Latest news with #NEM3.0
Miami Herald
03-07-2025
- Business
- Miami Herald
Solar stocks' nightmare year just got a plot twist
It's been a terrible ride for solar stocks this year. Heightened interest rates, surprise bankruptcies, and political gut punches have dished out a monumental beating on solar energy plays. Don't miss the move: Subscribe to TheStreet's free daily newsletter However, if Wall Street's whiplash this week says anything, this industry still has a ton of fight. A fresh twist in D.C. has given beaten-down solar stocks a jolt of hope, though whether it sticks is another story altogether. Since January, the biggest names in solar have been under relentless pressure. Higher borrowing costs have slammed solar projects this year, leading to multiple bankruptcies from Sunnova to Solar Mosaic. Also, state moves like California's NEM 3.0 net-metering shakeup compounded sector woes. The cracks in the residential and community solar setups were laid bare by essentially gutting resale values. Consequently, we've seen the Invesco Solar ETF (TAN) lagging the broader market by roughly a third, while major players like First Solar (FSLR) , Enphase (ENPH) , and Sunrun (RUN) are trading deep in the red. Related: Solar stocks sent reeling by Congress Then came the massive policy earthquake. Senate Republicans slipped into the latest tax-and-spending bill an amendment to phase out all solar and wind tax credits by 2028. Those incentives include the 30% federal Investment Tax Credit for rooftop systems, and the Production Tax Credits (plus transferable ITCs) have effectively laid the foundation for solar's economics. More on Tech: Veteran Tesla analyst makes boldest robotaxi call yetApple could make big change to Siri, delight fansVeteran analyst offers eye-popping Nvidia, Microsoft stock prediction Without them, it undercuts developers' ability to secure financing while shrinking project returns in the process. Following the announcement, solar stocks plunged. In one brutal session, TAN nosedived about 10%, breaking below $32 while Enphase Energy skidded 26%. Similarly, Sunrun stock collapsed 42%, flirting with penny-stock territory, and First Solar tumbled 18%. Hence, Washington's push to kill off solar incentives has put the whole industry on notice. A twist on July 1 has thrown the sector a lifeline, though, at least for now. Solar stocks flipped from panic selling to a surprise rebound in virtually no time. Out of nowhere, Senate dealmakers decided to scrap that excise tax, which slapped hefty fees on panels with certain foreign parts. Late on July 1, the Senate signed off on the amended "Big Beautiful Bill," President Trump's big tax-and-spend plan. Surprisingly, it excluded the dreaded excise tax on solar and wind projects. GOP leaders were said to have scrapped it in cooling tensions on the Hill, flipping the market's mood from panic to relief. The bounce was emphatic. TAN stock led the charge, and individual stocks lit up the tape. Shoals Technologies leapt more than 18%, while Array Technologies added about 11%. Sunrun stock climbed 8.5%, and SolarEdge rose nearly 8%. Similarly, Enphase Energy and Maxeon Solar saw roughly 3% to 3.5% bumps. Surprisingly, even the larger utilities like NextEra Energy, Canadian Solar, and JinkoSolar popped by 2% to 3%. First Solar was the lone laggard, slipping a fraction. Related: Cathie Wood makes surprising chip bet as AI battle heats up Here's the downer: This quick fix didn't return the long-term tax credits that keep most clean-energy projects alive. Solar and wind tax perks will still start phasing out in 2026 and will go away by 2028, which means any new project needs to be up and running by the end of 2027 to cash in. Meanwhile, nuclear got its sweet deal until 2036, and hydrogen hangs on through 2028. Accordingly, industry leaders aren't exactly popping champagne, calling the development a temporary respite. Abigail Ross Hopper, who heads the Solar Energy Industries Association, said this does nothing about the bigger problem. Credits continue to dry up, and there's still not enough funds to help with local solar manufacturing. Now, the tweaked bill heads to a razor-thin House vote, which will shed more light on the future of American clean energy. On July 2, key solar stocks were firmly in the green during regular trading. TAN is up more than 6.2%, First Solar has jumped almost 9%, and Sunrun is up nearly 3%. Related: Tesla stock sinks fast as Musk-Trump clash turns ugly The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
03-06-2025
- Business
- Miami Herald
Groups head to California Supreme Court, seeking to upend solar rules
SAN DIEGO - In a few days, three environmental groups - including one from San Diego - get their chance to try to persuade the California Supreme Court to overturn a controversial rooftop solar policy issued by the California Public Utilities Commission nearly three years ago. "We've been working on this for a long time and we hope the court makes the right decision," said Roger Lin, senior attorney for the Center for Biological Diversity. The hearing is scheduled for Wednesday in Los Angeles. The case centers on whether the utilities commission, known as the CPUC, made the legally correct call when it changed the rules regarding how the estimated 2 million rooftop solar customers in California get compensated when their systems generate more electricity than they consume. In December 2022, the CPUC's five commissioners unanimously voted to approve the third iteration of the state's Net Energy Metering program, dubbed NEM 3.0. The complex 260-page decision included incentives to encourage customers to pair their solar installations with battery storage systems. But the portion of the decision that raised the most hackles revised the rules so that new rooftop solar customers would no longer be credited at the retail rate of electricity when their systems generated surplus energy. Instead, they get paid at the "actual avoided cost," which is lower. The CPUC's decision, which went into effect in April 2023, said the change sends "more accurate price signals that encourage electrification" across the state. The commission determined that changes need to be made, agreeing in large part with California utilities who said the earlier NEM rules were too generous. They argued that the growing number of rooftop installations leads to a "cost shift" that leaves customers who don't have solar paying an unfair share of the fixed costs that come with maintaining the electric system - substations, transformers, poles and wires, etc. But opponents of the CPUC decision have long disputed the cost-shift argument, saying that it does not properly take into account the benefits of rooftop solar, such as reducing the need for utilities to spend ratepayer dollars on building more infrastructure. They also argue that the lower compensation rate undercuts the incentive for potential customers to put solar on their roofs because it will take longer for new customers to recoup the cost of spending thousands of dollars on their installations. Shortly after the CPUC decision, the Center for Biological Diversity, the Environmental Working Group and San Diego-based Protect Our Communities Foundation tried to overturn NEM 3.0's rules. After the CPUC rebuffed the groups' request for a rehearing, the trio took their case to the California Court of Appeals. But in a 40-page ruling in December 2023, Associate Justice Victor Rodríguez authored a 3-0 decision upholding the CPUC's decision, saying, "We must give 'great weight' to the Commission's interpretation of the provisions of the Public Utilities Code." Rodríguez went on to write, "This uniquely deferential standard of review is accorded the Commission because of its status as 'a constitutional body with broad legislative and judicial powers.' " Undeterred, the three groups petitioned the California Supreme Court to hear their case, and last year the high court agreed. It's on the docket for oral arguments before all seven justices during Wednesday's morning session. "This case revolves around whether the Public Utilities Commission actually looked at the cost and benefits of rooftop solar, specifically," said Lin of the Center for Biological Diversity, citing a statute passed by the state Legislature that calls on the CPUC to promote the growth of renewable power in the state. The petitioners also argue the appeals court gave too much deference to the CPUC and the ruling did not go far enough to help disadvantaged communities. A spokesperson for the CPUC declined to comment on the commission's defense of its NEM 3.0 ruling, citing the "ongoing litigation," but referred to the arguments made in the appeals court ruling. Court observers say it's very unlikely the California Supreme Court will issue a ruling on Wednesday; rather, a decision is expected in about month or so. With more than 2 million solar systems atop homes, businesses and other locations, California has more rooftop installations than any state in the nation. As the new rules are currently written, solar customers who had their systems installed under earlier iterations of NEM still get compensated at the retail rate for 20 years from the time their systems were installed before they are switched to the new rules. For example, a customer who had a system installed in 2018 gets credited at the retail rate until 2038. But after that, the customer will be credited at the lower NEM 3.0 rate. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
The Star
26-05-2025
- Business
- The Star
Govt encourages local councils to use Solar PV systems
Sun power: Fadillah inspecting the Solar PV installation at the MBKT Tower, Kuala Terengganu. — Bernama KUALA TERENGGANU: The government is opening opportunities for all parties, especially local authorities, to adopt solar photovoltaic (Solar PV) systems as part of efforts to transition towards clean energy. Deputy Prime Minister Datuk Seri Fadillah Yusof said that by installing Solar PV systems at their premises, these entities can save on electricity consumption, generate new renewable energy and reduce carbon emissions. Fadillah, who is also Energy Transition and Water Transformation Minister, cited the example of the Kuala Terengganu City Council (MBKT) initiative, which installed Solar PV systems at the MBKT Tower's parking area and rooftop. 'The Solar PV system at MBKT is the largest installed on a building owned by a local authority under the Net Energy Metering (NEM 3.0) programme, under the NEM GoMEN category, approved by the Sustainable Energy Development Authority Malaysia on Dec 16, 2021. 'It has been operational since Jan 2, 2024, and is estimated to generate 1,147 megawatt-hours (MWh) of green electricity annually, resulting in estimated electricity bill savings of 11% or over RM200,000 per year,' he told reporters after inspecting the Solar PV installation at the MBKT Tower yesterday, Bernama reported. The event took place during the ministry's Petra Squad east zone roadshow, a two-day event held in Kelantan and Terengganu that started on Friday. Fadillah said the Petra Squad tour continued to the Large-Scale Solar (LSS) Coara Marang plant to observe its operation firsthand, which is part of the government's initiative under the LSS3 programme. 'The energy capacity generated by this plant is estimated to supply electricity to more than 10,000 households daily and is among the most advanced solar plants in terms of technology and efficiency. 'Besides helping to reduce carbon emissions, the LSS Coara Marang project also serves as a model for disaster-resilient solar plant design suitable for development in flood-prone areas, thereby strengthening the resilience of the country's energy sector,' he said. Fadillah said the roadshow concluded with a visit to the biogas power plant operated by Concord Biotech Sdn Bhd in Kemaman. He said the development of the biogas power plant involved an investment of RM21mil, including the installation of two biogas engines with a total capacity of 2.404 megawatts, using biogas derived from palm oil mill effluent. The plant commenced commercial operation on March 12, 2022, with the Sustainable Energy Development Authority Malaysia approving the feed-in-tariff quota on Feb 18, 2019. 'As of March 31, 2025, the power plant has generated 29,158MWh of electricity, equivalent to avoiding 22,568 metric tonnes of carbon dioxide equivalent emissions,' he said.
Barnama
25-05-2025
- Business
- Barnama
Govt Encourages Solar PV Adoption in Clean Energy Transition
KUALA TERENGGANU, May 25 (Bernama) -- The government is opening opportunities for all parties, especially local authorities, to adopt Solar Photovoltaic (Solar PV) systems as part of efforts to transition towards clean energy. Deputy Prime Minister Datuk Seri Fadillah Yusof said that by installing Solar PV systems at their premises, these entities can save on electricity consumption, generate new renewable energy and reduce carbon emissions. Fadillah, who is also Minister of Energy Transition and Water Transformation (PETRA), cited the example of the Kuala Terengganu City Council (MBKT) initiative, which installed Solar PV systems at the MBKT Tower's parking area and rooftop. 'The Solar PV system at MBKT is the largest installed on a building owned by a local authority under the Net Energy Metering (NEM 3.0) programme, under the NEM GoMEN category, approved by the Sustainable Energy Development Authority (SEDA) Malaysia on Dec 16, 2021. 'It has been operational since Jan 2, 2024, and is estimated to generate 1,147 megawatt-hours (MWh) of green electricity annually, resulting in estimated electricity bill savings of 11 per cent or over RM200,000 per year,' he said. He was speaking to reporters after inspecting the Solar PV installation at the MBKT Tower today during the PETRA Squad East Zone Roadshow, a two-day event held in Kelantan and Terengganu that began yesterday. Fadillah also said the PETRA Squad tour continued to the Large-Scale Solar (LSS) Coara Marang plant to observe its operation firsthand, which is part of the government's initiative under the LSS3 programme. 'The energy capacity generated by this plant is estimated to supply electricity to more than 10,000 households daily and is among the most advanced solar plants in terms of technology and efficiency. 'Besides helping to reduce carbon emissions, the LSS Coara Marang project also serves as a model for disaster-resilient solar plant design suitable for development in flood-prone areas, thereby strengthening the resilience of the country's energy sector,' he said.
Malaysian Reserve
25-05-2025
- Business
- Malaysian Reserve
Govt encourages Solar PV adoption in clean energy transition
KUALA TERENGGANU — The government is opening opportunities for all parties, especially local authorities, to adopt Solar Photovoltaic (Solar PV) systems as part of efforts to transition towards clean energy. Deputy Prime Minister Datuk Seri Fadillah Yusof said that by installing Solar PV systems at their premises, these entities can save on electricity consumption, generate new renewable energy and reduce carbon emissions. Fadillah, who is also Minister of Energy Transition and Water Transformation (PETRA), cited the example of the Kuala Terengganu City Council (MBKT) initiative, which installed Solar PV systems at the MBKT Tower's parking area and rooftop. 'The Solar PV system at MBKT is the largest installed on a building owned by a local authority under the Net Energy Metering (NEM 3.0) programme, under the NEM GoMEN category, approved by the Sustainable Energy Development Authority (SEDA) Malaysia on Dec 16, 2021. 'It has been operational since Jan 2, 2024, and is estimated to generate 1,147 megawatt-hours (MWh) of green electricity annually, resulting in estimated electricity bill savings of 11 per cent or over RM200,000 per year,' he said. He was speaking to reporters after inspecting the Solar PV installation at the MBKT Tower today during the PETRA Squad East Zone Roadshow, a two-day event held in Kelantan and Terengganu that began yesterday. Fadillah also said the PETRA Squad tour continued to the Large-Scale Solar (LSS) Coara Marang plant to observe its operation firsthand, which is part of the government's initiative under the LSS3 programme. 'The energy capacity generated by this plant is estimated to supply electricity to more than 10,000 households daily and is among the most advanced solar plants in terms of technology and efficiency. 'Besides helping to reduce carbon emissions, the LSS Coara Marang project also serves as a model for disaster-resilient solar plant design suitable for development in flood-prone areas, thereby strengthening the resilience of the country's energy sector,' he said. Fadillah said the roadshow concluded with a visit to the biogas power plant operated by Concord Biotech Sdn Bhd in Kemaman. He said the development of the biogas power plant involved an investment of RM21 million, including the installation of two biogas engines with a total capacity of 2.404 megawatts (MW), using biogas derived from palm oil mill effluent (POME). The plant commenced commercial operation on March 12, 2022, with the Sustainable Energy Development Authority Malaysia approving the Feed-in-Tariff (FiT) quota on Feb 18, 2019. 'As of March 31, 2025, the power plant has generated 29,158 MWh of electricity, equivalent to avoiding 22,568 metric tonnes of carbon dioxide equivalent (CO2eq) emissions,' he said. — BERNAMA
