role as moderator of the Solar for All panel discussion, Hopper identified the importance of the looming September 30 deadline for the 60 state, tribal and non-profit entities selected by the EPA to contract with developers for specific projects.

“You might pick up that September 30th is six weeks before Election Day,” Hopper said, stressing the deadline was critically important for the durability of the program. “Making sure those funds are obligated will ensure that they continue regardless of what happens at Election Day.”

Maryrose Myrtetus, executive director of Philadelphia Green Capital Corp., which partners with the Pennsylvania Energy Development Authority for the $156 million grant for the state, said the key goal now was to get the money under contract and obligated to make sure that the funding is set aside and secured for the work.

“We’re all working with the EPA right now to get contracts in place by that deadline,” Myrtetus said, adding means vetting installers to make sure they are technically competent, have the right background, are properly insured and provide for consumer protections.

“Some standards that we have include ensuring that consumers can save money starting in year one when they go solar, limiting the escalator on a lease price or [point of total assumption] price, insurance requirements for third party owners and on,” she said.

This means Philadelphia Green Capital will be running an aggressive request for proposal process in the fall to meet the deadline.

Easier said than done. Solar for All’s mandate to serve low- and moderate-income communities as well as neighborhoods disadvantaged by legacy fossil-fuel generation due to pollution and other factors has placed an emphasis on community and distributed solar and storage projects. Such projects are often more complicated than single-family and commercial installations in terms of local permitting, siting, interconnection and managing off-takers. It is not surprising that the panel featured Solar for All grantees with community and multi-family dwelling solar expertise.

Meghan Jennings, distributed energy resources specialist at Rappahannock Electric Cooperative, said her non-profit utility is partnering with Groundswell to provide the sort of experience it needs to not just to develop effective community solar projects but to build in grid resiliency, outage services and other functions to support ratepayers.

Chris Walker, vice president of policy and programs for GRID Alternatives, a multi-state non-profit administering nearly $250 million in program funds, says his organizations’ history developing solar for low-income homeowners in partnership with Habitat for Humanity and other groups will serve as foundational experience for moving forward under Solar for All.

“We thought the affordable housing sector was an important partnership type to pursue, given that there’s also an intersecting housing crisis together with a climate crisis and affordability crisis in the need to really give folks some relief in terms of how much their incomes are paying for their utility costs,” Walker said.

Intensions are good and experience matters, however there are certain unavoidable aspects to using funds under Solar for All. Perhaps more important than acquiring experience in the low-income and community solar markets is finding ways to navigate the labyrinthine requirements for using federal money.

Kristal Virgil, senior vice president at Groundswell Inc., selected as a multi-state non-profit to administer $156 million in EPA grants in the Southeast, said the federal source of the funding triggers a number of compliance issues, including the Davis-Bacon Act that mandates how contractors are paid and compensated, and the Build America/Buy America Act (BABA) that requires U.S.-source products (with a few exceptions, such as electronics) and construction materials used for infrastructure projects funded by the IRA.

“We’re currently in the process of working on a position description now for general counsel to be added to Groundswell’s team because there are several compliance responsibilities that we’re going to need to take on,” Virgil said. “There’s a lot of complexity that we’re currently navigating through and looking to partner with experts. We’re going to need legal and accounting and a robust compliance manager.”

This complexity underscores the reality that Solar for All is not just a $7 billion resource ready to be tapped for solar. It can only be accessed according to very specific procedures. The fact is, there are extremely few contractors and suppliers that are Davis-Bacon and BABA-compliant. This threatens to create monopolies or simply immovable blocks to Solar for All projects.

All in all, the compliance issues facing those entities selected to administer funds under Solar for All appear more pressing than the technical problems attending solar development for low-income households. And the clock is ticking.

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First Solar probes potential infringement of TOPCon patents First Solar says it is evaluating potential infringement of its patents for its TOPCon tech, secured through the acquisition of TetraSun in 2013. The U.S. thin-film solar module manufacturer has not named the companies involved or given a timeline for the investigation.

People on the move: Swift Current Energy, Lightsource bp, WTS Energy, and more Job moves in solar, storage, cleantech, utilities and energy transition finance.

50 states of solar policy moves, Q2 2024 Q2 2024 saw 44 states plus the District of Columbia and Puerto Rico take a total of 182 distributed solar policy actions.

Grid operator PJM to start talks on regional transmission The nation’s largest grid operator told renewables trade groups that it will launch a transmission planning process ordered by the Federal Energy Regulatory Commission.

Utah developer rPlus secures $1B in financing for 400 MW/1600 MWh solar-plus-storage project  The Green River Energy Center will supply power for PacifiCorp.

Peak Energy secures $55 million Series A funding to manufacture sodium-ion batteries The company plans to deliver its first systems in 2025 and open a full-scale production facility in 2027.

U.S. residential solar down 20% in 2024 A webinar hosted by Roth Capital Partners looked at the health of the residential solar market and forecasts for next year.

PJM Interconnection, which provides transmission from Chicago to New Jersey, said it will launch a stakeholder engagement process in August to “help inform inputs” into scenario analyses for long-term regional transmission planning.

PJM and other transmission providers are required by the Federal Energy Regulatory Commission’s (FERC’s) Order No. 1920 “to plan for the transmission we know we will need in the future,” FERC has explained. Scenario analyses are part of the planning process.

PJM announced the stakeholder engagement process in its response to a letter from three renewables-focused trade groups and other entities asking PJM to “shift its current long-term regional transmission planning proposal to focus on Order No. 1920 directives.”

One of the trade groups, American Council on Renewable Energy, said last year that 167 GW of large-scale solar, wind and storage projects awaited interconnection studies by PJM. The group said that a lack of transmission capacity due to “insufficient” transmission planning is a “root cause of the unprecedented backlog” of interconnection requests across grid operators nationwide. Trade groups Americans for a Clean Energy Grid and Advanced Energy United also signed the letter.

In the works

PJM issued a regional transmission expansion plan last year that “identified” 93 transmission projects at a cost of $180 million to support generation seeking interconnection, and 48 new baseline projects at an estimated cost of $6.6 billion to maintain grid reliability, said a FERC staff report in March, while PJM “evaluated” 227 supplemental projects put forward by transmission owners that would cost $2.4 billion.

A major “national interest” transmission corridor in the PJM region has been proposed by the U.S. Department of Energy (DOE) that would help PJM “maintain and improve reliability, lower consumer costs, and meet future generation and demand growth,” DOE said.

Nationwide, a DOE transmission needs study found that 54,500 GW-miles of within-region transmission must be added for a clean grid under “the most likely power sector future.”

“Ultimate directives”

The trade groups expressed a concern in their letter that “PJM’s recent rehearing request to FERC suggests that PJM may seek to avoid implementing some important components of Order No. 1920.”

Responding to that concern, PJM said its rehearing request sought “flexibility” to implement the FERC order’s requirements “in a less prescriptive way such that PJM can tailor its approach to reflect its unique circumstances and regional needs.” PJM said that FERC will rule on “the numerous rehearing requests filed,” and said it “will comply in full with [the] Commission’s ultimate directives.”

States’ role

FERC said that its order “expands states’ pivotal role throughout the process of planning, selecting, and determining how to pay for transmission facilities.”

The governors of four states served by PJM—Illinois, Pennsylvania, Maryland and New Jersey—said in a letter to PJM last month that transmission planning is important in “developing large-scale low-and-zero emission energy resources.”

The governors said they “applaud” the grid operator’s steps to prepare for scenario discussions “that include each of our states,” and look forward to extensive engagement with PJM management and stakeholders “in shaping regional transmission planning and cost allocation approaches.”

All 13 states served by PJM had called for the grid operator to make faster progress on interconnection of renewable generation projects in 2022, in comments to FERC from the Organization of PJM States, Inc. (OPSI).

State do not have representation in PJM’s governance structure, but PJM says in a website document that it “works closely with state regulatory commissions to identify and respond to local matters,” explaining that OPSI, made up of the state commissions in PJM’s region, acts as a “liaison group” to PJM and its members.

Sixty-nine state legislators from 10 states served by PJM called this week for the grid operator to “work without delay” to implement FERC Order No. 1920, saying that “effective implementation” of the order is “critical to our responsibility to ensure that our constituents have access to reliable, affordable and clean electricity,” in a letter organized by the National Caucus of Environmental Legislators.

The N.C. Clean Energy Technology Center (NCCETC) released its 50 States of Solar: Q2 2024 report that looks at state regulatory and legislative discussions that affect the distributed solar market in various states.

The report finds that many states are taking a close look at solar policies due to the influx of funding from the Inflation Reduction Act (IRA) going to state agencies and clean energy projects. Q2 2024 saw 44 states plus the District of Columbia and Puerto Rico take a total of 182 distributed solar policy actions.

In addition to states are examining the interplay of IRA funding and solar programs, other trends are seeing states initiate formal studies to inform net metering successor efforts, and states are modifying existing community solar programs.

The greatest number of actions address net metering policies (64), and residential fixed charge or minimum bill increases (48), and community solar policies (42). Most of these actions were taken in California, Arizona, Connecticut, New York, Pennsylvania, Massachusetts, and Virginia.

Top five distributed generation solar policy actions

In Q2 2024, six states issued decisions, passed legislation, enhance programs or initiated studies that pertain to solar policy:

California—Regulators at the Public Utilities Commission (CPUC) issued two major decisions on community solar and income-based fixed charges. The CPUC approved income-tiered residential fixed charges for the state’s investor-owned utilities, which range from $6.00 to $24.15. The CPUC also approved a new Community Renewable Energy Program and modifications to existing Green Tariff programs. The new community energy program will use existing procurement mechanisms like the Renewable Energy Market Adjustment Tariff and PURPA Standard Offer Contract as the foundation of the program.

Alaska— Alaska lawmakers passed legislation requiring the Commission-regulated utilities to offer community energy programs. The Regulatory Commission of Alaska is to develop several program specifications, including bill credit rates that consider the full economic value provided by community energy facilities. The Commission is also authorized to adopt a separate rate for capacity provided by energy storage as part of a community energy facility.

Colorado—Legislators in Colorado approved changes to the states’ community solar garden program. The revised program will begin in 2026 and focus on inclusive community solar development. It requires that at least 51% of a facility’s subscriptions be reserved for income-qualified customers and allows for the donation of excess credits to income-qualified customers. For income-qualified customers, the subscription charge is limited to 75% of the value of the bill credits, while this decreases to 70% if the project is receiving IRA funding for energy communities and 50% if IRA funding is being used to provide bill savings.

Connecticut and Washington—Lawmakers in these states initiated net metering studies. Connecticut’s study will consider whether the Renewable Energy Solutions Program should be extended and possible successors. Washington’s study will examine the value of distributed solar and storage and options that may be used after the net metering cap is reached.

Kansas—The Kansas legislature enacted legislation in April that increases the aggregate cap for net metering, as well as the individual system size limit. The aggregate cap will increase by 1% (of the utility’s highest annual peak demand since 2014) per year until reaching 5% in July 2027. The bill increases the system size limit to 150 kW for all customers and also provides guidance for net metering crediting under time-of-use rates.

“States are beginning — or rather, re-beginning — to study net metering programs, outside of the valuation of distributed solar,” said Rebekah de la Mora, senior policy analyst at NCCETC. “These investigations focus on program redesigns and successors, looking at the policies, economics, results, and future projections of net metering programs. Some of these investigations are already baked into law, like in Puerto Rico, while others were proposed by newly-passed bills, such as those in Delaware and Washington.”

One other state that made a big move as a result of federal funding is Mississippi, where the Public Service Commission has suspended multiple solar and storage incentives/programs in the state due to Solar for All funding.

The Solar Energy Industries Association (SEIA) is releasing two new industry standards to help protect solar energy customers from deceptive and unethical practices and is seeking public comment on the standards.

The two standards, 401 and 201 ensure transparency for customers while also enhancing the safety and quality of installations.

• Standard 401 will outline training requirements for solar salespeople, helping to establish ethical sales practices and ensure all solar customers have a thorough understanding of their investment before committing. Companies and salespeople trained under this standard will provide customers with comprehensive and clear disclosure of costs, key contract terms and technology information. Once the standard is published, a certified third-party will evaluate whether a company or individual has met the requirements.
• Standard 201, creates a baseline for how residential and small commercial solar and storage systems are installed with the aim of enhancing the safety and quality of residential solar and storage installations, helping to minimize risks to homes and businesses and enhance grid reliability. Companies will receive a third-party audit of their written practices and field installations, helping to ensure safe installations and create a better experience for solar customers throughout the life of their system.

“These groundbreaking standards reflect the solar and storage industry’s commitment to ensuring every customer has a great experience going solar,” said SEIA president and CEO Abigail Ross Hopper. “We’ve heard customers loud and clear about what they want to see from the solar industry. Going solar with a SEIA-certified installer will give customers the confidence they need to make the best decision for their family.”

Over five million American homes have a solar system installed, and at least five million more households will choose solar by 2030, according to SEIA. While the majority of homeowners are happy with their solar installations, bad experiences do happen and these standards aim to eliminate them.

SEIA is an American National Standards Institute-accredited standards developer, and is currently developing 11 industry-wide standards, including standards on supply chain traceability and decommissioning. Learn more about the standards and SEIA’s consumer protection work.

SEIA standard 401 and 201 are now open for a 45-day public comment. Written comments received during the open public comment period will only be accepted through the Standards Public Review Comment Form.

Also read With great (solar) power comes great responsibility.

Global solar installations to nearly quadruple by 2033 Wood Mackenzie forecasts 4.7 TW of solar capacity to be built between 2024 and 2033, with China accounting for about 50% of the growth.

U.S. manufacturer Toledo Solar closes business The Ohio based thin-film solar module producer was sued last year by First Solar, which alleged that Toledo Solar sold Malaysian-made First Solar modules under the Toledo name. It has announced it will cease operations.

Solar tariffs could “unintentionally cede U.S. leadership in the solar industry”  A report from Clean Energy Associates (CEA) and the American Council on Renewable Energy shows how antidumping and countervailing duty (AD/CVD) tariffs create cost issues not just for imported solar panels, but for U.S.-made solar panels as well. 

Solar panel cleaning with electromagnetic waves Three companies, including Massachusetts startup Sol Clarity, are experimenting with electrodynamic screen systems to clean solar panels using minimal electricity and no water.

Solar supply chain, technology trends, and policy update A report from Clean Energy Associates (CEA) provides the latest on global and regional solar supply chains, technological trends, and market impacts from policy.

Clean Energy Associates (CEA) issued its quarterly report on solar supply chain analysis, technological trends, and regional policy analysis. 

The firm projects that after a more than 60% increase in global solar installations in 2023, growth is expected to sharply decline in 2024. Global demand is expected to be between 401 GW and 511 GW. 

Despite the expected slowdown in installations, supply is expected to continue to grow. CEA sees significant new capacity across polysilicon, cell, and module coming online in 2024. Polysilicon manufacturing is expected to add over 600 GW worldwide, while cell and module sectors will bring more than 300 GW each, said CEA. 

Multiple trade policies are expected to keep prices high in the U.S. The removal of the bifacial exemption to section 201 tariffs, uncertainty created by the launch of a new AD/CVD investigation, and ongoing enforcement of the UFLPA are keeping prices high. CEA said these forces continue to bolster the economic case for investing in U.S. solar manufacturing. 

The risk of AD/CVD is significant. CEA said through the first five months of 2024, about 75% of modules and 50% of cells were imported from the four AD/CVD affected countries of Cambodia, Malaysia, Thailand, and Vietnam. 

“The risk-free supply is limited and fragmented and not enough to meet U.S. cell demand,” said CEA. 

As for technological trends, CEA expects that TOPCon solar modules will now account for around 75% of global distribution in 2024. The firm expects over 400 GW of TOPCon module shipments this year. 

While TOPCon offers efficiency upgrades over silicon without requiring a complete overhaul to manufacturing facilities, it is not without potential risks, warns CEA. Performance degradation risks are “too early to conclude,” it said.  

CEA suggests that proper manufacturing processes and encapsulation could improve reliability. It recommends that buyers avoid products without quality assurance. 

The report also warned of a rising trend of hail damage risk in solar modules. As the industry has shifted to larger, heavier modules, suppliers have been installing thinner and thinner glass. A typical module in 2015 had 3.2 mm glass on its frame and a backsheet and weighed about 26 kg. In 2023, conventional modules are protected by 2.0 mm of glass and have a glass backsheet, while weighing about 38 kg. This shift to thinner glass on larger modules has made them more exposted to the risk of damage from hail impact. 

Based on data from the National Renewable Energy Laboratory, hail is the cause of 53% of insurance claims for U.S. solar assets. This is followed by wind (32%), and fire (8%). 

Hail insurance now exists in the same category as severe storms, and insurers have increased their concerns about hail risks. Insurance is used to cover the module replacement cost in a hail event. CEA said new policies have set high deductibles and coverage limits in hail-prone regions, and rates may continue to change as risk is re-assessed. 

“Some suppliers have upgraded hail resistance and tested it to a more severe level; however, such modules are usually based on special designs and/or materials that are not mainstream due to cost or limited demand,” said CEA.