The team at Sol is heart-broken by the recent murders of George Floyd, Breonna Taylor, and Ahmaud Arbery. While it should not take murder to elicit meaningful, lasting change, we are embracing the opportunity to listen, learn, and grow, both as individuals and as a team. We stand with those that fight against injustice towards the black community not just because it is convenient, but because it is necessary for the rest of our lives and for future generations.
We
know for a fact that good intentions must be backed by action.
Sol commits to the
following:
Organizational Assessment – We commit to listening with compassion and taking concrete steps to implement feedback. We will learn more about the ways prejudice resides in individuals, teams, and institutions. We will be candid with ourselves and look to reform the image in the mirror.
Committing to Change in the Industry – We support the work of organizations like The Solar Foundation and SEIA in the realm of diversity and inclusion. We will continue to find ways to innovate how our industry supports and celebrates the black community.
Financial Investment – We are not experts on how to solve systemic bias, but there are talented entrepreneurs and political leaders committing themselves to addressing the problem of systemic injustice and racism faced by the black community. Sol has established a minimum annual fund of $50,000 to invest in under-resourced communities and especially black communities.
Continued Growth – We built this company on a vision of bold innovation and seamless collaboration. It powers our business, our people, and our leadership in the solar energy industry. We are a company of big ideas and real results, doing work that matters. We care deeply about creating a safe environment where everyone has a voice to lead and impact. We will not let the murder of George Floyd, Breonna Taylor, Ahmaud Arbery, and countless other black people be in vain. We are committed to using our resources to ensure that we honor, protect, and celebrate all black lives.
In
this moment and in the future, black lives especially matter and demand our
compassion and attention. We will continue to strengthen our communities by
standing up against police brutality, racism, and injustice. We aren’t afraid
of the challenges that lay ahead; if we were, we wouldn’t have built this
company.
We send
our love to so many of you who are in anguish right now. While we may not know your personal pain, this pains us too.
Black lives matter. Black children matter. Black futures matter.
The Sol SOURCE is a quarterly journal that our team distributes to our network of clients and solar stakeholders. Our newsletter contains trends and observations gained through quarterly interviews with our team, and it incorporates news from a variety of industry resources.
Below, we have included excerpts from the Q2 2020 edition. To receive future Journals, please subscribe or email SOURCE@solsystems.com.
STATE MARKETS
New Jersey - On April 30, 2020 the New Jersey Solar Renewable Energy Credit (“SREC”) program closed and the New Jersey Board of Public Utilities (“BPU”) shifted solar projects to a temporary, transition incentive program (“TREC”). In the coming months, we expect the BPU to continue taking comments from the solar industry and other interested parties to ensure a smooth transition from the legacy SREC program to the new TREC program. Solar projects that did not receive PTO by April 30, 2020 will automatically rollover into the new TREC program, and new projects will be able to enter the transition program until a successor program is finalized.
While the transition program will provide short-term stability, the solar industry is still awaiting the BPU’s proposal of a long-term successor program. Sol, along with many others in the industry, continues to engage with other industry partners and with the BPU on the implementation of the TREC program and the proposal of a long-term successor program and will provide update and clarity as possible.
Massachusetts - On April 15, 2020, in response to the results of the 400 MW Review of the Solar Massachusetts Renewable Target (”SMART”) program, the Department of Energy Resources (“DOER”) issued an order both expanding the program to 3,200 MW and altering some important program features. While the expansion of SMART is great news, certain alterations have caused concern in the industry.
One of the most concerning revisions proposed by DOER is the 250% increase of the greenfield subtractor. This proposed change has many in the solar industry questioning if this too high of an increase, one that could impact project economics. An additional source of concern is the requirement that, unless otherwise exempted, all projects over 500 kW should include a storage component.
Overall, DOER’s proposed changes will alter how solar developers approach Massachusetts. The state held a virtual hearing on the proposed changes on May 22 and particular concerns should be shared with DOER through formal comment due June 1. Sol Systems will continue to engage and provide updates as the program revisions progress.
Illinois - For those active in the Illinois market, there is much to track. On the legislative side, the industry is working on a solution that would expand and provide additional funding for the Adjustable Block Program (“ABP”). Without an extension of the APB, new in-state solar projects could come to a halt.
On the regulatory side, Ameren filed a petition with the Illinois Commerce commission asserting that distributed solar capacity has reached three percent. However, many in the solar industry argue that Ameren’s calculation is flawed and have appealed the commission.
Specifically, if Ameren indeed reached the 3% threshold, it will trigger a review of their net metering compensation rate. Once net metered volume hits 5% the compensation rate will change. Sol will continue to track the Ameren proceeding and any legislative developments.
SOLAR CHATTER
The Solar Energy Industries Association (SEIA) has been hard at work finding federal solutions to COVID-19's impact on the industry, as well as working on the state level to ensure permitting, construction, and other essential activities continue to keep solar infrastructure projects moving forward. The organization has launched a COVID-19 resources webpage for solar companies.
In spite of efforts to retain renewables jobs during the COVID-19 crisis, an estimated 106,000 U.S. clean energy employees went out of work in March, with current predictions warning that the number could rise to as high as 500,000 by the end of June. These job losses come as the entire country and much of the world adapts to the drastic changes made in society to combat this virus.
There has been a measurable drop in carbon emissions from data recorded during mass stay-at-home orders, as many cars have been kept off the roads and planes out of the sky. Scientists have predicted a 6% global drop in energy demand for 2020, the equivalent of the energy demand of India.
As scientists have warned for years, the measures taken to combat climate change may need to be equally drastic in scope to those taken for COVID-19, and if the crisis has proven anything, it’s that the world is willing to make changes when convinced of a distinct and present danger. As we think ahead of what a post-COVID world may look like, the potential to institute massive change to turn the tides on climate change could emerge, if the climate change movement strikes while the iron is hot.
Although solar construction has been deemed essential in states like Illinois, much of the work needed to make progress on projects is halted by the absence of roles that have not been deemed essential, such as land surveyors. Our team has dug deep into the issue in a recent blog post.
Sol Systems, a national solar finance and development firm, delivers sophisticated, customized services for institutional, corporate, and municipal customers. Sol is employee-owned, and has been profitable since inception in 2008. Sol is backed by Sempra Energy, a $25+ billion energy company.
Over the last ten years, Sol Systems has delivered 800 MW of solar projects for Fortune 100 companies, municipalities, universities, churches, and small businesses. Sol now manages over $650 million in solar energy assets for utilities, banks, and Fortune 500 companies.
Inc. 5000 recognized Sol Systems in its annual list of the nation’s fastest-growing private companies for four consecutive years. For more information, please visit www.solsystems.com
How to Deliver Solar Safely, Soundly, and Successfully during COVID-19
Technology |
By Sintia Torres
In any scenario, the construction phase of a solar energy project brings with it a slew of logistical challenges and decision points for the delivery team. During the COVID-19 crisis, that list has understandably grown. COVID-19 has impacted all aspects of construction, both administrative and in the field. Where solar construction activities have been allowed to continue, thinking about and planning for procurement, permits and interconnection, host considerations, construction on site, and commissioning are all key to minimizing project delays.
Below are a few considerations to keep in mind during COVID-19 to help maintain schedules while implementing protocols that minimize safety risks for those involved. Note that this list of considerations is non-exhaustive, but it provides some of the most pertinent concerns the Sol Systems team looks to address.
Procuring
Equipment
Procurement
can be a challenge because once a purchase order is issued, there is not much a
buyer can control. Despite needs and changes that arise on the developers’ end,
manufacturers almost always run on their own schedules. However, the buyer (in
most cases the contractor building the PV system) can ask several questions to
better understand timing for material delivery. There are two important
questions to ask of manufacturers.
Where is the
material coming from?
At what capacity
are plants running?
Responses
to these key questions will provide the buyer with a sense of expectations for
delivery. Material coming from overseas raises a red flag, as it may not be
allowed to enter the Unites States. If plants are only operational at a certain
percentage, the plant may be backlogged and material delays may be expected.
The manufacturer should provide expected timelines for deliveries and provide
feedback when delays are expected, but it is the responsibility of the buyer to
check in on these constantly to adjust plans and have alternatives if delays
are expected.
Utilities
and AHJs
COVID-19
has caused a great deal of uncertainty around Authorities Having Jurisdiction
(AHJs), the
county or local offices that review and approve designs/applications for
project permits, and utilities.
States
and localities have approached COVID-19 in varying forms: reduced hours,
reduced personnel, or closures. It is the contractor’s responsibility to know
if the local AHJ is operational. If so, at what capacity is the AHJ operating?
The AHJ’s availability will determine if permit applications will be reviewed
and approved in a timely manner, therefore maintaining the project schedule. As
projects near completion, AHJ inspections are required. Are inspectors willing
to go on site and if so, are there special considerations for in-person visits
like safety masks and gloves, requirement for reduced personnel on site,
restricted times and dates for visits? A project cannot close until the project
receives the final sign-off from the AHJ inspector. Contractors must
accommodate these needs.
Utility
considerations are similar. Utilities remain operational because they are
essential businesses, but COVID-19 may be affecting their solar operations. Are
they allowing teams to go on site for system interconnections, witness testing,
and installation of net metering (where applicable), or are restrictions in
place? An interconnection, especially at a facility that operates full time,
requires coordination between multiple parties. Understanding where the utility
stands on this topic will minimize delays. Lastly, how does an interconnection
or meter swap scope differ for activities inside buildings versus outside? It
is the contractor’s responsibility to ask these questions in advance and
prepare.
Hosts
Another
important consideration is the system host. Whether the PV system is a ground
mount, a canopy, or a rooftop, the contractor must understand the host’s
requirements. Is the host allowing construction at its site? If the host is
allowing construction, has that party issued special considerations or
protocols to take while on site? For example, they may require temperature
checks and sanitizing stations, limiting the number of construction employees
allowed on site, and limiting or restricting deliveries to the site. These
protocols impact construction activities and contractors must find ways to accommodate
these into the schedule. A limitation on the number of deliveries allowed on
site may require an adjustment in the sequence of activities. Close
communication with the host to coordinate these activities is essential to
project success.
Construction
Understanding
the external variables around construction is only a part of the planning
phase. Once the construction team is ready to go on site or resume its activities,
there are several considerations to take into account. Are there activities
that require close contact with others, for example module installation and
racking torqueing? If so, how should these activities be treated to ensure
everyone’s safety? The contractor should consider taking additional safety
precautions such as morning and evening safety check-ins, staggering lunches,
requiring the use of masks and gloves, requiring each employee to have and use
its own tools, and requiring each employee to clean machinery like lulls and
cranes after each use. Nothing should come before the safety of workers.
Commissioning
and Testing
The
last phase of construction is commissioning and testing. While some contractors
perform this in-house, others require third parties to perform testing. If so,
is the preferred testing company willing to have their employees travel to the
site? These same questions are applicable for manufacturer commissioning. Are
there company travel restrictions preventing or delaying personnel from
performing these activities? The contractor must consider how this impacts the
schedule and plan for alternatives, like hiring a certified third-party
commissioner who is available and willing to travel to the site.
In these uncertain times, solar energy contractors are responsible for ensuring the safety of their teams and all those who visit their project sites, while maintaining the agreed upon construction schedule and adhering to host, utility, and AHJ requirements. Clear communication, attention to detail, proper precautions, and keeping up with evolving health recommendations can ensure clean energy is put into the ground today safely and successfully.
ABOUT SOL SYSTEMS
Sol Systems is a leading national solar energy firm with an established reputation for integrity and reliability across its development, infrastructure and environmental commodity businesses.To date, Sol has developed and/or financed over 850 MW of solar projects valued at more than $1 billion for Fortune 100 companies, municipalities, counties, utilities, universities and schools. The company also actively shapes and trades in environmental commodity and electricity markets throughout the United States. The company was founded in 2008, is based in Washington D.C, and is led by its founder. Sol Systems works with its team, partners, and clients to create a more sustainable future we can all believe in. For more information: www.solsystems.com
Why (and How) the Solar Finance Market Is Changing in This Crisis
Investment |
By Yuri Horwitz
This is an excerpt from the Q2 2020 edition of The SOL SOURCE, a quarterly electronic newsletter analyzing the latest trends in renewable energy development and investment based on our unique position in the solar industry. To receive future editions of the journal, please subscribe.The article was originally written for and published by Greentech Media.
The renewable energy asset class in the U.S., particularly solar and wind projects, is something of a safe haven for investors looking for non-correlated, stable, dollar-denominated long-term cash flows. But the solar market, like every sector of our economy, is changing amid the COVID-19 pandemic.
It is tempting to collapse these changes into a simple takeaway, like “tax equity is fine” or “rates haven’t changed." But the $20+ billion financial market supporting the solar industry is anything but simple, and COVID-19 will have different impacts on different segments of the industry and different players within those segments.
The investment community generally works like a waterfall where institutional investors drive investment into companies, assets or funds, which in turn often invest themselves.
Institutional investors are generally defined as pension funds, insurance companies, sovereign wealth funds, mutual funds, commercial banks and endowments investing on behalf of themselves or their members. These investors rank investment opportunities based on the underlying stability of returns, historic volatility, counterparty risk, liquidity and other factors. The different asset classes are characterized along a spectrum, running from "core" to "opportunistic."
A core investment in solar energy might be a fund or portfolio strategy focused on purchasing debt instruments on a 20-year contracted asset with an investment-grade counterparty. An example is the $2 billion in green bonds that Bank of America offered in 2019. An opportunistic investment might be a private equity firm investing in a portfolio of development assets in PJM expected to yield double-digit-percentage returns.
Both types of investments are impacted by COVID-19 — but not equally.
During times of crisis, institutional investors narrow their investment aperture, and there is a reallocation of investment from the higher-risk/higher-yield investments in opportunistic funds to lower-risk core funds. These investors immediately slow down the origination and underwriting machine until they have a better understanding of what is going on. In the last three months, a sizable number of opportunistic investments have become impaired amid the downturn. They might also set cash aside to support the investment or try to sell their interests if there is a liquid market.
Finally, the commercial paper market (debt backing corporations) is over $1 trillion in value, and this market has a massive impact on almost all institutional balance sheets because these investors hold so much of these investments. In one example, while Disney+ may be doing well, Disney itself was recently downgraded due to COVID-19’s impacts on its theme parks. Once a corporate credit rating is downgraded, an institutional investor that owns commercial paper must set aside additional capital to support the investment. This reduces liquidity.
Institutions can also sell the security, but when multiple corporates are downgraded, everyone begins to sell at the same time, and pricing declines precipitously. This is one of the most important credit markets for the economy, which is why the Federal Reserve of New York recently launched the Commercial Paper Funding Facility to support this market.
This broad reallocation of risk and investment impacts the entire solar industry, but it especially impacts those funds that support the more entrepreneurial efforts that have historically helped expand the market.
Impact on sponsor and development funds in solar
Funds that are backed by institutional capital and are structured to buy and hold assets over the long term generally target more conservative returns with long-term contracted cash flows. Assuming these funds have committed capital, they will weather the current storm. Similar funds that have not been closed and committed may take longer to close given restrictions on travel: Try closing a $500 million fund over Zoom. But this asset class was compelling prior to COVID-19, and it will continue to be in the future.
Investments in private equity funds that are seeking higher returns in exchange for risk may struggle in the current environment. Those funds that have committed capital will likely be more cautious in deploying it, and riskier assets may receive less attention. Those without committed capital are going to struggle to raise it in this environment.
This risk-off cycle will hit investments in merchant assets, development assets, aggregation facilities, non-investment-grade strategies, high-yield portfolios and developers seeking development capital. These entrepreneurial efforts are critical and sow the seeds for the industry’s future. Inevitably, these constraints will favor companies with access to larger balance sheets, and it will accelerate the developer consolidation already underway in the solar industry.
COVID-19's impact on tax equity and debt
Banks are the primary participants in both the tax equity and debt markets for solar. Bank exposure to the recent economic downturn has been driven primarily by loans, and in some cases, loans made to extractive industries and to retailers who have been hit hard by this crisis. The themes here are similar.
Debt
On the lending side, even as interest rates have fallen, the spread (generally a premium over LIBOR) has increased from 1.25 to 1.75 or 2.00, and in some cases even higher. The scale of the opportunity and the commercial weight of the lender matter. Lending fees have increased proportionately as well. Bank spreads and fees increase to compensate them for lower all-in returns on capital that results from lower interest rates. It will be interesting to see how this market changes in the next few months as the country attempts to return to normal.
Compounding this is an overarching concern around liquidity. As concerns grow around the integrity of outstanding loans, banks suffer the same capital constraints as institutional investors and funds. Further, because this is an industrywide issue, banks are struggling to syndicate loans out to other bank partners. As larger banks struggle to make money on syndicating loans, they must underwrite the entire loan to a long-term hold, all driving up the cost of capital.
Lending has always been a relationship business. It certainly is now. In the current market environment, if a developer or independent power producer doesn’t have scale or historic relationships, it can be challenging to secure loans. The stronger the relationship and the larger the opportunity, the better the terms.
Tax equity
Tax equity provides anywhere from 30 to 40 percent of the capital stack for solar. A functioning tax equity market is critical to a healthy solar industry.
From the outside, the solar tax equity market often looks monolithic, with half a dozen primary participants. The reality is that there are dozens of participants behind these entities investing in funds or through syndication structures. Some of the largest solar tax equity investors are syndicating 50 percent of their volume. This has pros and cons for the industry.
A broader population of tax equity investors means that markets are more resilient than most people assume. A significant number of investors are grocery chains and tech companies that are weathering the crisis. Syndication also means that the solar industry is incentivized to find new tax equity. That’s mission-critical for everyone.
The drawback is that syndicators don’t control or always know the profitability or commitments of their clients. This is why many of the large tax equity investors are honoring the term sheets in front of them but are slowing down new origination. Many smaller syndicators representing corporate customers are putting deals on hold. And of course, the banks themselves have their own challenges right now, and some of the largest banks have stepped out of the market as their exposure to industries like natural gas hammers their portfolios.
This is our single largest concern for the industry, which is why we're working closely with the Solar Energy Industries Association to explore whether there may be tools at the federal level (like refundability of the Investment Tax Credit) that can help address these issues.
The path forward
Anyone who has helped build a company in this industry knows the relentless struggle. The most we can do for one another is to share our experiences and perspectives. Here are a few suggestions.
First, if you’re a developer, avoid transitioning into owning assets if you don’t already. This is not the time to be initiating a new phase in your development business, and it may be a good time to consider simplifying it.
Second, if you are going to work with banks to secure long-term debt or construction debt for your projects, find a good partner and invest in that partnership. Ask about their approach and ensure you trust them. The same goes for tax equity. We’ve seen both sides, having both deployed tax equity and worked with our partners to secure it. Relationships matter.
Third, if you’re developing early-stage assets or semi-merchant assets, ensure you’re focused on quality and tenor. Also ensure that you’re capitalized to carry your assets a bit further into the development cycle than you may have planned. If you are not, prune your portfolio.
Sol Systems is a leading national solar energy firm with an established reputation for integrity and reliability across its development, infrastructure and environmental commodity businesses.To date, Sol has developed and/or financed over 850 MW of solar projects valued at more than $1 billion for Fortune 100 companies, municipalities, counties, utilities, universities and schools. The company also actively shapes and trades in environmental commodity and electricity markets throughout the United States. The company was founded in 2008, is based in Washington D.C, and is led by its founder. Sol Systems works with its team, partners, and clients to create a more sustainable future we can all believe in. For more information: www.solsystems.com
The Dirt on Solar as an Essential Service: What happens when your work is “essential” but the services you rely on to complete your work are not?
Renewable Energy Procurement |
By The Sol Systems Team
Solar Designated
as an Essential Service in Illinois
On March 20,
Illinois Governor JB Pritzker signed an executive order instructing his
constituents to stay at home to limit the spread of COVID-19. All businesses
deemed "non-essential" were required to suspend operations, and all
travel not considered essential was prohibited.
After consulting guidance from federal agencies including the Centers for Disease Control, Department of Homeland Security, and Cybersecurity and Infrastructure Security Agency (CISA), the Solar Energy Industries Association (SEIA) determined that solar energy construction was considered an essential business and allowed to proceed.
“Workers
who maintain, ensure, or restore, or are involved in the development,
transportation, fuel procurement, expansion, or operation of the generation,
transmission, and distribution of electric power, including call centers,
utility workers, reliability engineers and fleet maintenance technicians.”
SEIA issued specific recommendations for installers, EPC’s, and O&M providers for avoiding viral transmission between contractors, potential customers, and partners. One example of these precautions is to ensure crews have the proper PPE and sanitizing equipment in their work vehicles. Additionally, solar energy site hosts and landowners would have to approve of any work conducted on their property during this period.
However, despite this guidance, many firms are open to interpret these orders as they see best fit, and even the Illinois Solar Energy Association (ISEA) has stated on its website, “each company needs to make its own determination if it considers itself an essential business under the state executive order.”
Can You
Dig It?
Since Gov. Pritzker’s executive order was issued, and while it might not be quite “business as usual,” Sol Systems has broken ground on several Illinois solar projects, moving forward to build project components such as fences and access roads. And, while the guidance does indicate that solar is an essential business, not all contractors have been able to complete the necessary tasks for Sol to continue its development plans to complete solar projects in Illinois.
For example, in the earlier stages of solar project development, two key goals are to
Uncover information about the site, and
Use that information to mitigate risk
What this looks like in practice is a series of site assessments that happen months or even years before solar energy construction can begin in earnest (and that’s if you are lucky). These site assessments are typically quite specific. They are completed by firms that offer specialized services, like environmental assessments, land surveys and records, and geotechnical assessments, which determine how to best design the solar array given the soil and rock on site. The assessments are typically a gating item to securing financing, locking in engineering plans, and starting construction. They are also, in theory, pieces of the project development puzzle that can reasonably continue during COVID (unlike, for example, a face-to-face customer meeting or an in-person zoning board meeting). Each firm is different and must assess their unique risk based on equipment used, operating procedures, distance travel, and crew size (to name a few factors). This is compounded by eagerness by employees to get back to work, and pressure by developers to push these items along by any firm that is able to safely complete on-site work.
The Plot
Thickens
To dig in
further on our Illinois sites under development, recently one project
experienced a small hiccup in which many of these specialized assessments were
completed as expected, but the full geotechnical assessment was halted.
Specifically, the contractor had implemented a company policy to stop all
on-site boring work (the type with a very large drill that shows us soil
profiles, not the type that makes you yawn) until the stay-at-home order is
lifted.
After this setback, we immediately got to work thinking of new ways to achieve our two goals of uncovering site information and using it to mitigate risk. For this project, what that meant was working with our partners to adapt to our new circumstances and constraints.
Can we dig in further
to publicly available records?
What desktop analysis
can be completed?
Does the site host or
landowner have older copies of these site assessments from prior development
that they can unearth for us?
Do our contractor
partners have any relevant local knowledge that might be used?
For this project,
the answers to these alternative paths forward was “yes.” And, while these
approaches might not be adequate to finalize a construction design or satisfy
all investor criteria, they can help push projects ahead so we don’t lose much
ground.
A Resilient
Solar Industry
As of May 6th,
Gov. Pritzker had extended the stay at home order effective until May 29th,
and had announced a five-phase plan, “Restore Illinois” for gradually reopening
the state.
So, as we continue through uncharted territory, we will continue to support our state and national solar associations as they promote solar development as an essential service, while serving as an industry resource wherever we can provide value. Sol Systems can offer legal expertise about definitions or essential services, offer more detailed information about how to complete site work in all stages of the project pipeline safely, and continue to share ideas on creative solutions to mitigate project resources.
ABOUT SOL SYSTEMS
Sol Systems is a leading national solar energy firm with an established reputation for integrity and reliability across its development, infrastructure and environmental commodity businesses.To date, Sol has developed and/or financed over 850 MW of solar projects valued at more than $1 billion for Fortune 100 companies, municipalities, counties, utilities, universities and schools. The company also actively shapes and trades in environmental commodity and electricity markets throughout the United States. The company was founded in 2008, is based in Washington D.C, and is led by its founder. Sol Systems works with its team, partners, and clients to create a more sustainable future we can all believe in. For more information: www.solsystems.com
Uniting with Local Governments to Engage Communities During COVID-19c
Policy |
By The Sol Systems Team
While a typical news cycle may lead you to think otherwise, the executive branch is not the most impactful level of government for the average American citizen. Our daily lives are most affected by a handful of our neighbors making decisions right down the road: noise ordinances, parking regulations, and building codes. These decisions are the outcome of collaborative processes such as community surveys and neighborhood meetings.
So, when a pandemic hits, what becomes
of community engagement with these local governments? Civil servants who rely
on public input are now entering territory that can significantly distort
representation; switching to online surveys or video conferencing can
marginalize the group of senior citizens who regularly show up to council
meetings, while reminding twenty-somethings that they have a voice too (and that
no one appreciates electric scooters being dumped everywhere). The family-run
farm that supplies dairy and meat for the only grocer within 30 miles doesn’t
have Google Fiber that allows them to effortlessly dial in on Skype. Strong relationships
with local leadership are critical in keeping exurban and rural America
connected and heard.
Local governments are adapting how
they maintain transparency of their day-to-day work while observing physical
distancing guidelines. Even prior to stay-at-home orders, improving participation
in local elections, surveys, and other engagement was a feat. And, now
distancing is cultivating concerns that governments will lose connectivity with
constituents. Yes, executive orders and waivers can mitigate some issues like
in-person plan review requirements or neighborhood meetings for grant
compliance, but many small jurisdictions are already overwhelmed with
bureaucratic procedures. Drafting and completing these stop-gaps will be a huge
burden for municipal staffs with limited resources.
Working in utility-scale solar energy development, I became familiar with the small, rural counties of the United States and the challenges they face on a daily basis. Many jurisdictions have only part-time staff and employ planners that also work at neighboring towns. These communities prioritize efforts to keep their publics engaged and informed.
Public input is also a vital
component of development and construction, and the solar industry must welcome
involvement and earn trust from the citizens we respect so much. Solar developers
value the landowners that lease us their land without the guarantee that the
project will actually pencil and be built, the neighbors that tap us on the
shoulder when the subcontractors park on their lawn, and the people that show
up to public hearings about our projects to learn about what we do. It warms
our hearts to share the benefits of solar and help others navigate
misinformation. We love connecting with and learning from our neighbors.
While a lot of rural Americans do not have access to high speed internet, many do rely on their land-line telephones for communication. What if developers collaborate more closely with jurisdictions on appropriate notification ranges and work the phones to aid in collecting public input? We can help boost the capacity for government staff to stay connected with constituents about projects via telephone outreach and citizen network programs that proactively inform and invite feedback about proposals in each jurisdiction. Phone conversations have proven more effective in responsiveness compared to mailer campaigns. And, the two efforts combined offer the greatest chance for valuable, lines of communication directly to the companies proposing the projects. This approach can provide a comparable level of information sharing as public hearings while removing the obstacle of scheduling conflicts, and, of course, adhering social distancing guidelines.
It’s my dream that this challenge
can ultimately unite us across all sectors. Solar companies can only become
productive members of the communities they serve with public input and close collaboration
with local governments.
At Sol Systems, we have attended numerous local government meetings over the years to ensure our projects complement the values and goals in the communities we serve. Today, we must lead with empathy for both those directly impacted by the virus, and also for local government leaders working to keeping us all healthy, connected, and engaged as we navigate our current circumstances.
ABOUT SOL SYSTEMS
Sol Systems is a leading national solar energy firm with an established reputation for integrity and reliability across its development, infrastructure and environmental commodity businesses.To date, Sol has developed and/or financed over 850 MW of solar projects valued at more than $1 billion for Fortune 100 companies, municipalities, counties, utilities, universities and schools. The company also actively shapes and trades in environmental commodity and electricity markets throughout the United States. The company was founded in 2008, is based in Washington D.C, and is led by its founder. Sol Systems works with its team, partners, and clients to create a more sustainable future we can all believe in. For more information: www.solsystems.com
