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Good morning and happy Friday,

President Joe Biden announced $7 billion in solar grants for low-income households on Earth Day, and states across the energy are feeling sunny from the administration's rollout. For example, Virginia’s Department of Energy received $156 million for its “Solar for All” program, which benefits underserved communities with residential solar, and Harris County, Texas received $250 million to help meet climate goals.

Meanwhile, California achieved extended streaks of 100% clean electricity through diverse renewable sources, but they now face challenges of oversupply, storage, and meeting peak demand with the aim for complete reliance on zero-carbon energy by 2045.

Read on for more.

Pennsylvania’s Promise

Pennsylvania aims to source half of state government electricity from solar power by next year, marking a pioneering commitment. Governor Josh Shapiro announced the plan on Earth Day, and according to his administration, it will be “saving Pennsylvania taxpayer dollars while providing reliable, sustainable, and affordable electricity in the long term.” This initiative, part of the PA PULSE project, underscores the state’s dual focus on economic growth and environmental protection, as outlined in Shapiro’s broader energy plan. 

• Governor Shapiro took a bold stance, announcing a new energy plan in which he will “reject the false choice between protecting jobs and the economy and protecting the environment.”

• The initiative involves ten new solar arrays deployed across the commonwealth. The contract involves a 15-year fixed-price agreement with Constellation which ensures stable rates amidst rising energy costs.

• With the promise of job creation, climate action, and reduced consumer bills, the initiative signifies a significant step towards sustainable energy usage in government operations.

⚡️ The Takeaway

Power Play in PA. In this landmark move, Pennsylvania’s commitment to sourcing half of its state government’s electricity from solar power by next year sets a precedent for sustainability initiatives nationwide and demonstrates a concerted effort to balance economic growth with environmental stewardship. This could set the bar for other states across the nation to follow suit.

Solar Surplus

Why is California throwing away Gigawatts of solar energy? With solar accounting for 47 gigawatts of power production (enough to power 13.9 million homes) solar makes up over one quarter of the State’s power needs. An abundance of residential solar has produced too much energy at inopportune times. Without a way to store the excess energy, this has led to negative electricity prices during periods of high production and low demand, especially on sunny days and in the Spring, when people aren’t heating or cooling their homes. 

• Rooftop solar generates too much power in the middle of the day, when the panels are at peak capacity. This generates a “duck curve” where there’s not enough demand to meet the massive output. This is becoming increasingly pronounced over the past five years.

• CAISO (California’s grid operator) underestimated the rapid growth of residential solar installations, leading to difficulties in managing the surplus solar power flooding the grid. Reducing production is technically simple, but it raises electricity prices and diminishes economic incentives for rooftop solar owners, creating unrest around the State's net-metering system.

• Solar power can still grow in California, although it may be necessary to think of outside-the-box solutions such as selling excess power to neighboring states, investing in additional storage and batteries, and expanding transmission lines to accommodate fluctuations in solar power output. This can help ensure the stability of California's grid as it continues to transition towards renewable energy sources.

⚡️ The Takeaway

Policy Pioneers. These surplus energy challenges are not unique to California, and may prove to be a testing ground for helping to inform policy decisions and grid management strategies on a broader scale across other US States. There’s a need for innovative solutions to optimize the integration of renewable energy into the grid and store it for when it’s needed most - notably when solar panels are not producing. A blend of transmission infrastructure and the development of demand response programs may help to balance supply and demand in real-time.

• Watts Going On?: The US clean energy backlog is getting bigger and bigger

• Opinion: The future of clean energy hinges on cybersecurity 

• Generation G(reen): Gen Z will thrive on clean energy jobs

• Power to the People: Bringing equity to the clean energy conversation

• Warning: JPMorgan warns clean energy transition could take ‘decades or generations’

• WA: Council approves large wind farm near the Tri-Cities but slashes turbine numbers

• MD: Wind farm construction underway on Dan's Mountain

• TX: Entergy Texas’ first solar facility provides power to more than 30K homes

• KS: Douglas County Commission approves massive solar project 

• OH: Madison County solar farm with Bill Gates connection wins approval

• UT: New solar farm in Tooele County will soon power cities and ski resorts

• IN: Solar farm concerns in LaPorte County

• IN: Huntington County residents voice concerns about proposed solar farm project

• NC: Timbermill Wind turbine parts en route to Chowan County

While the IRA offers hope for US solar manufacturing, challenges persist, notably the shortage of skilled workers, which has delayed the operation of the Texas factory by at least six months. Uncertainties surround the continuation of government subsidies, particularly amidst potential policy changes post-election. 

The need for policy stability is crucial to ensure sustained support for the industry, as shifts in political leadership could impact long-term investment and industry growth. Despite indications that IRA support transcends political affiliations, uncertainty remains regarding the consistency of US policies in supporting local solar manufacturing.