![\"\"](\"https://greenbackercapital.com/wp-content/uploads/2023/02/Greenbacker-chart-annualized-returns-2023-02-22-1024x565.png\")
We recently wrote a piece on how the sustainable infrastructure asset class tends to perform well during periods of market disruption, due to its stable long-term cashflows, high-credit-quality counterparties, and inelastic demand. We expect this will remain the case despite the current market volatility caused by the recent failures of Silicon Valley Bank (SVB) and Signature Bank and the resulting concerns for the wider banking sector.
\n\n\n\nWhile no business is completely immune to broader macro events around it, we believe that the resiliency inherent in Greenbacker\u2019s renewable infrastructure assets places us in a position to benefit from the flight to quality phenomenon generally associated with periods of market volatility. Moreover, our major banking relationships are with JPMorgan and CitiBank, two of the four largest banks in the US.
\n\n\n\nGiven those partnerships and the resilient nature of our sustainable infrastructure investments, we believe in our ability to continue executing our strategy and delivering value for our shareholders.
\n\n\n\n
An essential service provided by a well diversified fleet
Sustainable infrastructure assets like those in Greenbacker\u2019s clean energy fleet provide communities and businesses with an essential service: electric power. The diversified nature of our assets\u2014by way of technology type, geography, and counterparty\u2014and our contractual arrangements for the sale of the electricity we generate means that our cashflows are generally insulated from changes in the broader economic environment.
\n\n\n\nOur fleet is generating electricity every day, which is then sold under long-term contracts to utilities, municipalities, and large corporations. Our current average contract is approximately 18 years. The price of that sale is typically agreed upfront on the basis that the counterparty will buy 100% of the power we produce. Because utilities and municipalities tend to operate as monopolies in their respective service areas, where they provide essential services to their customers, they also tend to enjoy high credit ratings. Additionally, we have intentionally diversified the technology (e.g., wind, solar, energy storage) and geography of our project fleet across the country so that we can minimize the impacts of local weather events and seasonality on our cashflows.
\n\n\n\n
Direct exposure to SVB and Signature is immaterial to none at all
We have also been closely monitoring the situation surrounding SVB and Signature to ensure that we remain abreast of any developments that could impact Greenbacker or our broader business counterparty interests. So far, none of our counterparties have reported any material impacts, while Greenbacker\u2019s own exposure ranges from negligible to none.
\n\n\n\nOur independent power production business segment had no deposits at either bank. Within our investment management business segment, Greenbacker Capital Management currently serves as the registered investment advisor to five funds. Four of those funds have no direct exposure to SVB or Signature, at either the fund level or across any of their investments or portfolio companies. Though one fund did have a small amount of non-FDIC insured cash on deposit with SVB, we believe the US government\u2019s recent guaranty of deposits has mitigated the risk on that exposure.
\n\n\n\n
Focusing on our mission
We will actively monitor the situation as it continues to evolve. At the same time, we will also remain focused on what we do best: empowering a sustainable world by connecting individuals and institutions with investments in clean energy.
\n\n\n\nGiven the quality of the cashflows generated by our investments and the historic tailwinds our industry is enjoying from recent federal government initiatives designed to encourage investment in the sector, we believe Greenbacker remains well positioned to execute on that mission.
\n\n\n\nWe believe that the stability and inherent resiliency of the sustainable infrastructure asset class continues to represent a compelling opportunity to investors looking for stable long-term returns and insulation from short-term volatility.
The information presented herein may involve Greenbacker\u2019s views, estimates, assumptions, facts, and information from other sources that are believed to be accurate and reliable and are, as of the date this information is presented, subject to change without notice.
The post An open letter on the resilient nature of Greenbacker\u2019s sustainable infrastructure investments appeared first on Greenbacker Capital.
\n", "content_text": "We recently wrote a piece on how the sustainable infrastructure asset class tends to perform well during periods of market disruption, due to its stable long-term cashflows, high-credit-quality counterparties, and inelastic demand. We expect this will remain the case despite the current market volatility caused by the recent failures of Silicon Valley Bank (SVB) and Signature Bank and the resulting concerns for the wider banking sector.\n\n\n\nWhile no business is completely immune to broader macro events around it, we believe that the resiliency inherent in Greenbacker\u2019s renewable infrastructure assets places us in a position to benefit from the flight to quality phenomenon generally associated with periods of market volatility. Moreover, our major banking relationships are with JPMorgan and CitiBank, two of the four largest banks in the US.\n\n\n\nGiven those partnerships and the resilient nature of our sustainable infrastructure investments, we believe in our ability to continue executing our strategy and delivering value for our shareholders.\n\n\n\nAn essential service provided by a well diversified fleet\n\n\n\nSustainable infrastructure assets like those in Greenbacker\u2019s clean energy fleet provide communities and businesses with an essential service: electric power. The diversified nature of our assets\u2014by way of technology type, geography, and counterparty\u2014and our contractual arrangements for the sale of the electricity we generate means that our cashflows are generally insulated from changes in the broader economic environment.\n\n\n\nOur fleet is generating electricity every day, which is then sold under long-term contracts to utilities, municipalities, and large corporations. Our current average contract is approximately 18 years. The price of that sale is typically agreed upfront on the basis that the counterparty will buy 100% of the power we produce. Because utilities and municipalities tend to operate as monopolies in their respective service areas, where they provide essential services to their customers, they also tend to enjoy high credit ratings. Additionally, we have intentionally diversified the technology (e.g., wind, solar, energy storage) and geography of our project fleet across the country so that we can minimize the impacts of local weather events and seasonality on our cashflows.\n\n\n\nDirect exposure to SVB and Signature is immaterial to none at all\n\n\n\nWe have also been closely monitoring the situation surrounding SVB and Signature to ensure that we remain abreast of any developments that could impact Greenbacker or our broader business counterparty interests. So far, none of our counterparties have reported any material impacts, while Greenbacker\u2019s own exposure ranges from negligible to none.\n\n\n\nOur independent power production business segment had no deposits at either bank. Within our investment management business segment, Greenbacker Capital Management currently serves as the registered investment advisor to five funds. Four of those funds have no direct exposure to SVB or Signature, at either the fund level or across any of their investments or portfolio companies. Though one fund did have a small amount of non-FDIC insured cash on deposit with SVB, we believe the US government\u2019s recent guaranty of deposits has mitigated the risk on that exposure.\n\n\n\nFocusing on our mission\n\n\n\nWe will actively monitor the situation as it continues to evolve. At the same time, we will also remain focused on what we do best: empowering a sustainable world by connecting individuals and institutions with investments in clean energy.\n\n\n\nGiven the quality of the cashflows generated by our investments and the historic tailwinds our industry is enjoying from recent federal government initiatives designed to encourage investment in the sector, we believe Greenbacker remains well positioned to execute on that mission.\n\n\n\nWe believe that the stability and inherent resiliency of the sustainable infrastructure asset class continues to represent a compelling opportunity to investors looking for stable long-term returns and insulation from short-term volatility.\n\n\n\n\n\n\n\nThe information presented herein may involve Greenbacker\u2019s views, estimates, assumptions, facts, and information from other sources that are believed to be accurate and reliable and are, as of the date this information is presented, subject to change without notice.\nThe post An open letter on the resilient nature of Greenbacker\u2019s sustainable infrastructure investments appeared first on Greenbacker Capital.", "date_published": "2023-03-21T08:45:39+00:00", "date_modified": "2023-03-21T12:13:12+00:00", "authors": [ { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" } ], "author": { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" }, "image": "https://greenbackercapital.com/wp-content/uploads/2023/03/Solar-power-panels-sunshine-scaled.jpg", "tags": [ "Investment Insights", "Resources" ], "summary": "While no business is completely immune to broader macro events around it, we believe that the resiliency inherent in Greenbacker\u2019s renewable infrastructure assets places us in a position to benefit from the flight to quality phenomenon generally associated with periods of market volatility. " }, { "id": "https://greenbackercapital.com/?p=4432", "url": "https://greenbackercapital.com/2023/02/the-case-for-infrastructure-and-renewables-outlook-2023/", "title": "The Case for Infrastructure and Renewables Outlook 2023", "content_html": "\nWhile markets have performed well so far in 2023, as of this writing, economists are calling for a volatile year in publicly traded markets with a high likelihood of slowdown or recession in the broader economy. Historically, infrastructure has performed well during such periods, due to its strong cash flows and inelastic demand.
\n\n\n\n
Opportunity for steady income & hedge against inflation
The infrastructure asset class tends to enjoy less exposure to market movements and inflationary pressure than other segments of the market, performing well during inflationary periods regardless of growth backdrop.
\n\n\n\nInfrastructure assets, such as power plants, are often funded via long-term contracts, which helps insulate them from the phases of the economic cycle. Because consumption of water, heat, and power don\u2019t generally fluctuate significantly across the economic cycle, infrastructure investments can offer an opportunity for steady income across market environments.
\n\n\n\nIn addition to providing essential services to communities through long-term contracts, infrastructure assets also tend to have Consumer Price Index-linked costs and prices, giving them a natural hedge against the effects of inflation.
\n\n\n\n
Infrastructure\u2019s historical average annualized performance amid high inflation
Policy catalysts
Infrastructure has delivered consistent returns throughout market cycles and, heading further into 2023, renewable infrastructure is set to benefit from historic policy tailwinds.
\n\n\n\nThe Inflation Reduction Act (IRA) passed in August 2022 provides $369 billion to reduce greenhouse gas emissions, improve US energy security, and increase domestic investment, development, and employment in the clean energy sector. Although markets are awaiting guidance from the IRS regarding the exact implementation of certain IRA provisions, this landmark legislation\u2014coupled with other recent policy support\u2014makes it clear that the energy transition is a priority for the world\u2019s largest economy.
\n\n\n\nMany of the IRA\u2019s clean energy investments will work hand in hand with the Bipartisan Infrastructure Investment and Jobs Act, passed in late 2021, to spur sustainable infrastructure deployment. Among other areas, this includes support for electric vehicle charging infrastructure, modernization of the electric grid, and energy efficiency upgrades.
![\"\"](\"https://greenbackercapital.com/wp-content/uploads/2023/02/acts_grid@2x-2023-02-14-1-1024x409.png\")
Moreover, 36 states and Washington, DC have established either renewable portfolio standards or renewable energy goals to drive the clean energy transition at the state level.1 For a dozen of those states, plus the nation\u2019s capital, these targets include 100% clean power by 2050 or sooner.
Corporates are also increasingly setting clean energy targets for themselves. At least 60% of the Fortune 500\u2014including 76% of the largest companies in the Fortune 100\u2014have adopted one or more emission reduction, energy efficiency, renewable energy, or net-zero goals.2 Additionally, a number of the country\u2019s largest utilities have voluntarily committed to net-zero carbon by 2050.3 4
\n\n\n\n
Pickup in 2023
The lingering pandemic-related supply chain issues impacting the infrastructure asset class and renewable energy industry continued to improve in 2022. Greenbacker and other market participants welcomed the US government\u2019s two-year moratorium on solar tariffs\u2014after a tariff petition put an unexpected pause on US solar development\u2014as well as the administration\u2019s invoking of the Defense Production Act to boost domestic solar panel production.
\n\n\n\nEven amid challenges, global infrastructure fundraising hit a record-high $148 billion across 59 infrastructure, renewable energy, and energy transition funds last year (topping the $103 billion raised in 2021).5 BloombergNEF recently reported that energy transition investments around the globe surpassed $1 trillion in 2022, of which the US accounted for $141 billion.6
\n\n\n\nFrom a power production perspective, although the US solar industry added less new capacity in 2022 than it did in the record-high 2021, those numbers are expected to increase steadily over the next few years. By 2027, it\u2019s estimated that new solar installations in the US will be double what they were in 2021, amid an increasingly supportive market landscape for renewables.7
\n\n\n\n
A confluence of powerful tailwinds
The infrastructure and renewable energy asset classes sit squarely at the intersection of energy resilience and the energy transition.
\n\n\n\nInvesting in infrastructure and renewable assets during periods of market uncertainty can be a strategic move that offers investors the opportunity for both diversification and insulation from short-term volatility, while meeting growth objectives in the long term. These assets provide an essential service often funded by long-term contracts and can offer steady income with inflation-mitigating return characteristics.
\n\n\n\nThe space is benefiting from a confluence of powerful tailwinds\u2014a backdrop that investors seeking to diversify their alternative or fixed income alternative portfolios can capitalize on.
1 Renewable energy explained – Portfolio standards, US Energy Information Administration.
\n\n\n\n2 Power Forward 4.0: A progress report of the Fortune 500’s transition to a net-zero economy, World Wildlife Fund, June 2, 2021.
\n\n\n\n3 The 5 Biggest US Utilities Committing to Zero Carbon Emissions by 2050, Greentech Media, Jeff St. John, September 16, 2020.
\n\n\n\n4 Arizona Electric Utilities Voluntarily Commit to 100% Clean Energy, Arizona Corporation Commission.
\n\n\n\n5 2022 Fundraising Report: As another record falls, smaller LPs may join the fray, Inframation News, Pablo Martinez, January 24, 2023.
\n\n\n\n6 Global Low-Carbon Energy Technology Investment Surges Past $1 Trillion for the First Time, BloombergNEF, January 26, 2023.
\n\n\n\n7 After a Bumpy Year, Renewable Energy Looks Poised for Boom Times, Wall Street Journal, Dieter Holger, December 29, 2022.
\nThe post The Case for Infrastructure and Renewables Outlook 2023 appeared first on Greenbacker Capital.
\n", "content_text": "While markets have performed well so far in 2023, as of this writing, economists are calling for a volatile year in publicly traded markets with a high likelihood of slowdown or recession in the broader economy. Historically, infrastructure has performed well during such periods, due to its strong cash flows and inelastic demand.\n\n\n\nOpportunity for steady income & hedge against inflation\n\n\n\nThe infrastructure asset class tends to enjoy less exposure to market movements and inflationary pressure than other segments of the market, performing well during inflationary periods regardless of growth backdrop.\n\n\n\nInfrastructure assets, such as power plants, are often funded via long-term contracts, which helps insulate them from the phases of the economic cycle. Because consumption of water, heat, and power don\u2019t generally fluctuate significantly across the economic cycle, infrastructure investments can offer an opportunity for steady income across market environments.\n\n\n\nIn addition to providing essential services to communities through long-term contracts, infrastructure assets also tend to have Consumer Price Index-linked costs and prices, giving them a natural hedge against the effects of inflation.\n\n\n\nInfrastructure\u2019s historical average annualized performance amid high inflation\n\n\n\nSource: Infrastructure Shines Amid Inflation and Supportive Policies, Seeking Alpha, BlackRock, July 1, 2022. BlackRock further states: \u201cColumn chart of average of annualized returns during periods of high inflation for global infrastructure stocks, global stocks, global IG bonds, and global real estate. The chart shows how global infrastructure stocks historically outperformed the broad market and other asset classes during periods of high inflation, on average. (Asset classes represented by S&P (Global Infrastructure: S&P Global Infrastructure Total Return Index), MSCI (Global Stocks: MSCI ACWI Net Total Return; Global Real Estate: MSCI World Real Estate Net Total Return Index), Bloomberg (Global IG Bonds: Bloomberg Global Aggregate Index); Bloomberg data as of 5/31/22 (monthly data since 2/2007).) Note: Past performance is not indicative of future results. You cannot invest directly in an unmanaged index. High inflation periods are when monthly year-over-year U.S. CPI > 2.5%. Returns represent the avg. of annualized returns across these periods (using end of month values), excluding periods < 3 months.\u201d\n\n\nPolicy catalysts\n\n\n\nInfrastructure has delivered consistent returns throughout market cycles and, heading further into 2023, renewable infrastructure is set to benefit from historic policy tailwinds.\n\n\n\nThe Inflation Reduction Act (IRA) passed in August 2022 provides $369 billion to reduce greenhouse gas emissions, improve US energy security, and increase domestic investment, development, and employment in the clean energy sector. Although markets are awaiting guidance from the IRS regarding the exact implementation of certain IRA provisions, this landmark legislation\u2014coupled with other recent policy support\u2014makes it clear that the energy transition is a priority for the world\u2019s largest economy.\n\n\n\nMany of the IRA\u2019s clean energy investments will work hand in hand with the Bipartisan Infrastructure Investment and Jobs Act, passed in late 2021, to spur sustainable infrastructure deployment. Among other areas, this includes support for electric vehicle charging infrastructure, modernization of the electric grid, and energy efficiency upgrades.\n\n\n\nSource: Environmental and Energy Study Institute\n\n\n\nMoreover, 36 states and Washington, DC have established either renewable portfolio standards or renewable energy goals to drive the clean energy transition at the state level.1 For a dozen of those states, plus the nation\u2019s capital, these targets include 100% clean power by 2050 or sooner.\n\n\n\nCorporates are also increasingly setting clean energy targets for themselves. At least 60% of the Fortune 500\u2014including 76% of the largest companies in the Fortune 100\u2014have adopted one or more emission reduction, energy efficiency, renewable energy, or net-zero goals.2 Additionally, a number of the country\u2019s largest utilities have voluntarily committed to net-zero carbon by 2050.3 4\n\n\n\nPickup in 2023\n\n\n\nThe lingering pandemic-related supply chain issues impacting the infrastructure asset class and renewable energy industry continued to improve in 2022. Greenbacker and other market participants welcomed the US government\u2019s two-year moratorium on solar tariffs\u2014after a tariff petition put an unexpected pause on US solar development\u2014as well as the administration\u2019s invoking of the Defense Production Act to boost domestic solar panel production.\n\n\n\nEven amid challenges, global infrastructure fundraising hit a record-high $148 billion across 59 infrastructure, renewable energy, and energy transition funds last year (topping the $103 billion raised in 2021).5 BloombergNEF recently reported that energy transition investments around the globe surpassed $1 trillion in 2022, of which the US accounted for $141 billion.6\n\n\n\nFrom a power production perspective, although the US solar industry added less new capacity in 2022 than it did in the record-high 2021, those numbers are expected to increase steadily over the next few years. By 2027, it\u2019s estimated that new solar installations in the US will be double what they were in 2021, amid an increasingly supportive market landscape for renewables.7\n\n\n\nA confluence of powerful tailwinds\n\n\n\nThe infrastructure and renewable energy asset classes sit squarely at the intersection of energy resilience and the energy transition.\n\n\n\nInvesting in infrastructure and renewable assets during periods of market uncertainty can be a strategic move that offers investors the opportunity for both diversification and insulation from short-term volatility, while meeting growth objectives in the long term. These assets provide an essential service often funded by long-term contracts and can offer steady income with inflation-mitigating return characteristics.\n\n\n\nThe space is benefiting from a confluence of powerful tailwinds\u2014a backdrop that investors seeking to diversify their alternative or fixed income alternative portfolios can capitalize on.\n\n\n\n\n\n\n\n1 Renewable energy explained – Portfolio standards, US Energy Information Administration.\n\n\n\n2 Power Forward 4.0: A progress report of the Fortune 500’s transition to a net-zero economy, World Wildlife Fund, June 2, 2021.\n\n\n\n3 The 5 Biggest US Utilities Committing to Zero Carbon Emissions by 2050, Greentech Media, Jeff St. John, September 16, 2020.\n\n\n\n4 Arizona Electric Utilities Voluntarily Commit to 100% Clean Energy, Arizona Corporation Commission.\n\n\n\n5 2022 Fundraising Report: As another record falls, smaller LPs may join the fray, Inframation News, Pablo Martinez, January 24, 2023.\n\n\n\n6 Global Low-Carbon Energy Technology Investment Surges Past $1 Trillion for the First Time, BloombergNEF, January 26, 2023.\n\n\n\n7 After a Bumpy Year, Renewable Energy Looks Poised for Boom Times, Wall Street Journal, Dieter Holger, December 29, 2022.\nThe post The Case for Infrastructure and Renewables Outlook 2023 appeared first on Greenbacker Capital.", "date_published": "2023-02-23T08:43:14+00:00", "date_modified": "2023-03-21T13:24:09+00:00", "authors": [ { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" } ], "author": { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" }, "image": "https://greenbackercapital.com/wp-content/uploads/2023/02/Cover-Photo-e1677163036867.jpg", "tags": [ "Investment Insights", "Resources" ], "summary": "Economists are calling for a volatile year in publicly traded markets with a high likelihood of slowdown or recession in the broader economy. Historically, infrastructure has performed well during such periods due to its strong cash flows and inelastic demand. Renewable energy infrastructure, in particular, is set to benefit from a confluence of powerful tailwinds." }, { "id": "https://greenbackercapital.com/?p=4189", "url": "https://greenbackercapital.com/2023/01/how-solar-panels-harvest-solar-energy/", "title": "How solar panels harvest solar energy", "content_html": "\n![\"Greenbacker](\"https://greenbackercapital.com/wp-content/uploads/2022/10/Greenbacker-How-Solar-Works-withtext_and-title-1024x917.png\")
1 “Turning Sunlight into Fuel,” Columbia Climate School, Renee Cho, August 24, 2016.
\n\n\n\n2, 3 U.S. Solar Market Insight, Solar Energy Industries Association, as of December 13, 2022.
\nThe post How solar panels harvest solar energy appeared first on Greenbacker Capital.
\n", "content_text": "Every hour, enough sunlight shines on the earth to power the entire planet with solar energy for one year.1\n\n\n\nThanks to declining technology costs, supportive policies like the Inflation Reduction Act, and increasing demand for renewable energy, there are over 135 gigawatts of installed solar capacity in the US.2\n\n\n\nThat\u2019s enough to power 24 million households with clean energy,3 harnessed by solar panels that work like this.\n\n\n\n\n\n\n\n\n\n\n\n\n1 “Turning Sunlight into Fuel,” Columbia Climate School, Renee Cho, August 24, 2016.\n\n\n\n2, 3 U.S. Solar Market Insight, Solar Energy Industries Association, as of December 13, 2022.\nThe post How solar panels harvest solar energy appeared first on Greenbacker Capital.", "date_published": "2023-01-25T11:58:05+00:00", "date_modified": "2023-01-25T18:52:57+00:00", "authors": [ { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" } ], "author": { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" }, "image": "https://greenbackercapital.com/wp-content/uploads/2023/01/Greenbacker-How-Solar-Works-withtext-e1674672455778.png", "tags": [ "Resources", "Solar" ], "summary": "There is enough installed solar capacity in the US to power 24 million homes with clean energy, harnessed by solar panels that work like this." }, { "id": "https://greenbackercapital.com/?p=4213", "url": "https://youtu.be/EE3YzeDNFx4", "title": "Greenbacker Co-Head of Business Development shares his thoughts on the renewables landscape and the Inflation Reduction Act", "content_html": "\nJeff Sheridan discusses trends in green energy and the impact the IRA is having on investing in the asset class. Hear from him during RIA Channel’s thought-provoking conversation moderated by Gitterman Asset Management.
\nThe post Greenbacker Co-Head of Business Development shares his thoughts on the renewables landscape and the Inflation Reduction Act appeared first on Greenbacker Capital.
\n", "content_text": "Jeff Sheridan discusses trends in green energy and the impact the IRA is having on investing in the asset class. Hear from him during RIA Channel’s thought-provoking conversation moderated by Gitterman Asset Management. \nThe post Greenbacker Co-Head of Business Development shares his thoughts on the renewables landscape and the Inflation Reduction Act appeared first on Greenbacker Capital.", "date_published": "2022-11-17T18:41:09+00:00", "date_modified": "2023-01-25T17:09:42+00:00", "authors": [ { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" } ], "author": { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" }, "image": "https://greenbackercapital.com/wp-content/uploads/2022/11/ESG-Practice-Playbook-e1668713356536.png", "tags": [ "Investment Insights", "Resources" ], "summary": "Jeff Sheridan discusses trends in renewable energy and the impact the IRA is having on investing in the asset class. Hear from him during RIA Channel's thought-provoking conversation moderated by Gitterman Asset Management. " }, { "id": "https://greenbackercapital.com/?p=4136", "url": "https://www.ice.com/event/climate-n-capital-conference/session-replays#thematic_solutions#new_tab", "title": "Greenbacker Capital CEO discusses how capital can address the climate crisis and the impact of Greenbacker\u2019s investments", "content_html": "\nDavid Sher talks about thematic solutions to the climate crisis and how clean energy\u00a0investments like Greenbacker\u2019s are making an impact, during the Climate & Capital Conference hosted by\u00a0ICE,\u00a0Gitterman Wealth Management, LLC, and\u00a0FINTECH.TV.
\nThe post Greenbacker Capital CEO discusses how capital can address the climate crisis and the impact of Greenbacker’s investments appeared first on Greenbacker Capital.
\n", "content_text": "David Sher talks about thematic solutions to the climate crisis and how clean energy\u00a0investments like Greenbacker\u2019s are making an impact, during the Climate & Capital Conference hosted by\u00a0ICE,\u00a0Gitterman Wealth Management, LLC, and\u00a0FINTECH.TV.\nThe post Greenbacker Capital CEO discusses how capital can address the climate crisis and the impact of Greenbacker’s investments appeared first on Greenbacker Capital.", "date_published": "2022-10-18T17:23:12+00:00", "date_modified": "2022-10-18T19:19:22+00:00", "authors": [ { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" } ], "author": { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" }, "image": "https://greenbackercapital.com/wp-content/uploads/2022/10/David-Sher-speaking-screenshot-7-e1666117424471.png", "tags": [ "Investment Insights", "Resources" ], "summary": "David Sher talks about how clean energy\u00a0investments like Greenbacker\u2019s are addressing the\u00a0climate crisis, during the Climate & Capital Conference hosted by\u00a0ICE,\u00a0Gitterman Wealth Management, LLC, and\u00a0FINTECH.TV." }, { "id": "https://greenbackercapital.com/?p=3879", "url": "https://greenbackercapital.com/2022/07/battery-storage-can-offer-stable-return-streams/", "title": "Battery storage can offer stable return streams", "content_html": "\nTen years ago, it would have been hard to see a world where renewable energy would represent 20% of power generation in the US.1 But the grid reached this level in 2021, with over 310 gigawatts of renewables capacity deployed.2 This broad expansion of renewable power production has also sparked rapid growth in the battery storage space, which is quickly emerging as an essential component of continuous energy distribution.
\n\n\n\nBattery storage developers, and project owners like Greenbacker, are able to capitalize on multiple revenue models\u2014as well as several incentive programs\u2014to maximize returns. This applies to energy storage projects that act in concert with renewable generation or on their own to help stabilize the grid.
\n\n\n\n
Revenue models for battery storage
Co-located solar and storage \u2013 The most common market use case for power storage is to pair a battery with a solar plant, enabling a utility or commercial customer to dispatch power when needed or when most economically favorable. The storage project receives a fixed payment on a per megawatt-hour (MWh) basis, with contract tenors ranging from 10 to 20 years.
\n\n\n\nTolling agreements \u2013 Similar to wind and solar energy contracts, standalone storage projects enjoy long-term purchase agreements, called tolling agreements, that provide stable cash flows to the projects in exchange for a certain number of charging/discharging cycles per day. Contracts are structured similarly to co-located projects, on a fixed MWh basis for a tenor of 10 to 20 years.
\n\n\n\nFrequency regulation \u2013 Under a frequency regulation service arrangement, storage projects respond to grid requests to provide immediate power to maintain generation-load balance on the grid and prevent frequency fluctuations. The US grid uses alternating current that must be kept within tight frequency bounds (around 60 Hz); if electricity demand increases suddenly, it can cause grid frequency to fall, while excess power supply can cause a frequency jump. Grid operators compensate battery providers in the form of a fixed payment to absorb or discharge excess electricity to maintain grid stability.
\n\n\n\nCapacity payments \u2013 Storage projects are also eligible to participate in wholesale electricity markets such as capacity markets, where generators are compensated by the grid operator in exchange for delivering generation when requested. Capacity prices are set on a one- to three-year basis, and are based on the value the grid ascribes to their contribution to the network or their eligible load carrying capacity. Select markets also have daily or monthly markets. In California, capacity market participation takes the form of a resource adequacy contract, as state regulations require that utilities ensure sufficient capacity to meet customer demand.
\n\n\n\nEnergy arbitrage \u2013 In addition to the relatively stable cash flows generated by the agreements above, battery storage projects can also take advantage of charging and discharging electricity when it\u2019s economically favorable to do so, selling into the wholesale electricity market and generating incremental revenue. In the short term, while the number of storage assets in the market is relatively low, this energy arbitrage revenue stream can be incredibly valuable to project economics, generating trading revenue to supplement core revenue.
\n\n\n\n
Policy incentives for battery storage
Federal incentives \u2013 Added to solar projects, storage projects can currently recoup up to 30% of their investment by claiming the investment tax credit (ITC), which enables cost-competitive end-user pricing for storage and encourages increased adoption. Under the Build Back Better plan, standalone storage projects will also be able to claim the ITC, providing further support to the sector.
\n\n\n\nState incentives \u2013 States like California, New York, and Illinois have announced large procurement programs for co-located and standalone batteries to accelerate the transition to an electricity-based economy and reduce the near-term strain on the grid. For the longer term, states are already gearing up to invest in transmission to accommodate additional new generation for a decarbonized economy, with the California Independent System Operator (CAISO) alone signaling the need for over $30 billion of investment to develop transmission capacity over the next 20 years.3
\n\n\n\n
The growth opportunity for storage
Storage is critical to achieving broader decarbonization goals and advancing towards an electric economy. Its central role in the clean energy transition means that investment opportunities will continue to expand as new technologies and market models emerge, creating multiple commercialization approaches as well as a compelling growth opportunity for investors.
\n\n\n\n1 Electricity in the United States, U.S. Energy Information Administration (EIA), February 2022.
\n\n\n\n2 Electricity Generation, Capacity, and Sales in the United States, EIA, February 2022.
\n\n\n\n3 20-Year Transmission Outlook, California ISO, January 31, 2022.
\nThe post Battery storage can offer stable return streams appeared first on Greenbacker Capital.
\n", "content_text": "Ten years ago, it would have been hard to see a world where renewable energy would represent 20% of power generation in the US.1 But the grid reached this level in 2021, with over 310 gigawatts of renewables capacity deployed.2 This broad expansion of renewable power production has also sparked rapid growth in the battery storage space, which is quickly emerging as an essential component of continuous energy distribution.\n\n\n\nBattery storage developers, and project owners like Greenbacker, are able to capitalize on multiple revenue models\u2014as well as several incentive programs\u2014to maximize returns. This applies to energy storage projects that act in concert with renewable generation or on their own to help stabilize the grid.\n\n\n\nRevenue models for battery storage\n\n\n\nCo-located solar and storage \u2013 The most common market use case for power storage is to pair a battery with a solar plant, enabling a utility or commercial customer to dispatch power when needed or when most economically favorable. The storage project receives a fixed payment on a per megawatt-hour (MWh) basis, with contract tenors ranging from 10 to 20 years.\n\n\n\nTolling agreements \u2013 Similar to wind and solar energy contracts, standalone storage projects enjoy long-term purchase agreements, called tolling agreements, that provide stable cash flows to the projects in exchange for a certain number of charging/discharging cycles per day. Contracts are structured similarly to co-located projects, on a fixed MWh basis for a tenor of 10 to 20 years.\n\n\n\nFrequency regulation \u2013 Under a frequency regulation service arrangement, storage projects respond to grid requests to provide immediate power to maintain generation-load balance on the grid and prevent frequency fluctuations. The US grid uses alternating current that must be kept within tight frequency bounds (around 60 Hz); if electricity demand increases suddenly, it can cause grid frequency to fall, while excess power supply can cause a frequency jump. Grid operators compensate battery providers in the form of a fixed payment to absorb or discharge excess electricity to maintain grid stability. \n\n\n\nCapacity payments \u2013 Storage projects are also eligible to participate in wholesale electricity markets such as capacity markets, where generators are compensated by the grid operator in exchange for delivering generation when requested. Capacity prices are set on a one- to three-year basis, and are based on the value the grid ascribes to their contribution to the network or their eligible load carrying capacity. Select markets also have daily or monthly markets. In California, capacity market participation takes the form of a resource adequacy contract, as state regulations require that utilities ensure sufficient capacity to meet customer demand. \n\n\n\nEnergy arbitrage \u2013 In addition to the relatively stable cash flows generated by the agreements above, battery storage projects can also take advantage of charging and discharging electricity when it\u2019s economically favorable to do so, selling into the wholesale electricity market and generating incremental revenue. In the short term, while the number of storage assets in the market is relatively low, this energy arbitrage revenue stream can be incredibly valuable to project economics, generating trading revenue to supplement core revenue.\n\n\n\nPolicy incentives for battery storage \n\n\n\nFederal incentives \u2013 Added to solar projects, storage projects can currently recoup up to 30% of their investment by claiming the investment tax credit (ITC), which enables cost-competitive end-user pricing for storage and encourages increased adoption. Under the Build Back Better plan, standalone storage projects will also be able to claim the ITC, providing further support to the sector.\n\n\n\nState incentives \u2013 States like California, New York, and Illinois have announced large procurement programs for co-located and standalone batteries to accelerate the transition to an electricity-based economy and reduce the near-term strain on the grid. For the longer term, states are already gearing up to invest in transmission to accommodate additional new generation for a decarbonized economy, with the California Independent System Operator (CAISO) alone signaling the need for over $30 billion of investment to develop transmission capacity over the next 20 years.3 \n\n\n\nThe growth opportunity for storage\n\n\n\nStorage is critical to achieving broader decarbonization goals and advancing towards an electric economy. Its central role in the clean energy transition means that investment opportunities will continue to expand as new technologies and market models emerge, creating multiple commercialization approaches as well as a compelling growth opportunity for investors.\n\n\n\n\n\n\n\n\n\n\n\n1 Electricity in the United States, U.S. Energy Information Administration (EIA), February 2022.\n\n\n\n2 Electricity Generation, Capacity, and Sales in the United States, EIA, February 2022.\n\n\n\n3 20-Year Transmission Outlook, California ISO, January 31, 2022.\nThe post Battery storage can offer stable return streams appeared first on Greenbacker Capital.", "date_published": "2022-07-25T07:59:24+00:00", "date_modified": "2022-09-01T16:15:01+00:00", "authors": [ { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" } ], "author": { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" }, "image": "https://greenbackercapital.com/wp-content/uploads/2022/07/Battery-storage-plus-renewables-2-1.jpg", "tags": [ "Storage", "Investment Insights", "Resources" ], "summary": "Battery storage developers, and project owners like Greenbacker, are able to capitalize on multiple revenue models\u2014as well as several incentive programs\u2014to maximize returns. This applies to energy storage projects that act in concert with renewable generation or on their own to help stabilize the grid." }, { "id": "https://greenbackercapital.com/?p=3833", "url": "https://greenbackercapital.com/2022/07/how-solar-on-landfill-works/", "title": "How solar on landfill works", "content_html": "\n![\"Greenbacker](\"https://greenbackercapital.com/wp-content/uploads/2022/07/Greenbacker-landfill-1024x853.png\")
1 Kim Slowey, “Land(fill) of opportunity: Why builders are turning dumps into new developments,” Construction Dive, July 5, 2016.
\nThe post How solar on landfill works appeared first on Greenbacker Capital.
\n", "content_text": "Solar farms can safely transform former landfills into sources of cheaper clean energy for consumers and generate revenue for communities.\n\n\n\nThe land over a capped landfill has heavy usage restrictions1 and can often sit idle for years. Renewables can give new purpose to these sites.\n\n\n\n\n\n\n1 Kim Slowey, “Land(fill) of opportunity: Why builders are turning dumps into new developments,” Construction Dive, July 5, 2016.\nThe post How solar on landfill works appeared first on Greenbacker Capital.", "date_published": "2022-07-18T10:30:50+00:00", "date_modified": "2022-09-01T16:37:02+00:00", "authors": [ { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" } ], "author": { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" }, "image": "https://greenbackercapital.com/wp-content/uploads/2022/07/Greenbacker-landfill-e1658161030327.png", "tags": [ "Investment Insights", "Resources", "Solar" ], "summary": "Solar farms can safely transform former landfills into sources of cheaper clean energy for consumers, while generating revenue for communities." }, { "id": "https://greenbackercapital.com/?p=3795", "url": "https://greenbackercapital.com/2022/06/with-agrivoltaics-solar-sites-harvest-more-than-just-clean-energy/", "title": "With agrivoltaics, solar sites harvest more than just clean energy", "content_html": "\nAgriculture and clean energy have something in common: The best land for harvesting crops also happens to be the best space for harnessing solar power. To produce both, you need stable soil, open sky, and plenty of sunshine. Fortunately, the same land can be used for both simultaneously.
\n\n\n\nAgrivoltaics refers to the practice of utilizing a site for both solar photovoltaic power generation and agricultural activities. This dual land use not only contributes to a more sustainable future, it also provides bilateral benefits for each endeavor.
\n\n\n\n
Crop production + power production
The land under and around solar panels can fulfill a wide variety of agricultural functions. It can be used for food growing, beekeeping, animal husbandry, or even installing greenhouses. Another option is planting habitat that supports pollinator populations, like bees and butterflies, which have been declining due to insecticide use, climate change, and human encroachment.
\n\n\n\nPollinator-friendly vegetation also has advantages for crop production, both onsite and in neighboring fields. It\u2019s not uncommon for nearby farmers to see an increase in their crop yields thanks to the greater number of pollinators venturing over to fertilize their crops. Solar sites can also be used as forage for local farmers to graze their livestock. Promoting regenerative agriculture through rotational grazing not only cuts down on site maintenance costs, but builds healthy soil.
\n\n\n\nThese plants improve soil stability and remove carbon from the atmosphere. Their longer root systems help mitigate erosion, storm water runoff, and frost heaves, while sequestering substantial amounts of carbon below ground.
\n\n\n\n![\"Greenbacker](\"https://greenbackercapital.com/wp-content/uploads/2022/06/Shelburne-Museum-1-1024x768.jpeg\")
Benefits for solar companies, benefits for local communities
As an organization that builds durable partnerships to drive a clean energy future, Greenbacker is thrilled at the ecological benefits agrivoltaics can provide. As long-term owner-operators, we have a vested interest in how it financially benefits both our fleet of solar energy assets and the local communities our projects will call home for multiple decades.
\n\n\n\nBecause agrivoltaic practices tend to replace the traditional turf grass groundcover installed on solar sites, they help reduce operation and maintenance costs. Grazing sheep can reduce onsite costs associated with both mowing and dethatching (i.e., breaking down dead vegetation). Planting pollinator habitat reduces other vegetation and pest management expenses\u2014particularly compared to the more maintenance-heavy turf grass\u2014more than offsetting its upfront planting expenses. It\u2019s even been found that the cooler microclimates this habitat generates can improve solar panel efficiency.1
\n\n\n\nAgrivoltaics projects can also provide additional revenue streams in the community. Local landowners can receive land lease payments for projects built on their property. Farmers can supplement their income by leasing their sheep or cows to graze a solar site; at the same time, they reduce their own livestock feed costs, as well as wear and tear to their own pastureland. Municipalities also stand to gain additional tax revenue from these projects.
\n\n\n\n
The economics of widespread agrivoltaics
While its positive impact is clear, understanding the specific economics and logistics of agrivoltaics is necessary to effectively\u2014and sustainably\u2014deploy it at scale in our fleet and across the industry. Greenbacker is working with some of the country\u2019s top researchers to do just that.
\n\n\n\nWe\u2019re collaborating with the National Renewable Energy Laboratory and Argonne National Laboratory on the Solar Practices Integrated with Rural Economies and Ecosystems (InSPIRE) project. This study seeks to quantify the benefits that pollinator-friendly solar projects have on local agricultural yields, as well as how low-impact solar can improve a site\u2019s soil quality, carbon storage, stormwater management, microclimate conditions, and solar efficiencies.
\n\n\n\nOur 88-acre solar project in Sturgis, MI is part of a three-year study by Argonne National Laboratory and the Energy Resources Center at the University of Illinois at Chicago. The purpose of this research is to develop decision-making tools for solar-pollinator habitat projects. Guidance such as planting manuals, cost/benefit calculators, and native seed-mix selection tools can help address critical stakeholder concerns such as project cost, return on investment, and site-specific constraints.
\n\n\n\n![\"Planting](\"https://greenbackercapital.com/wp-content/uploads/2022/06/Catholic-Charities-1024x683.jpg\")
Project design with agrivoltaics in mind
Greenbacker prioritizes agrivoltaics and other nature-based land management solutions at every stage of a renewable energy project\u2019s life cycle, from contracting and permitting to construction and power production.
\n\n\n\nWe design sites with rows that are wide enough to accommodate agricultural maintenance equipment and with appropriate vegetation to accommodate panel height. We build in land access for farmers to bring their livestock and beekeepers to tend to their apiaries. We ensure secure fencing to protect grazers from predators.
\n\n\n\nWe take those steps because agrivoltaics is a crucial component of a sustainable future. It\u2019s a triple-bottom-line scenario with financial, environmental, and social benefits for ourselves and the communities our projects operate in. And with roughly 370 million acres of agricultural farmland set to change hands as farmers retire over the next ten to 15 years,2 there\u2019s a huge opportunity on the horizon. Not only can agrivoltaics help protect the livelihood of rural communities by increasing farmland resilience and promoting regenerative agriculture, but it can build a cleaner, cheaper future for the agriculture and energy industries.
\n\n\n\n1 Kirk Siegler, \u201cThis Colorado ‘solar garden’ is a farm under solar panels,\u201d NPR, November 14, 2021.
\n\n\n\n2 \u201c2021 Transition Recommendations,\u201d American Farmland Trust.
\nThe post With agrivoltaics, solar sites harvest more than just clean energy appeared first on Greenbacker Capital.
\n", "content_text": "Agriculture and clean energy have something in common: The best land for harvesting crops also happens to be the best space for harnessing solar power. To produce both, you need stable soil, open sky, and plenty of sunshine. Fortunately, the same land can be used for both simultaneously.\n\n\n\nAgrivoltaics refers to the practice of utilizing a site for both solar photovoltaic power generation and agricultural activities. This dual land use not only contributes to a more sustainable future, it also provides bilateral benefits for each endeavor.\n\n\n\nCrop production + power production\n\n\n\nThe land under and around solar panels can fulfill a wide variety of agricultural functions. It can be used for food growing, beekeeping, animal husbandry, or even installing greenhouses. Another option is planting habitat that supports pollinator populations, like bees and butterflies, which have been declining due to insecticide use, climate change, and human encroachment.\n\n\n\nPollinator-friendly vegetation also has advantages for crop production, both onsite and in neighboring fields. It\u2019s not uncommon for nearby farmers to see an increase in their crop yields thanks to the greater number of pollinators venturing over to fertilize their crops. Solar sites can also be used as forage for local farmers to graze their livestock. Promoting regenerative agriculture through rotational grazing not only cuts down on site maintenance costs, but builds healthy soil.\n\n\n\nThese plants improve soil stability and remove carbon from the atmosphere. Their longer root systems help mitigate erosion, storm water runoff, and frost heaves, while sequestering substantial amounts of carbon below ground. \n\n\n\nPollinator plantings in bloom at Shelburne Museum, Greenbacker\u2019s 1 MWdc agrivoltaics project in Vermont.\n\n\n\nBenefits for solar companies, benefits for local communities\n\n\n\nAs an organization that builds durable partnerships to drive a clean energy future, Greenbacker is thrilled at the ecological benefits agrivoltaics can provide. As long-term owner-operators, we have a vested interest in how it financially benefits both our fleet of solar energy assets and the local communities our projects will call home for multiple decades.\n\n\n\nBecause agrivoltaic practices tend to replace the traditional turf grass groundcover installed on solar sites, they help reduce operation and maintenance costs. Grazing sheep can reduce onsite costs associated with both mowing and dethatching (i.e., breaking down dead vegetation). Planting pollinator habitat reduces other vegetation and pest management expenses\u2014particularly compared to the more maintenance-heavy turf grass\u2014more than offsetting its upfront planting expenses. It\u2019s even been found that the cooler microclimates this habitat generates can improve solar panel efficiency.1\n\n\n\nAgrivoltaics projects can also provide additional revenue streams in the community. Local landowners can receive land lease payments for projects built on their property. Farmers can supplement their income by leasing their sheep or cows to graze a solar site; at the same time, they reduce their own livestock feed costs, as well as wear and tear to their own pastureland. Municipalities also stand to gain additional tax revenue from these projects.\n\n\n\nThe economics of widespread agrivoltaics\n\n\n\nWhile its positive impact is clear, understanding the specific economics and logistics of agrivoltaics is necessary to effectively\u2014and sustainably\u2014deploy it at scale in our fleet and across the industry. Greenbacker is working with some of the country\u2019s top researchers to do just that. \n\n\n\nWe\u2019re collaborating with the National Renewable Energy Laboratory and Argonne National Laboratory on the Solar Practices Integrated with Rural Economies and Ecosystems (InSPIRE) project. This study seeks to quantify the benefits that pollinator-friendly solar projects have on local agricultural yields, as well as how low-impact solar can improve a site\u2019s soil quality, carbon storage, stormwater management, microclimate conditions, and solar efficiencies.\n\n\n\nOur 88-acre solar project in Sturgis, MI is part of a three-year study by Argonne National Laboratory and the Energy Resources Center at the University of Illinois at Chicago. The purpose of this research is to develop decision-making tools for solar-pollinator habitat projects. Guidance such as planting manuals, cost/benefit calculators, and native seed-mix selection tools can help address critical stakeholder concerns such as project cost, return on investment, and site-specific constraints.\n\n\n\nA worker plants pollinator habitat at Greenbacker\u2019s 2 MWdc solar farm in Washington, DC.\n\n\n\nProject design with agrivoltaics in mind\n\n\n\nGreenbacker prioritizes agrivoltaics and other nature-based land management solutions at every stage of a renewable energy project\u2019s life cycle, from contracting and permitting to construction and power production.\n\n\n\nWe design sites with rows that are wide enough to accommodate agricultural maintenance equipment and with appropriate vegetation to accommodate panel height. We build in land access for farmers to bring their livestock and beekeepers to tend to their apiaries. We ensure secure fencing to protect grazers from predators.\n\n\n\nWe take those steps because agrivoltaics is a crucial component of a sustainable future. It\u2019s a triple-bottom-line scenario with financial, environmental, and social benefits for ourselves and the communities our projects operate in. And with roughly 370 million acres of agricultural farmland set to change hands as farmers retire over the next ten to 15 years,2 there\u2019s a huge opportunity on the horizon. Not only can agrivoltaics help protect the livelihood of rural communities by increasing farmland resilience and promoting regenerative agriculture, but it can build a cleaner, cheaper future for the agriculture and energy industries.\n\n\n\n\n\n\n\n\n\n\n\n1 Kirk Siegler, \u201cThis Colorado ‘solar garden’ is a farm under solar panels,\u201d NPR, November 14, 2021.\n\n\n\n2 \u201c2021 Transition Recommendations,\u201d American Farmland Trust.\nThe post With agrivoltaics, solar sites harvest more than just clean energy appeared first on Greenbacker Capital.", "date_published": "2022-06-27T13:43:24+00:00", "date_modified": "2022-08-15T20:35:31+00:00", "authors": [ { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" } ], "author": { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" }, "image": "https://greenbackercapital.com/wp-content/uploads/2022/06/LawrenceBrook_091121-112-scaled-e1656343443144.jpg", "tags": [ "Resources", "Solar" ], "summary": "The best land to harvest crops is also the best place to harness solar power. With agrivoltaics, a site can be used for both, providing benefits for both endeavors while driving a more sustainable future." }, { "id": "https://greenbackercapital.com/?p=3677", "url": "https://greenbackercapital.com/2022/06/growing-clean-energy-investment-beyond-power-generation/", "title": "Growing clean energy investment beyond power generation", "content_html": "\n![\"\"](\"https://greenbackercapital.com/wp-content/uploads/2022/05/Storage-Capacity-image-1-1.gif\")
![\"\"](\"https://greenbackercapital.com/wp-content/uploads/2022/06/image-2-Growing-Investment-2-1024x616.png\")
1 Lazard’s Levelized Cost of Energy Analysis, 2021.
\n\n\n\n2 \u201cGlobal Energy Storage Market Set to Hit One Terawatt-Hour by 2030,\u201d BloombergNEF, November 15, 2021.
\nThe post Growing clean energy investment beyond power generation appeared first on Greenbacker Capital.
\n", "content_text": "With renewables now among the cheapest forms of power generation in the world, greater energy storage capacity is needed to accommodate rapidly growing demand for clean energy.1\n\n\n\nSupportive policies and momentum from projects in key markets2 are set to accelerate growth in installed gigawatts (GW) of battery storage capacity through 2030.\n\n\n\n\n\n\nIn 2021, global energy transition investment totaled $755 billion, according to BloombergNEF\u2019s Energy Transition Investment Trends 2022.\n\n\n\nInvestors understand that the renewables investment opportunity set has expanded beyond wind and solar power to encompass a wider clean energy ecosystem, including storage, energy efficiency, and sustainable materials\u2014sectors that have seen record investment in recent years.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n1 Lazard’s Levelized Cost of Energy Analysis, 2021.\n\n\n\n2 \u201cGlobal Energy Storage Market Set to Hit One Terawatt-Hour by 2030,\u201d BloombergNEF, November 15, 2021.\nThe post Growing clean energy investment beyond power generation appeared first on Greenbacker Capital.", "date_published": "2022-06-21T08:51:35+00:00", "date_modified": "2022-09-01T16:40:54+00:00", "authors": [ { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" } ], "author": { "name": "GCM", "url": "https://greenbackercapital.com/author/chris-larsongreenbackercapital-com/", "avatar": "https://secure.gravatar.com/avatar/4c3ca5eedec27f29c7289294aef1d410?s=512&d=mm&r=g" }, "image": "https://greenbackercapital.com/wp-content/uploads/2022/05/Capacity-preview-image.png", "tags": [ "Storage", "Investment Insights", "Resources" ], "summary": "With renewables now among the cheapest forms of power generation in the world, greater energy storage capacity is needed to accommodate rapidly growing demand for clean energy." }, { "id": "https://greenbackercapital.com/?p=3723", "url": "https://greenbackercapital.com/2022/06/pausing-tariffs-is-good-news-for-us-solar/", "title": "Pausing tariffs is good news for US solar", "content_html": "\n\n\n\n\nRecently, a tariff petition from a tiny US-based solar panel manufacturer threatened to bring US solar development to a halt. Auxin Solar1 requested that new tariffs of up to 250 percent2 be levied on solar imports from Malaysia, Thailand, Cambodia, and Vietnam\u2014countries that accounted for over 80 percent of all solar panel imports in 2021.3 As a result, many new US solar projects were stalled, or even scrapped, as manufacturers facing the risk of new tariffs considered exiting the US market altogether.4
\n\n\n\nA week ago, the Biden administration stepped in to bring some relief, instituting a two-year moratorium on solar tariffs from these countries and invoking the Defense Production Act to boost domestic production of solar panels.5
\n\n\n\nThis is a step in the right direction, as we absolutely need to encourage solar energy development\u2014while at the same time encouraging US solar panel manufacturing\u2014to mitigate the climate crisis. We are over reliant on Chinese production, which makes our supply chains vulnerable to trade wars and global pandemics, but that reliance is not going to end overnight.
\n\n\n\nThe US used to be a world leader in solar manufacturing. American engineers invented the solar cell6 in 1954 at Bell Labs. In the 1980s, the US spent more on solar research and development7 than any other country in the world. As recently as 2010, we were a net exporter8 of solar panels. In contrast, China didn\u2019t begin9 manufacturing solar panels until 2002. Yet substantial government incentives allowed China’s solar power market to grow dramatically: The country became the world\u2019s leading producer of solar panels in 2010.10
\n\n\n\nThis coincided with a precipitous decline in panel production in the US. In 1990, US firms produced 32 percent of solar panels worldwide; by 2005, they made only nine percent.11 Without the same level of national investment, we could no longer compete in the global market.
\n\n\n\nAnd so the tariffs began. The US accused China of providing unfair subsidies, claiming that Chinese companies were dumping solar cells12\u2014selling them at less than the cost to manufacture them\u2014to drive out competition. In 2012, the US placed its first13 tariffs on Chinese solar cells and modules. In 2018, the government instituted the Section 201 tariffs to give domestic manufacturers temporary relief from the \u201cserious\u201d injury14 that imports were causing them. This past February, President Biden eased some restrictions, but renewed the Section 20115 tariffs for four more years.
\n\n\n\nHowever, tariffs have not historically resulted in increased domestic solar panel production; deterrents to trade abroad don\u2019t make up for lack of investment at home.
\n\n\n\nImagine if the US had made the same effort as China to support a domestic solar manufacturing industry. We would be more competitive in global markets. We would have more cheap solar power available at home. And, in a global pandemic, we would be less reliant on foreign exports and energy.
\n\n\n\nIt\u2019s also worth noting that most solar jobs in the US are associated with building projects, not with manufacturing solar equipment (which accounted for only 31,000 jobs, or 13% of domestic solar industry jobs16 at the end of 2020). Without the Section 201 tariffs, the US would have installed 11% more solar, employed 62,000 more people, and had $19 billion more in investment,17 according to the Solar Energy Industries Association, a US solar trade group.
\n\n\n\nIn addition to ending tariffs, we should be offering incentives to encourage manufacturing in the US. Senator Jon Ossoff\u2019s proposed Solar Energy Manufacturing for America Act18 offers tax credits to US solar manufacturers, and the America COMPETES Act19 authorizes $3 billion to fund the establishment of a domestic solar manufacturing supply chain. Plus, investing in solar energy has been a winning proposition for taxpayers. Since 2016, no solar project that was approved for funding from the Department of Energy\u2019s Loan Programs Office has missed a payment.20 These projects are projected to generate a minimum of $5 billion in interest21 for taxpayers. They\u2019ve already reduced carbon emissions by an amount equivalent to taking 14 coal-fired power plants offline for a year.
\n\n\n\nGreenbacker joins the solar industry in expressing relief that the Biden administration has taken action, and we\u2019re thrilled that the pause on tariffs has gotten stalled projects moving again. But these steps should be just the beginning.
\n\n\n\nAn ambitious plan to cultivate US solar manufacturing will bring jobs home, decrease our reliance on imports, and meet the climate crisis with carbon-free power. The US government has historically invested in the future, and the future of energy is renewable.
\n\n\n\n1 \u201cAn Analysis of the Auxin Petition and Commerce Investigation and Their Impact on the Solar Industry,\u201d The National Law Review, March 30, 2022.
\n\n\n\n2 \u201cTariff Review Could \u2018Smother\u2019 US Solar Industry, Energy Secretary Warns,\u201d SparkSpread, May 5, 2022.
\n\n\n\n3 Solar panel import duties, Norton Rose Fulbright, Project Finance, Keith Martin, February 28, 2022.
\n\n\n\n4 \u201cSolar Industry \u2018Frozen\u2019 as Biden Administration Investigates China,\u201d The New York Times, David Gelles, April 29, 2022.
\n\n\n\n5 \u201cFACT SHEET: President Biden Takes Bold Executive Action to Spur Domestic Clean Energy Manufacturing,\u201d The White House, June 6, 2022.
\n\n\n\n6 APS News, Volume 18, Number 4, April 2009.
\n\n\n\n7 \u201cWhy America Doesn\u2019t Really Make Solar Panels Anymore,\u201d Robinson Meyer, The Atlantic, June 15, 2022.
\n\n\n\n8 \u201cUS Solar Industry Was Net Global Exporter by $1.9B in 2010, According to GTM Research and SEIA,\u201d Greentech Media, August 29, 2011.
\n\n\n\n9 \u201cSolar Energy in China: The Past, Present, and Future (ucsd.edu),\u201d Huizhong Tan, China Focus, February 16, 2021.
\n\n\n\n10 \u201cWhen Solar Panels Became Job Killers,\u201d Keith Bradsher, The New York Times, April 8, 2017.
\n\n\n\n11 \u201cWhy America Doesn\u2019t Really Make Solar Panels Anymore,\u201d Robinson Meyer, The Atlantic, June 15, 2022.
\n\n\n\n12 \u201cU.S. Slaps Tariffs on Chinese Solar Panels,\u201d Keith Bradsher and Diane Cardwell, The New York Times, May 17, 2012.
\n\n\n\n13 \u201cU.S. sets new tariffs on Chinese solar imports,\u201d Matt Daily, Reuters, May 17, 2012.
\n\n\n\n14 Understanding Safeguard Investigations, United States International Trade Commission.
\n\n\n\n15 \u201cBiden admin eases Trump-era solar tariffs but doesn’t end them,\u201d Jarrett Renshaw and Nichola Groom, Reuters, February 4, 2022.
\n\n\n\n16 \u201cTo understand why Biden extended tariffs on solar panels, take a closer look at their historical impact,\u201d The Conversation, April 6, 2022.
\n\n\n\n17 The Adverse Impact of Section 201 Tariffs, Solar Energy Industries Association, December 2019.
\n\n\n\n18 \u201cSen. Ossoff Successfully Negotiates Inclusion of Solar Manufacturing Bill in Budget Measure,\u201d October 28, 2021.
\n\n\n\n19 \u201cAmerica COMPETES Act of 2022 authorizes $3 billion for domestic solar manufacturing,\u201d Kelly Pickerel, Solar Power World, January 26, 2022.
\n\n\n\n20 \u201cBiden could prove the Solyndra scandal wasn\u2019t a failure,\u201d Tim McDonnell, Quartz, February 4, 2021.
\n\n\n\n21 \u201cBiden could prove the Solyndra scandal wasn\u2019t a failure,\u201d Tim McDonnell, Quartz, February 4, 2021.
\nThe post Pausing tariffs is good news for US solar appeared first on Greenbacker Capital.
\n", "content_text": "Recently, a tariff petition from a tiny US-based solar panel manufacturer threatened to bring US solar development to a halt. Auxin Solar1 requested that new tariffs of up to 250 percent2 be levied on solar imports from Malaysia, Thailand, Cambodia, and Vietnam\u2014countries that accounted for over 80 percent of all solar panel imports in 2021.3 As a result, many new US solar projects were stalled, or even scrapped, as manufacturers facing the risk of new tariffs considered exiting the US market altogether.4\n\n\n\nA week ago, the Biden administration stepped in to bring some relief, instituting a two-year moratorium on solar tariffs from these countries and invoking the Defense Production Act to boost domestic production of solar panels.5\n\n\n\nThis is a step in the right direction, as we absolutely need to encourage solar energy development\u2014while at the same time encouraging US solar panel manufacturing\u2014to mitigate the climate crisis. We are over reliant on Chinese production, which makes our supply chains vulnerable to trade wars and global pandemics, but that reliance is not going to end overnight.\n\n\n\nThe US used to be a world leader in solar manufacturing. American engineers invented the solar cell6 in 1954 at Bell Labs. In the 1980s, the US spent more on solar research and development7 than any other country in the world. As recently as 2010, we were a net exporter8 of solar panels. In contrast, China didn\u2019t begin9 manufacturing solar panels until 2002. Yet substantial government incentives allowed China’s solar power market to grow dramatically: The country became the world\u2019s leading producer of solar panels in 2010.10\n\n\n\nThis coincided with a precipitous decline in panel production in the US. In 1990, US firms produced 32 percent of solar panels worldwide; by 2005, they made only nine percent.11 Without the same level of national investment, we could no longer compete in the global market.\n\n\n\nAnd so the tariffs began. The US accused China of providing unfair subsidies, claiming that Chinese companies were dumping solar cells12\u2014selling them at less than the cost to manufacture them\u2014to drive out competition. In 2012, the US placed its first13 tariffs on Chinese solar cells and modules. In 2018, the government instituted the Section 201 tariffs to give domestic manufacturers temporary relief from the \u201cserious\u201d injury14 that imports were causing them. This past February, President Biden eased some restrictions, but renewed the Section 20115 tariffs for four more years.\n\n\n\nHowever, tariffs have not historically resulted in increased domestic solar panel production; deterrents to trade abroad don\u2019t make up for lack of investment at home.\n\n\n\nImagine if the US had made the same effort as China to support a domestic solar manufacturing industry. We would be more competitive in global markets. We would have more cheap solar power available at home. And, in a global pandemic, we would be less reliant on foreign exports and energy.\n\n\n\nIt\u2019s also worth noting that most solar jobs in the US are associated with building projects, not with manufacturing solar equipment (which accounted for only 31,000 jobs, or 13% of domestic solar industry jobs16 at the end of 2020). Without the Section 201 tariffs, the US would have installed 11% more solar, employed 62,000 more people, and had $19 billion more in investment,17 according to the Solar Energy Industries Association, a US solar trade group.\n\n\n\nIn addition to ending tariffs, we should be offering incentives to encourage manufacturing in the US. Senator Jon Ossoff\u2019s proposed Solar Energy Manufacturing for America Act18 offers tax credits to US solar manufacturers, and the America COMPETES Act19 authorizes $3 billion to fund the establishment of a domestic solar manufacturing supply chain. Plus, investing in solar energy has been a winning proposition for taxpayers. Since 2016, no solar project that was approved for funding from the Department of Energy\u2019s Loan Programs Office has missed a payment.20 These projects are projected to generate a minimum of $5 billion in interest21 for taxpayers. They\u2019ve already reduced carbon emissions by an amount equivalent to taking 14 coal-fired power plants offline for a year.\n\n\n\nGreenbacker joins the solar industry in expressing relief that the Biden administration has taken action, and we\u2019re thrilled that the pause on tariffs has gotten stalled projects moving again. But these steps should be just the beginning.\n\n\n\nAn ambitious plan to cultivate US solar manufacturing will bring jobs home, decrease our reliance on imports, and meet the climate crisis with carbon-free power. The US government has historically invested in the future, and the future of energy is renewable.\n\n\n\n\n\n\n\n1 \u201cAn Analysis of the Auxin Petition and Commerce Investigation and Their Impact on the Solar Industry,\u201d The National Law Review, March 30, 2022.\n\n\n\n2 \u201cTariff Review Could \u2018Smother\u2019 US Solar Industry, Energy Secretary Warns,\u201d SparkSpread, May 5, 2022.\n\n\n\n3 Solar panel import duties, Norton Rose Fulbright, Project Finance, Keith Martin, February 28, 2022.\n\n\n\n4 \u201cSolar Industry \u2018Frozen\u2019 as Biden Administration Investigates China,\u201d The New York Times, David Gelles, April 29, 2022.\n\n\n\n5 \u201cFACT SHEET: President Biden Takes Bold Executive Action to Spur Domestic Clean Energy Manufacturing,\u201d The White House, June 6, 2022.\n\n\n\n6 APS News, Volume 18, Number 4, April 2009.\n\n\n\n7 \u201cWhy America Doesn\u2019t Really Make Solar Panels Anymore,\u201d Robinson Meyer, The Atlantic, June 15, 2022.\n\n\n\n8 \u201cUS Solar Industry Was Net Global Exporter by $1.9B in 2010, According to GTM Research and SEIA,\u201d Greentech Media, August 29, 2011.\n\n\n\n9 \u201cSolar Energy in China: The Past, Present, and Future (ucsd.edu),\u201d Huizhong Tan, China Focus, February 16, 2021.\n\n\n\n10 \u201cWhen Solar Panels Became Job Killers,\u201d Keith Bradsher, The New York Times, April 8, 2017.\n\n\n\n11 \u201cWhy America Doesn\u2019t Really Make Solar Panels Anymore,\u201d Robinson Meyer, The Atlantic, June 15, 2022.\n\n\n\n12 \u201cU.S. Slaps Tariffs on Chinese Solar Panels,\u201d Keith Bradsher and Diane Cardwell, The New York Times, May 17, 2012.\n\n\n\n13 \u201cU.S. sets new tariffs on Chinese solar imports,\u201d Matt Daily, Reuters, May 17, 2012.\n\n\n\n14 Understanding Safeguard Investigations, United States International Trade Commission.\n\n\n\n15 \u201cBiden admin eases Trump-era solar tariffs but doesn’t end them,\u201d Jarrett Renshaw and Nichola Groom, Reuters, February 4, 2022.\n\n\n\n16 \u201cTo understand why Biden extended tariffs on solar panels, take a closer look at their historical impact,\u201d The Conversation, April 6, 2022.\n\n\n\n17 The Adverse Impact of Section 201 Tariffs, Solar Energy Industries Association, December 2019.\n\n\n\n18 \u201cSen. Ossoff Successfully Negotiates Inclusion of Solar Manufacturing Bill in Budget Measure,\u201d October 28, 2021.\n\n\n\n19 \u201cAmerica COMPETES Act of 2022 authorizes $3 billion for domestic solar manufacturing,\u201d Kelly Pickerel, Solar Power World, January 26, 2022.\n\n\n\n20 \u201cBiden could prove the Solyndra scandal wasn\u2019t a failure,\u201d Tim McDonnell, Quartz, February 4, 2021.\n\n\n\n21 \u201cBiden could prove the Solyndra scandal wasn\u2019t a failure,\u201d Tim McDonnell, Quartz, February 4, 2021.\nThe post Pausing tariffs is good news for US solar appeared first on Greenbacker Capital.", "date_published": "2022-06-15T07:52:18+00:00", "date_modified": "2022-09-01T16:41:49+00:00", "authors": [ { "name": "David Sher", "url": "https://greenbackercapital.com/author/davidsher/", "avatar": "https://secure.gravatar.com/avatar/3cfbdff59a4424c3f356d59427986416?s=512&d=mm&r=g" } ], "author": { "name": "David Sher", "url": "https://greenbackercapital.com/author/davidsher/", "avatar": "https://secure.gravatar.com/avatar/3cfbdff59a4424c3f356d59427986416?s=512&d=mm&r=g" }, "image": "https://greenbackercapital.com/wp-content/uploads/2022/06/Greenbacker-Sitevisit-05-24-22-0355-scaled-e1655226500221.jpg", "tags": [ "Resources", "Investment Insights", "Solar" ], "summary": "David Sher, President of Greenbacker Capital, shares his thoughts on the Biden administration\u2019s solar tariff moratorium, why the US has fallen behind in solar panel manufacturing, and how the country can decrease its vulnerability to solar supply chain disruptions and meet the climate crisis with carbon-free power." } ] }