A study released today by Solar Installers of Washington (SIW) shows that November passage of the clean energy investment ballot measure, Initiative 1631, could dramatically accelerate growth of the residential, commercial, and community solar markets in Washington State. Seventy percent of the pollution fees collected under the new law would be directed toward a Clean Air Clean Energy (CACE) Fund. The study shows that injecting 10-20% of CACE funds into a program roughly modeled on the state’s existing Renewable Energy System Incentive Program could deploy more than four gigawatts of distributed solar generating capacity, a thirty-fold increase over current installed solar capacity, equivalent to more than 400,000 typical rooftop systems.
Under the scenarios studied, solar industry growth could add well over 3,000 jobs beyond the 3,400 existing today, signaling the need for substantial investment in renewable energy workforce development. By 2050 new solar incentives deployed with CACE funds could reduce global greenhouse gas emissions by up to 32 million metric tons of carbon dioxide equivalent. Initiative 1631 would level the playing field for renewable energy by making large corporate polluters pay for their emissions, and by re-investing those funds in clean energy projects that protect our air and water.
Learn more about the Distributed Solar Energy Potential of I-1631.
North American solar module manufacturer, Silfab Solar, has announced a direct investment in Itek Energy to initiate its US operations and meet growing demand for its photovoltaic (PV) products. With the $40 million investment, Silfab will integrate its leading-edge technology to Itek’s Bellingham, Washington production facility. Addition of a second production line at the facility is expected to more than double solar module production from 150 megawatts to near 350 megawatts.
The Silfab announcement comes as Washington state is charting record installation numbers of residential and commercial solar PV systems. The market expansion is fueled by falling equipment production costs, increased consumer awareness, net metering, and the reformed Renewable Energy System Incentive Program. The incentive program, passed by Washington’s legislature last summer, pays renewable energy adopters for the clean energy their systems generate.
“The out-of-state investment Washington’s solar industry has attracted from Silfab Solar underscores the value of Washington lawmakers’ decisions to support solar energy innovation and deployment. Funds the state has invested in solar energy are leveraging substantial private investment throughout Washington’s solar value chain,” said Dana Brandt, Board President of Solar Installers of Washington, the state’s solar trade association.
“We are excited by the expanded solar module production capabilities the Silfab investment makes possible at the Washington factory. The investment will help meet the strong demand for clean, affordable, and reliable solar electricity here in Washington state and in export markets,” said John Flanagan, President and Founding Principal of Itek.
The Yes on I-1631 campaign and Washington’s solar industry are celebrating a milestone. This week Washington’s Secretary of State announced that Initiative 1631 has qualified for the ballot in the November 2018 election. The initiative would protect local health and build a cleaner future for Washington by putting a pollution fee on the state's largest polluters, like the oil industry and utilities that have not yet switched to clean energy. It would invest in clean energy infrastructure, protecting and improving our state’s clean water and healthy forests, and transitioning local communities to a clean energy economy.
Yes on 1631 volunteers and coalition leaders delivered roughly 375,000 signatures to the Secretary of State’s Election Office last month. 260,000 verified signatures are required to qualify for the General Election Ballot. More than 2000 volunteers, organized through more than 200 organizations across Washington, worked over 12 weeks to gather signatures for this initiative.
Initiative 1631 is supported by the broadest coalition in Washington state initiative history, including labor unions, health professionals, businesses, communities of color organizations, tribal nations, faith organizations and environmental and clean energy advocates. The Solar Installers of Washington has endorsed the initiative, as have many of its member companies.
“Passage of I-1631 would dramatically accelerate the deployment of renewable energy in Washington. Funds generated by the carbon fee would support a multi-fold increase in solar installations and create thousands of new local jobs in the solar industry,” said Allison Arnold, Executive Director of Solar Installers of Washington.
Solar Installers of Washington endorses Washington Ballot Initiative 1631, the Protect Washington Act. If passed in November, the Act would reduce pollution by investing in clean air, clean energy, such as wind and solar, clean water, healthy forests, and healthy communities. Investments would be funded by imposing a fee on large emitters based on their pollution related to the consumption of fossil fuels.
We support this pivotal effort to make Washington the first state in the U.S. to establish a carbon fee and investment fund to address climate change. The adverse impacts of carbon emissions on our health, water, forests, fisheries, agriculture, and infrastructure are intensifying with each year, threatening the well-being of current and future generations.
Solar and other renewable and efficient energy technologies are poised to replace the combustion of fossil fuels for electricity generation. The transition to a clean energy economy will have tremendous economic and job growth benefits. If Initiative 1631 becomes law, SIW will work with the State and stakeholders to build effective programs for the equitable deployment of solar energy, and to provide career opportunities for workers displaced during the shift to clean energy.
Please sign in support of Initiative 1631 and vote "yes" on the initiative this November.
To learn more about the initiative visit https://yeson1631.org/learn/
With the passage of Resolution No.1755 on March 27th, 2018, Klickitat Public Utility District (PUD) became the latest utility in Washington to penalize net metered solar customers by discounting the clean energy they generate. This resolution, which unfairly targets both existing and future solar customers, was adopted despite overwhelming customer opposition to the resolution, as reported in the Goldendale Sentinel.
Klickitat PUD has a low level of solar adoption, with fewer than 120 net metering customers in the county. These customers pay the basic monthly infrastructure charge and have an immaterial impact on Klickitat PUD’s rates, equating to an increase or decrease of less than one tenth of one percent of retail revenue.
Klickitat PUD commissioned a report of EES Consulting in preparation for passing down the alternative compensation decision for solar customers. The report acknowledges that the alternative policy “does not address any non-energy benefits of distributed generation”, such as economic development, energy independence, or reduced pollution. Furthermore, Klickitat County’s own 10-year economic development strategic plan directs the county to “concentrate efforts on the clean technology industry as a catalyst opportunity with an emphasis on wind and solar” (Goal 2.3) SIW and other stakeholders submitted comments cautioning that the new policy will have a chilling effect on future solar deployment in Klickitat County, putting the PUD at a competitive disadvantage in the 21st century energy market.
Klickitat PUD’s passage of the resolution, with complete disregard to customer opposition, underscores the critical need for the Washington Legislature to pass updated net metering legislation in 2019 to protect the right of solar adopters to use the power they generate on their homes and businesses. Ninety percent of Washington’s population live in the twelve utility territories that have exceeded their legal requirement for cumulative net metering generation capacity, which is among the lowest standards in the nation. Doors could shut for new solar customers in those utility territories at any time. Several utilities that have met their legal requirement have unilaterally implemented alternative policies that undermine the intent of the state’s net metering law.
Legislation (SB 6081) introduced to update net metering during the 2018 session enjoyed strong public and bipartisan legislative support. Unfortunately, the House did not heed the urgent need to expand the state's net metering requirement, allowing the net metering bill and other important energy bills to die without a vote from the full chamber.
This week the Trump Administration announced a four-year tariff program on imported solar cells and modules (solar panels), declaring an intention to provide relief for U.S. manufacturers against what they perceive as unfair trade practices. Based on a petition from manufacturers Suniva and SolarWorld Americas in mid-2017, the International Trade Commission (ITC) determined that increased solar cell and module imports “are a substantial cause of serious injury to the domestic industry.”
We are still in the early days, and awaiting official publication of the tariff in the Federal Register, but here is what we know about the tariff so far, and how we expect it to affect the Washington solar market:
Solar in National Headlines: Breaking Down the Numbers
February 7, 2018 is the start date for the tariff. It is scheduled to be in effect for four years, starting at 30% and stepping down by 5% each year. As prices for solar equipment are generally spoken of in dollars or cents per watt, this roughly equates to an average $0.10/watt tariff in 2018, ending in a $0.04/watt tariff in year four (GTM Research). While these are not the numbers we would like to see, the impact is not as negative as the industry as a whole initially feared; those most affected had already been preparing for the 50% tariff that Suniva and SolarWorld had requested.
The Solar Energy Industries Association (SEIA) issued a press release stating that this decision will cause the loss of roughly 23,000 American jobs. In the podcast Trump’s Solar Tariffs: We Answer Your Questions, GTM Research discusses the distinction that this is not current jobs being lost, but rather a reduction in jobs created based on the estimated solar demand models from the National Renewable Energy Laboratory (NREL). According to industry experts, job growth is expected to continue, but at a lower rate than recent employment trends indicated.
Where do we expect these changes to be felt the most? The 2016 National Solar Jobs Census found that the solar industry employed over 260,000 workers by the end of 2016, accounting for 1 in 50 new jobs created in the United States. Most of these jobs were in installation (137,000), and manufacturing accounted for 38,000 jobs, with the remainder in sales and distribution, project development, research and development, and finance. Proportionally, the biggest impact on jobs will be on the installation sector, however, more specifically, the impact will be weighted more toward utility-scale solar.
Of the expected 7.6 gigawatt reduction in new solar growth over the next five years, about 65% is expected from utility-scale. With projects of this scale, margins are very thin and module prices make up a larger percentage of development costs. The lead-up to the ITC ruling provided an opportunity for developers to plan for increased costs and led to advanced procurement of imported modules before the tariffs go into effect. As such, GTM Research expects 2018 to be relatively insulated from the tariffs, with 2019 having the biggest impact on the utility sector.
In the residential solar sector, tariff impacts will be reduced, due to modules making up a smaller percentage of system and installation costs. The exception will likely be new and emerging state solar markets. Southern states such as Texas, Florida, and South Carolina are expected to be among the most significantly impacted, with Suniva’s home state of Georgia the fourth most affected market. Oregon comes in as eighth most affected and is home to SolarWorld Americas.
The Outlook for Washington State’s Solar Market
Beginning with the implementation of the production incentive program in 2006, Washington’s solar market has functioned a little differently from other states. Our state incentivizes customers for installing locally-manufactured solar equipment. Because of this incentive, we have a healthy manufacturing base in Washington State that may initially benefit from this tariff decision. Thus far, Washington has not seen large development in utility-scale solar, with most solar installers in the state focusing primarily on the residential market.
An important detail in this tariff decision is an exemption for the first 2.5 gigawatts of solar cells imported to the United States. While this tariff does not currently have an exemption for imports from NAFTA countries, Canada and Mexico, these negotiations are sure to continue. Industry experts have suggested that the first 2.5 gigawatts of solar cells should adequately supply existing U.S. manufacturing facilities for one year, further mitigating the impact on American manufacturers. The vast majority of solar module manufacturers purchase cells on the international open market, due to the limited number of cell manufacturers worldwide.
Locally, it looks as though prices will stabilize at 2017 levels for the foreseeable future. With state incentive rates stepping down in July 2018, Washington customers considering solar for their home or business would be wise to start planning their solar installations now.
While U.S. trade policy may be beyond the direct control of the Washington solar industry, the state's solar businesses and customers can influence the long-term viability of solar in Washington State by advocating for solar-friendly policies at the state and local level. Right now, solar supporters can contact their legislators in support of the Solar Fairness Act (SB 6081). This bill would increase the number of new customers to which utilities' must offer net energy metering, allocate any excess net metered credits to low income relief, and adjust the net metering true-up date to better reflect annual production capacity in Washington’s market.
(An earlier version of this post appeared on the website of Western Solar.)
Washington’s solar industry remains strong in the face of the U.S. president's announcement this week to impose tariffs on imported solar cells and modules. Our state benefits from a diversified and integrated solar industry that provides jobs in installation, manufacturing, distribution, engineering, marketing, sales, finance, software development, consulting, and education. Such economic diversity provides resilience from potential market disturbance from external forces.
Here in Washington we are making big progress toward our clean-energy future. Solar Installers of Washington works actively to keep solar affordable for Washingtonians by advocating for the protection and improvement of state policies like solar production incentives and net energy metering. Our state’s solar industry is positioned for continued growth, enabled by pro-solar state and local policies, and the ongoing reduction in the non-equipment costs of solar installations, such as cost savings from more efficient permitting processes. Solar workers, businesses, customers, lawmakers, and supporters from around our state and across the political spectrum make Washington Solar Strong.
Right now in Olympia, legislators have the chance to support the Solar Fairness Act. Future Washington solar owners deserve to own their power: the Solar Fairness Act ensures their right to use the solar electricity they generate at their homes and businesses.
The Solar Fairness Act is an important way for the people of Washington to take ownership of our clean-energy future. Learn more about the Solar Fairness Act at http://solarstrongwa.org/solar-fairness-act-sb6081/.
For more information, contact:
Allison Arnold, Executive Director
Solar Installers of Washington
Seattle, WA, January 3, 2018 - The Board of Directors of Solar Installers of Washington (SIW) is pleased to announce Allison Arnold has been named SIW’s first Executive Director, effective January 2.
Allison says she is honored to join Solar Installers of Washington (SIW) as the organization’s first executive director. She brings to SIW nearly a decade of experience in renewable energy policy, marketing, and program management. Allison began her solar career in California, where she led policy advocacy, marketing, and communications for the U.S. solar business of global electrical products company, Mitsubishi Electric. Upon returning to her native Pacific Northwest, she served as Senior Fellow for E8 angel investment group, where she directed due diligence on early-stage clean energy companies.
As an active volunteer for the country's largest solar non-profit, GRID Alternatives, Allison participated in rooftop installations for low-income homeowners, promoted workforce development, and chaired the board of the organization's first affiliate in Los Angeles. She has also worked with the U.S. Department of Energy SunShot Initiative to expand solar access for low- and moderate-income households, and non-profits through the Solar in Your Community Challenge.
Allison has served on the boards of state and national solar industry trade associations, including the California Solar Energy Industries Association and the Solar Alliance. She holds a Bachelor of Science in Earth Systems from Stanford University, and was a Fulbright Scholar at Victoria University of Wellington, New Zealand, where she received an environmental policy Masters degree.
Allison is inspired by the role of solar in generating clean, affordable energy, while creating family-wage jobs and economic development. She looks forward to working with the board and members to grow and strengthen SIW and the solar industry.
"It is an exciting time for Solar Installers of Washington to build on its accomplishments to advance the solar industry in our state.” states Arnold. “I am thrilled to have the opportunity to work with the talented and dedicated members of Solar Installers of Washington to chart a course for the future of the association."
The Board of Directors conducted a national search for a collaborative, versatile, and resourceful leader. “After an extensive interview process with a number of highly qualified candidates, the Board stood unanimously behind Allison. Her experience, knowledge of the industry, and vision for the future made her the ideal choice to take SIW to the next level,” said Dana Brandt, Board President. “Having such a deep pool of capable applicants reflects the interest that people have in SIW’s excellent work.”
Since 2013, Solar Installers of Washington has worked closely with legislators, utilities, manufacturers environmental groups and other solar stakeholders to update and improve Washington’s policies in order to promote broader solar adoption and bolster a strong, sustainable solar industry in our state.
The State Legislature voted to pass the Solar Jobs Bill in the early morning hours of July 1. SB 5939 passed the Senate with a 47 to 2 vote and the House with a 74 to 19 vote (with 5 excused). Click to read a synopsis of the bill's history and the final version of the bill, itself. The bill was signed by the Governor on July 7.
SIW wishes to send a big thanks to everybody who worked very hard over the last several months to see final passage of this bill. SIW has provided a two-page summary for an overview of the Solar Jobs Bill.
Photo below of Govenor Inslee along with members of SIW and other solar supporters and advocates.
State Legislature in Special Session as of 4/24; Solar Jobs Bills still very much alive in their respective committees
Solar Jobs Senate Companion Bill in Senate EET Committee
SB 5499, sponsored by Senator Guy Palumbo of the 1st legislative district (Bothell, Mountlake Terrace), is the companion bill to Substitute House Bill 1048 (see below) which also seeks to revise the current production incentive program. Click for more information on SB 5499.
The Senate Energy, Environment, and Telecommunications committee, chaired by Sen. Doug Ericksen of the 42nd district (Whatcom County), held a public hearing on Thursday, April 6. Click to watch the archived broadcast.
Solar Jobs House Bill SHB 1048 in House Finance Committee
A substitute version of 1048 passed the House Technology & Economic Development Committee in March 2017 by a 14-2 margin. SHB 1048 is designed to reform the current production incentive program and provide more certainty for the Washington solar industry and consumers, alike, while supporting a strong and growing jobs sector in our state. View a 2017 solar bill overview. (PDF file). The bill now resides in the Finance Committee where a public hearing took place Friday, March 10. Watch an archived broadcast of the hearing on TVW.