Click on right here to learn the full August version of the Sol SOURCE.
The Sol SOURCE is a renewables journal that our workforce distributes to our community of purchasers and photo voltaic stakeholders. Our e-newsletter comprises tendencies and observations gained via interviews with our workforce, incorporating information from quite a lot of trade assets.
Beneath, we’ve got included excerpts from the August 2022 version. To obtain future Journals, please subscribe or e mail SOURCE@solsystems.com.
STATE MARKETS
California – Property tax exclusion seemingly prolonged to 2026
On August 23, 2022, SB 1340, a invoice to increase the property tax exclusion for photo voltaic to 2026, went to the Governor. California has seen a number of reversals of long-planned vitality coverage selections this yr, together with efforts to maintain its final nuclear plant open whereas shelving (for now) plans to recalculate net-energy metering (“NEM”). The California Public Utilities Fee (“CPUC”) not too long ago issued a proposed determination that will delay a NEM 3.0 program to August 27, 2023.
On August 25, 2022, the California Air Sources Board will vote on regulation that may ban gross sales of recent gas-powered vehicles by 2035. The measure is predicted to go.
Delaware and New Jersey – Third Circuit Courtroom guidelines on Delaware and Hoboken local weather lawsuits
On August 17, 2022, the Third Circuit Courtroom agreed that lawsuits introduced by the State of Delaware and the Metropolis of Hoboken, New Jersey, towards oil firms belong in state courts. That is the most recent in collection of instances fossil gasoline firms have sought to listen to in federal courts, that are presumed extra hostile to states’ efforts to carry main fossil emitters accountable for local weather change. 4 different appellate courts which have already rejected these efforts, however oil firms have requested the U.S. Supreme Courtroom to rule on the problem.
District of Columbia – RPS enhance laws launched
Earlier than leaving for recess, Councilmember Cheh launched the Native Photo voltaic Enlargement Modification Act of 2022, which might preserve the Photo voltaic Various Compliance Fee (“SACP”) at $500/MWh and lift the photo voltaic carve-out from 10 % to fifteen % by 2041 (DC already requires one hundred pc renewables by 2032). The invoice will likely be heard on October 3, 2022.
As a reminder, efficient April 1, 2022, all new methods will need to have a revenue-grade manufacturing meter or inverter-based manufacturing measurement tools. Older methods could proceed to make use of estimation.
Mayor Bowser signed two items of laws into legislation on August 1, 2022:
- The Clear Power DC Constructing Code Act requires that each one new buildings be net-zero by 2026 and vitality produced onsite should be from renewable sources.
- The Local weather Dedication Act requires that the District obtain carbon neutrality by 2045. To make sure that the goal is met, the legislation units five-year greenhouse fuel targets. As well as, the legislation mandates fossil fuel-powered area or water heating home equipment might not be put in in authorities buildings after January 1, 2025. Beginning in 2026, the DC authorities could solely buy zero-emissions automobiles.
There stays no official phrase on nominees for the DC Public Service Fee emptiness.
Illinois – Illinois Energy Company submits ultimate plan to the Illinois Commerce Fee
Illinois continues working to implement myriad regulatory necessities stemming from final yr’s landmark Clear Power and Jobs Act (“CEJA”). After revising the Lengthy-Time period Renewable Sources Procurement Plan (“LTRRPP”) primarily based on stakeholder suggestions, the Illinois Energy Company submitted its ultimate plan to the Illinois Commerce Fee (“ICC”) on March 21, 2022. The ICC issued its ultimate order on the LTRRPP on July 14, 2022 which serves as a guidebook for CEJA’s implementation and software. Shortly after, the IPA filed their compliance plan containing REC pricing for Block 6, which is ready to open on September 1, 2022. Further particulars on the LTRRPP together with the complete REC mannequin and costs could be present in this IPA announcement. The IPA can also be anticipated to flow into an up to date guidebook previous to the opening of Block 6.
The ICC additionally authorized two extra procurement occasions to be held this fall and subsequent summer season for RECs from utility-scale wind, utility-scale photo voltaic, and brownfield web site photovoltaic tasks. The autumn procurement is predicted to be posted on October 7, 2022 with bids due by December 9, 2022.
Maine – Governor’s Power Workplace reconvenes DG Stakeholder Group
Maine continues to work to incent a greater variety of fresh electrical energy choices within the state whereas wrestling with their position within the nationwide transmission system. The Governor’s Power Workplace has reconvened the distributed technology stakeholder group now that Maine’s legislative session has ended. We anticipate a straw proposal later this fall to comprise extra successor program design particulars prematurely of a ultimate report due January 2023. Litigation continues over the destiny of the New England Clear Power Join (NECEC) transmission challenge, which was the topic of a poll measure authorized by state voters in November. The NECEC challenge would carry electrical energy from Canadian hydropower to the New England grid.
Massachusetts – Omnibus local weather laws signed into legislation
The Baker Administration continues to push ahead a number of energy-related objects in its final yr. On April 15, 2022, the Massachusetts Division of Environmental Safety (“MassDEP”) revealed proposed amendments to the Clear Power Normal (“CES”). The proposed amendments embrace setting the CES different compliance fee (“ACP”) and Clear Power Normal-Present (“CES-E”) ACP to $35/MWh and $10/MWh respectively for years 2022 via 2050. Feedback have been due on June 3, 2022, and we anticipate a ultimate determination within the coming months.
On August 11, 2022, Governor Baker signed omnibus vitality laws into legislation (HB 5060). Amongst different issues, the legislation maintains an offshore wind procurement goal of 5,600 MW by 2027 and creates an offshore wind tax credit score. The legislation additionally addresses grid modernization and directs the Massachusetts Division of Power Sources (“DOER”) to review quite a lot of vitality storage packages. Moreover, it requires that DOER embrace a pollinator-friendly photo voltaic incentive within the Photo voltaic Massachusetts Renewable Goal (“SMART”) program or successor program, bans biomass from qualifying for the RPS after January 1, 2022, as an eligible RPS Class I or II know-how, and mandates that each one new automobile gross sales within the state be zero-emission starting in 2035.
New Jersey – Senator Smith introduces RPS revision invoice
The Board of Public Utilities (“BPU”) continues to broadly deny extensions for tasks unlikely to satisfy Transition Renewable Power Credit score (“TREC”) deadlines whereas smoothing the method of transferring tasks from the TREC to the Administratively Decided Incentive (“ADI”) successor program. On April 26, 2022, BPU issued a Straw Proposal for the Aggressive Photo voltaic Incentive (“CSI”). Whereas there have been delays, the CSI program is predicted to launch later this yr. The BPU can also be anticipated to evaluation ADI incentive ranges as a part of the one-year evaluation. Laws associated to interconnection (S431), vitality storage incentives (S2185), distant web metering (S2848), and the legacy SREC program (S439) moved via the Senate and are anticipated to be heard within the Meeting this fall.
Senator Smith (D-17) not too long ago launched S2978, which might revise the RPS in New Jersey. Particularly, the invoice would apply the Class I normal to electrical energy offered within the State after subtracting electrical energy generated by present nuclear and different zero-carbon sources. As well as, the invoice would additionally require that not less than 50 % of RECs used to adjust to the RPS be positioned in New Jersey. Lastly, it could mandate that one hundred pc of retail electrical energy delivered to New Jersey be from Class I sources by 2045 and would take away the Class II requirement in 2045. The invoice has been referred to Senate Surroundings and Power Committee, the place we anticipate a listening to this fall.
New York – New York Energy Authority opposes Meeting’s Construct Public Renewables Act
On July 28, 2022, the New York Energy Authority (“NYPA”) introduced that they didn’t help the Construct Public Renewables Act that handed via the Senate (S6453) on June 1, 2022. The Meeting companion invoice (A1466) didn’t transfer ahead previous to the tip of session. The invoice would have directed NYPA to construct and personal new renewables and require the Authority to largely shut down fossil gasoline vegetation by 2030. New York State has a aim to succeed in 70 % renewable electrical energy by 2030.
Ohio – Public Siting Board proposes process revisions
On June 16, 2022, the Ohio Public Siting Board proposed process revisions, together with one that will require photo voltaic setbacks of 150 toes from roads and unaffiliated properties and 300 toes from unaffiliated residences. Different proposals embrace public disclosure necessities for brand spanking new services, codifying decommissioning necessities included in SB 52, and fencing necessities for photo voltaic websites. Feedback have been due August 12, 2022.
Pennsylvania – Courtroom-issued injunction delays Pennsylvania participation in RGGI
After a number of showdowns between Governor Wolf (D) and the Republican-controlled Legislature, together with a last-minute keep on publication, laws establishing Pennsylvania’s participation within the Regional Greenhouse Fuel Initiative (“RGGI”) have been revealed April 23, 2022. Nonetheless, on July 8, 2022 the Commonwealth Courtroom issued an injunction, additional delaying Pennsylvania’s participation. The injunction required plaintiffs to publish a $100 million bond, topic to forfeit in the event that they lose the underlying problem to RGGI.
Virginia – A Stakeholder Session Regulatory Advisory Panel (RAP) was not too long ago convened to make suggestions to the Virginia Division of Environmental High quality (“DEQ”) and the legislature concerning implementation of HB206, which modifies the Allow By Rule course of for photo voltaic tasks below 150 MW. Matters lined throughout the 5 RAP working teams embrace avoidance & mitigation, mitigation/in lieu, vital opposed influence for tasks lower than 10 acres, and native management.
In March 2022, DEQ introduced that it could outline photo voltaic panels as impervious floor areas. On April 14, 2022, DEQ launched extra steering that pushed implementation out to January 1, 2025, for all tasks that haven’t obtained interconnection approval. In July, DEQ launched two extra stormwater steering paperwork targeted on stormwater administration and erosion and sediment management. Feedback are due August 31, 2022.
The 2022 Virginia Power Plan course of has formally kicked off (as directed by the Virginia Basic Meeting, each 4 years the Virginia Division of Power develops a complete Virginia Power Plan). The 2022 Power Plan will present vitality coverage suggestions round environmental targets, vitality prices, client alternative, and innovation.
On April 14, 2022, the Virginia State Company Fee (“SCC”) opened a docket to ascertain a self-certification course of for small distributed technology methods searching for to qualify as low-income tasks and take into account extra GATS-related questions. On July 26, 2022, the SCC issued an order for extra feedback within the docket. Employees are required to file feedback by September 22, 2022. All different stakeholders could submit feedback till October 20, 2022. One situation the trade has raised is the September 2021 Order requiring revenue-grade meters for all tasks no matter measurement or interconnection date.
SOLAR CHATTER
- The U.S. Power Info Administration (EIA) introduced that renewables will make up 22 % of electrical energy technology in the USA in 2022 This quantity is predicted to rise to 24 % in 2023 as renewables continues to carve out a bigger portion of the overall American electrical energy grid.
- Photo voltaic continues to indicate its power in creating American manufacturing jobs, because the famed Pittsburgh Bethlehem Metal Plant has now been reopened to fabricate photo voltaic monitoring methods. The manufacturing unit, commissioned by Nextracker, is the third they’ve commissioned with a metal manufacturing accomplice this yr.
- Electrical automobiles reached a vital adoption benchmark in the USA in June, as 5 % of recent automobile gross sales have been absolutely electrical. Monetary analysts see reaching 5 % because the breakout from the early-adopters part, the place the know-how begins to change into extra mainstream and adoption begins quickly accelerating. As adoption continues, automobile producers start a extra speedy shift in provide, and thru an accelerated studying curve and economies of scale, costs can fall shortly. We anticipate the incentives within the IRA will guarantee this progress occurs in North America, additional rising home clear vitality manufacturing capabilities.
- Registrations opened for the U.S. Division of Power’s 2023 Photo voltaic Decathlon Design Problem, the place school college students internationally compete to design sustainable buildings powered by renewable vitality. Sol Programs has a number of Decathlon alumni, with Robertson’s having taken second place in within the inaugural competitors for the College of Virginia.
- Omaha Public Energy District (OPPD), the general public utility answerable for electrical energy in and round Omaha, Nebraska, voted unanimously to delay the closure of its coal plant by three years, the sixth such delay to happen in 2022 alone. OPPD’s reasoning mirrors related selections not too long ago that citied tariffs and different provide chain constraints in addition to interconnection delays in delaying closure of coal vegetation in favor of fresh electrical energy like photo voltaic. These selections can have myriad environmental and public well being implications for native communities in addition to globally.
- SEIA not too long ago launched a Manufacturing Roadmap, laying a path for the U.S. manufacturing trade to thrive within the wake of the the Inflation Discount Act’s (IRA) investments in reshoring and rising home manufacturing. SEIA reveals how the U.S. can exceed 50 GW of home photo voltaic manufacturing capability by 2030. A key ingredient of that is the event of a well-trained workforce that brings new entrants into the clear vitality area and helps present vitality staff transition.
