• December 09, 2024

In October 2024, a milestone event occurred on the land of the Navajo and Hopi peoples in the southwestern United States. Navajo Power Home is a local supplier of solar energy for off grid homes on Navajo reservations. It has partnered with Basis Climate to complete one of the smallest tax credit transfers to date, providing $355000 in ITC to 100 households on Navajo and Hopi lands. This type of tax credit sales is not prominent and unknown to many people, and it proves the democratization and progressiveness of the new tax transferability regulations. Independent transactions of this scale were previously impossible in traditional tax fairness, but more importantly, without tax transferability, this often overlooked and marginalized community will not be able to realize the benefits of clean and affordable energy. Traditional tax equity structure It has been in existence since the IRS issued the Income Procedure 2007-65 in 2007. Although this tax equity partnership has undergone many adjustments over the years, its mechanism remains largely unchanged. Initiators often lack sufficient tax capacity to fully utilize these tax credits, but they can obtain upfront capital and avoid seeking additional debt or equity financing. Investors reduce their tax obligations through tax credits and accelerated depreciation deductions for projects, and meet the growing public demand for clean energy credit for ESG goals. Tax fairness has always been at the core of most developers' financing strategies, typically covering around 40% of the cost of solar projects. Considering legal fees, accountants, engineers, and compliance and due diligence for contracts and data rooms, the initial cost of establishing a tax equity partnership starts at $100000 and can easily rise to millions of dollars. These costs and complexities will make any financing arrangements for small projects and developers financially unfeasible. The result is that only mature large developers and enterprises have limited space to participate. In 2023, the average tax equity transaction is about $100 million, and the tax equity market is about $23 billion, with domestic banks accounting for over 80% of investors. JPMorgan Chase and Bank of America, the two largest investors, hold over 50% of the entire tax equity market. The lack of accessibility on both the supply and demand sides of tax fairness is a problem that tax transferability aims to address. Democratization through Transferability and Solar Energy The new tax transferability regulation in IRA (Article 6418) greatly improves the monetization of small developers and the convenience for small investors to purchase these tax credits. By directly selling or "transferring" tax credits on the open market, buyers can purchase these tax credits at a discount of around 10%, while sellers can obtain the required capital in advance and avoid the complexity and costs of tax equity partnerships. Compared to a typical tax equity transaction of $100 mill...

• December 06, 2024

The US Treasury Department and the IRS have released the final rules of the US Securities and Exchange Commission. 48 Energy Credit - also known as Federal Investment Tax Credit (ITC). For decades, ITC has driven the development of clean energy in the United States by providing tax credits (typically 30% of project costs) for eligible investments in clean energy properties, although the level of credits varies over time and technology. Although ITC has promoted clean energy projects, their effectiveness is limited by the need for frequent short-term and retrospective legislative extensions, which creates uncertainty and makes it more difficult for clean energy developers to invest and finance projects. The Inflation Reduction Act extends the ITC and closely related Production Tax Credit (PTC) until 2025, at which point ITC and PTC will shift towards a technology neutral approach and provide full credit for project initiation until at least 2033. US Deputy Secretary of the Treasury Wally Adeyemo stated, "By ending the short-term legislative extension of the ITC, the Inflation Reduction Act enables clean energy project developers to make significant investments and produce new clean electricity to meet the growing demand for electricity. Today's announcement will help reduce consumers' utility bills, strengthen US energy security, and create high paying job opportunities Although the final rule retains the core framework of the proposed rules and guidelines released by the Ministry of Finance and the National Taxation Bureau in November 2023, it clarifies the general rules of the ITC and its definition of eligible assets for credit, and takes into account 350 written opinions from stakeholders. The specific issues raised by commentators regarding the final rule include: Offshore wind power: The final rule retains the clarification in the proposed rule that owners of offshore wind farms can apply for credit for their own power regulation and transmission equipment (such as submarine cables). Geothermal heat pump: The final rule clearly stipulates that owners of underground coils can apply for ITC if they have at least one heat pump used in conjunction with the coil. Biogas: The final rule specifies which assets are qualified biogas assets and what are the components of qualified biogas assets. The definition of "energy project": The final rule modifies the definition of energy projects, requiring ownership of energy property to add four or more factors from the seven factor list, and clarifying that taxpayers can evaluate these factors at any time during construction or construction. The tax year in which energy assets are put into use. Collocation of energy storage: The final rule specifies Sec. Energy storage technology located in the same location as qualified facilities and sharing power regulation equipment can apply for 48 credits (ITC), and the facility's Section can apply for 45 credits (PTC). Hydrogen storage: The final rule specifies that ...

• December 05, 2024

PV Hardware USA (PVH), a manufacturer of solar trackers, has developed Diffie Control, a solar tracker algorithm aimed at increasing the power generation of solar power plants under cloudy conditions. Compared to traditional solar tracking algorithms, it may increase production by up to 20% on certain days. Solar tracking is typically based on pure geometry, tracking the position of the sun by moving the tracker perpendicular to the principal direction of the rays, "said Oscar Cabrero, PVH Electronics and Control Manager. However, we know that energy can be collected around photovoltaic modules. When diffuse light dominates the environment, our advanced algorithm calculates the optimal panel tilt angle to capture this energy Although solar panels still use traditional solar tracking technology to generate electricity on cloudy days, they produce much less electricity compared to sunny days. Using real-time weather data captured by sensors placed inside the solar power plant, the diffuse control algorithm automatically calculates the solar panel tilt angle required to capture more energy in rainy or cloudy conditions. To avoid unnecessary energy consumption, the algorithm can be configured to reduce motor consumption during operation, thereby maximizing productivity. Cabrero said, "By using a new model on how to capture solar energy, we now understand that measuring environmental irradiance is the best way to calculate the tilt angle of solar panels during severe weather. With this new understanding, PVH can develop diffuse reflectance control algorithms PVH conducted a series of tests to validate the performance of the diffusion control algorithm, including several months of empirical testing of the technology and a side-by-side comparison of two real continuous solar power plants that implemented standard solar tracking and diffusion control models. The research results show that under diffuse irradiance conditions, the diffuse control model captures more irradiance, resulting in higher yields and energy gains. The white paper detailing the technology and testing to confirm its effectiveness can be downloaded here.

• December 04, 2024

Full household electrification refers to the process of providing access to reliable electricity for all households within a particular region or country. It involves extending the electrical grid infrastructure and ensuring that every household has access to electricity for their basic energy needs. When a region or country achieves full household electrification, it means that every home is connected to the electrical grid and has a reliable and continuous supply of electricity. This allows households to have access to various electrical appliances and services, such as lighting, cooking, heating, cooling, refrigeration, communication devices, entertainment, and other electrical equipment. Full household electrification has significant social, economic, and environmental benefits. It improves the quality of life for individuals and communities by providing access to essential services and enabling opportunities for education, healthcare, and economic development. It also reduces the reliance on traditional, polluting energy sources, such as kerosene lamps, candles, or biomass for cooking, which can have adverse health effects and contribute to deforestation and air pollution. Different regions and countries may face unique challenges in achieving full household electrification. These challenges can include the extension of the electrical grid infrastructure to remote or underserved areas, affordability of electricity connections and appliances for low-income households, and ensuring the reliability and sustainability of electricity supply. To accelerate the progress towards full household electrification, many governments, international organizations, and private initiatives have been working on expanding access to electricity, promoting renewable energy sources, implementing efficient technologies, and addressing the barriers that prevent universal access to reliable.

• December 03, 2024

The rapid expansion of utility scale solar power plants across the United States has brought much-needed renewable energy to the power grid. However, this prosperity has forced many project owners to seek less than ideal land to keep up with current growth. In many cases, solar installations are built on farmland, which never needs to comply with the regulatory standards required for solar power stations. These locations typically face significant environmental challenges, particularly those related to soil health and potential erosion. These issues not only disrupt the project schedule, but also cause long-term environmental damage and complicate regulatory compliance issues. Unfortunately, many project owners are not aware of the costly risks of ignoring or not taking the time to identify these issues. This is where data analysis and proactive, normative planning come into play. Profile Products is an agricultural solutions company that has researched tens of thousands of current and potential solar sites to analyze and evaluate their soil health and erosion risks, providing insights that can help stakeholders develop targeted mitigation strategies. Industry Status This analysis was conducted using a tool called PV-IMPACTS, which represents a comprehensive mitigation plan for climate, terrain, and soil assessment. The software evaluated over ten geographic spatial factors of 13900 existing and potential solar project locations nationwide, showing that nearly 48% of solar projects (covering over 323000 acres) were classified as projects at risk of soil health issues. Poor soil health can lead to poor vegetation growth, thereby increasing the risk of erosion. In addition to soil health risks, the software also found that 29% of these projects are at risk of erosion. This is equivalent to over 294000 acres of land potentially experiencing severe erosion, leading to potential rainwater violations and project delays, thereby affecting the sustainability of solar energy projects. Due to the fact that solar installations typically require large areas of land and stable infrastructure, the dual threats of deteriorating soil health and erosion pose significant challenges to the industry. Dealing with risks Developers need to consider the interrelated regulatory, environmental, economic, and public awareness risks associated with not actively addressing soil health and erosion issues. From a regulatory perspective, maintaining soil health and controlling erosion are crucial for complying with environmental standards. Solar installations are typically subject to strict regulations that require the adoption of sustainable land management practices. Projects that do not meet these standards may face penalties, expensive corrective measures, and long-term reputation damage, which may hinder future development opportunities. Ensuring compliance from the outset through active soil management can protect developers from unexpected fines and create simplified pa...

• December 02, 2024

Maxeon announced that it will restructure its business and focus on the US market. This multinational company headquartered in Singapore will reach an agreement with its major shareholder (TCL)'s parent company to sell its sales and marketing businesses in Europe, Asia, and Latin America. TCL will establish a new department, TCL SunPower International, for non US entities prior to Maxeon, including Maxeon's manufacturing business in the Philippines. Maxeon stated that with a new focus on the United States, it has signed a five-year lease agreement for an existing building in Albuquerque, New Mexico, and plans to begin production of solar panels at the 2-gigawatt factory in early 2026. Maxeon had previously planned to build a solar cell and panel manufacturing plant from scratch in Albuquerque. As Maxeon strengthens its focus on the US market, our top priority is to further expand our growing network of residential and commercial partners and support our well-established utility scale customer base, "said George Guo, CEO of Maxeon. This strategic realignment of our business aims to bring us closer to and better suited to the needs of our American customer base, allowing us to leverage Maxeon's extensive experience and top reputation in product innovation and quality, which is almost entirely built upon 40 years of technological leadership and intellectual property investments Guo also stated that currently the 2-gigawatt factory is only engaged in module assembly, and Maxeon will continue to evaluate its long-term goals for solar cell manufacturing. Maxeon announced earlier this month that US Customs has detained its solar panels assembled in Mexico using Malaysian solar cells, as US Customs and Border Protection has intensified its scrutiny of the solar panel supply chain in search of links to Uyghur forced labor. Although these solar panels have no connection to Xinjiang Uyghur Autonomous Region or China, Maxeon's sale of Asian business assets to TCL should improve document recording speed. Today's decision did not mention Maxeon's business in Malaysia.

• November 29, 2024

Ipsun Solar has announced a partnership with Versiris Energy to install 1.58 megawatts of rooftop solar energy on storage units across Virginia. This cooperation is in line with the commitment of both companies to increase access to clean energy and promote sustainable development. The first completed installation project of this collaboration is located at a factory in Fairfax, Virginia, marking the beginning of at least a dozen project portfolios. As we continue to expand our supply of commercial and industrial solar projects nationwide, our partnership with Ipsun Solar has been an important part of Virginia's efforts. Their familiarity with the Virginia market, coupled with savvy engineering skills and grounded teams, has proven crucial to our joint success, "said Rocky Shoemaker, Vice President of Engineering and Construction at Versiris Energy. Given its strategic location and ample rooftop space, storage facilities are the perfect choice for rooftop solar installations. Ipsun Solar is honored to support Virginia's ambitious goal of achieving 100% clean energy by 2050 and is pleased to continue this influential collaboration. The next project in this growing investment portfolio will take place in Chantilly, Virginia.

• November 28, 2024

Entergy Louisiana and DE Shaw Renewable Investments (DESRI) have started commercial operations at Sunlight Road Solar in the Washington Diocese of Louisiana. The 50 megawatt solar power facility located in Franklin will be developed and constructed by DESRI and will supply power to Entergy Louisiana's grid through a 20-year power purchase agreement. Sunlight Road Solar has over 100000 photovoltaic panels that will generate enough electricity to power approximately 11500 households, helping to meet Louisiana's growing demand for renewable energy. Phillip May, President and CEO of Entergy Louisiana, said, "With the addition of Sunlight Road Solar, we are taking another step towards a cleaner and more sustainable energy future for our state." "This milestone is not just about adding solar energy to our product portfolio; it's about providing our customers with affordable, reliable, and clean energy. We are excited about what this means for the future of Louisiana's electricity as we continue to meet the growing demand for renewable energy and strive for a net zero emissions future Entergy Louisiana's customers expect to save approximately $22 million during the term of the Sunlight Road Solar power purchase agreement. The facility uses a Nevada single axis tracker to keep the solar panels following the sun throughout the day, maximizing energy production. DESRI is pleased to collaborate with Entergy to develop and build another renewable energy project to support its customers, "said Hy Martin, Chief Development Officer of DESRI." We are grateful to Sunlight Road Solar's numerous stakeholders, including Washington Parish, Entergy, our landowners, project lenders, Nevados, and Primoris Renewable Energy, and look forward to continuing to invest in clean, cost competitive energy to create opportunities for Louisiana and the wider Gulf region The company plans to put nearly 50 megawatts of Stirling solar facilities into operation at some point in 2026. The solar facility will be owned and operated by Entergy Louisiana, located next to the Stirling Power Station, which is one of the company's oldest power plants in northern Louisiana. These milestones are in line with Entergy's commitment to achieving net zero emissions by 2050.

• November 26, 2024

Earlier this year, Nexamp opened its second national headquarters in Chicago, attended by Governor JB Pritzker and Congressman Danny K. Davis (Democrat of Illinois). As part of this announcement, Nexamp has committed to hiring an additional 50 team members and investing over $2 billion in the state through its existing projects and strong development channels. Now, Nexamp has been designated by the US Department of Labor as a Registered Apprentice Program (RAP) employer in Illinois. This appointment was announced during last week's National Apprenticeship Week. It is the result of the company's extensive workforce development program, including the successful implementation of STEM based scholarship programs with the City College of Chicago and the Solar Sunrise program, which provides participants with full-time career opportunities through one-year rotation experience across multiple Nexamp businesses. Marion Jones, Vice President of Workforce Development and DEIJ Engagement at Nexamp, said, "Since we first announced the establishment of our second headquarters in Chicago in February this year, our focus has been on expanding employment opportunities for underrepresented communities in the Chicago area. Successful energy transformation requires skilled and knowledgeable labor, and all communities must have access to these opportunities. By offering apprenticeships and working closely with educational institutions in the region, we are expanding the urgently needed clean energy workforce today The U.S. Department of Labor is responsible for managing the Registered Apprenticeship Program, which helps ensure a strong and fair economic recovery after the epidemic by enabling all Americans to get good jobs in priority industries and among people who are particularly affected by the epidemic. Registering an apprenticeship program enables employers to develop and train their future workforce, while providing affordable pathways for job seekers to secure safe, high-quality, and high paying jobs. In Illinois, we are cultivating the future workforce through world-class education and apprenticeship opportunities, "said Governor JB Pritzker. I am grateful to Nexamp's partners for their continued investment in the success of Illinois, including the opening of a second Chicago headquarters and the new U.S. Department of Labor apprenticeship program. This program will undoubtedly ensure that the next generation is adequately prepared for skilled labor while creating more high paying jobs and fair opportunities