Price war pause

China seeks end to price war, cash crunch for installers, Appalachian Power RFP.

Author

Solar Dispatch
May 23, 2024

Good morning. We’re always looking for new ways to make Solar Dispatch more valuable, and one idea we’re tossing around is a solar industry job board. Would this be of interest? Do you have any jobs you’re hiring for now? Reply and let us know what you think.

Today’s newsletter is 1,006 words for a reading time of 5 minutes. Let’s jump in.

THE ESSENTIALS
on top of the ancient city walls

China solar companies seek end to price war

  • The China Photovoltaic Industry Association called for industry cooperation — and potentially government action — to put an end to the sale of solar panels and other equipment at below-cost prices.

  • In a statement posted on the Chinese social media app WeChat, the association said, “the government’s visible hand should […] be fully utilized” and said the sector may need to see more consolidation to improve profits.

  • Shares in Chinese solar firms surged on the news, with Trina Solar closing up 17.5% and Jinko closing up 10.7%.

Why this matters: An end to the price war between Chinese manufacturers could mean higher costs for U.S. solar companies that have benefitted from low-cost imports.

Three-quarters of California installers face cash flow crunch

  • The implementation of Net Billing in California under NEM 3.0 appears to have hit solar businesses in the state hard, according to a SolarReviews industry survey.

  • 69% of California installers say their sales fell in 2023, the average installer laid off 5 workers in Q4 of last year, and 76% of installers say they’re worried about their ability to cover cash flow needs by the end of Q3 2024.

  • Net Billing has been a boon for the battery business, however. Installers said 68% of their customers were adding batteries to their installs post-NEM 3, about double the national average.

Why it matters: The shift away from full-retail net metering — which isn’t limited to California — is creating real headwinds for installers.

P.S. Are you an installer? Do these numbers reflect your experience? Reply and let us know what you’re seeing in the market.

Appalachian Power seeks proposals for renewable build-out

  • Appalachian Power is seeking proposals to build 1.1GW of solar, wind, and battery projects via three RFPs, focusing on Virginia and West Virginia, with operational deadlines by the end of 2028.

  • The RFPs include 800MW of solar, wind, and/or battery energy storage systems via purchase and sale agreements, 300MW of wind and/or solar through power purchase agreements, and additional renewable energy certificates.

  • Proposals are due by July 16, 2024, and must comply with PJM interconnection requirements and impact studies. See the full RFPs here.

Why this matters: Appalachian Power is required by law to deliver 100% carbon-free energy by 2050, with incremental targets along the way. That will significantly increase demand for solar investment in the region.

A MESSAGE FROM SOLAR DISPATCH

We have a $100 gift card with your name on it

All we need you to do is fill out this 3-minute long survey and let us know a bit more about you (we don’t need your personal details — this is just to get to know our readers better so we can improve the newsletter).

We’ll draw one winner at the end of the month and send them a $100 Amazon gift card.

WHAT ELSE IS HAPPENING

➡️ RWE Clean Energy adds to solar portfolio. The second-largest solar owner in the U.S. added 599MW of solar and storage to its portfolio, picking up three projects from Galehead Development in Idaho, Oregon, and New York. They did not disclose the value of the deal. (More)

➡️ DoE to spend $71M on solar innovation. The biggest recipient of the Department of Energy funding will be First Solar, which will receive a total of $21 million to improve thin-film PV technology. The tech is seen as a way to reduce reliance on silicon-based manufacturing supply chains that are dominated by China. (More)

➡️ Origis lands $300M from KKR. The financing will support the competition of 13GW of solar and storage projects in Origis’ construction pipeline. Origis currently has 26 operational projects in the U.S. with total solar capacity of 1.6GW, according to its website. (More)

➡️ Texas grid faces test. Soaring temperatures in Texas this weekend are expected to strain the power grid, with the riskiest time coming at sunset when solar generation drops and has to be replaced by other energy sources. (More)

AROUND THE WORLD

🇩🇪 Sunny skies collapse German electricity prices. Sunny weather and plenty of solar capacity are sending electricity prices in Germany tumbling. The total installed solar capacity in the country is over 80GW, which is 30GW higher than the average demand. That’s pushed electricity rates down by nearly 90% during daylight hours over the past 10 days. (More)

🇨🇱 Chile’s largest solar project comes online. The 480MW CEME1 solar farm began operating commercially. The project, co-owned by Andes Mining and Energy and EDF Renewables, will supply nearly 3,000MWh of electricity to the grid daily. (More)

🇨🇳 New solar builds fall sharply in China. Growth of the country’s solar fleet slowed by 32% in March from the same period in 2023, according to new data and Reuters calculations. Changes in electricity pricing and rules about feeding excess power into the grid have made new solar projects less attractive. The decline in domestic demand for solar panels could push Chinese manufacturers to export more abroad. (More)

ONE BIG NUMBER
A MESSAGE FROM SOLAR DISPATCH

We have a $100 gift card with your name on it

All we need you to do is fill out this 3-minute long survey and let us know a bit more about you (we don’t need your personal details — this is just to get to know our readers better so we can improve the newsletter).

We’ll draw one winner at the end of the month and send them a $100 Amazon gift card.

HELP US IMPROVE