Women in Power: The Team Behind Nebraska’s Largest Solar Project
Company Culture |
By The Sol Systems Team
The solar industry is beginning to take steps to diversify and create new leadership and professional development pathways for women. At Sol Systems, we are completing our first project led by an all-woman development team. It is also Nebraska’s largest solar project and Nebraska Public Power District’s (NPPD) first battery storage project.
The project is an 8.5MW community solar project with 1MW battery storage in the City of Norfolk and was developed by a partnership that includes Sol Systems, GenPro, and Menser Development. Anna Noucas, Director of Origination, led the competitive RFP process submission and contract negotiations after the project was awarded. Anna’s initial Norfolk team consisted of Jill Rathke - Business Development Associate, Lauren Aycock - Project Engineer, and Erin Hickok - Senior Investment Analyst.
As the project moved into the development phase, Bridget Callahan, Project Development Manager, led the coordination of site studies and the project’s interconnection process with NPPD to ensure a smooth financing and construction process. From there, Meg Pieper, the Pre-Construction Manager, helped set construction timelines and worked to ensure project goals and needs were communicated and agreed-on by the project partners to lead the way to commercial operation, anticipated to be achieved in the spring of 2022.
Not only is this project going to be NPPD’s first solar-plus-storage project, but it is also paired with positive community and environmental impact. The project is part of NPPD’s SunWise program, a community solar initiative where customers who sign up to obtain a share will receive an electricity bill credit. The credit allows customers to benefit from solar without the upfront cost of building a solar system on their property.
In addition, the project incorporates an on-site pollinator habitat to support the local ecosystem and local pollinator populations, like bees. The inclusion and design of the pollinator habitat was completed by performance engineer Juliana Isaac. Once the project is operational, students in the Electrical Construction and Control Program at Northeast Community College, Norfolk’s local community college, will work alongside project operators and partners to gain onsite and practical solar experience. As a part of the project, the collective will provide three scholarships to students participating in the internship program, an initiative organized by Sol’s Marketing Coordinator, Claire Siwulec.
The women that designed, developed, and built the Norfolk project took charge during the COVID-19 pandemic and created a highly efficient, effective, and flexible team. The Norfolk project leaders exemplify the added value of female leadership within the industry. With women comprising only 30% of the solar workforce, there is still so much work to be done, but we hope the story of Norfolk can inspire companies to act to further the progress being created today.
Mexico’s Energy Reform: Retreating from Private Energy Markets
Policy |
By The Sol Systems Team
Mexican lawmakers are close to dismantling the national renewable energy market by acting to pass a constitutional reform proposal that would fundamentally change the Mexican national power sector leaving renewable energy buyers and developers with nowhere to turn. The proposal would devastate the energy market in the eleventh largest economy in the world.
Despite increasing corporate and consumer demand for new Mexican renewable energy, the current administration is pushing hard to pass the constitutional proposal. In essence, the proposal would renationalize the Mexican power industry and set Mexico on a backward slope, potentially erasing decades of progress in its journey to clean energy.
Current Mexico Market
In 2014, Mexican energy reform policies, while not perfect, opened the door for private energy firms to participate in the power sector. It created a wholesale market, independent system operator (ISO), and created one of the most competitive global solar markets – largely driven by corporate and customer demand.
Yet, after the election of President Andrés Manuel López (AMLO), the 2014 energy reform policies have been re-branded as a threat to the state-run electricity utility - Comisión Federal de Electricidad (CFE). It is becoming increasingly clear that AMLO is prioritizing state-owned enterprises and their legacy fossil fuel supply over a competitive Mexican energy economy. A position strongly supported and advocated for on behalf of Mexican fossil fuel monopoly and utility giants, Pemex and CFE.
Energy dominance is part of AMLO’s “Fourth Transformation” (4T) plan focused on returning economic power to the state, and as some experts have observed “change [or threaten] the very nature of Mexican identity.”[1] As a result, anti-renewable actions continue to mount, for example Executive Actions from May 2020 solidifies AMLO’s position. Shortly after AMLO was elected, the renewable energy auctions were cancelled, and it became increasingly clear that obtaining the national level permit for new renewable energy projects would be political in nature and increasingly difficult, often not possible.
Yet, one positive area of growth in Mexico has been the Generación Distribuida (DG) segment of the market – where installations less than 500 kW could receive accelerated net metering and interconnection approval. There is very strong customer demand for DG resources given both increased corporate sustainability targets and the growing concerns over rising national electricity rates.
Nevertheless, AMLO took executive action that limited large-scale solar development in favor of state-run fossil fuel entities. Yet, the Mexican Judicial branch has consistently denied his attempts to make unilateral change calling them unconstitutional. Some view the Mexican legal system as the key source of hope for the renewable energy industry during AMLO’s 6-year term limited presidential term. This hope was somewhat bolstered when during the Mexican mid-term elections AMLO’s political party - Movimiento Regeneración Nacional (MORENA) - lost several seats, although MORENA still performed well at the state level.
The New Energy Reform
The AMLO administration proposed the current Energy Reform at the beginning of October 2021, making an unprecedented attempt to renationalize the power industry, likely crippling the country’s clean energy transition and economic growth for years to come. This is evidenced by administration’s plans to table discussions on decommissioning fuel oil burning power plants, and the intention double-down on the use of PEMEX oil for power generation. This is coming from information in the energy ministry’s 2020-2024 development plan[2]. Similarly, Mexico’s increased focus on coal to generate electricity and AMLO’s acknowledged “fascination with fossil fuels” leave little doubt as to the goals and consequences of the proposed changes.
This proposed new energy reform would impose restrictions on private participation that are even more stringent than the state of the Mexican power sector prior to the 2014 Energy Reform. The proposal would make it illegal for private companies to directly procure power or self-supply energy.[3] The actions would make Mexico’s generation mix both dirtier and less reliable, likely leading to more rolling blackouts and brownouts already causing issues as energy supply growth stalls and electricity prices continue to increase.
Deeper Dive on What the New Energy Reform means?
Source: Data from Consejo Coordinador Empresarial
The new energy reform targets articles 25, 27, and 28 of the Mexican constitution with the goal of reinstating state monopoly in the electricity sector by substantially changing these sections. The reforms would re-vertically integrate the national utility CFE, folding in the CRE (the energy regulatory commission) and CNH (oil regulator) into SENER (the Cabinet Department for energy), and folding CENACE (the independent system operator) into CFE. Under the new reforms, the Wholesale Electricity Market (MEM) would be effectively eliminated as CFE would oversee dispatch, determine transmission /distribution tariffs, and all pending and existing permits for large scale generation would be cancelled along with agreements made by the public sector to purchase electricity.[4] The natural concern is that the new energy reform would remove most all independent regulatory checks and any semblance of a fair marketplace.
Moving forward, CFE would be constitutionality entitled to always generate at least 54 percent of Mexico’s electricity– theoretically leaving up to 46 percent for private generation, but there is no clear way or mechanism for private generation to sell electricity, and it is hard to imagine how investors and developers will have confidence to invest in new renewable projects given this uncertainty and CFE’s discretionary power over any project.
The proposal also ends the clean energy certificates (CELs) program – the Mexican equivalent of renewable energy credits (RECs) – a further blow to any type of market structure or incentive that would support Mexico’s renewable energy targets.
Generación Distribuida (DG)
It is still unclear how distributed generation (DG) would be affected by this proposal. The text o the energy reform does not explicitly target DG, but it does propose cancelling all private generation contracts. Given the Administration’s primary focus on eliminating the larger self-supply private generation contracts (as opposed to rooftop distributed generation) combined with previous support from CFE for DG, it could be interpreted to mean that 500 kW and smaller systems will not be substantially impacted. However, the language canceling private generation contracts potentially creates uncertainty around DG too - which will put many DG investments in limbo and make it more difficult to confidently develop DG projects. Even if DG is initially unaffected, significant growth could lead to future action from the administration.
Rooftop Solar in Mexico eliminates approximately 1.3M tonnes of CO2 annually according to SENER[5] and has the capacity to increase given strong customer demand and a well-established industry. This too is threatened by this Energy Reform.
Mexican Legislative Outlook
It is hard to understate how drastic the new energy reform proposes are and how many projects, companies, and individuals the reforms would negatively impact. While on its face, the legislation lacks the two-thirds majority support it needs to pass, AMLO has increased pressure on the Partido Revolucionario Institucional (PRI) party, the party that first nationalized the oil and gas industry, in an attempt to garner enough votes.[6] According to people close to Mexican political leaders, there is an increasing sense and concern that some version of the new reform will likely pass.
What This Means
We expect a vote will happen before December. If any version of the reform passes, it seems realistic to expect that:
These actions violate the USMCA and will likely lead to reprisals not only from private firms, but from the US and Canadian governments as well.[7]
This move would put at least $45 Billion USD of projects in jeopardy and may be considered expropriation of these projects under international law.[8]
Mexico has set targets of reducing green-house gas emissions by 36% by 2030 through the Paris Climate Agreement. This energy reform likely eliminates any realistic scenario of achieving this given Administration prioritization to date.
For corporations, the dirtier and more expensive power comes with a third strike-it comes in clear contravention to their COP26 Goals.
This is projected to be devastating for the Mexican economy as seen in a study conducted by the Consejo Coordinador Empresarial, the renewable energy industry has the potential to increase the Mexican GDP by $748 million USD by 2024, generate nearly 288,000 direct, long-lasting jobs, mitigate 55 Mt of CO2 equivalents, and generate massive savings for Mexican businesses and consumers.[10]
Moving Forward
If passed, the new energy reform proposal will negatively impact Mexico, international climate, clean energy, trade, and corporate interests for the US and US actors as well. The reforms will likely trigger many renewable energy firms to exit the Mexican power market and would hamper the ability for corporations and investors to meet clean energy and sustainability goals in Mexico. Renewable energy is a global growth engine that can fuel economic and community recovery and growth.
The Sol SOURCE is a renewables journal that our team distributes to our network of clients and solar stakeholders. Our newsletter contains trends and observations gained through interviews with our team, incorporating news from a variety of industry resources.
Below, we have included excerpts from the October 2021 edition. To receive future Journals, please subscribe or email SOURCE@solsystems.com.
STATE MARKETS
California – Although the potential recall of Governor Newsom dominated headlines this summer, in the end, he garnered two-thirds support to remain in office. On September 23, 2021, Governor Newsom signed an Executive Order that requires all new cars and passenger trucks sold in California to be zero-emission by 2035. In addition, all medium- and heavy-duty vehicles must be zero-emission by 2045 where feasible (2035 for drayage trucks). Relatedly, California utilities are examining how to accommodate widespread EV adoption, with potential opportunities for DG. Closing briefs in the NEM 3.0 proceeding have been filed and we expect a proposed decision by early December 2021.
District of Columbia – On August 13, 2021, the DC Public Services Commission (PSC) proposed to require all renewable generating facilities, including behind-the-meter solar generators, to use a revenue-grade production meter or inverter-based production measurement equipment, as opposed to the current estimation procedures. Hundreds of individuals, organizations, key elected officials, and DC Department of Energy and Environment (DOEE) oppose major elements of the proposal. Notably, D.C. Councilmember Mary Cheh recommended the final rule provide exemptions for both legacy systems (i.e., those in operation before the rule takes effect) as well as any resident unable to afford the required system upgrades. The comment deadline closed October 13, 2021, likely pushing a final rulemaking into the winter at the earliest, and potentially after the departure of Commissioner Phillips, who has been nominated to the Federal Energy Regulatory Commission (FERC).
Illinois – After months of negotiations, on September 15, 2021, Governor Pritzker signed the Climate and Equitable Jobs Act (CEJA), a landmark law which sets Illinois on a path to 100 percent clean electricity by 2050 and, importantly for the solar industry, opens and re-funds the Adjustable Block Program (ABP), which supports solar on schools, community-driven community solar, distributed generation (DG) that utilizes equity-eligible contractors, small DG, large DG, and community solar. The law also includes new labor standards including requiring the payment of prevailing wage for all solar projects that receive RECs from the Illinois Power Authority (IPA). Per the enacted law, the IPA announced it was withdrawing their current LTRRPP revision, with a new draft expected early 2022.
Massachusetts – On September 22, 2021, the Department of Energy Resources (DOER) finalized several SMART guidelines, including changes to energy storage, alternative programs for community shared solar tariff generation units and low-income community shared solar tariff generation units, and low-income generation units. Separately, we anticipate the Department of Public Utilities (DPU) to issue an order in Docket 20-75 (interconnection cost socialization) by the end of this year.
New York – On August 24, 2021, Governor Kathy Hochul August 24, 2021, Governor Kathy Hochul took office and will serve the remainder of the current term, setting up an active primary for next year’s election. Governor Hochul made a series of Climate Week policy announcements, including a near-doubling of the NY-SUN distributed solar program to 10 GW of installed solar capacity by 2030, with details of this and several solar programs forthcoming. Governor Hochul previously signed legislation phasing out the sale of emitting cars by 2035. On 9/30, Governor Hochul designated Rory Christian (previous Environmental Defense Fund clean energy leader) as chair of the Public Service Commission and chief executive officer of the Department of Public Service.
New Jersey – After months of stakeholder processes and input, the Board of Public Utilities (BPU) released four orders on July 28, 2021, including a detailed Solar Successor Incentive (SuSi) Program and the official closure of the Transition Incentive Program (August 27, 2021). The SuSi program is comprised of two separate incentives, the Administratively Determined Incentive (ADI) that provides fixed tiered incentives to specific project types five megawatts (MW) or smaller and the Competitive Solar Incentive (CSI) that will focus on projects over five MW (anticipated mid-2022).
North Carolina - On October 13, Governor Roy Cooper signed House Bill 951, Energy Solutions for North Carolina, which includes a number of provisions aimed at increasing clean energy deployment and reducing carbon emissions in the state. The bipartisan law sets as a target a 70% reduction in carbon emissions by 2030 and carbon neutrality by 2050. The law also provides provisions for utility procurement but falls short of meeting the needs of businesses and other large energy consumers.
Ohio – With Governor DeWine’s signature, SB 52 went into effect on October 11, 2021, revising the power siting approval process for utility-scale solar and wind projects (over 50 MW). The law requires approval from the county prior to applying to the Ohio Power Siting Board (OPSB), which will now include as voting members for each specific solar or wind project, two county and township government representatives or designees. The law also allows counties to establish restricted areas where wind and solar projects are prohibited, subject to referendum and requires developers to submit decommissioning plans when applying to OPSB.
Pennsylvania – The Pennsylvania Legislature held several informational legislative hearings this summer to discuss providing a stable investment framework to increase solar development in the Commonwealth, preservation of agricultural lands, site decommissioning, and forced labor prevention. Separately, the Commonwealth remains on track to begin participating in RGGI in 2022.
Virginia – Dominion filed its RPS compliance plan on September 15, 2021. Separately, the State Corporation Commission (SCC) is working to finalize the certifications for resources that will be used to comply with the Virginia Clean Economy Act (VCEA). The matter is currently awaiting a Commission Order that will approve the finalized GATS business rules for Virginia. Once approved, the rules are expected to be retroactive to January 1, 2021, meaning any RECs generated after that date from an eligible RPS resource should be available to satisfy Virginia RPS requirements.Click here to learn more about Virginia REC options.
FEDERAL BUDGET & INFASTRUCTURE WATCH
After a whirlwind summer on the Hill, the Biden Administration released the Build Back Better (BBB) reconciliation package on October 28; this is one of four must-pass pieces of legislation this fall – funding the federal government (the current continuing resolution runs out December 3), extending the debt limit, enacting the bipartisan infrastructure bill, and passing the clean energy and climate provisions in the reconciliation package (see our main trend article above). The extension and expansion of the clean energy tax credits as included in the BBB are critical to the solar industry’s continued growth.
President Biden and his trade team face a number of decisions this fall that could break what Congress makes under the BBB – extending Section 201 tariffs and/or granting the pending AD/CVD petitions could severely hamper solar supply chains just as we need them more than ever.
This month, Treasury Secretary Janet Yellen rightly declared climate change a systemic risk to the financial system. The Financial Stability Oversight Council report states it plainly: “Climate change is an emerging threat to the financial stability of the United States.”
SOLAR CHATTER
The Solar Energy Industries Association (SEIA), released its quarterly Solar Market Insight report on Q2 2021, in which the U.S. solar market surpassed 3 million total installations. The 5.7 GWdc of installed solar is the country’s largest Q2 in history, a large part of why solar accounted for 56% of new electricity generation added in the first half of the year. After a tough year marred by COVID-19, the solar industry, as it always has, continues to show impressive resilience.
SEIA released a first-of-its-kind online certification program that rewards energy companies for putting diversity, equity, inclusion, and justice (DEIJ) best practices in place. The Diversity, Equity, Inclusion, and Justice Certification Program provides tools and guidance for companies as they analyze their practices and implement workplace solutions that improve diversity. As companies participate and excel in the program, they are eligible to receive either a Bronze, Silver, Gold, or Platinum certification.
As DC PSC Commissioner Phillips awaits confirmation to the Federal Energy Regulatory Commission (FERC), the Commission has split 2-2 on two major ISO/RTO filings, letting them go into effect by law. As a result, both PJM’s Minimum Offer Price Rule (MOPR) and the new Southeast Energy Exchange Market (SEEM) went into effect without a FERC order. Both can be appealed, setting up Commissioner Phillips as the decisive vote on both, as well as rulemakings coming out of the current push to reform interconnection and transmission queues.
On September 15, 2021, PJM proposed to reform interconnection queue processing with the intention to clear the current backlog and reform the process going forward. PJM proposes to move from the current “serial” cost allocation evaluation (aka first in, first considered) to a “cluster” approach similar to other RTOs. Details remain to be worked through, but clearing the 140 GW PJM queue would have significant climate benefits, given the vast majority of these projects are renewables.
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 1 GW 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, visit https://www.solsystems.com
Robots Roaming Around Solar Projects? Sol Systems’ Newest Tech Addition
Sustainability |
By The Sol Systems Team
The robots are coming...to our solar sites! This spring, Sol Systems installed robotic mowers at its 1 MWac project in Rock Falls, Illinois to assist with vegetation management.
For Rock Falls, Sol Systems collaborated with the Langton Group, the Midwest arm of Automated Outdoor Solutions, to deploy robotic mowing solution at the site. Each of the five robotic mowers managing the site runs up to ten hours a day, mowing its section of the six-acre project. The mowers are self-sufficient and can dock in their stations to charge as needed. The mowers’ constant maintenance means that site vegetation is always under 6 inches in height.
As is common with solar projects, we must properly manage onsite vegetation (a fancy way of saying mow the grass) in compliance with the City. Sol regularly reviews different vegetation management options for our projects, which, in addition to traditional grass mowing, now include recent industry innovations such as native habitat, sheep grazing, and robotic mowers.
Ultimately the decision to proceed with robots came down to a combination of sustainability, economics, and a desire to better understand how robots would perform in the field. Although the robotic mowers are not 100% carbon neutral, they were the most effective and most sustainable solution to properly manage the project. We’re always excited to incorporate a new strategy to our vegetation management portfolio, which includes a growing number of pollinator habitats and now, robots.
About Rock Falls
Sol Systems installed the Rock Falls project in late 2020 with the Illinois Municipal Electric Agency (IMEA). Through a 20-year power purchase agreement, Sol Systems developed the project with zero upfront costs and helps IMEA place solar on the grid while diversifying its energy supply. This 1 MWac ground mount project spans over 6 acres on the city’s land and produces approximately 1,780,200 kilowatt hours each year, providing enough power to serve 170 Rock Falls residents. This project helps IMEA offset 850 tons of carbon each year.
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 1 GW 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, visit https://www.solsystems.com/
To pay homage to our dedicated customer service team at Sol Systems, we launched our Service Spotlight Series! This interview series provides the opportunity for our customers and partners to get to know their customer service representatives and learn about what goes into serving our 16,000 customers each day. Our series continues with Chaz Moore, a SREC Customer Operations Analyst at Sol Systems.
Chaz Moore is a SREC Customer Operations Analyst on the SREC team.
1. What sparked your interest in solar energy?
My mom lives in California and has a small solar system on her house. When she bought it from the previous owner, this was my detailed introduction to solar energy. I learned about the ins and outs of residential solar energy and how it can save customers money. Through this, I decided to correlate my knowledge and interest with solar energy into finding different solutions for others to save money, which led to my current role at Sol Systems.
2. How have your previous roles prepared you to transition to your current role on the SREC team?
My previous roles within bank operations helped me focus on the quality of work and ability to use external and internal resources to provide great service to customers. That position gave me the ability to multitask and work on a multitude of projects to be successful and efficient in my everyday work.
3. Why do you like working with SRECs specifically?
I’ve always enjoyed dealing with finance and monetary funds. I enjoy the relationship between the trading aspects of SRECS and the issuance of payments to customers. That’s what makes the job feel fulfilling.
4. What’s your favorite part of working on a customer service team?
I enjoy learning about different variables at one time and learning more about the diversity of customer service in relation to a different type of question or project. This allows me to discover more about the discipline and overall scope of my work at Sol Systems.
5. Outside of Sol, what do you like to do for fun?
When I’m not at work, I thoroughly enjoy exercising at the gym, hanging with my friends, or discovering the latest Sci-Fi TV show.
The Sol SOURCE is a renewables journal that our team distributes to our network of clients and solar stakeholders. Our newsletter contains trends and observations gained through interviews with our team, incorporating news from a variety of industry resources.
Below, we have included excerpts from the June 2021 edition. To receive future Journals, please subscribe or email SOURCE@solsystems.com.
STATE MARKETS
California – Net energy metering (NEM) enables solar energy owners to net the solar energy they produce against their retail rate and is the backbone for distributed generation. Each state has a slightly different variation, and California’s approach has always been complex, but largely favorable for solar. The search for California’s net metering successor program, NEM 3.0, officially began late last year and the California Public Utilities Commission (“CPUC”) is currently evaluating all NEM 3.0 proposals that were submitted by March 2021. Several pieces of legislation are now introduced that would revise California’s renewable portfolio standard, further electrify the transportation sector and clarify tax exemptions for solar and other renewable projects. As always, we continue to see many moving parts from the country’s clean energy leader, but we expect to see more clarity in the coming months, with a ruling on NEM 3.0 expected by Q4.
Delaware – The State of Delaware has had a challenging history with scaling renewable energy in the state and actually fulfilling (or implementing) its renewable portfolio standard (RPS). That is about to change. Governor Carney signed Senate Bill No. 33 (“SB 33”) on February 10, extending and expanding Delaware’s RPS. The bill made clarifying alterations to the RPS freeze requirements included in the previous statute, which historically caused controversy at the Public Service Commission (“PSC”). To read more about the bill and what it means for the state, check out our write up on it in the blogs section of SOURCE. In addition to Senate Bill No. 33, Senate Bill No. 2 - which would bring community solar to Delaware - recently passed the Senate, and the industry is watching to see what happens in the House. It’s shaping up to be a big year for solar in Delaware.
Illinois – The Prairie State is expanding on its historic commitment to solar. Toward the end of 2020, the Illinois Commerce Commission (“ICC”) issued a decision altering the calculation Ameren used to determine NEM penetration. This decision put Ameren below 3%, which is the threshold for re-evaluating the NEM compensation and the DG rebate rates. The ICC’s decision gives the industry more time to prepare for a future transition to a new NEM compensation rate. Yet, pending legislation in Springfield is expected to positively amend critical language regarding this proceeding. Specifically, Governor Pritzker and other state leaders are in negotiations regarding what will hopefully be an omnibus energy bill that among other things would refund the Adjustable Block Program (“ABP”) and increase the goals and funding. Without legislative action, the ABP will effectively come to a halt and new DG solar opportunities will disappear. As we understand it, the omnibus bill could change the 3% and 5% thresholds that trigger alterations to the NEM and DG rebate rates, the same triggers that are at issue in the Ameren proceeding. Overall, the package would provide necessary clarity to the industry on the potential to finance and develop future solar projects in Illinois and would send the message that Illinois is reopen for business. Negotiations on the bill are in the final stages, with some politicos predicting a vote within the next month which would mean Illinois could reopen the ABP before the end of the year.
Maine – You can’t get there from here…or maybe you can. As with any state’s first renewable incentive program, Maine is working out the kinks of its Net Energy Billing (“NEB”) framework with positive momentum. The state legislature has introduced several bills focusing on NEB reforms and working groups consisting of legislators, industry stakeholders, and members of Governor Mills’ office are beginning to work out how to deal with the high cost. Chairman Lawrence and Representative Grohski recently introduced amendments to L.D. 936 which would require Governor Mills’ Energy Office to submit an interim report on NEB alterations and impacts by January 2022. Notably, the language directs the Governor’s Energy Office to prioritize distributed generation that is sited on previously developed land (such as brownfields), within a low-to-moderate income community, or directly serving customer load. Separately, working groups have begun on how to deal with the high cost of projected interconnection upgrades and other issues that will come from legislative action.
Maryland – In 2019 the Maryland legislature passed the Clean Energy Jobs Act (“CEJA”), which included a solar carve-out of 14.5% by 2030. Unfortunately, as a result of Covid-19-related construction delays and price increases due to Federal tariffs, the industry has fallen short of meeting the incremental targets set out in the initial legislation. To ensure that the slow-down in development didn’t result in the payment of excessive solar alternative compliance payments (“SACP”) and a higher corresponding ratepayer impact, the industry rallied around reducing the solar carve-out to help reduce the number of SRECs needed, and therefore, the number of SACPs paid for a shortfall. With the extra head-room created by reducing the solar carveout, the industry was able to advocate for an increased SACP. The theory is that with a higher SACP, and hopefully corresponding increased SREC pricing, the industry will overcome the shortfall and be able to ramp up new in-state solar development.
Massachusetts – There is often an air of impending change in Massachusetts when it comes to clean energy and the laws that govern it. One of the most recent changes in Massachusetts is the passage of Senate bill 9 (“SB9”), which alters the RPS and modifies the Massachusetts climate roadmap. SB9 became law in March after a previous version of the bill failed at the end of last session. Notable provisions include a goal to hit net-zero GHG emissions by 2050, a 40% Class I RPS increase by 2030, an expansion of net metering, and the inclusion of property tax exemptions for certain renewable energy projects. At best, SB9 will provide long-term stability together with a greater focus on community impact. In addition to RPS alterations under SB 9, the state Department of Energy Resources (“DOER”) recently altered the regulations governing the RPS, which includes, among other things, shortening the life of SREC I systems retroactively to ten years and also reducing the Class I ACP. Finally, on the SMART-front, the industry continues to await proposed alterations to the program, which has undergone a rigorous review process.
New Hampshire – Legislators inthe Granite State continue to attempt revisions to the existing RPS framework, most recently proposed under House Bill 213. This anti-clean energy bill would reduce the states RPS requirements for Class I, Class II, and Class III resources. In addition, the legislature circumvented a direct attack on the Community Power Law by amending House Bill 315 to protect competitive markets.
New Jersey – After months of stakeholder processes and input, in April, the Board of Public Utilities (“BPU”) released a straw proposal for the new SREC successor program and has actively sought feedback through stakeholder sessions which concluded in May. The industry is now waiting on the BPU to issue the next iteration of the successor program and is hopeful that stakeholder feedback will be incorporated. The timing of the release of future BPU successor program iterations is unclear, but we know the BPU is working to provide clarity as quickly as possible.
New York - Earlier this year, NYSEIA filed a joint petition asking the New York Public Utility Commission (“PUC’) to replenish the Community Credit Program, which suffered an unexpected reduction in capacity (180MW) when several natural gas-powered fuel cells where allowed to qualify for the credit. The industry urged the PUC to replenish the program through direct testimony and supportive comments and now awaits final decision from the PUC.
Pennsylvania – Solar energy is a hot topic in Harrisburg with several bills on the table to defend and increase the existing alternative energy portfolio standard (AEPS), legalize community solar, and reform grid scale solar procurement. Pennsylvania is a diverse energy production and generation state and therefore, lawmakers have many energy policy decisions to consider when deciding how best to maintain the State’s ability to remain a net energy exporter. However, solar and natural gas are the biggest drivers of newly installed electric generation capacity and therefore long-term policy certainty for solar is likely. However, the timing is still too early to predict, but it is clear that momentum is mounting.
Virginia –State regulators are continuing to make progress to implement the Virginia Clean Economy Act (“VCEA”). On Friday, April 30, the Virginia State Corporation Commission (“SCC”) released their orders in the Dominion and ApCo proceedings regarding the renewable portfolio standard ("RPS") established under the VCEA. In its orders, the SCC showed deference to Dominion and ApCo by approving almost every aspect of their plans. However, while their plans and projects were approved, the SCC clarified that for future plan filings the utilities will need to factor in REC-only options for RPS compliance which will provide more opportunity for third party developers.
Senator Ron Wyden of Oregon, Chair of the Senate Finance Committee, introduced a new bill that would eliminate tax breaks for fossil fuels and extend tax credits at 30 percent for any resource that allows the grid to become even cleaner, including solar, wind, and new credits for electric vehicles. This bill could have major implications on solar project financing, and represents a necessary step towards a robust, job-creating green economy needed to achieve Biden’s climate goals.
The Solar Energy Industries Association (SEIA) released their US Solar Market Insight and according to the report, solar accounted for 43% of new energy generating capacity in 2020, which is the largest share of new generation among all electricity technology. Utility-scale solar had its largest year ever with 6.3 GW installed and will likely grow at an exponential rate with states, the federal government, utilities, and large corporates focused on achieving net zero carbon emissions.
The US Power Sector is halfway to zero carbon emissions due to aggressive clean electricity policies and technological advancements by states and utilities, setting goals to reach 100% clean energy by 2050 or sooner. According to NREL, solar and wind exceeded performance, delivering over 13 times more generation than projected.
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 1 GW 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, visit https://www.solsystems.com
