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Yahoo
13-06-2025
- Business
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Maryland residential solar loan program sees success in rough market
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. A residential solar pilot program in Montgomery County, Maryland, has outpaced expectations by booking more than $3 million in loans since November, despite a declining residential solar market and ongoing uncertainty about the future of federal solar tax credits. The program is a partnership between fintech platform OneEthos and the Montgomery County Green Bank, facilitated by OneEthos's affiliate Climate First Bank. It launched in November, with a goal of booking around 40 to 50 loans during its first year. As of March, the program had booked 40 loans, and by the end of May that amount had doubled to 83 — a total of $3,062,224 in loans, program leaders shared with Utility Dive. 'In just a few months, we saw enough loan demand to meet our entire annual budget for the program,' said Rokas Beresniovas, MCGB's senior director of commercial business and climate finance. The program's success comes amid lowered demand for residential solar nationwide. The market 'experienced its first annual contraction since 2017' in 2024, declining by 31% from 2023, according to a March Solar Market Insight Report from the Solar Energy Industries Association and Wood Mackenzie. Residential solar companies have been struggling, and on Sunday, Sunnova became the latest of them to file for bankruptcy. In addition, the House's May budget bill proposed winding down the Inflation Reduction Act's 30% residential solar tax credit early, limiting its applicability to projects placed in service by the end of this year. Marcio deOliveira, CEO of OneEthos, said he 'would not necessarily attribute the success or growth' of the program to customers trying to get ahead of political uncertainties. 'However, we do predict that going forward, uncertainty and changes would accelerate the growth,' he said. 'As we see the possibility of fewer incentives at the federal level, green banks become even more important — to step up, and provide incentives and support at the state and the regional level, to continue programs like this.' deOliveira attributes the surprising level of interest in the program partially to the structure of what's being offered — a 30-year loan without dealer fees. The average term for a solar loan is from 15 to 20 years, with some lenders offering 25-year loans. Dealer fees often range from 15% to 25% of the project's cost. While MCGB is 'focused on the commercial sector, and cannot directly lend to the consumers,' it can provide enhancements like subsidies in partnership with entities like OneEthos and Climate First Bank, said Beresniovas. MCGB is subsidizing the loan's 4.99% interest payment for the first ten years for qualifying low-income households. After the first 10 years, borrowers are responsible for a 7.99% interest rate. 'You have an incentive to pay it off in ten years to get the lower interest rate,' said Cindy Peña, the communications manager for the Montgomery County Department of Environmental Protection, who recently secured a loan through the program for solar, new roofing, an electrical panel upgrade and an electric vehicle charging station. 'My goal is to pay it off in ten years. I want to get it off my plate.' Peña said she lives close enough to the Washington, D.C line to qualify for the district's solar renewable energy credits, which pay significantly more than Maryland's. 'My neighbors, many of them have solar because [of that],' she said. 'In a nice month, you can get $400 a month from D.C. … So I'm looking at that money to help pay off my loan, along with what I would be saving on Pepco.' Peña said she still hopes to qualify for the federal residential solar energy credit. Her decision to move forward with a solar loan was made after the election, but 'before anybody really knew what was going to be happening at the federal level.' 'I'm hopeful,' she said. 'We wanted to get that federal rebate — I never thought it would be in jeopardy. But now, it could be.' Peña said her husband had been wanting to install solar for some time, but she was first swayed to the idea in October when she spoke to the owner of a company that installs electric vehicle charging stations, who told her that Pepco rates would be rising soon. As of June 1, the average residential Pepco customer 'using 614 kWh per month will see a 17.7% ($20.81) increase in their total monthly bill,' according to the D.C. Public Service Commission. The DCPSC cited several market conditions for the bill increase: tightened supply from local power plant retirements; new reliability requirements; increased demand from new data centers; and increased renewable energy requirements in the region. In other areas of Maryland, Baltimore Gas and Electric customers have also seen their energy bills increase. Beresniovas said he anticipates that rising energy prices will 'contribute to people considering solar, especially here in Maryland.' Following its recent success, the partnership is looking to expand beyond solar to include energy efficiency upgrades, Beresniovas said. 'A lot of people install solar panels, but their homes aren't actually energy efficient, so they're still wasting energy through poor insulation, outdated HVAC, old leaky windows,' he said. 'We're looking forward to expanding this program in the next couple of months.' Recommended Reading Sunrun reports solid Q1 earnings amid tax, tariff uncertainty Inicia sesión para acceder a tu cartera de valores
Yahoo
09-06-2025
- Business
- Yahoo
Electrical manufacturers back bill to assess energy supply chain
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. Legislation directing the U.S. secretary of energy to conduct assessments of the U.S. electricity generation and transmission supply chains was approved by a House energy subcommittee on Thursday and now goes to the House Committee on Energy and Commerce. The Electric Supply Chain Act directs the energy secretary to prepare 'periodic assessments' that include 'any trends, risks, and vulnerabilities in the supply, demand, and availability of components for or related to generating or transmitting electricity, including components that are necessary for the construction or deployment of facilities that generate or transmit electricity.' The bill would require the secretary of energy to submit a report to Congress within one year of the legislation being enacted. The bill 'takes a proactive approach to identifying and addressing emerging issues that affect the power sector,' Rep. Bob Latta, R-Ohio, said in April at a hearing on ensuring domestic energy reliability. Latta, who is chairman of the House Energy and Commerce Committee's subcommittee on energy, introduced the legislation. Electrical equipment manufacturers say they support the bill. 'We must prioritize grid reliability by ensuring all relevant voices involved in supplying energy are at the table, including supply chain vendors and the manufacturers of critical grid components,' Spencer Pederson, senior vice president of public affairs for the National Electrical Manufacturers Association, said in a statement. The legislation would allow grid component manufacturers and supply chain vendors to 'provide the energy sector with greater clarity around their current and future capacity, opportunities for growth, and challenges related to maintaining a secure and resilient supply chain,' he said. 'More insight into the grid's component supply chains also will strengthen national security.' Having electrical manufacturers work with the Department of Energy's supply chain assessment will also help 'identify where potential issues related to 'foreign entities of concern' and other emerging issues might have national security concerns,' Pederson said. The bill calls for the supply chain assessment to include 'the effects of any reliance of the United States on any foreign entity of concern' related to electrical components and 'the exploration, development, or production of critical materials necessary for manufacturing such components.' 'America does not currently have the supply chain we require for true grid security,' Danielle Russo, executive director of the Center for Grid Security for SAFE, an energy and transportation security nonprofit, said in a statement. Analysis and recommendations from DOE "will be valuable in directing public policy toward strategies to secure our grid component supply chains.' Minerals are critical energy inputs and are intensive to process, noted Abigail Hunter, executive director of SAFE's Center for Critical Mineral Strategy. Latta's bill 'will unearth supply chain vulnerabilities affecting our bulk power system and midstream challenges to process those minerals at home,' Hunter said. 'Simultaneously securing inputs and infrastructure is the foundation for energy security and long-term industrial strength.' Recommended Reading Transformer, breaker backlogs persist, despite reshoring progress
Yahoo
09-06-2025
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Tariffs to spike power generation costs: reports
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. Import tariffs could raise battery costs for U.S. utility-scale energy storage installations by more than 50% and make the United States the world's most expensive solar market, Wood Mackenzie said on June 2. Prices for four-hour battery systems have already risen 56% to 69% since January and are expected to remain volatile 'until clarity returns,' Anza Renewables said Thursday in a separate quarterly pricing report. U.S. energy storage developers will likely depend on imports well into the future as domestic manufacturing capacity expands from 6% of present-day demand to 40% of expected 2030 demand, Wood Mackenzie said. Anza's quarterly report shows significant market impacts from the Trump administration's tariff policy. By April, imported batteries faced a universal 10% tariff, a further 145% tariff on Chinese components and stepped-up Section 301 levies dating back to the Biden administration, Anza said. Every battery manufacturer Anza tracks had paused price quotes by early April, according to the quarterly pricing report. Many resumed quoting on shorter validity windows in late April, ahead of a 90-day reprieve on May 14 that cut the China tariff down to 30%, Anza said. The temporary tariff reduction could indirectly increase final pricing for domestic energy storage developers next quarter as shipping prices rise amid a rush to bring inventory into the U.S., Anza said. Four-hour battery system costs increased more than 50% since January despite a 17% drop in spot prices for lithium carbonate, a key input for lithium-ion batteries, over a similar timeframe. The longer-term energy storage cost outlook depends on where import tariffs settle, Wood Mackenzie said. Its consultants considered a milder 'trade tensions' scenario, with stable tariffs of 34% on China and 10% on the rest of the world by year-end 2026, and a more severe 'trade war' scenario with a 30% average global tariff through 2030. Long-term costs for utility-scale energy storage projects would increase anywhere from 12% to more than 50%, depending on the scenario. Prices would increase 6% to 11% for other energy technologies, Wood Mackenzie said. That would still make the U.S. the world's most expensive solar market. Under the 'trade tensions' scenario, U.S. utility-scale solar projects would cost 54% more than in Europe and 85% more than in China, Wood Mackenzie said. U.S. solar construction costs are already high because of 'tariffs that have been in place on solar modules along with an inefficient transmission policy that exacerbates interconnection costs,' Wood Mackenzie Vice Chairman of Power and Renewables Chris Seiple said in a statement. The administration's unpredictable trade moves further complicate matters for developers, he added. 'In a business with five-to-10-year planning cycles, not knowing what a project will cost next year or the year after is disruptive and causes massive uncertainty for U.S. power industry participants,' with construction delays a likely result, Seiple said. Anza's latest data shows that battery pricing has seesawed from week to week. Prices for a four-hour, 40-MW, alternating-current BESS rose 49% from early to late April, then slid 21% after the May 12 tariff pause. Direct-current BESS saw even greater volatility, jumping 84% from early to late April before falling 33% in May. Smaller, distribution-connected systems — represented by the 40-MW archetype — were marginally more sensitive to tariffs overall than bulk-connected systems, Anza found. AC and DC pricing for distribution-connected systems has increased 68% since January, compared with 56% for AC bulk-connected systems and 69% for DC bulk-connected systems. Recommended Reading Will tariffs help or hurt the US energy storage industry? It's complicated, experts say Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
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Transferability is transforming clean energy project finance, say dealmakers
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. The tax credit transferability provision included in the Inflation Reduction Act has introduced new deal structures and is allowing clean energy developers to secure project financing faster, said speakers at a Thursday panel at the American Council on Renewable Energy's Finance Forum. 'The closing of transactions has become so much easier,' said Gaurav Raniwala, global renewable energy leader at GE Vernova. 'You don't have to line up two different structures simultaneously and then close everything when there's already enough mess going on. And the type of players that are now able to enter the market has broadened significantly.' A Wednesday report from Crux, a finance technology company that connects tax credit buyers and sellers, said lenders are 'increasingly' looking to finance less established technologies like carbon capture, and that 'this openness is supported by the robust and progressively more liquid market for transferable tax credits.' Raniwala said that financing had previously relied on the tax equity market, which 'was limited in capacity. The industry wanted to be bigger.' 'If you really want to have a dominant energy industry which has abundance of supply to help with electrification, to help with all the AI stuff, we need all sources of energy out there,' he said. 'And I think what transferability did was it broadened the market from just traditional tax equity to a whole host of players.' Crux's analysis said that 'tax equity structures have evolved to hybrid structures, or t-flips, which explicitly contemplate the sale of a portion of tax credits in the transfer market' and found that t-flips 'made up about 60% of the tax equity committed in 2024, and that share is expected to rise.' 'Historically, the tax equity market was about a $20 billion a year market dominated for many years by a handful of institutions,' said panelist Meghan Schultz, executive vice president and CFO at Invenergy. 'And with the transferability market, the size more than doubled … it allows the tax investor, the tax credit buyer, to be able to monetize those tax benefits without actually needing to be an owner in the project.' Raniwala noted that transactions can also now be customized based on credit profile. 'As an example, you could do the traditional tax equity, but now you know you can transfer the credits, so you could also borrow against those credits from banks.' Despite this sea change for project financing, transferability itself is endangered, as the budget bill that passed the House last month would eliminate or severely restrict transferability for the credits included in the IRA — and eliminate or shave down the credits themselves. 'The medium-term policy environment contains significant uncertainty, which investors in clean energy and manufacturing projects must navigate,' Crux said. Crux's report noted that the Senate will have to pass its own version of the budget, and 'senators have telegraphed their desire to make substantive changes to the House's version. That said, the near-term uncertainty may lead some developers to face higher costs of capital, more limited capital availability, or higher equity requirements as they seek to finance their projects.' Despite looming threats to the IRA, Crux's report took a bullish stance overall on the U.S. clean energy economy, noting that it 'directed nearly $340 billion in new investment in the United States last year.' One factor driving new projects is the added transaction speed offered by transferability. The tax credit trade has 'allowed people to close financing much more quickly, to not need to have that tax equity or tax credit buyer lined up at close, knowing that there is this liquid market for the tax credits,' Schultz said. 'It's facilitated speed to market for projects, because you can be efficient in your financing.' The lowered cost of debt and added flexibility of being able to lend against the expected transfer of your credits has also streamlined the process, she said. David Haug, CEO of Bildmore Clean Energy, said the option to transfer the credits allows developers to choose 'whether you want to have a long term offtake contract, or a long term revenue contract or a hedge to lock in your revenues or not.' 'Most of the projects that we're providing [preferred] equity for have a significant component of merchant risk,' he said. 'So we do not require them to have long term offtake contracts. We also don't require them to have pre-sold the tax credit. If they want to go all the way to commercial operation with no tax credit sale agreement in place, we will do that because we're betting that the tax credit market is strong, and we're also betting that the merchant power market is strong.' Recommended Reading IRA tax credit transfer transactions could reach $25B this year, says Crux
Yahoo
02-06-2025
- Business
- Yahoo
NRC environmental assessment: ‘no significant impact' from Palisades reactor restart
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. Holtec International's efforts to restart the 800-MW Palisades nuclear power plant pose 'no significant impact' to the human environment, the Nuclear Regulatory Commission said on Friday. The official notice of NRC's finding removes a potential roadblock to what is expected to be the first recommissioning of a retired nuclear reactor in the United States later this year. NRC issued a draft finding of no significant impact, or FONSI, for the western Michigan plant in January, prompting a challenge from local and national anti-nuclear groups. 'Pending all federal reviews and approvals, our restart project is on track and on budget to bring Palisades back online by the fourth quarter of the year,' Nick Culp, Holtec's senior manager of government affairs and communications, said in an email. The FONSI is a 'major milestone on our regulatory path to reauthorize plant operations,' Culp added. NRC continues to review other aspects of the Palisades restart process, including a request to approve Holtec's method for repairing an onsite steam generator system that NRC said last year showed wear that 'far exceeded estimates based on previous operating history.' The wear may have been caused by shutdown crews not following protocol while laying up the plant in 2022, Holtec spokesperson Pat O'Brien told Reuters in October. NRC's review timeline has slipped since March, when the commission said it would rule on outstanding licensing matters by July 31. Its website now shows an estimated completion date of Sept. 30 for the steam generator review, the last item on its docket. But Holtec's own estimates of when Palisades could power back up have not changed significantly from the October 2025 target O'Brien gave Utility Dive last September. Unlike many clean energy projects that received financial commitments from the Biden administration, the Palisades restart appears to have the full support of the Trump administration. Despite losing up to half its staff since January, the U.S. Department of Energy's Loan Programs Office has thus far made at least three loan disbursements to Holtec out of a $1.5 billion loan guarantee, complementing a roughly $1.3 billion U.S. Department of Agriculture award to two regional electric cooperatives to support power purchases from the plant. Michigan's 2025 state budget includes $300 million in funding for the plant. Holtec could spend as much as $500 million of its own money on the restart, O'Brien told Utility Dive last year. The company plans to apply for a 20-year renewal of the reactor's operating license, potentially extending its operations until 2051, and aims to commission two 300-MW small modular reactors on the site in the early 2030s. Former owner Entergy permanently shut down Palisades in May 2022 and sold it to Holtec the following month. Holtec made the first public moves toward restarting the plant in late 2023, marking the first U.S. effort to restart a retiring commercial power reactor. Since then, the owners of two other recently-shuttered U.S. nuclear power plants have moved to restart them. Backed by a 20-year power purchase agreement with Microsoft, Constellation Energy said in September it will restart the undamaged 835-MW reactor at Three Mile Island — now called the Crane Clean Energy Center — by 2028. And NextEra Energy has taken preliminary steps to restart the 600-MW reactor at its Duane Arnold nuclear plant in Iowa, which shuttered in 2020. Recommended Reading DOE makes $1.5B conditional loan commitment to help Holtec restart Palisades nuclear plant
