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REC Now #3 In US Residential Solar Market

by James Ayre September 6, 2015

The Norwegian company REC Group is now the third-biggest solar photovoltaic (PV) module supplier in the US residential market, according to recent reports.

This follows a 5-fold increase in market share over the last year — following the imposition in the US of duties on Chinese solar PV providers. The company is reportedly expecting that its market share will continue increasing notably over the rest of 2015.

The company — which utilizes vertically integrated PV manufacturing facilities in Singapore — currently possesses a ~14% market share (up from a 2.7% market-share in Q1 2014). The company is also the top solar PV supplier in the Californian market, which makes sense considering the direct shipping routes from Singapore.

“(The trade rulings) certainly did not have a negative impact on our business,” stated REC Senior VP and Managing Director Arndt Lutz in a recent interview. “It opened the door for some of our customers that we were working with.” (You might say it was about “picking winners and losers,” of which Chinese companies were the losers.)

While some of the top solar leasing/sales companies in the US (SolarCity, Sunrun) are customers of REC, the company’s customer base is apparently much more diverse.

“We know all the big solar residential installers and have worked with them,” stated Lutz.

The company’s relatively new TwinPeak offering shows that part of the recent success has been down to technological changes as well — as the offering was a winner of the recent Intersolar Award in the Photovoltaics category. It offers 15–20 watts of generation capacity more than most similarly priced multi-crystalline modules.

According to Lutz, the aim is for TwinPeak to comprise roughly half of the company’s offerings into the US residential market for the time being. As of the second quarter of 2015, around 50% of the company’s business is now in the US.

Regardless of REC’s ability to capitalize on the recent tariff imposition, the two top companies in the US residential market are still Chinese ones — Canadian Solar and Trina Solar.

September 6, 2015 0 comment

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What’s Next For US Renewable Energy Subsidies?

by Steve Hanley August 31, 2015

written by Steve Hanley

US renewable energy subsidies are scheduled to expire on December 31, 2016. What will replace them? The answer may well depend on the next general election results in November of next year. Politicians are already honing their campaign rhetoric and many conservatives are openly hostile to subsidies for renewable energy technology.

Policies & Politics

There is no doubt that government policies have an enormous effect on the renewable energy industry. Federal tax credits have been the primary engine for change when it comes to the huge increase in available wind power assets that have come online in the past decade. The rooftop solar industry as it is today would not exist without federal incentives. Unseen behind the ramp-up of renewable energy sources is the billions in research that has been funded by the federal government. Nothing could possible slow down this juggernaut, could it?

Actually, yes. A shift in the political winds could bring it all to a halt virtually overnight. Take away all those incentives and the impetus to build massive new renewable energy resources will primarily evaporate like morning mists. That’s exactly what is happening in major countries around the world.

Australia & Britain Pull Back On Solar

In Australia, the Abbott government has issued instructions to the Clean Energy Finance Corporation (CEFC) prohibiting it from investing in wind farms or small-scale solar projects. Opposition leaders and solar energy supporters say the government directive will cripple the rooftop solar industry and diminish Australia’s chances of transitioning to a clean energy economy.

“I don’t agree with the prime minister that if you just don’t have any government support for the future of renewable energy, that the renewable energy will just miraculously grow and increase in Australia,” opposition leader Bill Shorten told the Australian Broadcasting Corporation. He said that striking wind farms and rooftop solar from the CEFC will mean that “the only thing the CEFC can invest in is flying saucers.”

In Britain this week, the government followed Australia’s lead by ordering a drastic reduction in subsidies paid for offshore wind farms and rooftop solar installations. The feed-in tariff, which now pays British families 12.4 pence per kilowatt-hour for electricity fed back into the grid, will be slashed as of January 1 to just 1.6 pence, an 87% reduction, according to The Guardian.

Journalist Peter Dominiczak, writing in the The Daily Telegraph on 28 August, said, “Britain’s solar boom is over after ministers announced they would offer virtually no subsidies for people to install panels on their homes. In a surprise move, ministers on Thursday said that they plan to slash the amount of money given to families who put solar panels on their homes. Under the new proposals, the amount paid to homeowners under the ‘feed-in tariff’ from next year will fall by nearly 90 per cent. Critics say the scheme, which was heavily pushed by energy firms, enables wealthy families to rake in subsidies paid for by many who are already struggling with their energy bills.”

British Policy Shifts

So, let’s get this straight, shall we? The British government, at the behest of established energy firms, is helping ordinary Brits meet their energy bills by paying them far less for the electricity they generate themselves on their own rooftops? Yeah, that makes sense.

The changes were ordered by the British Department of Energy and Climate Change (DECC) under pressure from the Cameron government. A report in the Daily Mail in December of 2013 revealed that Cameron had ordered ministers to ditch the “green crap” blamed for driving up energy bills and making business uncompetitive. The Prime Minister, who once pledged to lead the “greenest government ever,” had publicly promised to “roll back” green taxes, which add more than $200 a year to average fuel bills. But a senior Tory source said Mr Cameron’s message in private is far blunter. The source said: “He’s telling everyone, ‘We’ve got to get rid of all this green crap.’ He’s absolutely focused on it.”

August 31, 2015 2 comments

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Nevada & Colorado Net Metering Continues Unmodified

by Joshua S Hill August 28, 2015

written by Joshua S Hill

Originally published on CleanTechnica.

Separate rulings this week in Nevada and Colorado see net metering left alone, resulting in a clear win for rooftop solar consumers.

The Nevada Public Utilities Commission voted this week to keep solar net metered customers on existing rates until the Commission is able to make a decision determining long-term rules by December 31.

This follows a shutdown of the solar market in Nevada last Thursday, when NV Energy declared that the previous cap had been hit.

“The hard work is now before the Commissioners to issue long-term rules” said Bryan Miller, co-chairman of The Alliance for Solar Choice. “We are grateful that the Commission’s decision will allow Nevadans to return to their jobs today, while the Commission determines long-term rules for solar net metering. Nevadans will remain vocal to ensure that these rules allow Nevada’s solar industry to continue creating jobs and driving economic growth.”

The Colorado Public Utilities Commission similarly voted to leave the state’s net metering policy unchanged, announcing to the world that it was a “fair outcome” for the state’s solar users, as well as the utilities and solar industry. Specifically, Chairman of the Colorado Public Utilities Commission Joshua Epel and Commissioner Pam Patton made it clear that there is no need to change the net metering policy for crediting residents who choose to be able to feed energy back into the grid.

“We believe net metering provides an important right for consumers to generate their own clean energy and receive fair credit for power they are sharing with neighbors,” said Rebecca Cantwell, executive director of the Colorado Solar Energy Industries Association. “This decision will hopefully provide confidence to people who are considering going solar that this key policy will remain in effect.”

Similarly, Chairman Epel also made it clear that, if solar customers meet the technical requirements, utilities must allow interconnection.

August 28, 2015 0 comment

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92 GW of Solar Annually by 2020, Apricum Predicts

by Adam Johnston August 12, 2015

written by Adam Johnston

Global solar installations will rise by to 2020 to 92 GW yearly, according to a new report from Apricum, compared to 42 GW annually in 2014.

The Berlin-based cleantech consulting firm said most of the 50 GW in annual increases from 2014 until 2020 will come from China, the US, and India, with 36 GW combined.

Image Credit: Queen of the Apostles Solar via Flickr Some Rights Reserved

The Middle East/North Africa/Africa (MENA) region will represent 6 GW, the rest of Asia 5.6 GW, the non-US Americas 4.1 GW, and Europe 3.5 GW.

However, Japan expects to see declines yearly (-5.2 GW) as it looks to slow its hot growth.

Apricum also notes cumulative installations will reach 604 GW, from 178 GW six years earlier.

In regards to cumulative installations, China will lead with 180 GW, followed by the US (83 GW), Japan (57 GW), Germany (46 GW), and India (41 GW). Concerns over air pollution and climate change will help China with its steady growth.

Meanwhile, the US will see continued growth as more regions hit socket parity and grid parity. Apricum predicts a good 2015, followed by a drop in utility-scale installations as the federal tax credit drops from 30% to 10%, due in 2017. However, strong rooftop demand, thanks to declining solar prices will continue to bolster US markets, Apricum suggests. Recent clean power legislation and Hillary Clinton’s plan of reaching 140 GW by 2020 may also have positive effects.

August 12, 2015 0 comment

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Financing Is The Key To Residential Solar Power

by Steve Hanley August 10, 2015

written by Steve Hanley

A new report from GTM Research entitled US Residential Solar Financing 2015-2020 finds that financing is the key to residential solar power proliferation.

Of the 1.2 gigawatts of residential solar installed in the US last year, 72% was third party owned (TPO) and enabled via leases and power purchase agreements (PPAs). The remainder was directly owned by the customer, much of it through loans.

Leases and PPAs are often confused but they are not the same thing. According to Clean Energy, in a solar lease, a homeowner is leasing the solar equipment on their home and making monthly payments for the use of that solar system. In a PPA, the homeowner is purchasing the power generated by the solar equipment installed on their roof, but is not making any sort of payment for the equipment itself, only the electricity being generated. In both cases, the cost of the system is partially or completely offset by the savings the homeowner realizes from purchasing less electricity directly from the local utility company.

Source: GTM Research US Residential Solar Financing 2015-2020

The US residential market segment has grown 15 of the last 16 quarters, and that’s largely due to financing solutions like leases. Since TPO took off a few years ago, the offerings have given customers across many demographics and socioeconomic categories the ability to afford a solar installation.

According to the report, three companies financed 56% of all US residential solar installations in 2014. SolarCity led the nation with 34%, followed by Vivint Solar’s 12% and Sunrun’s 10%. Other leading finance providers included SunPower, NRG Home Solar, Sunnova, and Clean Power Finance.

FIGURE: Leading US Residential Solar Financiers, 2014
Source: GTM Research US Residential Solar Financing 2015-2020.

“The solar loan market has exploded,” said Senior Solar Analyst Nicole Litvak. “Every TPO financier has introduced or is planning to introduce a loan, and an entirely separate group of pure play loan providers has emerged. Many of these new loans are structured such that they offer customers the same year-one savings as a lease or PPA.”

The report suggests that third party ownership will begin to phase out over the next five years as the cost of solar equipment and installation continues to drop. It says customer ownership will take the lead in residential installations by 2020. Financing will still be involved, but the research predicts that solar installations will be funded through loans as opposed to third party ownership deals such as leasing or PPAs.

The data show that having multiple choices about how to go solar plays a big role in the widespread adoption of solar technologies across the country. Different communities and families have different financial needs and preferences, so having a variety of financing choices will increase their ability to go solar, whether through a direct purchase, loan, lease, or PPA. More choices equals more solar.

As more solar is installed, the volume of installations helps lower the cost further, thus leading to the increase in customer owner systems that is expected in the next few years. As the residential solar market matures, banks and other traditional lenders will be less skittish about making loans for home solar systems.

The report signals big changes ahead in the residential solar market. In-home battery storage options will proliferate over the next 5 years as well, giving homeowners even more options for generating their own electricity and relying less on traditional utility companies.

August 10, 2015 0 comment

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SkyPower Announces 1 GW, $2.2 Billion Solar Deal With Kenya

by Joshua S Hill July 28, 2015

written by Joshua S Hill

Last Friday, North America’s SkyPower announced that it would be signing a solar deal with Kenya for a 1 gigawatt (1,000 megawatt), $2.2 billion development project.

SkyPower released a media advisory last Friday, which announced that the self-proclaimed “world’s largest developer and owner of utility-scale PV energy projects” was expecting to sign a “landmark agreement” with the Kenyan Ministry of Energy and Petroleum, which would pave the way for the development of a series of 1 GW “world-class” solar projects in Kenya over the next five years.

The deal is expected to amount to $2.2 billion, and was to be signed in Nairobi at the Global Entrepreneurship Summit.

There had been little news after the announcement of an announcement, with no official updates from SkyPower. However, the media ran with the story over the weekend, thanks in part to US President Barack Obama’s presence at the Summit.

Yesterday, SkyPower put out a release confirming that the deal was signed, and that the project would be built in 4 phases over the coming 5 years.

“SkyPower’s US $2.2 billion investment will create more than 25,000 total job years in Kenya and includes 200 MW of fabrication and assembly facilities, as well as a commitment of US $173 million toward education, training, and research and development,” said SkyPower Executive Vice President Charles Cohen, by way of EnergyTrend.

The news comes following several similar announcements by SkyPower for development of solar projects in emerging nations. Earlier this month, SkyPower announced a 150 MW collection of solar power projects it intends to develop in India, in the central state of Madhya Pradesh. The company offered a record-low bid for the country.

Meanwhile, in March of this year, SkyPower announced another “landmark agreement,” this time with Egypt, for 3,000 MW of utility-scale solar PV projects to be built over the next 4 years.

“The monumental US $2.2 billion agreement was signed in Nairobi, Kenya at the sixth annual Global Entrepreneurship Summit (GES),” SkyPower writes. “GES 2015 hosted an unprecedented convention of high-level leaders from around the globe, including U.S. President Barack Obama and H.E. Uhuru Kenyatta, President of the Republic of Kenya. SkyPower proudly sponsored the summit as an official Solar Energy Partner.”

“Kenya has become an African hub for innovation and entrepreneurship, and SkyPower is proud to contribute to this unprecedented milestone in Kenya’s ambitious renewable energy plan,” said SkyPower President and Chief Executive Officer Kerry Adler. “SkyPower’s solar projects will help Kenya realize its electrification goals, support the development of the country’s renewable energy industry and help the development of strong communities, generating a brighter future for all.”

July 28, 2015 0 comment

Bank of America is one of 13 major corporations who have pledged to make major investments in clean technologies.

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Corporations, Clinton Take Lead In Renewable Energy Fight

by Steve Hanley July 27, 2015

written by Steve Hanley

10 years ago, presidential candidate John Edwards told voters there were two Americas — one for the wealthy and one for the rest of us. Edwards was right; there are two Americas, but the fault line is between those who take climate change seriously and want to take sensible steps to moderate its effects and those who are willing to sacrifice the lives, health, and welfare of the entire American population just as long as those same wealthy people continue to shovel money into their pockets.

We used to think that business was leading the charge against any climate change action, but it turns out that is incorrect. After all, there will be nobody to sell things to if we are all dead, in nursing homes, or underwater.

American Business Pledge On Climate Change

Today, more than a dozen large US corporations pledged to invest up to $140 billion in low-carbon technology, according to Business Green. The pledge is intended to demonstrate the level of support by corporate America for an effective global climate change treaty at the United Nations’ Paris Summit in December.

According to reports, the group of 13 multinationals — including tech giants Apple and Microsoft — will join Secretary of State John Kerry in signing the American Business Act on Climate Pledge, which publicly commits them to reducing their carbon footprints and accelerating investment in clean technologies.

In addition to the investment pledges, the companies will also agree to install at least 1,600 megawatts of renewable energy capacity, reduce water use by 15%, move towards using only renewable power, and target the delivery of zero net deforestation in their supply chains. Other companies expected to sign the pledge include General Motors, the Bank of America, Coca-Cola, Goldman Sachs, and Berkshire Hathaway. The White House says more companies are expected to sign the pledge later this year.

Clinton Announces Major Energy Initiative

The news comes at almost the same time as a pronouncement from current presidential hopeful Hillary Clinton outlining a bold new climate change strategy that includes the installation of $500 million worth of solar panels within 4 years of taking office. The plan would increase the electricity capacity the US has from solar energy to 140 gigawatts — 7 times the current level.

The solar goal is part of a plan to add more renewable power to the grid in the next 10 years than during any other decade in US history. The added capacity will primarily come from wind, solar, hydro, geothermal, and other renewables. Announcing the goals on her website, Clinton said the US is “on the cusp” of a new era of energy generation. “We can create a more open, efficient and resilient grid that connects us, empowers us – improves our health and benefits us all,” she said.

Conservative politicians are mounting a sustained and well-financed attack on any government regulations that impose stricter limits on carbon dioxide emissions, preferring to believe that climate change is just another liberal trick to enslave Americans and cost business money.

July 27, 2015 3 comments

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SEIA Urges Approval Of Alabama Renewable Energy Proposal

by Joshua S Hill July 24, 2015

written by Joshua S Hill

The US Solar Energy Industries Association has applauded Alabama Power’s proposal to install up to 500 MW renewable energy generation, the organization just announced in an email to Solar Love.

Also posted on its website, the US Solar Energy Industries Association (SEIA) has urged the Alabama Public Service Commission (PSC) to approve the proposal put forth by Alabama Power, a subsidiary of Atlanta-based Southern Company, which would see up to 500 MW of renewable energy generation installed in the state.

Alabama Power released information on its proposal earlier in the month, which included a variety of projects of up to 80 MW each, totalling around 500 MW over a six year period. According to Alabama Power, the proposal “would provide broad options for the company to work with customers who have made renewable generation a priority, while protecting other customers from bearing additional costs.” It also notes that such capacity expansion could provide clean energy up to 100,000 homes across the service area.

July 24, 2015 0 comment

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Sunrun Aims To Raise $309 Million In Planned IPO

by Joshua S Hill July 23, 2015

written by Joshua S Hill

American rooftop solar installer Sunrun has revealed the terms of its planned IPO — it aims to raise as much as $309 million in the IPO.

The Silicon Valley–formed and backed rooftop solar installer announced plans to file an IPO in June, and has now revealed that its shares will initially be priced at between $13 and $15, set to trade on the NASDAQ under the symbol “RUN.”

In its filing with the SEC, Sunrun noted that it intends “to use the net proceeds … from this offering for general corporate purposes, including working capital, operating expenses, and capital expenditures.”

Sunrun has been growing rapidly over the past few years, being able to expand recently into South Carolina, increasing its market out of its homeground in the US Northeast and Southwest. On top of that, Sunrun announced earlier this month the decision to sign with SolarEdge as its “preferred supplier of optimized inverter solutions available for use in Sunrun’s home solar installations.”

“Sunrun has focused on integrating innovative technologies into our business so we continue to deliver the best experience to new and existing customers,” said Paul Winnowski, chief operating officer of Sunrun, at the time of the announcement. “We’re excited to partner with SolarEdge to ensure Sunrun customers have high quality home solar systems resulting in increased energy production and lower electricity costs.”

According to a report from GTM Research, Sunrun is the #3 home solar installer in the US, with 3% of the market. Vivint Solar, just acquired by SunEdison, is #2, with 13% of the market. And SolarCity is #1, with 34% of the market.

July 23, 2015 0 comment

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Utility-Scale Solar More Cost Effective Than Rooftop Solar, Report Finds

by Joshua S Hill July 18, 2015

written by Joshua S Hill

A new study has concluded that utility-scale solar PV systems across the US are “significantly” more cost effective than rooftop solar PV systems.

Specifically, the study, conducted by economists at global consulting firm The Brattle Group, found that utility-scale solar PV systems were more cost effective at achieving the economic and policy benefits of PV solar than rooftop or residential-scale solar was.

The study, Comparative Generation Costs of Utility-Scale and Residential-Scale PV in Xcel Energy Colorado’s Service Area, published Monday, is the first of its kind to study a “solar on solar” comparison.

“Over the last decade, solar energy costs for both rooftop and bulk-power applications have come down dramatically,” said Dr. Peter Fox-Penner, Brattle principal and co-author of the study. “But utility-scale solar will remain substantially less expensive per kWh generated than rooftop PV. In addition, utility-scale PV allows everyone access to solar power. From the standpoint of cost, equity, and environmental benefits, large-scale solar is a crucial resource.”

The study yielded two key findings:

The generation cost of energy from 300 MW of utility-scale PV solar is roughly ½ the cost per kWh of the output from an equivalent 300 MW of 5kW residential-scale systems when deployed on the Xcel Energy Colorado system, and utility-scale solar remains more cost effective in all scenarios considered in the study.
In that same setting, 300 MW of PV solar deployed in a utility-scale configuration also avoids approximately 50% more carbon emissions than an equivalent amount of residential-scale PV solar.

The Brattle Group also summarised the results of their comparison in a handy infographic:

The report itself was commissioned by American thin-film photovoltaic manufacturer and utility0scale developer First Solar with support from Edison Electric Institute, while Xcel Energy Colorado provided data and technical support. Specifically, the report examined the comparative customer-paid costs of generating power from equal amounts of utility-scale and residential/rooftop-scale solar PV panels in the Xcel Energy Colorado system.

A reference case and five separate scenarios with varying degrees of investment tax credit, PV cost, inflation, and financing parameters were used to yield the report’s results.

The specifics of the study’s findings, which imagined a 2019 Xcel Energy Colorado system, are as follows:

utility-scale PV power costs ranged from $66/MWh to $117/MWh (6.6¢/kWh to 11.7¢/kWh) across the five scenarios
residential-scale PV power costs were well up, ranging from $123/MWh to $193/MWh (12.3¢/kWh to 19.3¢/kWh) for a typical residential-scale system owned by the customer
the costs for leased residential-scale systems were even larger and between $140/MWh and $237/MWh (14.0¢/kWh to 23.7¢/kWh)
the generation cost difference between the utility- and residential-scale systems owned by the customer ranged from 6.7¢/kWh to 9.2¢/kWh solar across the scenarios

The authors of the report put these figures into perspective, including the national average for retail all-in residential electric rates in 2014, which were 12.5¢/kWh.

July 18, 2015 1 comment

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