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Profile: Sungevity

Sungevity was a participant or observer in the following events:

Several of the nation’s largest solar installers, including SolarCity, Sungevity, SunRun, and Verengo, form a lobbying organization, the Alliance for Solar Choice (ASC), to fight back against conventional utilities’ efforts to curtail or cancel programs that support renewable energy in 43 states. The ASC will begin by working to preserve “net metering” policies that require utilities to purchase surplus electricity at retail rates from customers with rooftop solar systems. ASC president Bryan Miller, a SunRun executive, says the group is responding to “the coordinated utility attack on net metering throughout the country.” Many utilities “have opposed net energy metering since its inception.” Utilities argue that as more people install solar arrays and generate power for themselves, non-solar customers are forced to pay higher rates to subsidize utility costs for grid maintenance and the like. (That argument has been strongly challenged—see April 5, 2013.) [Bloomberg, 5/10/2013]

Entity Tags: Sungevity, SolarCity, Verengo, SunRun, Bryan Miller, Alliance for Solar Choice

Timeline Tags: US Solar Industry

Grist columnist and solar power expert David Roberts lays out three ways the American populace can have relatively unfettered access to solar energy, given the recalcitrance and active opposition of the conventional power utility companies and many lawmakers. Once renewable energy becomes more accessible and widespread, it becomes more of an economic force, creating jobs and generating a revenue stream. “That’s why renewable power remains untouchable in German politics,” he writes, “lots of Germans are directly involved with it.” [Grist Magazine, 9/13/2013]
Leasing - Most American families cannot afford the initial costs of a rooftop solar array, especially when it will take five or 10 years to recoup those costs. Add to that the fact that the homeowner must manage their individual “power plant,” and stay in the home long enough to see financial benefits, and most American families are unwilling to take on such a burden. Roberts suggests that many families may benefit from leasing rooftop solar arrays from companies such as SunRun, SolarCity, or Sungevity. “The solar company effectively becomes a utility,” he writes. “You pay them a monthly fee for the electricity the panels produce.” Most homeowners will either break even on their electricity costs, or save money, in part depending on whether the solar providers in their areas are eligible for state mandates or rebates. Southern California is experiencing quite a boom in solar leasing, with some $1 billion in economic activity being generated since 2007. The National Renewable Energy Laboratory recently found that solar leasing “has enticed a new demographic to adopt PV [photovoltaic] systems that is more highly correlated to younger, less affluent, and less educated populations than the demographics correlated to purchasing PV systems.” By appealing to less affluent consumers, “third-party PV products are likely increasing total PV demand rather than gaining market share entirely at the expense of existing customer owned PV demand.” SunRun president Lynn Jurich says, “[A]bout 75 percent of Californians switching to solar now choose solar power service” over ownership. Other states featuring solar leasing include Arizona, Colorado, Massachusetts, New Jersey, Oregon, Pennsylvania, and Texas. SunPower executive Howard Wenger said of his company’s lease program in August 2012: “It’s growing incredibly fast. We’re at a rate of about 1.5 megawatts to 2 megawatts per week.” [Forbes, 8/9/2012; Grist Magazine, 9/13/2013]
Community Solar - Some 70 to 80 percent of Americans live in buildings unsuitable for rooftop solar panel arrays. One alternative they have is to form communities of solar power users. Together, they can lease or buy solar arrays. Some power utilities own or operate solar power projects that ratepayers can join. Other people are forming their own communities, either in a business or non-profit enterprise. [Institute for Local Self-Reliance, 5/1/2012; Grist Magazine, 9/13/2013]
Solar Power Purchasing Agreements - Solar power purchasing agreements (PPAs) are similar to leases, where individuals buy power from third-party owners and operators of solar arrays. One large organization investing in PPAs is the US military, which is working with SolarCity to lease solar arrays for 120,000 military residences in California and Colorado. Some states have laws making it difficult or downright impossible for PPAs to exist. [Los Angeles Times, 7/17/2012; Environmental Protection Agency, 10/16/2012; Grist Magazine, 9/13/2013]

Entity Tags: SunRun, SolarCity, Sungevity, Lynn Jurich, David Roberts, National Renewable Energy Laboratory, Howard Wenger

Timeline Tags: US Solar Industry

Reporter Grace Wyler of the online technology magazine Motherboard writes that solar power generation “poses a mortal threat to the mainline power utilities that have dominated energy distribution in the US since the late 19th century.” Wyler echoes the findings of a January 2013 report by the Edison Electric Institute (EEI—see January 2013). The price of solar energy is dropping, she writes, and a new solar unit is being installed somewhere in the country every four minutes. The nation’s solar capacity has doubled since 2008 and costs are down 40 percent. Within 10 years, perhaps sooner, analysts predict, the price of solar generated energy will reach parity with other power sources. Naturally, conventional energy utility companies “are waging an escalating war against independent power distributors, and particularly against a new crop of solar technology companies that threaten to disrupt their century-old business model,” she writes.
Net Metering Among Largest Issues - One of the biggest issues is “net metering,” a policy which allows renewable energy consumers to sell their excess power back to the grid at retail prices. Net metering is taking the place of state subsidies for solar energy producers, allowing solar consumers to lower their energy bills. However, utilities fear what Wyler calls “a so-called ‘utility death spiral,’ in which more and more customers generate their own power, forcing utilities to charge higher rates to maintain infrastructure that was intended for a much larger pool of energy consumers, which will in turn encourage more people to turn to distributed energy options—which in most cases means solar panels.” Duke Energy CEO Jim Rogers told a Bloomberg reporter: “It is obviously a potential threat to us over the long term. If the cost of solar panels keeps coming down, installation costs come down, and if they combine solar with battery technology and a power management system, then we have someone just using [the grid] for backup.” The EEI wrote that if the utility industry does not take immediate action, renewable energy could soon cause “irreparable damages to revenues and growth prospects” of utilities. These firms are battling net metering, claiming that conventional energy consumers are paying higher rates because of solar energy usage, a claim that has been challenged (see April 5, 2013). Utilities are fighting net metering policies in at least 11 states, asking regulators to impose new rate structures that would lower the amount utilities pay to buy back excess power from renewables consumers, and in some cases impose new grid-use fees on solar customers. Solar energy and technology producers such as Sungevity, SunRun, and SolarCity are fighting back against the utilities’ push.
Odd Political Bedfellows Joining to Fight Utility Restrictions - The solar companies are fighting the policy restrictions, not just on financial grounds, but, Wyler writes, because they believe government-sanctioned utilities monopolies are outdated and interfere with progress, calling it “the techno-libertarian view that regulation is an impediment to innovation and technological progress.” SolarCity spokesperson William Craven says: “Having more choice and more competition in the sector benefits pretty much everyone except the monopoly that has enjoyed having a monopoly for the past 100 years. It’s not clear that that system benefits anyone else. Generally, greater choice and greater competition drives innovation and drives reduced costs.” Many libertarian conservatives are joining the push for deregulation, broadening the base of solar consumers and advocates by aligning themselves with the more left-leaning solar advocates whose push for renewable energy is largely driven by environmental concerns. Even some far-right tea party groups are joining the push for deregulation. “From a conservative, or libertarian, perspective, it raises the question of why are we giving these guys a monopoly when they don’t need it anymore?” says John Farrell of the Institute for Local Self-Reliance, which pushes for distributed generation. “We can generate electricity in lots of different ways. We don’t need a big centralized corporate entity to generate electricity. We can do it ourselves.” Wyler says this “strange grassroots coalition” is successfully fighting back against the utilities’ attempts to weaken net metering, citing victories in California, Georgia, Idaho, and Louisiana. Rosalind Jackson of Vote Solar says: “Utilities have a simple argument that sounds compelling, but time and again, we’ve seen such strong public outcry against the idea of utilities trying to take away the right to generate power that the decisions have actually come down on the side of solar customers.… This is a regulated industry that has not had to innovate for a century. But they are faced with a real disruptive technology. There are new entrants for customers who have never had an option before. So that’s a very real threat.” [Motherboard, 9/23/2013]

Entity Tags: Sungevity, SunRun, William Craven, Rosalind Jackson, Edison Electric Institute, Grace Wyler, Jim Rogers, SolarCity, John Farrell

Timeline Tags: US Solar Industry

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