Finance – pv magazine USA

Iron flow battery manufacturer secures $50 million investment

Ryan Kennedy — Fri, 28 Jun 2024 18:08:45 +0000

Publicly-traded ESS Tech announced it received an investment from the Export-Import Bank of the United States to expand its manufacturing capacity in Oregon.

ESS Tech, listed on the New York Stock Exchange as “GWH”, announced it has secured a $50 million investment from the Export-Import Bank of The United States (EXIM).

The funds are expected to support the expansion of ESS production capacity at its Wilsonville, Oregon plant. The company develops long-duration energy storage iron flow batteries. The investment is expected to help ESS triple its manufacturing capacity at the Wilsonville plant.

“Our technology uses earth-abundant iron, salt and water to deliver environmentally safe solutions capable of providing up to 12 hours of flexible energy capacity for commercial and utility-scale energy storage applications,” said ESS Tech.

EXIM made the investment via its Make More in America Initiative, which makes available medium- and long-term loans, loan guarantees, and insurance to finance export-oriented domestic manufacturing projects.

ESS Tech is delivering iron flow energy storage systems to customers in Europe, Australia and Africa. The company manufactures 100% of its products in the United States, with a predominantly domestic supply chain that spans 29 states.

“Our partnership with EXIM underscores the critical role that American-made clean energy technology will play in the global clean energy transition,” said ESS chief executive officer Eric Dresselhuys. “ESS’s iron flow technology is already deployed in Australia and Europe and with this agreement, we are well positioned to meet the growing needs of our current and future global customers.”

ESS battery systems are designed to operate for 25 years, while conventional batteries last about 7 to 10 years. The battery modules, electrolyte, plumbing, and other components may well last for decades longer with proper maintenance, said the company. The battery, for example, is expected to experience zero degradation over 20,000 cycles. The long duration energy storage (LDES) system can store and dispatch electricity for 12 hours or more.

Image: ESS Tech

According to the Department of Energy’s ‘Pathways to Commercial Liftoff: Long Duration Energy Storage’ report, the U.S. grid needs 225 to 460 GW of LDES capacity for power market application for a net zero economy by 2060. The global LDES market is estimated to be $50 billion per year and forecast to grow significantly with a cumulative investment of up to $3 trillion by 2040, according to the LDES Council and McKinsey & Co.

Roadmap to designing an efficient community solar program

Anne Fischer — Fri, 28 Jun 2024 14:58:48 +0000

The Coalition for Community Solar Access released a Policy Roadmap that offers legislative guidance including model legislation.

The Coalition for Community Solar Access (CCSA) released its Policy Roadmap that includes a guidebook, model legislation, inclusive solar access solutions for low-to-moderate income subscribers and consumer protection best practices. It’s intended to serve as a blueprint for states without competitive community solar programs to pass legislation that supports programs. It also provides insight into how to maximize federal funding.

“Our Roadmap boils down nearly a decade of the best lessons we’ve learned from creating community solar markets across the country into a succinct set of documents,” says Molly Knoll, Vice President of Policy, CCSA. “With many states exploring the development of new, or revamped, community solar programming and federal funds ready to deploy, this felt like the perfect time to release this helpful guide for all our advocates.”

The community solar is on the rise as it brings economic and social benefits to all Americans seeking local, clean community solar energy. By its design it lets people benefit from solar energy who may be unable to install solar either due to financial restrictions or because they do not have a suitable rooftop for solar.

Wood Mackenzie expects 7.6 GW of new community solar will come online in existing state markets between 2024 and 2028, and the national total of community solar installations is expected to pass 10 GW of cumulative capacity in 2026.

Source: Wood Mackenzie

The CCSA’s aim with the Roadmap is to help the industry continue on the upward trajectory it’s currently experiencing, which requires strong programmatic and policy decisions.

The Roadmap’s release coincides with the U.S. Environmental Protection Agency is set to deploy $7 billion to state applicants through its Solar for All program, a funding opportunity that has a goal of bringing solar energy to low-income households. Recipients were chosen based on their proposals to develop programs designed to serve communities facing barriers to distributed solar deployment, with 100% of funding supporting low-income and disadvantaged communities in all 50 states the District of Columbia, Puerto Rico and territories.

Supporting low-income households

As recently shown in community solar programs and research reports from Wood Mackenzie and the Lawrence Berkeley National Lab (LBNL) community solar has effectively expanded solar access to multifamily housing occupants, renters and low-income households. Based on a sample of 11 states, the LBNL study found that community solar adopters in 2023 were about 6.1 times more likely to live in multifamily buildings than rooftop solar adopters, 4.4 times more likely to rent, and earned 23% less annual income.

“The data speaks for itself: when states implement thoughtful policy programs that simplify income verification, billing, and expand access, we see immense growth in community solar adoption by low-to-moderate income households,” said Stephanie Burgos-Veras, senior manager of equity programs, CCSA. “We hope our Policy Solutions for Inclusive Solar Access primer can lead to more community solar programming being implemented — so that ultimately, more LMI households can benefit.”

The new CCSA Roadmap is intended to be used in conjunction with a companion document that provides Model Legislation for Community Solar Programs, that serves as a toolkit for policymakers to draft effective and sustainable community solar policies. The toolkit helps them tailor the program to community residents; kickstart the market with bill credit structure, oversight and administration; ensure long-term success by integrating community solar programs into existing utility and energy infrastructure of a state.

Also covered are potential challenges, the role of utilities, interconnection issues, program size and more. It also offers strategies to ensure that programs exist long into the future and continue to serve local residents.

Community solar legislation has been adopted in 19 states and the District of Columbia and multiple states have legislation in the works with nearly a dozen considering laws to create programs. Combined with the Solar For All program, CCSA believes that now is the time for policymakers to revisit the idea of bringing community solar to their state.

Find all the documents in the Policy Roadmap here under the “CCSA & Other Resources” tab.

Solar tax transfer for smaller projects: Dissecting a $600,000 tax credit transaction

John Fitzgerald Weaver — Tue, 25 Jun 2024 13:43:01 +0000

Basis Climate has closed its smallest IRA transferable tax credit deal to date, marking the end of an era dominated by million-dollar minimum tax credit transactions.

Basis Climate has delivered an investment tax credit (ITC) transfer worth $600,000 for a 1.2 MW solar project, complete with a twelve-page transfer agreement plus requisite due diligence documentation. This transaction, facilitated under the new provisions of the Inflation Reduction Act (IRA), signals a significant shift in the tax credit landscape, expanding access to smaller-scale solar projects.

Tax equity, a financing arrangement where investors fund solar power projects in exchange for federal tax benefits like investment tax credits, is a complex field that integrates capital and labor. Initial costs for assembling these deals can start under $100,000 but may quickly escalate to millions. These expenses, covering fees for lawyers, accountants, and engineers, support extensive review of data rooms and the drafting of extensive contracts, focusing on compliance and diligence. The objective is to ensure that large investment groups can safely deploy billions of dollars in compliance with the U.S. Internal Revenue Service regulations.

The introduction of the IRA brings about ITC transferability. This mechanism provides a less formal alternative to traditional tax equity, facilitating the use of solar ITCs by investors.

When pv magazine USA consulted tax equity professionals, now also working with transfers, at the Solar Energy Industries Association’s annual Finance, Tax, and Buyer’s Seminar in March about the potential for simpler “six- to eight-page” tax transfer contracts, their response was a mix of skepticism and amusement. Such brief documents would stand in stark contrast to the extensive documentation required for solar tax equity transactions due to their complexity and regulatory demands. Our sources indicate that shorter contract lengths would align better with those used in the movie industry, which also navigates its own tax credit processes.

In the past, even the smallest projects that attracted tax equity investors required $1 to $2 million in tax benefits to offset the $75,000 in fees. That landscape is now evolving.

Source: Basis Climate’s online portal

Basis Climate, an internet-based tax credit transfer platform, has closed nearly $250 million in deals and boasts a $2 billion pipeline across various technologies, including solar, energy storage, renewable natural gas, wind, and electric vehicle charging. Over the past month, the company has managed over $50 million in term sheets and offers, with more than $70 million in signed deals progressing towards closure.

WeWould Solar, a single-purpose entity providing ancillary power to on-site agricultural processing in Gainesville, Florida, partnered with Basis Climate on the $600,000 ITC sale. The project is for a net-metered, behind-the-meter solar power initiative within the utility region managed by the Clay Electric Cooperative. The transaction took place through Basis Climate’s website, with the ITC being acquired by Creditable Capital.

Derek Silverman, co-founder & chief product officer at Basis Climate, shared insights with pv magazine USA.

The project is slated for development in three phases, each anticipated to be 1.2 MW. Notably, since the initial phase was under 1 MWac, it was exempt from prevailing wage or apprenticeship requirements. The installation will use SMA Sunny High Power PEAK3 inverters, Canadian Solar bifacial BiHiKu 425 W modules, and TerraSmart’s Glade Wave racking.

Source: WeWouldSolar energy monitoring dashboard

Creditable has disclosed that it is underwriting ITC transfer transactions targeting a 10% to 15% return on investment, net of fees and expenses, for its investors. For a $600,000 transaction, with limited information available, a return in this range suggests that Creditable Capital paid approximately 85 to 87 cents on the dollar. This payment rate is at the lower end of the typical industry range, where 90 to 95 cents on the dollar is common for larger solar power projects involving investment-grade asset owners and sophisticated development and construction firms.

First Solar, meanwhile, received 97 cents on the dollar when it sold its manufacturing tax credits.

Risk management

Silverman highlighted that the project’s diligence covered approximately 20 key areas, including organizational documents, project design, construction plans, operational strategies, insurance placement, and project valuation and qualification. Finalizing these core areas early helped Creditable Capital concentrate on higher-risk aspects, such as determining the project’s eligible basis and mitigating recapture risks, which involve the risk of having to return tax benefits if the project fails to comply with regulatory requirements.

For projects where asset owners lack strong financial foundations, buyers commonly secure tax insurance to safeguard against recapture risk. This insurance also provides a financial safety net, known as a backstop indemnity, in case the project’s liabilities exceed its assets. In the case of Creditable, the financial guarantees provided by the asset owner were sufficient, eliminating the need for tax insurance. However, when sellers lack a robust balance sheet, buyers generally obtain tax insurance to ensure comprehensive protection.

Adam Stern, founding partner of Creditable Capital, commented on their funding strategy, stating:

Creditable is getting more comfortable with the funding at a point in time after diligence is completed with a holdback for the IRS registration. Creditable, through its investors and financial institution relationships, is working to provide bridge loans on projects that it is buying the credits for.

A lingering risk in these transactions is how the IRS will require buyers and sellers to verify aspects of the deal, such as the determination of the basis.

Determining the appropriate ITC is a complex process due to the US Internal Revenue Service’s (IRS) detailed and evolving definitions of what constitutes an eligible project ‘basis’. For example, essential infrastructure like fences and roads, required by code for project deployment, are not considered part of the eligible basis, thus not qualifying for the 30% ITC. Similarly, interconnection costs had been excluded until recent changes under the IRA, which now allows projects under 5 MWac to include these costs in their ITC calculations.

In the traditional tax equity market, buyers of ITC needed to demonstrate significant involvement in the solar projects, taking on considerable operational and developmental risks, and ensuring long-term revenue from the projects flowed to them through complex financing arrangements. Some of requirements have been relaxed, although thorough due diligence and responsible investment practices remain essential.

A community solar project developed by Wunder Power in Maryland, part of an ITC sale facilitated by Basis in 2023. Image: Basis Climate.

New platform vets residential solar salespeople

Ryan Kennedy — Mon, 24 Jun 2024 15:35:06 +0000

An industry plagued by deceptive practices is now verifying salespeople via a platform called Recheck.

Leading residential solar industry financers and the Solar Energy Industry Association (SEIA) are partnering with the newly launched Recheck, a platform designed to create a registry of residential solar salespeople and vet their conduct.

Residential solar has long struggled with aggressive sales tactics that has led to negative customer experiences. Many installers outsource their sales efforts to a third party, which can create a disconnect between sales promises and installation realities.

The platform was launched by a consortium of the main players in U.S. residential solar finance, including Dividend Finance, Freedom Forever, GoodLeap, Mosaic, Palmetto, Sungage Financial, Sunlight Financial, and Sunrun.

“A healthy solar industry is vital to consumers and the U.S. energy transition. Recheck is proud of its founding partners and is committed to building the tools to ensure long-term trust with consumers,” said Tim Trefren, Recheck co-founder and CEO.

Recheck creates an online registry of approved solar salespeople, issuing a Recheck ID that allows contractors, financiers, and technology platforms to confirm that their sales partners meet certification, licensing, and training requirements.

The platform marks a first-of-its-kind opportunity for solar finance, contractor, and technology partners to track sales conduct across the industry.

Recheck will also facilitate industry-wide data exchange across the platform. The data will businesses vet sales partners, prevent poor practices by unregistered salespeople, and identify individuals with a history of consumer protection violations that move from company to company.

“Solar remains America’s most popular form of energy and will be installed on 10 million homes by 2030. It’s our job to make sure the solar and storage industry is accountable to the millions of families that are putting their trust in us to power their lives,” said SEIA president and chief executive officer Abigail Ross Hopper.

Recheck founding partners will be part of an ongoing advisory board and have committed to driving the adoption of Recheck IDs within their platforms in 2024 and beyond.

Along with supporting the launch of Recheck, SEIA is developing industry wide standards for residential solar, with accreditation from the American National Standards Institute. SEIA is proactively tackling issues that build confidence among customers, regulators, investors, rating agencies, and other stakeholders. These standards will contribute assurance that solar and storage systems have been ethically, sustainably, and responsibly sourced, manufactured, transported, installed, operated, and recycled.

Sunrise brief: Nextracker acquires solar foundation specialist Ojjo for $119 million

pv magazine — Fri, 21 Jun 2024 11:45:19 +0000

Also on the rise: Arizona’s largest energy storage project closes $513 million in financing. Aiko presents ABC solar module with world record efficiency of 25.2% at Intersolar. And more.

Aiko presents ABC solar module with world record efficiency of 25.2% at Intersolar The Chinese back contact module maker said its new products rely on the company’s all-back-contact (ABC) cell technology and feature a temperature coefficient of -0.26% per C.

People on the move: Amp Energy, Deriva Energy, Atwell LLC, and more Job moves in solar, storage, cleantech, utilities and energy transition finance.

Arizona’s largest energy storage project closes $513 million in financing The 1,200 MWh Papago Storage project will dispatch enough power to serve 244,000 homes for four hours a day with the e-Storage SolBank high-cycle lithium-ferro-phosphate battery energy storage solution.

Scientists develop silver-free PEDOT:PSS adhesive for shingled solar cells Researchers from the University of California, San Diego (UCSD) have developed a new silver-free adhesive for shingled solar cells. The novel adhesive is based the PEDOT:PSS polymer and can reportedly reduce silver consumption to approximately 6.3 mg/W.

Longi launches ultra-black HPBC solar modules for residential applications The Chinese manufacturer said its new Hi-MO X6 Artist series has an efficiency of up to 22.3% and a power output ranging from 420 W to 430 W. The smaller version is currently priced at CNY 298 ($41.7)/m2 and the largest model is sold at CNY 268/m2.

Nextracker acquires solar foundation specialist Ojjo for $119 million Ojjo makes a unique truss system that reportedly uses half the steel of a conventional foundation and a design that minimizes grading requirements.

Arizona’s largest energy storage project closes $513 million in financing

Anne Fischer — Thu, 20 Jun 2024 14:15:31 +0000

The 1,200 MWh Papago Storage project will dispatch enough power to serve 244,000 homes for four hours a day with the e-Storage SolBank high-cycle lithium-ferro-phosphate battery energy storage solution.

Recurrent Energy, a subsidiary of Canadian Solar Inc. has secured $513 million in project financing for its Papago Storage project located in Maricopa County, Arizona.

The 1,200 MWh Papago Storage, which will be the largest energy storage project in Arizona, is expected to begin operations in the third quarter of 2024, with commercial operations slated for the second quarter of 2025. Once operational, the project is expected to dispatch enough power for approximately 244,000 homes for four hours every day.

The Papago battery energy storage systems (BESS) project will use e-Storage’s SolBank, a containerized, proprietary battery energy storage solution designed and manufactured for utility-scale applications. SolBank, which was announced at RE+ in Anaheim in 2022, uses high-cycle lithium-ferro-phosphate (LFP) batteries with a 2.8 MWh energy capacity.

Recurrent Energy, owner of the project, secured a 20-year tolling agreement with Arizona Public Service (APS) for the energy storage project, under which the utility pays for the right to charge and discharge the battery when it needs to.

MUFG and Nord/LB acted as coordinating lead arrangers for the Papago Storage project financing. The financing includes a $249 million construction and term loan, a $163 million tax equity bridge loan, and a $101 million letter of credit facility. Joint lead arrangers for the transaction included Bank of America, CoBank, DNB, Rabobank, Siemens Financial Services, and Zions.

“Today, we are thrilled to see nearly a decade of planning culminate in the financing of what will be the largest energy storage project in Arizona,” said Ismael Guerrero, CEO of Recurrent Energy. “We appreciate the continued support from our partners Nord/LB and MUFG in our shared mission to advance the clean energy transition.”

Last April Canadian Solar rebranded its wholly owned global energy subsidiary as Recurrent Energy. This segment develops both stand-alone solar and stand-alone battery storage projects, as well as hybrid solar-plus-storage projects. To date, Recurrent Energy has delivered more than 10 GWp of solar power projects and 3.3 GWh of energy storage projects, with a global project development pipeline of 26 GWp and 56 GWh for solar and energy storage respectively, the company reports. In North America, Recurrent Energy is developing a pipeline of 6.3 GWp of solar projects and 18.9 GWh of battery energy storage projects.

A look at what caused U.S. solar stock slump in April

Ryan Kennedy — Tue, 18 Jun 2024 12:20:58 +0000

Financial and regulatory uncertainty plus rising module prices are affecting project timelines in the United States and domestic companies must contend with a gray market at home and aggressive pricing abroad. Jesse Pichel, of Roth Capital Partners, explores the key trends in a tough month for U.S. solar stocks.

From pv magazine 6/24

The Invesco Solar exchange-traded fund (ETF) underperformed compared to other stock indexes in April 2024. The solar ETF was down 11% and the S&P 500 and DJIA decreased 4%. That fall followed a 3% gain for the Invesco Solar ETF in March 2024.

The top three performing April 2024 solar-related stocks in the United States were Atlantica Sustainable Infrastructure plc, up 5%; First Solar, Inc. up 3%; and Clearway Energy, Inc., up 1%. The three worst were Maxeon Solar Technologies, falling 39%; Daqo New Energy Corp., down 32%; and SunPower Corp., down 29%.

Residential solar stocks dropped 18% in April 2024, having dropped 2% in March 2024. This extended the 2024 fall for residential solar stocks to 44%. The companies in this measure are Enphase Energy Inc., SolarEdge Technologies., Sunnova Energy International Inc., and Sunrun Inc.

The situation was similar for utility scale solar equipment stocks, down 15% in April 2024 and 22% year to date. The companies in this measure are Array Technologies Inc., Shoals Technologies Group Inc., NEXTracker Inc., FTC Solar Inc., and First Solar Inc.

Independent power producers (IPP) fared better than utility scale or solar stocks. IPPs were down 8% for April 2024 and 22% year to date. This was despite poor performances from Emeren Group Ltd. (-22%) and Altus Power, Inc. (-24%).

The U.S. solar industry is experiencing a gray market for discounted Enphase products, fueled by large installers and rising competition from other microinverter brands. Chinese manufacturers are pricing and financing utility scale battery storage, challenging international firms.

For utility scale projects, rising module prices and uncertainty about retroactive duties are causing delays. Some firms have reassessed plans. Distributors are hesitant to take on new stock, leading to slower inventory clearance, contributing to market disruption. Within the IPP sector there has been an uptick in merger and acquisition activity, however.

Princeton NuEnergy scores $30 million in funding for lithium battery recycling

Anne Fischer — Mon, 17 Jun 2024 19:11:17 +0000

The low-temperature plasma-assisted separation process, developed at Princeton University and now trademarked as LPAS, produces battery-grade cathode and anode materials suitable for direct reintroduction into cell manufacturing.

Princeton NuEnergy (PNE), a New Jersey-based specialist in lithium-ion battery direct recycling, announced the close a Series A funding round with a strategic investment from Samsung Venture Investment Corporation.

Founded out of Princeton University in 2019, PNE developed a patented direct recycling technology for lithium-ion batteries. The low-temperature plasma-assisted separation process, trademarked as LPAS, produces battery-grade cathode and anode materials suitable for direct reintroduction into cell manufacturing. The company reports that this recycling is done at half the cost and is 70% less energy intensive.

PNE is now commercializing its lithium-ion battery recycling process that the company reports recovers up to 95% of materials found in all lithium-ion battery chemistries.

Recovering lithium and other critical battery materials is important as the U.S. ramps up electric vehicle produciton. While the U.S. is making strides toward manufacturing batteries, it is behind in the race for raw materials as China reportedly holds the majority of the world’s lithium refining capacity.

To advance lithium battery recycling, PNE has received over $55 million in grants, strategic and venture funding including investments from Honda Motor Co. Ltd., LKQ Corporation, Samsung Venture, Shell Venture, Traxys Group, Wistron Corporation, and the U.S. Department of Energy.

Investor demand for this 50% oversubscribed round brought PNE’s Series A total to $30 million. Samsung Venture and Helium-3 join the round’s previous investors. The funds will support construction of PNE’s first standalone, full-scale direct battery recycling advanced manufacturing facility.

“The incredible interest in our Series A round, capped off by a strategic investment from Samsung Venture Investment Corporation and Helium-3 Ventures, speaks to the importance of supporting a circular economy for lithium battery manufacturing here in the U.S.,” said Dr. Chao Yan, PNE’s co-founder and CEO. “This funding enables us to implement and demonstrate our capabilities at commercial scale, helping America meet the growing demand for high-performance batteries while also creating high-quality clean energy jobs.”

PNE was named to Time Magazine’s “America’s Top Greentech Companies 2024”

New York continues long duration energy storage investments with $5M funding initiative

John Fitzgerald Weaver — Fri, 14 Jun 2024 14:43:36 +0000

NYSERDA is allocating $5 million to fund up to 50% of project costs for developing energy storage systems capable of operating for 10 to 100 hours, addressing key integration challenges and promoting viable economic products within New York’s energy grid.

New York State’s “Renewable Optimization and Energy Storage Innovation Program” is dedicating $5 million to support long duration energy storage (LDES) projects, with project applications due by September 24, 2024 at 3 PM EST. This funding, administered by the New York State Energy Research and Development Authority (NYSERDA), targets innovative solutions capable of delivering energy storage for durations of 10 to 100 hours, within the specified technical categories:

Electrochemical:
- Including flow batteries and advanced battery solutions
Mechanical
- Innovative pumped hydro and compressed air/gas solutions
- Mechanical/gravity energy storage
- Geomechanical energy storage
Thermal
- Pumped heat electrical energy storage
- Thermophotovoltaic (TPV) storage
- Innovative mediums such as water, sand, molten salts, and rocks

Now in its third iteration, the program finances up to 50% of each approved project’s cost. It prioritizes projects that tackle renewable integration challenges like grid congestion, hosting capacity constraints, and the siting limitations of lithium-ion batteries in New York City. NYSERDA seeks to support technologies that are not yet commercially scaled and are still in developmental stages. Eligible expenses include product development and demonstration projects.

Additionally, the application package stipulates that companies receiving awards must not conduct business in or with Russia.

Proposal evaluation criteria

The proposal scoring criteria lists twenty-eight questions, including:

Is the proposed work technically feasible, innovative, and superior to existing alternatives?
Are the fundamental scientific principles well understood and clearly articulated?
Does the proposed solution have strong potential for commercialization, addressing demonstrated customer needs and significant market opportunities?
Is there an appropriate plan for performance monitoring and data analysis included in the proposal?
To what extent will there be economic benefits in New York State in the form of subsequent commercial activity and economic growth?
How widely can the technology be deployed, both in New York and globally?
How realistic is the schedule for achieving the goals of the proposed project?
How significant is the commercial potential of this technology?

This funding round follows significant investments in previous years. In the summer of 2023, four demonstration projects received nearly $4 million. Ecolectro was granted just over $1 million to advance sustainable hydrogen technologies; Form Energy received $1.2 million for their iron flow batteries; Polyjule deployed a 167 kW/2 MWh plastic-based battery with slightly over $1 million; and Urban Power was awarded about $700,000 to develop a 100 kW/1 MWh zinc battery.

In 2022, Borrego Solar, JC Solution, Nine Mile Point Nuclear Station, Power to Hydrogen, and Roccera were awarded $16.6 million to develop long-duration energy storage solutions. This funding effort was part of a broader initiative that began in 2020, when New York embarked on a project with Zinc8 to develop long-duration zinc energy storage. Following successful development, Zinc8 decided to manufacture its zinc-air batteries in New York State.

As shown in chart above, New York targets significant energy storage milestones by 2050: achieving 10.4 GW over four hours (41.2 GWh) and 6.7 GW over eight hours (53.6 GWh), pushing toward a total of nearly 100 GWh in bulk energy storage. Yet, as of early 2023, despite its mention in the state’s energy roadmap, New York has not quantified energy storage capacities exceeding ten hours.

Swift Solar closes $27 million in funding, plans perovskite solar factory

Anne Fischer — Thu, 13 Jun 2024 19:42:51 +0000

Swift Solar, a specialist in perovskite tandem photovoltaics, plans to build a factory in the U.S. in the next two to three years to manufacture thin-film solar.

Swift Solar announced the close of its $27 million Series A financing round, which follows on the heels of a $7 million award from the Department of Energy under the Advancing U.S. Thin-Film Solar Photovoltaics funding program.

The company, founded in 2017 is a spinout of MIT, Stanford University and the National Renewable Energy Laboratory (NREL), and specializes in perovskite tandem photovoltaics. The new technology combines metal halide perovskites with silicon or other perovskites to make tandem cells that have higher efficiency than traditional solar cells.

The $27 million funding round was co-led by Eni Next and Fontinalis Partners. Also joining the round are new and existing investors including Stanford University, Good Growth Capital, BlueScopeX, HL Ventures, Toba Capital, Sid Sijbrandij, James Fickel, Adam Winkel, Fred Ehrsam, Jonathan Lin, and Climate Capital.

The $7 million DOE funding is part of a $71 million investment, including $16 million from the Bipartisan Infrastructure Law, which supports research, development and demonstration projects in order to help grow the domestic solar supply chain. Swift Solar was one of four awardees that are working on tandem PV devices that pair established PV technologies like silicon and copper indium gallium diselenide (CIGS) with perovskites.

In total, Swift Solar has raised $44 million to scale its technology as it prepares to break ground on its first manufacturing facility.

“Solar is the future of energy—not just clean energy,” said Joel Jean, co-founder and CEO of Swift Solar. “Our advanced perovskite solar cells can outperform anything currently available on the market.”

A novel vapor deposition technology may help it to accelerate the manufacture of its tandem solution. The new method is a non-batch process that solves two problems associated with the use of established vapor processing in perovskite material manufacturing – the slow speed of deposition and the non-continuous nature of batch processing.

“Our deposition approach allows for the continuous deposition of a fully absorbing perovskite material within less than five minutes,” corresponding author Tobias Abzieher from Swift Solar, a U.S.-based perovskite PV startup, told pv magazine. “Solar cells prepared with these materials also outperform previously realized efficiencies of vapor processed inorganic perovskite solar cells significantly.”

In its announcement, Swift Solar noted that perovskite solar cell production uses less material and less energy, which should drive down manufacturing costs and carbon pollution, potentially decreasing the cost of solar by up to 30%. “The perovskite supply chain could be based entirely in the United States and aligned countries, creating a major opportunity to expand domestic manufacturing,” according to Swift.

Swift Solar’s initial products will be designed for integration in high-performance solar-powered products such as on car rooftops or space-based satellites, and the company says it will also serve traditional solar customers.

Swift Solar was recently named one of TIME’s Top GreenTech Companies in America. In April, The Solar Energy Manufacturers for America (SEMA) Coalition announced the Swift Solar was a new member.

This article was amended to remove mention of company developing rooftop product.

Startup Giraffe Financial aims to unravel tax credit complexities for businesses

Anne Fischer — Thu, 13 Jun 2024 12:30:39 +0000

Giraffe received a $1.5 million pre-seed round of funding and plans to help underserved small- and medium-sized businesses access IRA tax credits.

Giraffe Financial announces the launch of a service that aims to make Inflation Reduction Act (IRA) tax credits accessible to underserved small- and medium-sized businesses and tax-exempt organizations such as local governments, schools, and nonprofits.

The IRA represents over $1 trillion in tax credits to accelerate the adoption of clean energy technologies in the U.S.; however, the complexities are as vast as the opportunities. With transferable tax credits value projected to grow to as much as $100 billion by 2032, according to Giraffe, smaller companies may be challenged to tap into those benefits.

In addition, direct pay issues were finalized in April, enabling non-profits such as schools and churches reap incentives for clean energy investments. Giraff intends to help non-profits navigate the process of accessing these credits.

“We built Giraffe to address the paradox that many of the organizations the IRA is intended to support are the least equipped to take advantage of it; we’re bringing IRA tax credits within reach for a broader audience,” said Giraffe co-founder and CEO Jason Prince. “We’re making tax credits far more accessible for entities that don’t have the wherewithal to become tax experts themselves.”

Giraffe is an AI-powered, end-to-end online tax preparation solution that intends to help users understand their likely eligibility and estimate the value of their tax credit. The program will also help companies and non-profits follow all rules in order to stay in compliance. And it will help potential direct-pay recipients to aggregate, insure and sell credits that they’ve obtained.

Help is available for renewable energy and energy storage investments as well as EV and EV charging purchases.

Giraffe is currently working with a partner in the private sector, Cummins, which supports dealers that are electrifying bus fleets. As each dealer has to navigate grant, rebate and tax incentives for their own business, Giraffe is providing those dealers with guidance and expertise so they can take full advantage of all opportunities.

Other customers include Butte Valley Unified School District, Weed Union Elementary, EVC Holdings, FuSE, Bird Bus, and EV charging solution providers like SWTCH, Skycharger, and XCharge.

“When we were first introduced to Giraffe, we were excited to hear that they could helpus secure tax credits that would effectively reduce our out-of-pocket costs to $0 as we moved to purchase electric school buses and the associated charging infrastructure,”

“There are many benefits to having electric vehicle charging stations at a business or other property, yet implementation can be costly and complex,” said Dan Coyne, founder and partner, EVC Holdings. “Giraffe is making the important IRS tax credit component significantly easier for its customers.”

Giraffe was spun out of the Momentum X climate finance venture studio, and it is backed by its two parent companies, Momentum and Skyview Ventures. The $1.5 million pre-seed venture capital funding round was led by Skyview Ventures with participation from angel investors representing leading EV OEM, EV charging, AI, carbon, and environmental commodity organizations.

DOE announces $38 million solar supply chain incubator funding opportunity

Ryan Kennedy — Fri, 07 Jun 2024 14:57:56 +0000

The funds support research, development and demonstration projects that de-risk solar hardware, manufacturing, and software products.

The U.S. Department of Energy announced a $38 million funding opportunity via its Solar Energy Technologies Office (SETO), supporting research, development, and demonstration projects related to the solar energy supply chain.

The funds are intended to support projects that de-risk solar hardware, manufacturing processes, and software products. The funding opportunities also seeks projects that provide outreach, education, or technology development for software that delivers an automated permit review and approval process for rooftop solar and/or energy storage.

“These investments will help accelerate the growth of the solar industry, identify emerging opportunities, and drive down costs for our domestic energy market, positioning the United States on the leading edge of solar industry advances,” said DOE.

Eligible technologies include PV, systems integration, concentrating solar-thermal power, technologies that connect solar with storage or electric vehicles. It also considers dual-use projects like agrivoltaics and vehicle-integrated photovoltaics.

Topic areas:

1. Solar Research and Technology Development

DOE will support five to ten projects receiving $1 million to $2 million each. The topic area focuses on R&D projects for for-profit companies improving and de-risking solar components and/or manufacturing processes. Successful project submissions will develop and validate realistic pathways to commercial success.

2. Solar Energy Demonstration

Five to ten research, development, and demonstration projects will receive between $1 million and $5 million for established companies or startups to develop pilot-scale or prototype demonstration of solar products. Successful applicants for this topic area will have an existing prototype that requires further testing, engineering work, or demonstration in a controlled environment.

3. Solar Permitting, Outreach, Education

One to three projects receive between $1 million to $5 million for outreach, education, and software development activities for automated code-compliant rooftop solar permitting software. The projects are designed for use by solar installers to submit permit applications to local governments and to automate review and approval.

DOE will hold an informational webinar on the funding opportunity on June 13, 2024.

Link to Apply: Apply on EERE Exchange

Sunrise brief: Battery energy storage tariffs tripled; domestic content rules updated

pv magazine — Wed, 29 May 2024 12:00:25 +0000

Also on the rise: Bringing lithium-sulfur batteries closer to commercialization. Largest solar project in Wyoming moves forward. And more.

U.S. scientists develop air-bridge thermophotovoltaic cells with 44% efficiency U.S. scientists have developed a thermophotovoltaic cell that could be paired with inexpensive thermal storage to provide power on demand. The indium gallium arsenide (InGaAs) thermophotovoltaic cell absorbs most of the in-band radiation to generate electricity, while serving as a nearly perfect mirror.

Bringing lithium-sulfur batteries closer to commercialization Researchers at the University of South Carolina have successfully transitioned their highly-durable lithium-sulfur battery technology from coin to pouch cells and reported competent energy densities.

Guaranteed and transferable tax benefits will make the PV industry too big to fail Trina Solar executive says policies in the Inflation Reduction Act will make or break the future of solar in the U.S.

Largest solar project in Wyoming moves forward The $1.2 billion Cowboy solar project will be built by Enbridge, with 771 MW expected to be fully operational by 2027.

21 states accept the grid modernization challenge The Federal-State Modern Grid Deployment initiative aims to shore up the U.S. energy grid to prepare for both challenges and opportunities in the power sector.

Battery energy storage tariffs tripled; domestic content rules updated Breaking down U.S. market impacts on energy storage from recent policy changes with insights from Clean Energy Associates.

Texas is the proving ground for a new way of electric grid operation Texas is uniquely suited to adopt virtual power plant technology due to its competitive, deregulated market. Its success highlights the “perverse incentive” of vertically integrated utilities in other states to make capital expenditures without discretion to raise profits.

21 states accept the grid modernization challenge

Anne Fischer — Tue, 28 May 2024 19:05:52 +0000

The Federal-State Modern Grid Deployment initiative aims to shore up the U.S. energy grid to prepare for both challenges and opportunities in the power sector.

The Federal-State Modern Grid Deployment Initiative received commitments from 21 states. The program aims to bring together states, federal entities and power sector stakeholders to help modernize the U.S. power grid in order to meet an onslaught of both challenges and opportunities the sector will face in coming years.

The 21 states include Arizona, California, Colorado, Connecticut, Delaware, Hawai‘i, Illinois, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Washington, and Wisconsin.

These states have committed to prioritizing efforts to adopt modern grid solutions to expand grid capacity and build modern grid capabilities on both new and existing transmission and distribution lines.

“American economic competitiveness globally relies on access to low-cost, reliable power. The Federal-State Modern Grid Deployment Initiative announced earlier today and already supported by 21 states, is meaningful progress toward the upgraded and better-connected transmission system that lies at the heart of the vision of ACORE’s Macro Grid Initiative,” said Ray Long, President and CEO of the American Council on Renewable Energy (ACORE). “This announcement builds on the commendable commitment to upgrade 100,0000 miles of existing transmission lines by utilizing public-private partnerships to deploy readily available technologies, such as grid enhancing technologies and high-performance conductors.

U.S. power grid used today was built in the 1960s and 70s. The aging grid struggles to handle the extreme weather events caused by climate change, let alone the renewable energy needed to meet energy goals. According to the U.S. Department of Energy, 70% of transmission lines are over 25 years old and approaching the end of their typical lifecycle.

In the past, expanding the capacity of the U.S. power grid had relied on building new transmission lines with technologies that have not changed since the mid-twentieth century. However, with today’s new modern grid technologies such as high-performance conductors and grid-enhancing technologies enable double or more the amount of power than is handled on today’s transmission lines, the grid can be upgraded quickly and in a cost effective manner compared to constructing new transmission lines.

States can receive technical and analytical assistance from the U.S. Climate Alliance. In conjunction the Department of Energy(DOE) has many technical assistance programs that aim to support analysis for utilities, policy makers, regulators, state energy offices, and other stakeholders.

Funding to help states deploy advanced grid technologies is made possible through the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL). For example, the DOE’s Grid Deployment Office is administering $10.5 billion in competitive grant funding through the Grid Resilience and Innovation Partnerships (GRIP) Program.

The DOE Loan Programs Office has $250 billion of loan guarantee authority to provide low-interest financing to projects that upgrade existing energy infrastructure, with program guidance that highlights reconductoring as a qualifying project example. The Department of Agriculture’s Empowering Rural America (New ERA) program provides $9.7 billion in low interest loans or grants and represents the largest investment in rural electrification since 1936, with eligibility for transmission system upgrades.

Funding is also available through the Grid Resilience and Innovation Partnership (GRIP) program, which recently closed applications for up to $2.7 billion in DOE grant funding under a second round. The intention of the program is to fund projects that will upgrade and modernize the transmission and distribution system to increase reliability and resilience to prepare the grid for extreme weather as well as to ensure delivery of affordable, clean electricity to all communities across the nation.

Grid-enhancing technologies (GETs) were cited by an RMI study as potentially capable of saving project developers collectively hundreds of millions of dollars in interconnection costs compared to default network upgrades, while the project-level savings “could be the difference” that allows a developer to build a project instead of dropping out of the queue. The study notes that GETs can also be installed more quickly than other network upgrades.

The Federal Energy Regulatory Commission (FERC) recently issued a final rule on Regional Transmission Planning and Cost Allocation, Order 1920, which adopts requirements for how transmission providers must conduct long-term planning for regional transmission facilities, consider the use of advanced conductors and Grid Enhancing Technologies.

The Solar Energy Industries Association (SEIA) has been involved with this rulemaking proceeding over the past two years, advocating for reforms to the transmission planning process to account for all the benefits that clean energy offers.

“We’re pleased FERC took several steps to improve America’s outdated transmission system, including following SEIA’s recommendations requiring transmission providers to engage in long-term regional planning,” said Melissa Alfano, senior director of energy markets and counsel for SEIA.

[Also read: 50 states of grid modernization]

J.P. Morgan commits $680 million tax equity financing for solar and storage

Ryan Kennedy — Fri, 24 May 2024 20:23:40 +0000

The funds support project developer Ørsted’s portfolio in Texas and Arizona.

Renewable energy developer Ørsted announced it has secured a $680 million tax equity financing for a portfolio of solar and storage assets in Texas and Arizona.

The project portfolio includes Eleven Mile Solar Center, a 300 MW solar and 300 MW /1200 MWh storage project in Pinal County, Arizona and Sparta Solar, a 250 MW solar project in Mineral, Texas.

J.P. Morgan made the tax equity investment, comprised of production tax credit (PTC) and investment tax credit (ITC) assets available through the Inflation Reduction Act (IRA). Over 1.8 GW of Ørsted’s 5.7 GW portfolio is now supported by the investment bank.

The Eleven Mile Solar Center will receive a one-time investment tax credit for its battery storage system while the solar farm will generate production tax credits over a ten-year period.

The tax equity partnership includes options for tax credit transferability, a new option created by IRA. Tax credit transfers opened a new market for any corporate buyer to support clean energy projects and optimize their federal tax bill through purchasing tax credits.

“With this new market unlocked by the IRA, we’re excited to continue our tax equity partnership with J.P. Morgan and bring on new entities looking to advance the U.S. renewable energy industry, support job growth, and promote local economic development,” said James Giamarino, chief commercial officer for the Americas, Ørsted.

Latham & Watkins LLP served as legal counsel for Ørsted and Milbank LLP served as legal counsel for J.P. Morgan.

The tax equity investment is expected to help complete the two projects which total 550 MW solar capacity and 300 MW, 4-hour duration energy storage. Commercial operations for both projects are expected for 2024. The solar projects are expected to contribute a combined $125 million in tax revenue over the life of the projects for public services in the local communities.

SunPower now offers Tesla Powerwall 3 to residential solar customers

Anne Fischer — Thu, 23 May 2024 18:46:45 +0000

SunPower Financial reported it has expanded its suite of solar financing options to include loan and lease financing through Mosaic for Tesla battery installations.

SunPower announced it will now be offering Tesla Powerwall 3 as part of its portfolio of residential solar and storage products.

“Homeowners are increasingly turning to battery storage to protect themselves against ongoing utility rate hikes and grid outages. We witnessed record-breaking battery storage sales in 2024 and see a future where almost all solar systems are paired with storage,” said Shawn Fitzgerald, SVP corporate development and product strategy at SunPower.

Tesla launched the Powerwall 3 in 2024 after it was unveiled at the RE+ trade e show in September 2023. It has the same storage capacity as the Powerwall 2 (13.5 kWh) but a key differentiator is that it can provide at least 50% more power at 11.5 kW of continuous power. It is a hybrid battery with the solar and battery inverter fully integrated, and is designed for new solar installations as opposed to retrofits. Some of the innovations over the Powerwall 2 are that it is reportedly easier to install, and it is smaller and lighter, while slightly deeper.

“Pairing Tesla Powerwall 3 with our industry-leading SunPower Equinox solar system was a natural progression in offering homeowners the best products on the market.” Fitzgerald said.

According to a report by Wood Mackenzie, one in every four American homeowners who install rooftop solar this year will also add battery storage. Reasons include resiliency as well as changes in net metering policy such as California’s NEM 3.0, which cut payments for exported solar energy by about 75%.

Powerwall was the choice in over half of home battery installations last year, according to Wood Mackenzie.

“Expanding access to Tesla Powerwall 3 allows us to offer homeowners a comprehensive energy solution under one roof including sales, financing and installation,” said Joe Holstein, owner of SunPower by Quality Home Services, a SunPower Master Dealer.

SunPower Financial reported it has expanded its suite of solar financing options to include loan and lease financing through Mosaic for Tesla battery installations. SunPower reports that qualified customers can finance a Powerwall 3 with no down payment.

SunPower specializes in residential solar installations, a market that has been hard hit by rising interest rates and policy changes such as NEM 3.0 In April SunPower announced it planned to close business segments as it restructures to lower costs. At the time the company’s stock was trading 96% lower than all-time highs and was down 86% over the past year.

SunPower’s revenues reported last December reflected a 28% year-over-year decline, while operating expenses increased, and net income resulted in a loss of $123.9 million. The company said that after a short transition period, all project pipeline operations from pre-installation through system activation would be conducted by Blue Raven Solar and other installation partners and SunPower certified dealers.

Qcells residential solar financing arm closes its first asset backed securities totaling over $250 million

Ryan Kennedy — Tue, 21 May 2024 20:22:14 +0000

Qcells residential solar finance platform EnFin secured an asset backed securities transaction totaling $252.86 million.

Qcells, a leading residential solar panel provider in the U.S. market, announced its solar project financing platform, called EnFin, secured its first asset backed securities (ABS) transaction. The transaction totals $252.86 million and comprises bonds backed by thousands of consumer loans used to finance residential solar installations.

RBC Capital Markets acted as the sole structuring advisor and bookrunner, and Santander served as co-manager in the transaction.

“EnFin is the only financing platform in the market backed by a major manufacturer, and we benefit from Qcells’ trusted reputation for high-quality equipment and its significant investment to build a sustainable solar supply chain in the U.S.,” said Alex Kaplan, EnFin president and chief executive officer.

The ABS transaction adds to two revolving credit warehouse transactions totaling $500 million of committed capacity. The first warehouse was closed with RBC in April 2023 and the second with Santander in January 2024, each for $250 million.

EnFin is a wholly owned subsidiary of Qcells. It began pilot lending operations in the second half of 2022 and officially launched in January 2023. Since then, it has accumulated about 18,000 consumer loan contracts with an aggregate principal balance of more than $800 million.

Loans under the EnFin program are made through a partnership with Hatch Bank, which extends access to a national lending charter that has enabled EnFin to be active in 46 states and the District of Columbia.

Qcells’ unique investment in a solar finance platform opens new opportunities for customers. For example, homeowners can benefit from a 30-year performance warranty option on Qcells modules when financed through the platform.

“Providing competitive financing for solar and battery storage systems is part of Qcells’ long-term strategy to become a one-stop shop and offer a full suite of clean energy solutions to the market,” said Qcells.

In January 2024 EnFin launched a third-party ownership financing option, providing power purchase agreement and lease options to customers.

“It’s exciting to see Qcells grow in the residential solar financing space,” said Justin Lee, chief executive officer, Qcells. “This first ABS transaction truly reflects investor confidence and showcases EnFin as a unique value proposition.”

Plug Power’s $1.6 billion loan guarantee for clean hydrogen facilities

Anne Fischer — Fri, 17 May 2024 13:00:36 +0000

The Department of Energy's Loan Programs Office announced a conditional commitment for loan guarantee to help finance construction of up to six facilities across several U.S. states to produce clean hydrogen using Plug Power's own electrolyzer technology.

The U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) announced a conditional commitment to Plug Power’s subsidiary, Plug Power Energy Loan Borrower, for a loan guarantee of up to $1.66 billion to help finance the construction of up to six clean hydrogen facilities across several states.

Clean or “green” hydrogen differs from traditional “blue” hydrogen, by using renewable energy sources such as solar and wind rather than fossil fuel-based electricity.

Advancing clean hydrogen is a key component of the Biden-Harris Administration’s plan to build a robust clean energy economy. To advance clean hydrogen the administration created an inter-agency hydrogen task force to deploy a more holistic, “whole of government approach” to clean hydrogen across the administration.

Clean hydrogen has potential in industries that would otherwise be hard to decarbonize, including heavy-duty transportation. A year ago, the Biden-Harris Administration put out a National Clean Hydrogen Strategy and Roadmap, outlining opportunities for the U.S. to domestically produce 10 million metric tonnes (MMT) of clean hydrogen annually by the end of the decade, 20 MMT annually by 2040, and 50 MMT annually by 2050.

In October, the DOE announced funding of $7 billion to launch seven regional clean hydrogen hubs around the country, each aimed at more broadly supporting the commercial-scale deployment of the resource. The funding for the hubs comes from the 2021 Bipartisan Infrastructure Law. All seven hubs are estimated to produce a joint three million metric tons of hydrogen each year, and slash 25 million metric tons of carbon dioxide emissions every year.

This loan guarantee to Plug, if finalized, will support an estimated 100 to 300 jobs during the construction period when at full capacity, and at least 50 new full-time jobs for each location.

Plug has a development pipeline that includes the build-out of clean hydrogen facilities in several potential locations across the United States to supply its national customer base with end-to-end clean hydrogen at scale.

Plug’s hydrogen generation network reached significant milestones early in 2024. Its plants in Georgia and Tennessee produced at nameplate capacity, with a combined liquid hydrogen production capacity of 25 tons-per-day (TPD). Additionally, Plug’s Louisiana plant is expected to be completed and begin producing this year, adding 15 TPD and bringing the Company’s total liquid hydrogen production capacity to 40 TPD. If finalized, the loan funding will support an integrated and resilient commercial scale clean hydrogen fueling network across several regions of the United States.

The clean hydrogen facilities will use Plug’s own electrolyzer stacks that are manufactured at the company’s state-of-the-art gigafactory in Rochester, N.Y. Plug is among the leading commercial-scale manufacturers of electrolyzers in the United States and currently operates the largest Proton Exchange Membrane (PEM) electrolyzer system in the United States at its Georgia hydrogen plant.

Electrolyzers use electricity to split water into its component parts, hydrogen and oxygen. Plug’s PEM technology reportedly allows it to operate efficiently even with variable electricity, enabling it to leverage electricity from intermittent renewables. Electrolyzers that use renewables to power their hydrogen production produce emissions-free clean hydrogen. The electrolyzer stacks can be easily configured to produce systems at 1 MW, 5 MW and 10 MW scales.

The hydrogen fuel from the project is expected to power fuel cell-electric vehicles used in the material handling, transportation, and industrial sectors, resulting in an estimated 84% reduction in greenhouse gas emissions compared to conventional blue hydrogen production.

The benefits of harnessing hydrogen fuel cells in applications such as material handling equipment include enhanced operational efficiency, reduced environmental impact through zero-emission operations, and increased productivity due to faster refueling times compared to conventional batteries. Major corporations such as Amazon, Walmart, and Home Depot use Plug’s hydrogen fuel cells across their warehouse and distribution centers.

Plug is expected to develop and ultimately implement a strong Community Benefits Plan for each project and has committed to working with local communities for project siting, including soliciting input from local economic development corporations.

LPO works with all borrowers to create good-paying jobs with strong labor standards from construction through the life of the loan. Plug also supports the Justice40 Initiative, which set the goal that 40% of overall benefits of certain federal investments flow to disadvantaged communities overburdened by pollution.

While this conditional commitment indicates DOE’s intent to finance the project, the company must satisfy certain technical, legal, environmental, and financial conditions before the Department enters into definitive financing documents and funds the loan guarantee.

Catalyze secures $100 million to support 79 MW New York solar portfolio

Anne Fischer — Wed, 15 May 2024 19:12:52 +0000

The funding comes from NY Green Bank, which is requiring that a significant percentage of solar project subscribers benefit disadvantaged communities.

Catalyze, a national independent power producer that finances, builds, owns and operates solar and battery storage systems, announced that it secured $100 million in financing from NY Green Bank, a division of the New York State Energy Research and Development Authority (NYSERDA), to support a 79 MW portfolio of community distributed generation (CDG) solar projects across New York State.

“CDG is one of the most effective means of making solar energy more accessible to low-to-moderate income communities, and we look forward to how this partnership will support both the goals of NY Green Bank and New York State,” said Jared Haines, CEO of Catalyze.

NY Green Bank is the oldest green bank in the nation and supports the state’s green economy, which was written into law under the Climate Leadership and Community Protection Act. The Climate Act set the goal of economy-wide carbon neutrality by mandating an 85% reduction in greenhouse gas emissions by 2050 and a 100% clean electric grid by 2040. This includes a goal of installing 6 GW of distributed solar by 2025, on the path to 10 GW by 2030.

The NY Green Bank’s mission is to collaborate with the private sector to “transform financing markets in ways that accelerate clean energy investments, combat climate change, and equitably deliver both economic and environmental benefits to all New Yorkers.”

The transaction requires that a significant percentage of solar project subscribers benefit disadvantaged communities.

“As our first term loan using a sale-leaseback structure for a CDG portfolio, coupled with a minimum 65% subscriber commitment benefiting historically disadvantaged communities, this transaction underscores NY Green Bank’s unique ability to provide innovative financing solutions that support the equitable distribution of clean energy,” said Andrew Kessler, president of NY Green Bank.

Sunrise brief: Opposition stymies solar – sometimes

pv magazine — Tue, 14 May 2024 12:00:24 +0000

Also on the rise: Solar and wind powered boat’s final voyage across the sea. Active Surfaces raises $5.6 million to develop ‘solar 2.0’. And more.

Solar and wind powered boat’s final voyage across the sea The Energy Observer has one more stop in Saint-Pierre et Miquelon, a French territory just south of Newfoundland, before powering across the North Atlantic to retire.

Renew Home launches with virtual power plant solution Through the partnership of Google Nest Renew and OhmConnect, Renew Home, has a goal of expanding from 3 GW of electrical energy use to 50 GW by 2030.

Opposition stymies solar – sometimes Strong growth in U.S. solar installations might suggest that solar has strong support but developers cite public opposition as a major challenge.

Active Surfaces raises $5.6 million to develop ‘solar 2.0’ This MIT spinout is developing lightweight, flexible solar panels that can be integrated into virtually any surface and manufactured using a printed, roll-to-roll process.

Active Surfaces raises $5.6 million to develop ‘solar 2.0’

Anne Fischer — Mon, 13 May 2024 20:03:54 +0000

Active Surfaces is developing lightweight, flexible solar panels that can be integrated into virtually any surface and manufactured using a printed, roll-to-roll process.

Active Surfaces, a Massachusetts-based startup spun out of MIT, has raised $5.6 million in an oversubscribed pre-seed funding round led by Safar Partners, a deep tech venture capital fund.

Active Surfaces is developing lightweight, flexible solar panels that can be integrated into virtually any surface. The solar is manufactured using a printed, roll-to-roll process. Co-founder and CTO, Richard Swartwout, said that this funding will enable the company to expand R&D efforts, scale up production, and bring its “cutting-edge solar solutions to market more rapidly”.

The funding round was led by the deep tech venture capital fund Safar Partners. Additional participants include QVT, Lendlease, Type One Ventures, Umami Capital, Sabanci Climate Ventures, New Climate Ventures, SeaX Ventures, and others—reflect a diverse support base ranging from institutional VCs to corporate backers.

“Active Surfaces is pioneering a transformation in the built environment,” said Tommaso Boralevi, Technology & Innovation Director Europe at the Milan Innovation District (MIND) established by Lendlease, a global construction, development, and investment company. “At Lendlease, we are committed to advancing sustainable urbanization, and our investment in Active Surfaces represents a significant step towards integrating novel capabilities directly into the fabric of future developments.”

The company was also awarded $100,000 as part of last year’s MIT $100K Entrepreneurship competition. It had previously won $75,000 from Massachusetts Clean Energy Center’s (MassCEC) Catalyst, Diversity in Cleantech – Early Stage (DICES), and InnovateMass programs that support clean energy and climatetech innovators in Massachusetts.

Active Surfaces Founders Shiv Bhakta (L) and Richard Swartwout (R)

Image: Active Surfaces

Swartwout describes the flexible, thin film solar as a “solar 2.0” technology. Solar 1.0 technology is seen in the large, rigid and heavy solar panels commonly installed today. Active Surfaces expects its solar 2.0 thin-film solar to deliver dramatically higher efficiency, lower costs and greater versatility.

The company plans to scale its laboratory-fabricated 4-by-4-inch photovoltaic devices by advancing industrial roll-to-roll semiconductor printing technologies.

The process originally began in the MIT.nano clean room, where a team of researchers coated the solar cell structure using a slot-die coater. This deposited layers of electronic materials onto a 3-micron thick substrate. Then an electrode is screen printed onto the structure. The module, which is then about 15 microns thick, can be peeled off the substrate.

The choice of substrate was critical as it had to be lightweight and flexible, yet strong. What they found was a composite fabric known as Dyneema, made of extremely strong fibers. A UV-curable is added in a thin layer, which adheres the solar modules to the fabric to form what is described an an ultra-light and mechanically robust solar structure.

By adding a layer of UV-curable glue, which is only a few microns thick, they adhere the solar modules to sheets of this fabric. This forms an ultra-light and mechanically robust solar structure.

Sunnova earnings dip, unrestricted cash grows as it mends balance sheet

Ryan Kennedy — Fri, 03 May 2024 18:42:06 +0000

Sunnova Energy International, a residential solar, storage, and adaptive services company, announced declining revenues and an increased focus on cash generation in its Q1 2024 earnings report.

Sunnova Energy International, a provider of solar, energy storage, and home energy adaptive services, announced its Q1 2024 earnings, noting a continued decline in revenues amid a challenging U.S. macroeconomic environment for the residential solar industry.

Revenues fell short of consensus estimates, with $160.9 million reported versus an expected $193.5 million. On an earnings per share basis, the company exceeded expectations, delivering a loss of $0.17 versus an expected loss of $0.66 per share.

Investors have been flagging concerns about the company’s ability to generate enough cash, which has come under focus for Sunnova’s management. Along with continued reductions operational costs, the company pulled on levers to secure unrestricted cash, which increased by $18.9 million in the first quarter compared to the prior quarter. The company now has about $232 million in unrestricted cash.

“Our team is squarely focused on increasing our cash generation and maintaining our margins. Through continued cost efficiencies, maximizing our asset-level financing, further utilizing investment tax credit adders, and re-focusing on our core adaptive energy customers, we expect to be able to drive improved performance,” said William J. (John) Berger, Sunnova’s founder and chief executive officer.

The residential and commercial solar industry has faced struggles over the past year as a high interest rate environment has squeezed financing, making the return on investment for homeowners less attractive. However, steadily rising utility rates and consumer desire for extra services like battery backup continue to drive demand.

The high interest-rate environment has pushed the industry away from a finance and loan based market to one more focused on leases and power purchase agreements. This is expected to be a benefit to Sunnova, which has a strong position in the lease and third-party-owned solar and storage sector.

“Our core value thesis remains strong and intact, and homeowners and businesses continue to see the benefits of becoming Sunnova customers in the face of rising utility rates and grid instability,” said Berger.

The company added about 27,000 new customers in-quarter, bringing its total count to over 438,000. Sunnova operates in 51 states and territories and has a network of over 2,000 dealers, subcontractors and builders in its network. The company has lowered its guidance for customer additions for the full year 2024, decreasing from a range of 140,000 to 150,000 customers from previous estimates of 185,000 to 190,000. The guidance would represent about 35% year-over-year growth in Sunnova’s customer base.

The company’s operating expenses increased by $29.9 million to $108.3 million year-over-year for the quarter. The company incurred net losses of $90.1 million, posting lower net losses than the $110.3 million posted in Q1, 2023.

In-quarter, the company entered a strategic alliance with The Home Depot to be the exclusive solar provider for the retail giant. Over 2,000 locations will host Sunnova representatives helping Home Depot customers make an inquiry into residential solar, energy storage, and home energy management services for their residence.

In September 2023, Sunnova secured a $3 billion partial loan guarantee agreement with the U.S. Department of Energy (DOE) Loan Programs Office (LPO), equating to a 90% guarantee of up to $3.3 billion of term loans. The funds will support loans originated by Sunnova under its new “Project Hestia.”

Project Hestia is designed to increase access to solar and virtual power plant (VPP) services for disadvantaged communities who otherwise may not be able to secure loans for residential solar projects. The company will receive indirect and partially guaranteed cash flows for the loans associated with these customer accounts.

Stem dips on Q1 earnings, announces new solar and storage asset software

Ryan Kennedy — Fri, 03 May 2024 16:48:21 +0000

Stem Inc, an AI-driven software provider for clean energy solutions, posted a 62% slide in revenues year-over-year while net losses grew.

Stem Inc. announced its Q1, 2024 earnings, showing a decline in revenues and increasing losses. The AI-driven software provider for clean energy asset operations saw its stock price dip over 20% in the trading session the day after earnings were reported.

Revenues for Q1 were $25.5 million, down 62% year-over-year from the first quarter of 2023. The company said the lowered revenues reflect a $33 million reduction due to an updated valuation of certain contract guarantees and hardware revenue recorded in 2022 and 2023. The revenue dip was a shock to Wall Street, coming in nearly 60% lower than consensus expectations.

The company posted net losses of $72.3 million. It ended Q1 2024 reporting $112.8 million in cash, cash equivalents, and short-term investments. The company also improved its operating cash flow from $(35.8) million in Q1 2023 to $(0.6) million in Q1 2024. Gross margin climbed to 24%, up from 19% a year before.

“The first quarter represented Stem’s continuing efforts to maximize cash flow generation in 2024 through cost control and converting receivables to cash,” said John Carrington, chief executive officer, Stem. “During the quarter, we also canceled certain less profitable contracts in both our hardware and software backlog to focus on higher-margin opportunities.”

Carrington said the company “remains confident” in Stem’s ability to generate more than $50 million in operating cash flow for the full year 2024.

“As we expected with our expansion into large-scale front-of-the-meter (FTM) storage projects, our bookings have become increasingly variable on a quarterly basis,” said Carrington. “We reiterate our full-year $1.5 to $2.0 billion bookings target for 2024, based on contracts that are in advanced stages of negotiation or are expected to close in the near-term.”

Stem maintained its guidance for positive adjusted EBITDA and operating cash flow for the full-year 2024, and said it expects meaningful year-over-year growth in its software services revenue.

Software suite

Stem announced it has released a new software suite for asset performance management called PowerTrack. The company said the software enables owners, operators and asset managers to streamline management of storage, solar, and hybrid energy asset portfolios.

The software suite includes configurable, persona-based dashboards and workflows. Users can track information from portfolio-level technical and commercial performance to site-level and granular device-level data.

“Built on the dual foundation of Stem’s solar asset monitoring software and the Athena platform, PowerTrack APM revolutionizes how technical asset managers, commercial asset managers, and operations managers collaborate around a unified set of metrics and streamlined processes,” said Carrington.

Asset management of Energy Storage Systems (ESS) is a game changer that makes the tools, processes, and strategies used with other asset classes obsolete,” said Cedric Brehaut, senior vice president of product at Stem.

Technical and commercial performance are linked by a complex web of revenue streams, technologies, contracts, and warranty constraints. Stem said its software suite is designed to navigate these factors.

“PowerTrack APM helps owners and operators of storage, solar, and hybrid assets understand the commercial impact of technical decisions and the technical impact of commercial strategies, so they can more effectively and efficiently manage risk and drive returns,” said Brehaut.

The suite offers monitoring, commercial performance tracking, energy storage system warranty management and verification, automated operations center processes, commercial impact measurements from technical events, and more.

First Solar beats revenue expectations in Q1 earnings, policy tailwinds emerge

Ryan Kennedy — Thu, 02 May 2024 20:32:53 +0000

The U.S.-headquartered solar panel manufacturer delivered revenues of $794 million, beating consensus estimates by about 10%.

First Solar (Nasdaq: FSLR) reported its earnings for the first quarter ended March 31, 2024, exceeding Wall Street consensus expectations on both revenue and earnings per share. The major manufacturer of thin-film cadmium telluride solar panels largely maintained its full-year 2024 guidance outlook for earnings.

In Q1, 2024, the company delivered revenues of $794.11 million, beating Wall Street consensus estimates by about 10%. It also delivered an 8.68% surprise over earnings per share estimates, landing at $2.20 for the quarter.

First Solar also reiterated its guidance for the full year 2024, expecting $4.4 billion to $4.6 billion in net sales, $2 billion to $2.1 billion in gross margin, and about 15.6 GW to 16.3 GW of volume sold. The company lowered its net cash balance expectations by about $300 million to a range of $600 million to $900 million, and expected capital expenditures increased by $100 million to a range of $1.8 billion to $2.0 billion for the year.

“We are pleased with our start to 2024, with good operating performance, selective bookings with a year-to-date ASP (average selling price) over 31 cents per watt excluding adjusters, and solid financial results,” said Mark Widmar, chief executive officer of First Solar. “Our differentiated technology and balanced business model are enabling us to drive growth, navigate industry volatility and deliver enduring shareholder value.”

Year-to-date bookings for First Solar totaled 2.7 GW, and the company has an expected sales backlog of over 78.3 GW. For context, the entire United States cumulatively to-date has installed roughly 180 GW of solar capacity.

First Solar has multiple tailwinds supporting its growth, including a new antidumping and countervailing duty investigation that is putting pressure on its major competitors that import solar modules. Philip Shen, managing director, Roth Capital Partners said in an industry note that major crystalline silicon Tier 1 suppliers of solar panels have increased their pricing at about $0.05 per watt for AD/CVD tariffs and an additional $0.02 per watt for the removal of tariff exemptions for bifacial module. These conditions leave room for First Solar to increase its average sales price, further boosting margins.

Roth said along with AD/CVD, policy tailwinds such as a Marco Rubio sponsored bill to exempt businesses headquartered in foreign nations from Inflation Reduction Act incentives, the Uyghur Forced Labor Prevention Act (UFLPA), guidance related to foreign entity of concern (FEOC) and manufacturing, the No Gotion Act, and others are all expected to push First Solar’s performance higher.

First Solar’s stock is trading relatively flat in the trading session following earnings, rising about 1.5% at the time of publication.

The company reported in the year’s end 2023 earnings report that it plans to double its manufacturing capacity by 2026, suggesting a powerful growth ramp ahead.

New green bank to support distributed solar and storage in the Appalachian region

William Driscoll — Mon, 29 Apr 2024 13:15:42 +0000

The Green Bank for Rural America will support community lenders in Appalachian communities to finance climate-supporting projects including distributed solar and storage. The bank and four others received a total of $6 billion in federal awards.

The Green Bank for Rural America has won a $500 million federal award to advance clean energy technology projects in the 13-state Appalachian region and in “energy communities” with a connection to the coal industry.

The green bank expects to leverage private capital to finance $2.25 billion in 2,750 clean energy projects, including distributed solar and storage projects. Other eligible project types under the federal award program are new or renovated buildings with low carbon emissions, and projects supporting zero-emission transportation.

The U.S. Environmental Protection Agency (EPA) made a total of $6 billion in awards to five green banks through the Clean Communities Investment Accelerator, all of which “will flow to low-income and disadvantaged communities,” said a White House press release.

Each of the five green banks receiving the awards will allocate the funds to community lenders, primarily to make loans to projects. A small portion of funds will be used to provide technical assistance to those lenders. The Green Bank for Rural America will provide technical assistance on topics including structuring contracts with local utilities for the sale of solar or wind power.

The Green Bank for Rural America expects to provide capitalization funding to about 100 participating community lenders and investors serving rural areas, with most funding provided in commitments of $10 million or less, and a few commitments ranging up to $50 million. The bank, established by Appalachian Community Capital, will be structured to be a self-sustaining entity.

The support to community lenders will not only finance near-term deployment of climate and clean energy projects, the White House said, but also build the lenders’ capacity to “finance projects at scale for years to come.”

Nationwide, public and private investments in projects supported by green banks reached about $10 billion last year, according to the Coalition for Green Capital.

The five green banks selected through EPA’s competitive application process, most of which have one to five decades of experience, are:

Opportunity Finance Network ($2.29 billion award), which provides capital and capacity building for a national network of 400+ community lenders in all 50 states and several U.S. territories.
Inclusiv ($1.87 billion award), which provides capital and capacity building for a national network of 900+ credit unions.
Justice Climate Fund ($940 million award), a purpose-built nonprofit with a national network of more than 1,200 community lenders, supported by ImpactAssets, a nonprofit with $3 billion under management.
Appalachian Community Capital ($500 million award), which launched the Green Bank for Rural America to deliver clean capital and capacity building assistance to hundreds of community lenders working in coal, energy, underserved rural, and Tribal communities.
Native CDFI Network ($400 million award), a nonprofit that serves the 60+ U.S. Treasury-certified Native community lenders, which have a presence in 27 states across rural reservation communities as well as urban communities.

Minnesota sues GoodLeap, Sunlight, Mosaic and Dividend over dealer fees

John Fitzgerald Weaver — Fri, 26 Apr 2024 15:59:50 +0000

The Attorney General claims these companies misled consumers about residential solar pricing, concealing inflated fees behind the federal tax credit and long-term contracts with low interest rates.

The Attorney General (AG) of Minnesota is taking legal action against GoodLeap, Sunlight Financial, Solar Mosaic and Dividend Solar Finance for allegedly inflating the cost of residential solar projects during financing. These finance companies are accused of selling over $200 million worth of residential solar projects from 2017 through 2023, inflating them by approximately $35 million by concealing fees within the financing agreements.

The state is seeking an injunction to halt these practices, along with the proper finance charge disclosures, refunds to affected consumers, and the payment of civil penalties.

Sunlight Financial filed for bankruptcy last year after continuing to offer low-interest rate loans despite rising interest rates.

The complaint summarizes the allegations: “Defendants deceive consumers by charging a hidden and costly upfront fee that they add into the stated price of each financed system while falsely telling consumers that the inflated price only reflects the system’s cost rather than financing.”

Key allegations include:

Concealment of the upfront fee from consumers.
Omission of the fee in sales proposals and finance cost disclosures.
Prohibition of Minnesota solar companies from identifying and explaining the fee in their marketing and when offering alternative payment options. Finance companies are also alleged to have pressured solar companies to raise their cash prices to align with their financed prices.

The key aspect of the sales included very low interest rates combined with incentives based on the project price, making loan payments competitive with electricity rates. The instant loan approval, zero cash down, and minimal paperwork requirements allowed residential contractors to quickly facilitate high sales volumes.

Some have compared the streamlined loan process to the ‘no doc’ mortgages of the 2000s subprime housing crisis.

For some customers who did not scrutinize the fine print, the expected electricity savings were negated. The inflated loan amounts meant homeowners received higher tax credits, which needed to be applied to their bills. For those who did not follow through, or were ineligible for the full tax credit, the loan payments increased significantly. This happened after 18 months when the loan re-amortized at a higher amount that included the tax credit.

The upfront dealer fees varied between 10% and 30%, with some as high as 36% of the project, according to the AG. Over 5,000 individual systems were financed by the four companies during the period under review.

However, the four companies being sued did not make the loans; instead, they provided their financial tools to various local sales and installation companies. Notable among these were “All Energy Solar (2,311 sales financed by Defendants), Everlight Solar (1,742 sales financed by Defendants), Avolta Power (493 sales financed by Defendants), and Sun Badger Solar (307 sales financed by Defendants).”

The filing from the AG detailed the volume of loans made by each defendant:

From 2018 through 2023, GoodLeap made at least $33,045,208.68 in loans to 853 Minnesota consumers. GoodLeap’s average fee is 19.32% of each loan. The average amount charged to consumers and added to their loan balance is $7,552.19. GoodLeap has charged at least $6,442,014.47 in fees on Minnesota consumers between 2017 and 2023.
From 2017 through 2023, Sunlight Financial made at least $75,077,388.11 in loans to 2,162 Minnesota consumers. Sunlight Financial’s average upfront fee is 21.4% of each Minnesota consumer’s loan amount. The average amount charged to Minnesota consumers and added to their balance is $6,285.79. Sunlight Financial has charged a total of at least $13,589,869.31 in upfront fees to Minnesota consumers between 2017 and 2023.
From 2019 through 2023, Solar Mosaic made at least $85,477,542.01 in loans to 2,147 Minnesota consumers. Solar Mosaic’s average upfront fee is 17.6% of each consumer’s loan amount. The average amount charged to consumers and added to their loan balance is $5,842.59. Solar Mosaic has charged a total of at least $12,666,727.44 in upfront fees to Minnesota consumers between 2017 and 2023.
Through 2023, Dividend made at least $14,104,831 in loans to 257 Minnesota consumers. The average amount of Dividend’s upfront fee is 18.8% of each borrower’s loan amount (including a small number of loans with 0% fees). The average amount charged to borrowers and added to their loan balance is $9,041.69. Dividend has charged a total of at least $2,323,714.32 in upfront fees to Minnesota consumers.

The market’s finance dynamics have shifted significantly due to these loans. Following prolonged low interest rates after the Great Recession in 2008, these companies expanded their market share against cash and third-party ownership in the United States.

According to Zoë Gaston, Principal Analyst of U.S. Distributed Solar at Wood Mackenzie Renewables & Power, the loan segment, after peaking in 2022 at nearly 70%, market share fell by 6% in 2023 and is expected to decline further in 2024. Gaston noted that, “the segment will start to recover in 2025 but will not gain market share until 2027, when it starts growing faster than the overall residential solar market.”

Wood Mackenzie forecasts that third-party ownership will fill the gap left by long-term loan products, achieving a 41% market share by 2026.

Sunrise brief: Maxeon sues REC, Hanwha Qcells for alleged TOPCon patent infringement

pv magazine — Wed, 24 Apr 2024 12:57:48 +0000

Also on the rise: Anker home energy storage system now available in North America. Nextracker cuts solar tracker carbon by 35% with recycled steel and electric furnaces. And more.

Green Bank network’s total investment could reach $10B for 2023 Preliminary reports from the Coalition for Green Capital say investment in clean energy projects and technologies increased 52% over 2022.

Johnson Controls releases new residential heat pump series The new heat pumps use R-454B as a refrigerant and are specifically designed to be matched with Johnson Controls’ residential gas furnaces.

Anker home energy storage system now available in North America The new X1 can operate inside or out, from -4 F to 131 F, delivering what Anker says is 100% power output without derating. It also has a NEM 3.0 mode, which enables battery storage and grid sell-back in states under NEM 3.0 jurisdiction.

Nextracker cuts solar tracker carbon by 35% with recycled steel and electric furnaces The utility-scale solar mounting solution’s low carbon option places an emphasis on reducing carbon-intensive materials and improving logistics.

Australian battery materials company plans U.S. manufacturing plant Sicona has confirmed it will develop its first commercial manufacturing facility in the United States as part of its ambition to become the biggest producer of silicon-carbon battery materials in the world.

Maxeon sues REC, Hanwha Qcells for alleged TOPCon patent infringement Maxeon has filed two different lawsuits in the United States against Hanwha Qcells and REC over claims that the two manufacturers used an unspecified tunnel oxide passivated contact (TOPCon) solar cell technology.

Congress urged to reform clean energy bottlenecks before 2024 election Reforms to siting, permitting, and transmission were requested by a coalition of about 200 solar and energy storage companies.

Green Bank network’s total investment could reach $10B for 2023

Michael Puttré — Tue, 23 Apr 2024 12:45:31 +0000

Preliminary reports from the Coalition for Green Capital say investment in clean energy projects and technologies increased 52% over 2022.

The Coalition for Green Capital (CGC), a non-profit group focused on generating financing for climate technologies and clean energy projects, says public and private investments in its network increased over 50% in 2023 to $7 billion compared to $4.6 billion in 2022. The preliminary figures will be amended in the 501(c)(3) organization’s forthcoming annual report.

The CGC does business as the American Green Bank Consortium (AGBC), which consists of over 40 green banks and financing entities.

According to the preliminary reporting, which represents data from about half of the AGBC network accounting to date, $2.5 billion of the 2023 investments were from the members’ own capital, while $4.5 billion came from private capital they attracted. Reed Hundt, CGC’s founder chief executive officer, said in a statement that he expects total investment will reach $10 billion for last year when all data are reported.

Cumulatively, the organization says it has helped attract $21 billion in investment since 2011. It was founded in 2009 with a mission to address climate change by attracting investment in clean power and related technologies.

Rather than directing the financing to individual projects, the CGC works to promote so-called green banks in individual states, which in turn work to attract investors in projects and technologies. For example, the affiliated CGB Green Liberty Notes LLC, a subsidiary of the Connecticut Green Bank, recently announced a new offering in its crowdfunding campaign to attract investments that has enabled small businesses to take out $100 million Small Business Energy Advantage loans.

Such loans are part of a Connecticut program to encourage small businesses to modernize their facilities to improve energy efficiency and use of green energy. For example, the U.S. Environmental Protection Agency announced selectees that will receive $7 billion in grant awards through the Solar for All program to develop solar projects for those who might not be able to buy PV installations themselves. The role of the green bank in this case is to alert financial institutions that the government program exists and that a reliable entity is on hand to assure that investment.

Bryan Garcia, CEO of the Connecticut Green Bank and also chair of the CGC, told pv magazine USA that green banks are essential for pairing funded government clean-energy programs with public and private lenders that might otherwise be wary of the risk.

“The impetus is really around enabling ambitious public policies like, for example, a zero-emission renewable energy credit for commercial solar, to be affordable and accessible to everyone, even renters,” Gacia said. “How do you make the benefits of clean energy technologies affordable and accessible to everyone?”

Risk, as it turns out, is the operative word. Burt Hunter, chief investment officer of the Connecticut Green Bank, told pv magazine USA that organizations like green banks bridge the gap between government opportunities and private investment. If private lenders might balk at the apparent risks of backing clean energy projects, especially for underserved communities, green banks exist to reduce the risk.

“I think what we’ve discovered is that the reason things work so well in Connecticut is we have the right policies to provide the framework that encourages investment in clean energy,” Hunter said. “Investors are pretty straightforward. They just want to know that they’ll be able to get returns, and they also want to know that the rules won’t be changed too much to the detriment of the money that they’ve put out the door. So, it’s not a lot to ask.”

If green banks work to fulfill state policies with regard to clean energy development, might the concept work at the national level? Garcia says the CGC, which he describes as a “chamber of commerce” for state-level green banks, would support a national version of the institution.

The organization says it is seeking a total of $11.9 billion through the U.S. Environmental Protection Agency’s Greenhouse Gas Reduction Fund programs to establish a national green bank. The non-profit is currently active in 40 states. With a national reach, the CGC says it could expect to attract $35 billion in cumulative private-public investing in the first year of inception.

High interest rates are challenging the global transition to renewable energy

Ryan Kennedy — Mon, 22 Apr 2024 18:13:14 +0000

A report from Wood Mackenzie examines how the global shift to heightened interest rates to combat inflation is squeezing the energy transition.

After a period of historically low interest rates from 2009 to 2022, central banks have sharply raised interest rates to fight inflation. The increase of cost of capital has “profound implications” for the energy and natural resource industries, said a report from Wood Mackenzie.

A transition to a net-zero economy could require $75 trillion of investment globally by 2050, said the report. The cost and pace to transition to low-carbon technologies is challenged by the higher cost of capital.

Wood Mackenzie said the economy has departed from the post-Great Recession “zero era” rates and likely will remain that way for “the next couple of decades.”

A “higher for longer” sentiment for interest rates has been echoed by Federal Reserve members in recent months. Globally, structural inflationary trends like global trade reshuffling, deglobalization, and an emphasis on nearshoring industry and employment over raw macroeconomics may keep rates elevated for a while.

Image: Wood Mackenzie

“Highly capital intensive and often reliant on subsidies, low-carbon energy and nascent green technologies are most exposed [to high rates],” said the report. “Debt accounts for a higher share of the capital structure for low-carbon energy sectors.”

Wood Mackenzie said that the oil and gas industry, while also highly capital-intensive, has far less exposure to the cost of debt and is therefore less affected by the higher rate environment. Gearing, or the ratio of debt to equity, is typically higher with renewables and nuclear energy development than in mining, oils, and gas.

“Debt from bonds and project finance, secured against long-term power purchasing agreements, has been used to fund rapid growth in renewables,” said Wood Mackenzie. “While power and renewables companies have higher gearing, they do compare favorably with other peer groups on a cost-of-debt basis.”

Renewable investments have greater price certainty than their oil and gas counterparts, making them a less risky investment and enabling lower borrowing costs. Plus, the levelized cost of electricity (LCOE) for new-build solar is now 29% lower than any fossil fuel alternative, reported Ernst and Young. With solar module prices continuing to plummet to record lows, this lower-cost and predictable electricity source may serve as a powerful long-term combatant to inflationary pressures.

Interest rates have squeezed this LCOE advantage, said Wood Mackenzie. In its analysis, interest rates increasing by 2 percentage points lead to an LCOE increase of 20% for renewables, and 11% for a combined-cycle gas turbine plant. Despite this, Wood Mackenzie said renewables hold an advantage in LCOE, even without any subsidies attached.

Image: Wood Mackenzie

While it is difficult to place a dollar value on the cost of damages from climate change and what a transition to net-zero emissions would do to mitigate damage, a report from the Potsdam Institute in Berlin assessed annual climate-related costs at $38 trillion per year by 2050. In the face of these costs, the $75 trillion global price tag for transitioning the global economy to net-zero emissions looks more palatable.

While the oil and gas industry is less affected by the higher interest rates, and oil giants have lowered their debt significantly from 2020 through 2023, Wood Mackenzie said the availability of finance may pose problems for the fossil fuel industry. Environmental, social, and governance concerns are contributing to an ever-shrinking list of lenders, it said.

Wood Mackenzie said governments should continue to subsidize the energy transition to encourage investment, despite rising debts and debt servicing costs. It recommends a strategy that focuses on efficient, non-discriminatory subsidization, a bolstering of global carbon markets, and mobilization of climate finance.

“Policymakers need to act to offset the interest-rate headwinds. Removing obstacles such as slow permitting and project approval and offering clear, consistent and sustained incentives will support nascent low-carbon technologies,” said Wood Makenzie. “Strengthening global carbon markets, maximizing subsidy efficiency and mobilizing green finance are also essential. A higher interest-rate environment might be what it takes to get policymakers to spring into action.”

Earth Day celebrated with $7 billion solar funding announcement

Anne Fischer — Mon, 22 Apr 2024 17:28:43 +0000

The Solar for All funding will bring clean solar energy to low-income and disadvantaged communities in every U.S. state and territory.

This Earth Day, President Joe Biden announced 60 recipients of funding from the Solar for All program. Solar for All is a funding opportunity announced by the Environmental Protection Agency (EPA) in June 2023 that has a goal of bringing solar energy to low-income households.

The recipients were chosen based on their proposals to develop programs designed to serve communities facing barriers to distributed solar deployment, with 100% of funding supporting low-income and disadvantaged communities in all 50 states the District of Columbia, Puerto Rico and territories.

“Today’s announcement from the EPA Solar for All grant competition can unlock multiples of private capital to complement the $7 billion in federal awards that will serve millions of low-income Americans,” said Jeff Cramer, CEO of the Coalition for Community Solar Access. “Community solar is a critical tool in the broader toolbox of distributed solar options for American households and can offer the vast majority of low-income households unable to put solar on their roofs the opportunity to save money on their electric bills while reducing GHG emissions.”

Tribal communities will receive more than $500 million, or over 7% of the funding. One of those recipients is the Northern Plains Tribal coalition, a group of 14 tribes that will receive $135.6 million deploy solar energy projects to low-income residents who have historically been dependent on costly fossil fuels. Indigenized Energy will manage the solar projects, ensuring that they are Native led.

“EPA’s Solar for All announcement is a monumental achievement in advancing a more equitable and just energy future, but it’s still just the beginning,” said Andie Wyatt, managing policy director and counsel for Grid Alternatives, a lead applicant on a multi-state and a Tribal program selected to receive awards. “As awardees roll out their programs throughout the country, the real value of the Solar for All investment will be realized through transformative benefits for households and communities.”

The projects funded by the program are expected to provide over 4 GW of solar to 900,000 households. This will more than double the amount of solar serving low-income and disadvantaged communities as of the end of 2023. The funding will serve residential and residential-serving community solar projects that will cumulatively reduce or avoid greenhouse gas emissions by the equivalent of over 30 million metric tons of CO2.

The DOE estimates that the average low-income household benefiting from this program will save around $400 a year on their electric bills; collectively that’s over $350 million in annual household savings from all 60 selected applicants, totaling over $8 billion in cumulative savings for over a standard solar project 25-year asset life.

In addition, the funding will bring resilience to communities and especially to the 78% of selected applicants that plan combine energy storage with solar.

One of the prerequisites of the funding was for applicants to develop workforce development plans that includes the commitment to create good-paying, high-quality jobs and to work with a number of local, regional, and national labor unions. The DOE estimates that as a result, hundreds of thousands of jobs will be created across the country over the next five years.

“Harnessing the power of local solar energy is crucial as we transition away from fossil fuels,” said Xavier Boatright, Sierra Club’s Deputy Legislative Director. “There is no time to waste, and we are grateful for the broad coalition that has spearheaded efforts to advance this necessary funding. These grants will help communities advance the future-focused solutions our earth desperately needs.”

EPA will host a public webinar for the Solar for All program, on Monday, April 29, 2024, 4 p.m. – 4:30 p.m. ET. Register here.

Arcadia raises $50 million to bring AI to community solar

Anne Fischer — Tue, 16 Apr 2024 13:35:47 +0000

The company reports that it manages the nation’s largest community solar portfolio with more than 2 GW of solar under management.

Arcadia Power, a global utility data and community solar platform, announced the recent close of a $50 million round of funding. The company will use the new funding to support growth of its community solar program along with leveraging artificial intelligence to delve into its energy data.

“With this funding, Arcadia can continue to meet growing demand from our 300+ enterprise customers and 75+ community solar developer partners, all of whom are accelerating deployment and ad ding new solutions like battery storage, heat pumps and EV charging to their portfolios,” said Kiran Bhatraju, founder and CEO of Arcadia.

The company recently released the State of Community Solar, a report that highlights the anticipated growth in an industry designed to serve all. The report notes that challenges to the growth of community solar include high interest rates, increased local opposition to projects, interconnection delays, workforce issues, unfriendly regulatory environments and ongoing tariff issues between the United States and its trading partners, according to the report. It points out important activity happening at the state level, including New Mexico, which adopted its first program, Maryland and New Jersey made pilot programs permanent.

The latest round of funding includes a fund managed by Macquarie Asset Management as a new equity investor, alongside existing investors Energy Impact Partners, J.P. Morgan Asset Management, BoxGroup, G2 Venture Partners, Camber Creek, Triangle Peak Partners, and Broadscale Group.

The company said it also raised a new $30 million credit facility with J.P. Morgan.

Arcadia was founded in 2014 and two years later launched what it said at the time was the first nationwide community solar program. It ran on Arcadia’s proprietary software platform that was integrated with over 100 utility billing systems nationwide. A customer could sign up for a share of any of Arcadia’s community solar installations across the country.

In 2018 the company raised $25 million to expand its community solar program, and at the same time announced that is had secured over 120 MW of solar power for its community solar programs. This funding followed a $6 million investment in 2017 that was led by G2VP, with participation from ValueAct Spring Fund, McKnight Foundation, Energy Impact Partners, Cendana Capital, Wonder Ventures, BoxGroup, and existing investors.

Arcadia reports that it manages the nation’s largest community solar portfolio with more than 2 GW of solar under management.

Community solar provider secures over half-billion-dollar investment

Ryan Kennedy — Wed, 10 Apr 2024 18:13:55 +0000

Nexamp secured a $520 million capital raise. It serves nearly 80,000 customers nationally and has a $2 billion investment strategy in Illinois.

Community solar provider Nexamp announced it has secured a $520 million capital raise led by Manulife Investment Management, with participation from existing investors Diamond Generating Corporation and Generate Capital.

The half-billion-dollar deal is expected to help the company expedite deployment of its national community solar project pipeline and expand on developer partnerships in new and existing markets.

Community solar is a fast-growing segment in the United States, expanding access to solar to customers that may not have a suitable roof or finances for rooftop residential solar. It is typically a subscription-based service under which a customer subscribes to a portion of an off-site solar array and receives credits on their electricity bill for the power generated by the solar asset.

Smaller than their utility-scale counterparts, community solar projects often opt for development on capped landfills, brownfield sites, highway rights-of-way, and other developed lands. This more distributed design for solar projects can help alleviate grid bottlenecks, reduce land development, and lower high-power transmission costs when compared to a centralized utility-scale design.

“This unprecedented investment reflects swelling confidence in the ability of independent renewable energy providers to reimagine outmoded infrastructure and reshape our grid,” said Zaid Ashai, chief executive officer, Nexamp.

Nexamp’s growth has been supercharged in recent years due in part to the Inflation Reduction Act, which has significant carve-outs for projects that serve low-income customers, are sited on brownfields and more. The company announced a second national headquarters in Chicago and it has stated a plan for more than $2 billion in investments in energy infrastructure in Illinois, which has among the nation’s most robust community solar markets.

Currently Nexamp serves nearly 80,000 customers with over 1.5 GW of projects either operational or in construction. The company has several gigawatts of projects in its pipeline in over 20 markets and the “combined potential to serve over one million customers in the coming years.”

In August 2023, Nexamp made the largest procurement order in U.S. history for the community solar sector by agreeing to purchase 1.5 GW of solar modules from Heliene. The modules are produced in North America, with Heliene operating factories in Ontario, Canada, Florida, and Minnesota.

“The infrastructure transition relies on the rapid deployment of proven technology solutions,” said investor Scott Jacobs, chief executive officer and co-founder Generate Capital. “Nexamp has been at the forefront of a distributed energy revolution in the United States, and we’re thrilled to expand our partnership.”

Sister Margaret seeking solar, a GoFundMe opportunity

John Fitzgerald Weaver — Wed, 10 Apr 2024 17:14:02 +0000

Fundraising opportunity will support a 1.2 kWdc solar power project that will offset 100% of the electricity for home for retired nuns on El Salvador.

In the fall of 2023, Sister Margaret, a retired nun from the Mission of Chalatenango in El Salvador, reached out to pv magazine USA seeking support in saving electricity costs by installing a small solar power system. The Sister resides in a convent in Santa Ana with nine other sisters who can no longer physically work, but continue their service through their prayer life.

Sister Margaret found a local contractor, Grupo Solaire, which quoted the convent on a small project that would cover 73% of the site’s electricity demand. The original system’s cost is approximately $1,582 plus a utility connection fee of $650.

pv magazine USA launched a GoFundMe for the solar power project, and as of April 10th has raised $2,160 from a collection of wonderful people. The customer asked for the contractor to find a solar module combination that can cover 100% of their electricity demand, without going over the local utility rules that limit too much solar generation.

In total, we’re seeking to raise $2,912 for a 1.275 kWdc system along with the grid connection fee. The $2,160 meets 74% of the goal.

Please considering donating.

Going forward, the Pastoral Center is also looking for solar power to help save on bills, however, they’re not yet ready. The center had been limited in use, and thus had very minimal electricity bills, and didn’t meet the minimum requirements to request a solar power project based on their prior twelve months of electricity usage. They do believe that sometime in the next six months they’ll have enough of a bill history to apply for a second solar power system.

Sunrise brief: California pivots to propose $24 average fixed fee to electric bills

pv magazine — Mon, 01 Apr 2024 12:06:44 +0000

Also on the rise: Solar module prices remain steady amid unchanged market fundamentals. U.S. solar industry week in review. And more.

California pivots to propose $24 average fixed fee to electric bills The Public Utilities Commission said the new billing structure will include a reduction of electricity rates by 5 to 7 cents per kilowatt hour.

Clean Energy Connector pilot launches in Illinois, New Mexico and Washington D.C. The software tool is designed to connect eligible households to community solar projects through the Department of Health and Human Services’ HHS’s Low-Income Home Energy Assistance Program (LIHEAP).

Environmental lifecycle assessment of PERC solar modules IEA PVPS Task 12 analyzes the environmental impact of passivated emitter and rear cell (PERC) technology in PV installations in comparison to the monocrystalline silicon technology (AI-BSF) and the trend towards installing horizontal single-axis tracker systems as opposed to fixed tilt systems.

Solar module prices remain steady amid unchanged market fundamentals In a new weekly update for pv magazine, OPIS, a Dow Jones company, provides a quick look at the main price trends in the global PV industry.

The great untapped potential in non-residential rooftop solar for LMI residents The team used satellite imagery and AI to track unused rooftops with good solar potential, and found that it would bring reduced energy costs to residents.

U.S. solar industry week in review pv magazine USA spotlights news stories of the past week including market trends, project updates, policy changes and more.

Sunrise brief: West Virginia Governor vetoes bill that would double allowable solar project size

pv magazine — Fri, 29 Mar 2024 12:37:58 +0000

Also on the rise: Half of homeowners see solar as a good investment, but 75% said cost is a problem. Solar and storage to replace last coal plants in New England.

Solar industry calls for domestic content revisions to support U.S. manufacturing With stronger support for the early stages of the process, U.S. module manufacturers would be less dependent on imports from Chinese-owned companies for these materials, according to a recent report from the Solar Energy Manufacturers for America Coalition.

IRENA says solar capacity rose by 345.5 GW in 2023 The International Renewable Energy Agency (IRENA) says developers installed 345.5 GW of solar throughout the world in 2023. China mainly drove the surge, accounting for nearly three-quarters of all new renewable energy, but IRENA says more equitable growth will be needed to hit 2030 deployment targets.

Solar panel production is struggling to stay clear of forced labor As necessary materials from outside China remain scarce, producers struggle to meet UFLPA compliance.

Rural electric co-ops lend money to customers to improve energy efficiency Some rural electric cooperative utilities allow customers to pay off energy efficiency improvement loans through their utility bills. That contributes to energy efficiency’s role in the renewables transition.

Half of homeowners see solar as a good investment, but 75% said cost is a problem A survey report from solar design and sales software provider Aurora Solar showed continued customer interest in solar, but a high interest rate environment is dampening that interest.

West Virginia Governor vetoes bill that would double allowable solar project size House Bill 5528 would have lifted the limit on utility-scale solar project size from 50 MW to 100 MW.

Solar and storage to replace last coal plants in New England With the planned retirement of Merrimack Station in Bow, N.H. and Schiller Station in Portsmouth, N.H., New England will become coal-free.

Rural electric co-ops lend money to customers to improve energy efficiency

William Driscoll — Thu, 28 Mar 2024 16:58:40 +0000

Some rural electric cooperative utilities allow customers to pay off energy efficiency improvement loans through their utility bills. That contributes to energy efficiency’s role in the renewables transition.

Reducing building energy usage is key to achieving a least-cost 100% renewable grid, a study by the National Renewable Energy Laboratory has found.

Residential energy efficiency gains also save money and improve comfort. Those two factors are motivating customers of some rural electric co-ops to borrow from their co-op to pay for energy efficiency improvements. The loan is then repaid through the customer’s utility bill.

In central and western Kansas, 2,475 of co-op Midwest Energy’s customers, or 8% of its customer base, have taken out such loans to date, according to a post by the Rural Power Coalition.

The coalition, noting that rural Americans spend as much as 40% more on energy than urban residents, recommends the loan approach to help co-op customers save money and help co-op utilities build resilience to extreme weather events.

A customer can initiate an energy efficiency loan by selecting from a set of cost-effective upgrades for their home, farm or business, such as insulation, air sealing, efficient HVAC equipment, on-site solar or an electric vehicle charger. The utility funds the upgrades with a loan, which the customer pays back through a monthly charge that is less than the estimated savings from the upgrade, the coalition said.

If the customer moves before the loan is paid off, the monthly charge transfers to future customers at that site.

The coalition calls the approach “inclusive utility investment,” because a customer’s financial liquidity or creditworthiness is not assessed in the loan origination stage; instead, the utility assesses the energy savings potential of the building.

Electric co-ops and other rural utilities may access 0% financing for such investments, offered by the Rural Energy Savings Program operated by the U.S. Department of Agriculture. The interest rate charged to customers is capped at 5% and is often lower, the coalition said.

The coalition presented two additional case studies in its post. The Roanoke Electric Cooperative in North Carolina has enrolled more than 10% of its residential customers in energy efficiency financing; about half of the residential buildings receiving upgrades first required repairs.

In southern Arkansas, the Ouachita Electric Cooperative has seen an average demand reduction of 18% among residential customers who have borrowed for weatherization and HVAC upgrades, and up to 70% to 80% for those who also add solar. Across all residential weatherization and solar projects, the co-op utility has seen an average reduction in peak demand of 1.5 to 2 kW for each home upgraded. Savings from boosting customer efficiency and adding solar allowed the utility to reduce rates for residential customers by 4.5%, the coalition said.

The Rural Power Coalition is a collaboration of 17 organizations working to advance clean energy investments by rural electric cooperatives in 14 states.

IRA clean energy projects to create 30,000 North Carolina jobs, $10 billion to GDP

Ryan Kennedy — Fri, 22 Mar 2024 17:13:11 +0000

Over $7.6 billion in wages are expected to be generated from already-announced Inflation Reduction Act supported projects, said a report from E2.

The Inflation Reduction Act has unleashed a decade of clean energy industrial policy for the United States, creating supply and demand side incentives to supercharge the nation’s energy transition.

The legislation contains numerous provisions to support the U.S. solar industry, among other clean energy technologies, including a long-term extension of the federal investment tax credit, significant domestic manufacturing incentives, labor standards, energy production tax credits and more.

North Carolina alone is expected to benefit massively from the landmark law and clean energy projects that have followed. E2, a national nonpartisan group of industry leaders and investors, tracked the state’s impressive actions following the August 2022 law.

In the first year following enactment, nine major clean energy projects were announced in the state. Construction of these projects are expected to generate 24,600 jobs, $7.6 billion in wages, and add over $10.2 billion to the state’s gross domestic product (GDP). During operation, these assets are expected to support 5,400 jobs, $380 million in wages, and add $594 million to GDP each year. E2 said North Carolina has the largest economic impact from the IRA among the states thus far.

Since passage of the IRA, over $240 billion has been invested in clean energy manufacturing and infrastructure projects, according to a White House report. This includes over $86 billion invested in nearly 300 new solar, wind, and battery energy storage projects.

In North Carolina, broken out by technology, the first five years of construction phase jobs are expected to support 23,678 electric vehicle related jobs, including manufacturing, 303 electrification, grid, and transmission jobs, and 588 battery and energy storage jobs. For long-term jobs, 5,208 EV jobs are expected to be added, along with grid and storage jobs.

Businesses in the state have announced a wide set of new projects, including EV and car charging equipment manufacturing facilities, lithium processing plants, and more.

The University of North Carolina Chapel Hill held a 10th annual Cleantech Summit to review the state’s recent successes and provide a roadmap ahead.

“The clean economy is happening now, and North Carolina is at the center of it. Even if you don’t drive an electric vehicle or have solar panels on your roof, you’re probably benefiting from the game-changing clean energy projects now sprouting up across North Carolina made possible by the IRA,” said Bob Keefe, executive director, E2, at the Cleantech Summit.

Kempower Inc., an electric vehicle charging manufacturer is building a $41 million, 600-employee factory in Durham.

Kempower’s vice president of markets and products Jed Routh said, “When you’re investing in building a new project, you’re investing in far more than just the facility you’re building. You’re investing in the community. These investments boost business for local companies, create thousands of additional non-energy jobs, and generate hundreds of millions in new tax revenue put more teachers in schools, more cops on the beat, and more services for the community.”

For the solar industry, which is already the fastest growing energy source, the IRA has created long-term stability and clarity. The 30% Investment Tax Credit (ITC) was extended through 2032, creating a long-term subsidy that breaks the boom-and-bust cycle that used to caused by shorter-term ITC extensions.

Solar added a record 36.4 GW of utility-scale storage and 14.3 GW of battery energy storage in 2023, which together add up for more than 80% of new capacity additions for the year. Solar, storage, and wind energy combine for nearly 95% of the capacity added to the grid in 2023, and 2024 is expected to build on this monumental year.

Sunrise brief: California cuts interconnection costs for distributed solar developers that agree to export limits

pv magazine — Fri, 22 Mar 2024 12:10:48 +0000

Also on the rise: NABCEP conference 2024 shining bright in Raleigh. KKR and EIG invest more than $1 billion in equity and debt financing in Avantus. And more.

KKR and EIG invest more than $1 billion in equity and debt financing in Avantus With this climate strategy investment, KKR and EIG become sole equity investors in Avantus, a company assembling one of the largest solar-plus-storage portfolios in the United States.

California cuts interconnection costs for distributed solar developers that agree to export limits By agreeing to limit exports to the grid at peak generation hours, distributed energy resources like rooftop solar and energy storage can now avoid delays and costly infrastructure upgrades.

NABCEP conference 2024 shining bright in Raleigh The 14th annual continuing education conference of the North American Board of Certified Energy Practitioners is the largest ever, with over 1,000 registrants.

Sodium-ion batteries – a viable alternative to lithium? While lithium ion battery prices are falling again, interest in sodium ion (Na-ion) energy storage has not waned. With a global ramp-up of cell manufacturing capacity under way, it remains unclear whether this promising technology can tip the scales on supply and demand.

Entries for the pv magazine Awards 2024 are now open The pv magazine Awards celebrate outstanding achievement across the solar and energy storage supply chain, rewarding excellence and innovation within our industry.

Doral Renewables secures $114 million for Ohio solar project The utility-scale solar project will supply power to the PJM regional transmission operator.

Reshaping the solar landscape with aerial imagery Aerial imagery provides location intelligence, offering detailed insights that reveal everything from subtle shading patterns to potential obstacles, empowering engineers to design solar farms with laser-sharp precision.

Doral Renewables secures $114 million for Ohio solar project

Ryan Kennedy — Thu, 21 Mar 2024 15:53:10 +0000

The utility-scale solar project will supply power to the PJM regional transmission operator.

Doral Renewables announced it has secured financing for the Great Bend Solar project, a 48 MW facility to be located in Meigs County, Ohio. The solar project marks Doral’s first in Ohio.

HBSC acted as sole lender, providing $114 million financing, which consisted of a $36 million construction-to-loan facility, $57 million tax equity bridge loan, and a $21 million letter of credit facility.

Once in operation, the project will supply power to the PJM regional transmission operator via a power purchase agreement (PPA), generating enough electricity roughly equivalent to the demand of 9,000 homes. The Great Bend Solar project is located on 370 acres about 100 miles against southeast of Columbus. The single-axis tracker project is expected to provide over $400,000 per year of new annual tax revenues for the county.

“We are thrilled to have collaborated with HSBC to raise this innovative project debt which will enable us to bring Great Bend Solar, our first project in the Buckeye State, to commercial operation around the end of 2025,” said Evan Speece, chief financial officer at Doral Renewables.

PJM

A report from LevelTen Energy said permitting challenges, a lack of construction companies available in the region, and a projected increase to PJM electricity prices over the next 10 to 15 years are driving higher prices. A lack of transmission to deliver clean energy to areas with high demand is also driving congestion and basis risks, thereby driving up prices.

LevelTen said In PJM, solar PPA prices increased 12% in-quarter. PJM’s solar P25 prices have now risen 31% year-over-year.

Analysis by nonprofit Rocky Mountain Institute (RMI) found that PJM grid operator could enable interconnection of 4.8 GW of solar and 0.7 GW of wind capacity by 2027 through 95 deployments of grid-enhancing technologies (GETs). GETs would also enable 1.1 GW of stand-alone storage plus additional storage co-located with new solar.

The GETs would cost $100 million and yield production cost savings of $7 billion over six years, mostly due to the lower cost of operating renewable energy generators enabled by GETs, the report says. That translates to a 70-to-1 benefit-cost ratio.

PJM is the world’s largest wholesale electricity market, the report says, serving 65 million people; its service area is shown on map above. Wind and solar combined provided less than 5% of generation in the PJM region last year. PJM has instituted a pause on new interconnection applications until 2026.

HBSC (Hong Kong and Shanghai Banking Corporation) is a bank that originated in Hong Kong and now headquartered in London with offices, branches and subsidiaries in 62 countries and territories across Africa, Asia, Oceania, Europe, North America, and South America.

KKR and EIG invest more than $1 billion in equity and debt financing in Avantus

Anne Fischer — Thu, 21 Mar 2024 15:23:15 +0000

With this climate strategy investment, KKR and EIG become sole equity investors in Avantus, a company assembling one of the largest solar-plus-storage portfolios in the United States.

Global investment firm KKR announced the signing of an agreement to acquire a majority stake in Avantus, marking KKR’s first U.S. investment under its global climate strategy.

The investment reflects the rapid growth in solar in the U.S. In 2023, solar made up over half of new generating capacity for the first time. The report estimates that in 2023, the U.S. solar market installed 32.4 GWdc of capacity, a 51% increase from 2022. This was the industry’s biggest installation year by far, exceeding 30 GWdc of capacity for the first time.

“Solar is the fastest growing electricity source in the U.S., and along with energy storage, will serve as the backbone of a modern electric grid that is clean, reliable and resilient,” said Patrick Goff, chief financial officer at Avantus. “KKR’s investment provides Avantus the financial backing and expertise to execute on our ambitious portfolio and lead the energy transition across the Western United States.”

Founded in 2009 as 8Minute Solar Energy by Tom Buttgenbach with the intention of fighting climate change by developing renewable energy at scale. The company expanded that vision in 2022 to include what it calls an “advanced ecosystem” of clean energy products and services. With the expanded vision came the new name, Avantus, and the plan to bring to life one of the largest clean energy development pipelines in the country.

Avantus has a project pipeline of 30 GW of solar and 94 GWh of battery storage, enough to provide 20 million people with clean energy. The company has developed and sold 6.5 GW and 6.3 GWh of solar and storage projects, respectively.

Following the close of the transaction, KKR and existing investor EIG, will be the sole equity investors in Avantus. Both equity sponsors secured commitments for a development financing facility alongside their equity commitments to the company, totaling upwards of $1 billion in the aggregate.

“To support an economy-wide energy transition, there is a need to significantly expand renewable energy generation by 2050 and enable grid electrification,” said Charlie Gailliot, partner and co-head of global climate strategy, KKR. “Because of these tailwinds, we see enormous opportunity for Avantus. The company’s impressive team and development track record, coupled with its mature project pipeline, set it apart from other renewables developers.”

Following the closing of the transaction, KKR announced plans to support Avantus in creating an equity ownership program to provide all employees the opportunity to participate in the benefits of ownership of the company. Since 2011, KKR reports its portfolio companies have awarded billions of dollars of total equity value to over 60,000 non-management employees across more than 40 companies.

Direct pay process, tax credit transfer recapture risk and more

John Fitzgerald Weaver — Thu, 14 Mar 2024 17:39:29 +0000

At the Solar Energy Industry Association’s annual event in Times Square, experts delved into the complexities of the Inflation Reduction Act and its impact on solar financing.

The Solar Energy Industries Association (SEIA) recently hosted its annual Finance, Tax, and Buyer’s Seminar in Times Square, New York City. This year’s seminar built on the main topic of 2023, the Inflation Reduction Act (IRA), and explored its various facets in greater depth.

Key topics included the much-discussed tax credit transferability rules, the process of filing for and monetizing “elective pay” (also known as direct pay), domestic content and brownfield tax adders, capital structures, and the evolving finance structures as the Internal Revenue Service (IRS) and Treasury Department continue to release financial guidance.

Tri Merit, a specialist in renewable energy tax credit solutions, presented “The Process for Monetization of Renewable Energy Tax Credits.” The presentation highlighted a significant talking point for selling solar to non-profits: to convert the IRA tax credit into a direct payment, the non-profit must file the IRS 990-T form.

Their presentation outlined the steps for submitting various applications to the IRS, including parts of the process currently delayed due to the development of necessary online tools that will allow for the submission of the required documents.

pv magazine USA’s discussion with Tri Merit revealed their approach of early collaboration with project developers and CPAs to develop financial models. Represented by Barry Define and Randy Burge, Tri Merit provides a comprehensive document for developers to integrate into their financial models. As projects progress, Tri Merit assists with finalizing documentation for IRS submission, working with tax professionals to fine-tune values and navigate IRS website forms.

Despite the purported simplicity of the tax credit transfer process, multiple presentations highlighted the risks and challenges associated with monetizing the credits, especially among larger organizations dealing in projects priced above $10 million. Foley & Lardner LLP, a law firm with extensive experience in tax and energy law, presented “General Overview of Tax Credit Transferability,” which delivered a wealth of high-level information on the subject.

The Foley presentation covered the risks of tax credit recapture by the IRS, which can occur when solar projects fail to meet the technical requirements that initially qualified them for tax benefits. These recapture risks are a major factor driving the extensive documentation requirements, which continue to include significant fees and recapture insurance, necessary to complete tax credit transfers.

The presentation also detailed the processes of the newly developed finance structure that has emerged with the introduction of transferability. This structure begins with the traditional tax equity finance model that has been in use for years, but it now incorporates an additional tax credit transfer step at the end. A key aspect of this process, which is more complex and costly than a simple tax credit transfer, is that it enables solar developers to include a “step up” (or development fee) in the transaction at an amount approved by the IRS. It also has the potential to monetize the project’s depreciation.

Major U.S. bank signs $140 million tax equity deal for Louisiana solar project

Anne Fischer — Thu, 14 Mar 2024 17:22:20 +0000

Barclays and Lightsource bp agree to finance deal to construct 180 MW Prairie Ronde solar farm in St. Landry Parish.

U.S. utility-scale solar is forecast set another record year in 2024, and new tax credit rules in the Inflation Reduction Act (IRA) of 2022 are beginning to ramp up financing of these projects. An example is the recent $140 million tax equity deal between Barclays and Lightsource bp, which will finance the construction of the Prairie Ronde 180 MW solar project in St. Landry Parish, Louisiana.

Lightsource bp plans to construct, own, and operate the solar farm, while McDonald’s will purchase all of the electricity generated by the project through a power purchase agreement. The output is equivalent to the annual energy demand of about 630 of its restaurants.

Construction is underway at the St. Landry Parish site, where 800,000 domestically produced First Solar modules are mounted on Array trackers. Commercial operation is expected late this year, and the company reports the project will create 250 new jobs during construction.

Lightsource expects more than $20 million in economic benefits for St. Landry Parish public services such as local school systems and emergency services over the life of the project, including $8.3 million in the first five years after construction begins. The project is also estimated to abate 231,800 metric tons of greenhouse gas emissions annually, or the equivalent of removing 50,000 fuel-burning cars from the road annually.

“Lightsource bp’s investment in St. Landry Parish represents a new day for our community and our schools,” said Jessie Bellard, president of St. Landry Parish. “Their funding boosts job-creating development projects, stronger infrastructure, and better education for our children. With this support, St. Landry Parish is poised to become a regional leader in innovation and opportunity for all.”

As with other Lightsource bp projects, the developer adhered to the local ordinance, which includes strategic placement of buffer zones and vegetative screening to limit visual impact, a biodiversity plan, decommissioning details, and more. The project’s long-term land maintenance and biodiversity plan is expected to support habitat conservation by planting pollinator-friendly crops at the site, restoring one area of the site to native Coastal Prairie, as well as putting Eastern Bluebird boxes around the perimeter.

Barclays acted as the sole external equity investor on the $140 million tax equity deal, which is one of the first to be led by Barclays’ new Sustainable Project Finance team. Working in partnership with the bank’s Energy Transition Group, the tax equity deal will contribute toward the bank’s target of facilitating $1 trillion of Sustainable and Transition Financing between 2023 and the end of 2030.

“Barclays is fully committed to a just transition and working with key clients such as Lightsource bp to evaluate all economic and societal opportunities as we scale climate finance,” said James Edmonds, global head of sustainable project finance at Barclays. “Mobilizing strategic capital is critical for the energy transition and ensures Barclays can make a demonstrable difference in accelerating the scale up of clean energy development projects.”

Florida-based rooftop solar and storage company goes public

Ryan Kennedy — Thu, 14 Mar 2024 16:46:04 +0000

Regional solar, storage, and energy efficiency provider Sunergy: By Zeo Energy joined the NASDAQ exchange following an acquisition by ESGEN Acquistion Corp.

Florida-based rooftop solar, energy storage,and energy efficiency provider Sunergy Renewables completed a business combination with special purpose acquisition company (SPAC) with ESGEN Acquisition Corp.

Following the combination, the new entity has joined the NASDAQ stock exchange as Zeo Energy Corp. The company begins trading on March 14, 2024 under ticker symbols “ZEO” and “ZEOWW.” Chief Executive Officer Tim Bridgewater rang the closing bell for the stock exchange on March 13.

“This merger with ESGEN enables us to accelerate our growth strategy, partner with industry players, and serve more customers seeking renewable energy solutions to meet their power and energy storage needs,” said Bridgewater.

Sunergy CEO Tim Bridgewater rings the closing bell at the NASDAQ exchange.

Image: NASDAQ

The transaction results in gross proceeds of about $18 million to Zeo. The funds are expected to support Zeo’s operations and growth strategy and cover costs from the business combination.

Sunergy has been in business since 2005. It holds licenses to install air conditioning units, roofs, and back-up generators, along with solar and home energy storage.

For the first nine months of 2023, the company delivered net revenues of $86.7 million, up 31% year-over-year, while gross profits increased 30% to $17.1 million. Adjusted EBITDA for the first nine months of 2023 increased 12% to $9.9 million, while solar installations increased about 35% year-over-year.

The company state plans to expand to Ohio, Illinois and Virginia in 2024.

“We’re confident that Tim and the Sunergy team are the ideal partner, and that the combined company will be attractively positioned in the secular shift towards a distributed, decarbonized economy,” said Andrejka Bernatova, chief executive officer, ESGEN.

DOE Loan Programs Office announces $72.8 million for microgrid on Tribal lands

Anne Fischer — Wed, 13 Mar 2024 14:49:43 +0000

The 15 MW / 38 MWh Viejas Microgrid is the first project to be offered a conditional commitment through the Tribal Energy Financing Program.

The Viejas Microgrid Project, which is already under construction, will provide the Viejas Band of the Kumeyaay Indians a 15 MW solar plant along with a 38 MWh long-duration battery energy storage system (BESS). The solar-plus-storage microgrid will be located near San Diego, California.

The 15 MW of solar modules from JA Solar are being installed by Indian Energy LLC on parking structures on the Tribal land and will supply electricity to the non-lithium, vanadium-flow BESS as well as to the local grid. Invinity Energy and Eos provided the BESS.

The Viejas Band will purchase electricity through a subsidiary in a long-term power purchase agreement (PPA) to help operate gaming, hospitality and retail businesses. When complete, the project will allow the Tribe to benefit from a lower levelized cost of energy, allowing additional resources to be redirected toward investments by the Tribe in infrastructure maintenance, operation of the fire department, Tribal culture and educational programs, and other Tribal member services.

“This solar microgrid project will enable us to create a reliable and sustainable source of clean energy for our gaming, hospitality, and retail operations going forward. In turn, the associated non-lithium battery system supports the environmental protection and cultural stewardship of our ancestral land, thereby ensuring the vibrant future of our children,” said John Christman, chairman, Viejas Band of Kumeyaay Indians.

This is the first project to be offered a conditional commitment of $72.8 million through the Tribal Energy Financing Program, which was provided new and expanded loan authority the Inflation Reduction Act (IRA). The partial loan guarantee will help build the microgrid, which will help the Band’s economy by lowering the cost of energy as well as bringing job opportunities. While the LPO demonstrates its commitment to financing the project, the project must reach critical milestones, and certain technical, legal, and financial conditions must be met before the LPO enters into definitive financing documents and guarantees the loan.

The project is expected to create 250 construction jobs and eight permanent operations jobs, including prioritizing Tribal-, minority-, and veteran-owned contractors. In addition, LPO works with all borrowers to create good-paying jobs with strong labor standards during construction, operations, and throughout the life of the loan and to adhere to a strong Community Benefits Plan.

The project also supports the Justice40 Initiative, which has a goal that 40% of overall benefits of certain federal investments, including LPO financing, go to DOE-identified disadvantaged communities (DACs), which includes the Viejas Tribal Lands.

The borrower, IE VEM Managing Member LLC, is a Tribal energy development organization (TEDO) ultimately owned by the project developer Indian Energy LLC, and two federally recognized Tribal Nations. The two Tribal Nations will receive revenue streams from the project through their ownership stakes in the project.

The Tribal Energy Financing Program supports Tribal investment in energy-related projects by providing loan guarantees to federally recognized Tribes, including Alaska Native villages or regional or village corporations, or a TEDO that is wholly or substantially owned by a federally recognized Indian Tribe or Alaska Native Corporation. The program was authorized in the Energy Policy Act of 1992 and first funded by Congress in 2017. The IRA, which was passed in 2022, increased the program’s available loan authority from $2 billion to $20 billion, and changes from both IRA and the Consolidated Appropriations Act, 2022 made permanent the ability for applicants to apply for direct loans from U.S. Treasury’s Federal Financing Bank through the program.

In addition to the commitment from the LPO, the project received a $31 million grant from the California Energy Commission (CEC) to deploy the BESS.

The Viejas Band is one of 12 bands of the Kumeyaay Indian Nation which resides on a 1,600-acre reservation in the Viejas Valley, near the town of Alpine in San Diego County. The Band is recognized as a sovereign government by the United States.

Indian Energy operates a multi-year development pipeline that consists of 4 GW of solar and wind projects, and 6 GWh of energy storage projects.

This article was amended to revise the amount of the loan commitment, per LPO.

Longroad Energy installing U.S.-made First Solar modules in Arizona solar-plus-storage plant

Anne Fischer — Tue, 12 Mar 2024 17:33:02 +0000

The 220 MWdc solar and 214 MWac / 855 MWh Serrano solar-plus-storage project will also feature Powin's BESS, Sungrow inverters, and Nextracker trackers.

Longroad announced the financial close of the 220 MWdc solar and 214 MWac / 855 MWh Serrano solar-plus-storage project in Pinal and Pima Counties, Arizona. Construction is now underway, and is expected to be complete by mid-2025.

Serrano represents the continuation of a longstanding partnership between U.S.-based solar manufacturer First Solar and Longroad. Serrano is the fourth Arizona project using First Solar’s modules that Longroad has financed in four years, and Longroad’s first to use First Solar’s Series 7 panels that are made in the U.S. First Solar has a manufacturing facility in Ohio and recently expanded operations to Alabama and Louisiana.

“We are proud to support American manufacturing and the domestic solar supply chain as we expand our solar footprint in the robust Arizona market, which now surpasses 1.5 GW of operating or under construction projects,” said Paul Gaynor, CEO of Longroad Energy.”

The 214 MWac / 855 MWh battery energy storage system (BESS) will be provided by U.S.-based energy storage platform provider Powin. The BESS will include SMA inverters and cells from AESC, which will be integrated into Powin’s Modular and Scalable Centipede Energy Storage Platform.

Nextracker is supplying trackers for the project and Sungrow is supplying the solar inverters.

Operations and maintenance (O&M) services for the project will be provided by NovaSource Power Services and Longroad’s affiliate Longroad Energy Services. Longterm O&M services for the BESS will be provided by Longroad, in conjunction with Powin and NovaSource Power Services.

Arizona Public Service (APS) will be the offtaker of electricity from the plant through a long-term power purchase agreement. The project will generate enough electricity to power roughly 61,000 Arizona homes.

“APS is widely regarded for providing top-quality, reliable service to our customers, and solar plus storage resources like the Serrano project bring value to Arizonans,” said Brian Cole, APS Vice President of Resource Management. “Our investment in cost-effective, renewable projects enhances our diverse energy mix, providing customers with power that is reliable, affordable and clean.”

Serrano is the fourth large-scale solar facility in Arizona being built by McCarthy for Longroad and is expected to employ over 300 people during the construction process. McCarthy is using registered apprentices and reports it will be paying prevailing wage to all workers on the project, in accordance with the Inflation Reduction Act (IRA).

Longroad estimates that the solar produced by Serrano represents over 330,000 metric tons of avoided CO2 emissions annually, or the equivalent of taking approximately 75,000 gas-powered cars off the road. Additionally the project is expected to contribute more than $25 million in revenue for Arizona schools and communities through its long-term Right of Way grant with the Arizona State Land Department and tax remittances.

Debt financing was led by CIBC and Societe Generale and included ANZ, PNC, Commerzbank AG, and U.S. Bancorp Impact Finance. CIBC acted as Coordinating Lead Arranger, Administrative Agent, Collateral Agent, and Green Loan Coordinator. Societe Generale acted as Coordinating Lead Arranger. U.S. Bancorp Impact Finance served as Joint Lead Arranger and Depositary Bank. Athene Annuity and Life Insurance Company, an affiliate of Apollo Global Management, is the project’s tax equity investor and was advised by Apterra Infrastructure Capital.

“Our continued role in supporting Longroad in the build out of their development pipeline is one example of CIBC’s commitment to the U.S. renewable energy and energy transition space as we work towards enabling a more sustainable and inclusive economy,” said Peter O’Neill, head of U.S. project finance and infrastructure at CIBC.

Longroad Energy Holdings has developed or acquired 5.4 GW of renewable energy projects across the U.S. and raised over $14.5 billion of equity, debt, and tax equity to support completion of its portfolio. Serrano expands Longroad’s solar footprint in Arizona to more than 1.5 GW of operating or under construction projects.

Decarbonized aviation attracts venture capital

Valerie Thompson — Tue, 12 Mar 2024 16:11:31 +0000

Since 2016, some $2.4 billion worth of venture capital flowed to companies developing electric aviation and other air travel decarbonization technologies with a strong start in investment volume in 2024, according to Dealroom.co, a Dutch data and intelligence firm.

From pv magazine Global

Since 2016, there has been $2.4 billion worth of venture capital flowing to companies developing technologies to decarbonize aviation, according to Dealroom.co, a Netherlands-based provider of global data and intelligence on startups and tech ecosystems.

The segment had a strong start in 2024, noted Dealroom.co senior analyst Lorenzo Chiavarini.

“Aviation is one of the segments where we still don’t have a clear winning technology path to decarbonization to reach 2050 net-zero targets,” he told pv magazine. “In my assessment, it could be a threat or opportunity, either we don’t hit the targets, or we hit the targets thanks to huge investments and technological advances. A third option is we hit the targets thanks to massive social change. That is, flying becomes something we only do if there is no other alternative. So, if we want people to fly, and limit climate disruption and biodiversity collapse, we need to get serious about decarbonizing aviation now.”

Based on Dealroom.co data, a total of $2.4 billion was invested in the so-called sustainable aviation since 2016. “Under sustainable aviation, we include things like electric aircraft, aircraft batteries, and hydrogen aircraft; sustainable aviation fuels such as e-fuels and biofuels, as well as new aircraft models, airships, and software solutions for contrail avoidance,” he explained.

The startups that attracted most of the funding are developing electric aircraft, hydrogen aircraft, e-fuels and biofuels. Biofuel is the most mature of these segments while electric, hydrogen and e-fuels are emerging.

“Funding peaked in 2022 at almost $700 million before dropping 50% to $337 million in 2023,” Chiavarini said. “Interestingly, early-stage investments stayed nearly constant from 2021 to 2023, more than double the level of any previous year. It enabled a strong early-stage startup scene that needs to prove it can scale in the next few years. Also notable, Europe seems to have gained a share of innovation by both the amount invested and the number of rounds.”

Venture capital across all sectors decreased 38% from 2022 to 2023, totaling less than half of the 2021 peak, even considering the hype about artificial intelligence startups. “Sustainable aviation is not exactly mirroring the broader market, as it is such an emerging segment, especially the technologies for electric and hydrogen aircraft and e-fuels,” Chiavarini stated.

The surge in new investments, however, has to be taken with caution. “We are very early in 2024,” said Chiavarini. “It was mainly driven by two very large rounds, namely Swedish startup Heart Aerospace, which makes hybrid-electric regional aircraft, and Ineratec, a German company that aims to use CO2 and green hydrogen as feedstock for synthetic fuels and synthetic chemicals. I would add that it is common to announce rounds in January that were in reality closed at the end of the previous year. In any event, we are seeing both late-stage and early-stage activity, which is a good sign.

According to Dealroom.co, over 400 investors have made at least one bet on sustainable aviation startups. The most active based on the number of deals is Breakthrough Energy Ventures, a fund backed by Microsoft founder Bill Gates, with 8 investments from Series A to Series C, including Heart Aerospace, ZeroAvia, U.S.-based hydrogen aircraft developer, and Viridos, U.S.-based developer of microalgae biofuel.

JetBlue Technology Ventures, the corporate venture arm of the US-based JetBlue Airways, is the most active corporate investor with 6 seed and series A stage investments, including Universal Hydrogen, a U.S. provider of end-to-end hydrogen flight solutions, and Electric Power Systems, a U.S. developer of batteries for electric aircraft.

In addition to the sustainable aviation activity, Dealroom.co tracked $5.6 billion invested in electric vertical takeoff and landing (eVTOL) and electric Urban Air Mobility (UAM) startups since 2016. Most eVTOLs do not contribute to the decarbonization of the aviation industry due to a predominant focus on just a few passengers, typically 2 to 8 passengers, and limited flight range, typically less than 300 km.

“They are more about enabling new mobility models in urban and semi-urban areas, with use cases such as fast trips to the airport from urban centers,” Chiavarini said.

“They are comparable to the use cases of helicopters and short-distance private jets today, and they cater to a wealthy customer base. A few eVTOLs focus on longer ranges and more passenger seats, so could contribute to decarbonizations, such as France-based Voltaero and US-based XTI Aircraft.”

The hope is that they will still contribute positively to the development of aviation by pushing forward the use of emerging technologies and making regulators more comfortable with certifying electric aircraft. “But on their own, they are not solving any sustainability problems in aviation,” Chiavarini concluded.

Solar profits drying up

pv magazine — Mon, 11 Mar 2024 18:19:50 +0000

The Invesco Solar exchange-traded fund (ETF) under-performed the S&P 500 and Dow Jones Industrial Average (DJIA) stock indexes in January 2024. Jesse Pichel, a managing director at Roth Capital Partners, attributes this to logistics and apparent cashflow problems for some solar companies.

From pv magazine 3/24

Trouble for sea freight and other logistical issues made their mark on solar stock prices at the beginning of 2024. The Invesco Solar ETF fell by 21% for January 2024, while the S&P 500 increased by 2% and the DJIA increased by 1%. Within the United States, the top three solar stocks for the month of January 2024 were Atlantica Sustainable Infrastructure plc, down 11%, and ReNew Energy Global Plc and Clearway Energy Inc., which both fell by 12%.

The worst performers in January 2024 in the United States markets were Emeren Group Ltd, SunPower Corp., and Maxeon Solar Technologies, Ltd., which all fell 37%. Residential solar stocks, overall, fell 27% for the month of January 2024. Companies included in the residential measure were Enphase Energy Inc., SolarEdge Technologies Inc., Sunnova Energy International., and Sunrun Inc.

Utility-scale solar stocks – Array Technologies Inc., Shoals Technologies Group Inc., NEXTracker Inc., FTC Solar Inc., and First Solar Inc. – decreased by 17% in the first month of 2024.

Logistical challenges emerged within the solar market, potentially bolstering pricing dynamics. That, coupled with liquidity issues, seems to be causing unease in the solar industry, as demonstrated by the sharp decline in the Invesco Solar ETF.

Roth Capital’s checks suggest that module vendors are contemplating price elevation strategies, as security concerns in the Red Sea and a drought in the Panama Canal are presenting logistical hurdles that could additionally bolster pricing. The Panama Canal drought is forcing ships bound from Asia to the eastern United States to divert their routes, circumnavigating Africa and traversing the Atlantic Ocean instead, which could also push small-scale, “distributed-generation” PV module prices up.

Due to liquidity issues, dealers are currently awaiting payment, with some encountering liquidity challenges as a result of this delay.

Article by Jesse Pichel, managing director, Roth Capital Partners.

Renewable energy merger and acquisition opportunities for 2024

Ryan Kennedy — Mon, 11 Mar 2024 18:12:10 +0000

FTI Consulting said incentives in the Inflation Reduction Act could cause a “seismic shift" on the U.S. economy as a whole over the next 12 to 24 months.

FTI Consulting released a report reviewing renewable energy merger and acquisition (M&A) activity in 2023 and provided an outlook for 2024.

Entering 2023, M&A transactions faced headwinds including sustained high interest rates, inflationary pressures, supply chain constraints, government support uncertainties, and grid reliability issues. As a result, renewable energy deal volume dropped from 2022 levels. Interest rates are driving a wedge between potential buyers and sellers on valuation, said the report from FTI.

Established renewable technologies like solar and wind comprised about 60% of deal volume, said FTI. Meanwhile, traditional nuclear energy M&A and “renewable” natural gas and biogas transactions increased, suggesting mainstream adoption for a once-niche market.

Looking into 2024, FTI anticipates various factors will drive an increase in M&A activity in the renewable energy sector. As high costs of capital put pressure on project viability, smaller developers may be forced to sell projects, portfolios, or their entire platform as they seek liquidity or an outright exit.

“Investors and established incumbents with stronger balance sheets may take this opportunity to invest, acquire and structure creative solutions, further driving consolidation in the sector,” said the report.

FTI also expects and uptick in corporate renewables adoption as decarbonization and electrification continues to come to the forefront. It expects oil and gas players to actively invest in the sector.

“Conversely, the sale of unregulated renewable businesses noted in 2022, including Con Edison’s $6.8 billion divestment of its unregulated clean energy segment, continued at an accelerated pace in 2023, with utilities such as AEP, Algonquin, Avangrid, Eversource and Duke Energy announcing their intentions to sell their renewable portfolios,” said the report.

FTI said supply chain constraints, increasing development costs, permitting issues, interconnection delays and shorter tenor offtake agreements have all contributed to an increase in the risk profile of unregulated renewable energy investment.

Image: FTI Consulting

FTI recognized that a higher interest rate market may persist for some years. This may lead to smaller developers selling off assets, while on the demand side, larger players with greater operational diversity or public equity may be more creative, taking on risks and offering different value proposition to capital-stared developers that cannot achieve scale.

The report shared that government support from the IRA and other programs has begun to roll out, including $110 billion in available grant money made available through the 2022 law. FTI said the incentives could cause a “seismic shift on the U.S. energy sector and the economy as a whole over the next 12 to 24 months.”

Further pushed along by investment from corporate America, and “big oil” will continue to diversify its energy mix with strategic investments and acquisitions.

“Early developments in the new year indicate that these predicted market trends are taking hold, and 2024 will make up lost ground from the relatively low level of M&A activity seen in 2023,” said FTI Consulting.

FTI Consulting provides tailored services for strategic and financial investors, creditors and corporates, and has deep experience with renewable energy platforms, projects and portfolios.

Primergy secures $588 million for 408 MW solar project in Texas

Ryan Kennedy — Mon, 11 Mar 2024 15:59:55 +0000

Microsoft entered a power purchase agreement for 100% of the plant's production.

Primergy Solar LLC announced it has closed commitments for $588 million in debt financing for a 408 MW solar project in Hill County, Texas, south of Dallas. The project’s full capacity will be tied to Microsoft via a long-term power purchase agreement. The 408 MW project, though becoming more commonplace in Texas, would represent the largest solar project in most states in the U.S.

Ash Creek solar is located near several existing fossil fuel plants and near high energy demand sites. Once complete, the project is expected to generate the equivalent electricity demand of 90,000 homes per year, though it will be fully dedicated to Microsoft.

“Ash Creek aligns with Primergy’s mission to invest in well-located projects that offer regional diversity to our portfolio and serve the needs of leading corporate customers,” said Ty Daul, chief executive officer, Primergy.

Primergy acquired Ash Creek Solar in 2021, purchased from original developer Orion Power Generation, a partnership between Orion Renewable Energy Group and Eolian.

The project was financed via a construction loan, tax credit transfer bridge loan, and related letters of credit. Investment was led by MUFG Bank, Ltd. and SMBC as lead structuring arrangers. Seven additional firms operated as coordinating lead arrangers, and Latham & Watkins LLP acted as Primergy’s legal counsel, while Skadden Arps Slate Meagher & Flom served as lender’s counsel.

SOLV Energy, among the leading utility-scale solar contractors, was engaged as engineering, procurement, and construction partner. Construction has commenced and is supporting approximately 350 local full-time construction jobs. Six full-time permanent positions will remain to maintain the plant.

Primergy worked alongside local leaders, school districts, and over 20 landowners in the development process. Over its life, the project is estimated to provide $100 million in tax payments to Hill County while substantially increasing the tax base of local school districts.

“Large-scale solar projects have a ripple effect that strengthens communities,” said George Hershman, chief executive officer of SOLV Energy. “Ash Creek Solar represents a long-term investment in Hill County that will generate revenue for local schools and services.”

View Texas’ solar energy progress in the 50 states of solar interactive data browser, developed by PV Intel.

DOE announces $9.5 million award for Iowa’s first microgrid project

Anne Fischer — Mon, 11 Mar 2024 14:07:07 +0000

The Montezuma project with a 3 MW solar installation and a battery energy storage system is expected to lower energy costs for residents by as much as 18% and to reduce transmission costs for the utility by 34%

Iowa State researchers and utility Montezuma Municipal Light & Power submitted a proposal to the Department of Energy (DOE) that called for a federal investment of roughly $9.5 million and a cost-share of $2.4 million from both University and Montezuma sources.

The project to be built in Montezuma would include a 3 MW solar installation with a battery energy storage system as well as two electric vehicle charging stations. The plan for the microgrid is to replace aging substations, load monitoring and control systems. The utility expects that the microgrid will lower energy costs for residents by as much as 18%. It is also expected to reduce transmission costs for the utility by 34% and reduce its energy purchases.

Montezuma, population 1,400 is a manufacturing and farming community and, according to Anne Kimber, director of the Electric Power Research Center and a co-leader of the project, “people depend on it for city and county services, schools, health care, shopping, and employment”. She noted that during a major wind storm in 2020, the town used diesel generators to keep the power on. The microgrid solution, however, will be a clean energy solution.

Kimber said the design of this project design being replicated by other communities. There’s also an educational and training aspect as the Research Center will use a digital twin of the microgrid that will be tested with partners that include schools and an area Tribal Nation. The hope is to “build an energy workforce that can design, build and operate other resilient systems like this,” Kimber said.

“This project will make the entire town of Montezuma the very first utility-scale microgrid in Iowa with the best reliability and resilience,” said Zhaoyu Wang, project leader and a Northrop Grumman associate professor at Iowa State. “The Montezuma microgrid will revolutionize and modernize the Montezuma Municipal Light and Power system by integrating smart grid technologies. It will be a model for other rural utilities.”

The $9.5 million from the DOE is part of the Energy Improvements in Rural or Remote Areas program managed by the U.S. Department of Energy’s Office of Clean Energy Demonstrations. The program recently announced total funding of more than $366 million for 17 projects across 20 states and 30 Tribal Nations and communities.

This funding from the Bipartisan Infrastructure Law is intended to support community-driven energy projects, such as microgrids for community health centers, which strengthen energy security and delivers economic opportunities in rural and remote regions.