2021-StdSolar-RENEW-Q2-Summer-12

Welcome to the Summer edition of the all-digital RE:NEW magazine. Read insights on President Biden's infrastructure bill from leading industry experts and how Minnesota is leading the way in making community solar a great investment for banks and communities. Don't miss out on the latest industry happenings.

ISSUE 10 SUMMER 2021

Solar insights from industry experts RE:NEW

EDITORIAL FEATURE Will Infrastructure Investments Spur Clean Energy Industry Growth?

ASK THE EXPERT Insights on Biden's Infrastructure Plan from SEIA's Abigail Ross Hopper

PROJECT PROFILE Solar Arrays Deliver Low-Cost Energy to Minnesota’s Communities

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Editor's Note

By the Numbers

Editorial Feature

ISSUE 10 / SUMMER 2021 RE:NEW

Ask the Expert

Project Profile

FROM THE TOP

An Investment In Infrastructure Could Change The World

Then our own Megan Byrn highlights the three most important provisions of the bill that could affect the long- term health and sustainability of the solar industry moving forward. Finally, we hear from Abby Hopper, the Solar Energy Industries Association President & CEO on what she thinks the must-haves are in the bill. As negotiations continue, her insights will help us keep an eye on what’s most important, informing what actions we must take to keep the most critical provisions in the legislation. While the Infrastructure Plans continue to move through Congress, some states have moved forward aggressively to support the solar industry. Minnesota, for example, has pioneered effective solutions to make community solar a great investment for banks and communities, and we are thrilled

Inside the Beltway, the debate continues

to be funding 39 projects totaling nearly 60 MW of power in the state. As they continue to make their state community solar friendly, we expect to see other states follow their example. There will inevitably be twists and turns as the hard work of passing the massive infrastructure bill continues. But if we help our legislators focus on what will help the country most, the solar industry can rest assured that their interests will be represented in the final product. Have a great summer! SCOTT WIATER President & CEO, Standard Solar

2 RE : NEW • SUMMER 2021 the bill when it comes before them. Starting with the raw numbers, we outline the potential investments the bill contains (as currently constituted), which range from $73 billion to build clean energy infrastructure to fostering national, state and local partnerships to install more than 500,000 electrical vehicle chargers throughout the country. around President Joe Biden’s $1.2 trillion infrastructure bill, officially known as the American Jobs Plan . Negotiations are continuing on the final parameters, and the hope is that by the end of the summer, a deal will be reached — the expectation being that they’ll vote on the bill by early August. That’s why we focused this summer issue of RE:NEW on the bill, providing you with the facts and figures you need to let your Representatives and Senators know that they should support

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BY THE NUMBERS

President Joe Biden has proposed an aggressive plan to rebuild the infrastructure of the United States, including investments in clean energy. Here are some of the numbers that are associated with the plan:

90 GW 500,000 2050

100% Biden’s goal for clean energy production by 2035.

900,000 Number of solar workers required to reach President Biden’s goal of 100% clean energy production by 2035.

Annual installation goal by 2030 necessary to be on track to reach the 100% clean energy production goals by 2035.

Number of EV chargers installed

United States will become a net-zero country.

nationwide by 2030 through federal, state and local partnerships.

$21 BILLION An investment in environmental remediation that will pave the way for battling climate change. $73 BILLION Money in the bill devoted to clean energy production. Investments in building a significant EV infrastructure. $7.5 BILLION Amount Biden plans to invest in electrifying. $7.5 BILLION

Sources: Solar Power World, pv magazine USA, Utility Dive, SEIA, WhiteHouse.gov

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EDITORIAL FEATURE

Infrastructure Investments Should Spur Clean Energy Industry Growth By Megan Byrn

It also includes $6.5 billion in loans to rural communities to fund the clean-energy, storage and transmission-line projects that are critical to ensure the clean-energy revolution does not leave anyone behind. Finally, it devotes $16 billion to remediat ing abandoned coal mines and oil wells, to turn some of them into clean- energy powerhouses like solar and wind farms. Finally, SEIA predicts that the

The debate over President Joe Biden’s infrastructure plan continues in Congress as its details continue to emerge. The ambitious proposal is currently moving along in two separate bills. The first bill focuses on more traditional projects like roads, bridges and other physical infrastructure. But President Biden has decided to use the reconciliation process, which wouldn’t require Republican support, to focus on his other infrastructure projects, including his professed desire to combat climate change. As a result, a good portion of the second bill is expected to be devoted to developing, expanding and supporting the growing clean-energy industries through shrewd policy provisions — and significant investments in what the president refers to as “building back better.” Here are a few of the bill’s highlights that the solar industry should be watching closely: 100% Clean Energy Production by 2035 Think of this provision as the development (finally) of a national renewable portfolio standard (RPS). While achieving 100% clean energy production within the next 15 years will present challenges throughout the clean energy supply chain, that does not mean the goal is impossible. The national plan mirrors the goals already in place in multiple states. However, once the goal is set, the question becomes how to pay for it, and the infrastructure

“ The investments made to achieve 100% clean energy by 2035 will not just help the solar industry but will help create well- paying jobs for the future.

solar industry would have to grow its workforce from its current levels of 215,000 to more than 900,000 to help the United States

reach its clean-energy goals. The investments made to achieve 100% clean energy by 2035 will not just help the solar industry but will help create well-paying jobs for the future.

“ The bill would provide a $73 billion influx of money into streamlining

bill does address the question. If passed as currently constituted, the bill would provide a $73 billion influx of money into streamlining

and expanding the backbone of clean energy production.

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Here are some important numbers that you should be aware of when it comes to the Biden Administration’s American Jobs Plan (aka, the Infrastructure Bill):

222

ITC Creations and Extensions The centerpiece of the infrastructure bill for the solar industry is the extension of the investment tax credit (ITC) for the next ten years. It is commonly understood in the solar industry that the ITC is one of the most effective, efficient ways to spur investment in solar projects. In the past, short-term extensions of the ITC have led to uncertainty as extensions are debated in Congress. A 10-year extension, with the appropriate phase-out as it reaches its later years, would add much-needed stability to the solar-project funding process and make it easier to get deals done. The solar ITC may not be the only investment tax credit in the infrastructure bill, however. The Biden Administration has proposed creating an ITC for energy storage projects. Though not directly tied to the solar ITC, a storage ITC would encourage the co-location of solar + storage projects. This arrangement would reinforce the symbiotic relationship between the two technologies and allow the solar industry to expand into even more markets.

The number of votes necessary to reach 51% of the vote in the House of Representatives. If all the

Democrats stick together, they will reach that threshold based on their slim majority.

The number of votes necessary to pass the bill in the Senate, unless the Democratic Party eliminates the filibuster.

In that case, it will take 50 Democratic votes with Vice President Kamala Harris breaking the tie. To pass under regular order, it will require 10 Republicans to cross party lines to vote for the bill. President Biden wants all electricity production in the United States to be fueled by clean energy by this date — a mere 15 years from now.

2035

The solar workforce will have to increase to nearly one million workers to help President

900,000

Biden reach his aggressive 2035 goal.

This number represents the investment the bill makes into

$73 billion

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Electric Vehicle Development The transportation sector of the country’s infrastructure is currently geared toward fossil-fuel usage and traditional internal combustion engine (ICE) vehicles. As the EV revolution gets underway, the support infrastructure for EVs must also be built. That is why the infrastructure bill creates federal, state and local partnerships to develop more than 500,000 EV chargers installed nationwide by 2030. The construction of EV charger networks proves the bill is not just focused on building for the present but also on building for the future.

Other Important Aspects President Biden’s second infrastructure bill may also include the following components that will not only help the solar industry but will allow clean energy companies across all sectors to thrive: • $35 billion to address the issue of climate change in the broadest possible sense • Create a Civilian Conservation Corps • $40 billion: Investment in a new Dislocated Workers Program and sector-based training to retrain fossil-fuel workers to fill clean-energy jobs • 700 GW: The expected solar capacity by 2030 — necessary to be on track to reach the 100% clean energy production goals by 2035 • 90 GW: For the annual solar installation goal by 2030 — essential to be on track to reach the 100% clean energy production goals by 2035 Will It Pass? The prospects of passing the ambitious bill have yet to be determined. Since the climate change provisions are likely to be contained in a second infrastructure bill that will only need Democratic votes under the reconciliation process, the negotiations to get it passed should be much easier. Many of the negotiations will come down to whether Democrats can get Senators like West Virginia’s Joe Manchin on board, although he has indicated tentative support for such an infrastructure plan that would focus on transitioning coal-mining communities to becoming centers for clean-energy production. The devil, as always, is in the details. Since it is unlikely that the final bill will be passed until the fall, it bears watching the ensuing negotiations closely, and it’s important for the solar industry to fight for the provisions it sees as essential to its success. Byrn is the director of development operations for Rockville, Md.-based Standard Solar.

“ The construction of EV charger networks

proves the bill is not just focused on building for the present but also on building for the future.

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ASK THE EXPERT

“

The American Jobs Plan recognizes that business as usual won’t get us to 100% clean electricity or ensure that solar deployment scales up at the pace needed to meaningfully address the climate crisis. The President’s planned investments in solar energy will enable the industry to deploy the massive amount of renewable energy needed to meet urgent climate goals. The solar Investment Tax Credit (ITC) is responsible for more than 200,000 solar careers, thousands of new businesses, billions of dollars of private investment and emissions reductions across the country. As Congress considers ways to jumpstart our economy and invest in clean energy infrastructure, the ITC remains a top driver of solar deployment today. As a result of the two-year extension SEIA secured at the end of 2020, Wood Mackenzie is now forecasting a 17% increase in solar installations from 2021–2025. Solar businesses need certainty and a stable policy environment to speed deployment and continue to grow their businesses. A ten-year extension of the ITC and direct pay provision could add much needed certainty and help create the market conditions needed for businesses to deploy more solar and meaningfully address the climate crisis. ❂

Abigail Ross Hopper President and CEO SOLAR ENERGY INDUSTRIES ASSOCIATION (SEIA)

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PROJECT PROFILE

Solar Arrays Deliver Minnesota’s

This year, Minnesota Governor Tim Walz proposed a series of policies that would transition the state to 100% carbon-free electricity by 2040. But even before Walz’s announcement, Minnesota was already an excellent place for solar. State regulations are structured to make community solar projects, for example, a safe investment to banks and lenders. That means funding solar projects is easier in Minnesota than in other states.

39 COMMUNITY SOLAR PROJECTS

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Low-Cost Energy to Communities

Standard Solar funded and will serve as the long-term asset owner of 39 community solar projects in Minnesota, totaling nearly 60 megawatts (MW). This portfolio of projects from Belle Plain to Mankato to St Cloud are allowing Minnesota businesses and residents to purchase low-cost solar energy, lowering energy bills while reducing emissions.

60 MW

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FUNDING SOLAR PROJECTS NATIONWIDE, BUILDING PARTNERSHIPS FOR LONG-TERM SUCCESS

At Standard Solar, we’re investing in partnerships. We’re a vertically integrated funding and development partner with the expertise in finance and engineering to capitalize on efficiencies. In every partnership, we are focused on using what we know and our vast resources to build something together that will stand the test of time and maximize returns for the duration. Let’s build a partnership today.

STANDARDSOLAR.COM | 888.474.3843 | SALES@STANDARDSOLAR.COM

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