They say this one is in the record books. Just ask John Nielsen-Gammon, the Texas climatologist.
Gammon says 2023 was the second hottest ever, averaging 85.3 degrees between June and August. In case you forgot, 2011 brought home the gold with an average temperature of 86.8 degrees.
Still, this summer logged in some grim numbers, like Austin with the most 105+ degree days (40) and most consecutive triple-digit days (45), ending on August 21. This summer also included 10 all-time records for demand, like on September 6 when ERCOT declared an Energy Emergency Alert Level 2 (EEA 2), meaning ERCOT could initiate controlled outages if demand wasn’t reduced or generators couldn’t provide more juice.
On September 7, ERCOT issued yet another conservation appeal citing continued high temperatures, high demand, low wind and declining solar power generation into the afternoon and evening hours. The PUC press release on September 7 reiterated ERCOT’s rationale for conservation, citing low wind and declining solar power generation.
What we now know is that ERCOT told state regulators that a congested transmission line in the southern part of the state prevented wind-generated energy from being transmitted to the northern part of the state. Regulators at the PUC also believe gas and coal outages in the north made things worse. Last month, the New York Times reported that ERCOT withheld electricity supply from the market to create the reserve, which had the effect of pushing up prices.
Just as recently as this past legislative session, lawmakers enthusiastically proposed some dozen anti-renewable bills, continuing to promote long-held falsehoods about the disadvantages of renewables on the grid. Instead, they lavished conspicuous financial incentives on the state’s oil and gas industry, a tab we taxpayers will ultimately be on the hook for.
But enough about the bad and ugly. Let’s talk about the unmistakable good, like how solar, wind and battery storage outperformed quietly and spectacularly. All summer.
According to Dr. Joshua Rhodes, a research scientist with the Webber Energy Group at the University of Texas, the state produced twice as much solar power as last year. In fact, on August 10, wind and solar energy generated enough power to meet 25% of demand during the peak hour of usage, according to ERCOT.
Using EIA data and Google’s Project Sunroof, TXSES policy committee member Larry Howe and TXSES intern Ethan Miller estimate there are nearly 300,000 residential and commercial distributed solar rooftops in Texas. And that number is growing.
City Public Service, San Antonio’s municipal utility, has a solicitation on the street for up to 500 MW of energy storage projects. Proposals are due October 18.
A newly published study from our friends at Conservative Texans for Energy Innovation (CTEI), in partnership with the Advanced Power Alliance and the Solar Energy Industries Association, shows no evidence of negative market impact for residential properties near utility-scale solar facilities. In all counties studied, the sales prices and marketing times of residential properties located near solar projects were generally consistent with residential sales further away.
“As Texas continues to lead on renewable energy, it is crucial our leaders have access to objective data to help dispel misinformation and false narratives,” said Matt Welch, State Director of the CTEI.
Although this summer’s heat is behind us, the fragility of the Texas grid is right where we left it: front and center in our lives and livelihoods. On October 14, parts of Texas, especially Corpus Christi, Odessa and San Antonio, will witness totality during a ‘ring of fire’ solar eclipse. Beginning at 10:15 am CT with maximum coverage of the Sun at 11:54 am CT, ending at 1:33 pm CT. ERCOT officials are already planning for potential impacts on the state’s solar resources. Don’t forget to wear your eclipse glasses.
By Patrice ‘Pete’ Parsons TXSES Executive Director
Another day, another dozen or more articles about the relentless positive impact of the Investment Recovery Act (IRA) on all of us. Admittedly, it’s hard keeping up with the daily eye-popping stats: tens of thousands of new jobs in every state; millions of dollars for home energy improvements including solar and retrofits for greater energy efficiency, reducing energy costs; billions in investments. Not that we’re complaining. Rather, call us gleeful as we blow out the candles on IRA’s first birthday cake.
Without question, the IRA is the most ingenious climate bill in U.S. history ever in five areas: manufacturing, electric transportation, green buildings, decarbonizing electricity and finance. The big winners? You, me and our other 334 million U.S. citizens. With the goal of powering the U.S. grid with 80% clean electricity and cutting climate pollution by 40% by 2030, the IRA marshaled an estimated $370 billion in federal incentives. That’s billion with a b.
Here in Texas, we’ve got our own impressive stats. According to our friend Doug Lewin, in just the past year, Texas can tout more than a dozen projects representing thousands of jobs and billions in investment. Here’s the short list:
183 jobs in Plano to manufacture EV fast chargers;
500 jobs in Houston to manufacture solar panels;
1300 construction jobs, and 300 permanent jobs, in Wilbarger County for green hydrogen, all part of a $4 billion investment; and
A $40 million solar investment in San Antonio.
Last week, Utility Drive reported French utility company Engie, bought Houston-based battery storage company Broad Reach Power, a deal including 350 MW of operating grid-scale battery storage and 880 MW under construction in ERCOT’s service territory.
Courtesy: RMI
There are so many extraordinary aspects of the IRA. One of them, direct pay, enables entities that don’t pay federal taxes (i.e., non-profits, schools, city and county governments, tribal communities, rural electric coops) to access clean-energy tax credits directly. Further, these non-profits can combine other federal funding sources like the EPA’s Green Bank (created by IRA) to increase their options. The more than 900 rural electric coops can use IRA funds and USDA grants and loans under two IRA programs. The potential for clean energy projects nationwide is staggering.
Don’t know about you, but my head is delirious with the reality of a clean energy America. And in my lifetime. I’m rolling up my sleeves. You?
By Patrice ‘Pete’ Parsons, TXSES Executive Director
I don’t know about you, but I grew up with parents who were relentless with sanctions if we didn’t turn the lights off when we left a room. “You’re wasting electricity,” they’d complain. And while we’d roll our eyes and grouse, ultimately, they were right. We assumed power would magically appear each and every time we flipped the light switch.
Being resource reckless was soo mid-20th Century.
Never before has wasteful energy consumption and the potential for grid failure caused by extreme climate events reached this level of heightened awareness. We know now that being energy efficient is one of the best ways to save money, reduce greenhouse gas emissions, create good-paying jobs and meet our incessant energy demand.
Referred to as the ‘first fuel,’ energy efficiency remains the single most cost-effective thing we can do to reduce energy consumption. It’s all about using less energy at home, in our buildings, and with our cars. Changing habits and behaviors is the easiest and cheapest first step, like turning out lights when you leave a room, using a clothesline instead of a dryer, turning the thermostat up in summer and down in winter, replacing incandescent light bulbs with LEDs or CFs (compact fluorescents) and unplugging your toaster, laptop, printer, coffee maker. That vampire power can account for up to 20% of your monthly electric bill! Use ceiling fans and smart thermostats. Get an energy audit from your local utility.
If you’ve been thinking about upgrading your heating and cooling systems or replacing outdated lighting and older appliances, now’s the time. From hydrogen to solar to energy efficiency, the Inflation Reduction Act (IRA), passed last year and considered the most ambitious investment in clean energy in our nation’s history, has something for just about everyone. With more than 20 new or modified tax incentives and billions of dollars in grant and loan programs for new clean energy technologies, the IRA is designed to rev up our collective commitment and transition to a clean energy economy.
Included in this $4.5B legislation is the high-efficiency electric home rebate program which provides up to $14K/ household for upgrades to heating, cooling, insulation, air sealing and electrical systems including lighting and appliances. The IRA extends credit for energy-efficiency home improvements through 2032.
On the commercial side, cities, counties and states have established mandatory energy benchmarking and transparency requirements for commercial buildings, and many are starting to implement building performance standards that will define how much energy efficiency buildings are able to use. According to ENERGY STAR, energy-efficient buildings yield higher asset value, higher rent and higher occupancy rates, compared to typical buildings. By reducing household and business energy consumption, we all contribute to and benefit from a shrinking carbon footprint.
But wait. There’s more.
For those of us in the solar industry, there’s much to be happy about with the IRA. The residential energy efficiency section locks in the 30% investment tax credit (ITC) through 2034 and expands eligibility for battery storage technology! This couldn’t be a timelier opportunity for Texas homeowners who have been thinking of going solar as solar prices continue to drop and the potential for grid failure continues to rise. You’ll realize considerable benefits when you implement all those easy, inexpensive energy efficiency opportunities (see above). You’ll see the results of these efforts in a lower electric bill and a more resilient grid. Who doesn’t love that?
Our individual contributions add up. What are you doing to be more energy efficient?
Another week, another round of local, state and national news articles about how the Texas grid is trying to handle the relentless heat and keep up with increasing electricity demand. According to ERCOT, so far, so good. But it’s only July and we have more heat coming. But, as so many of you know, more and more Texans are part of a critical solution with rooftop solar and batteries.
Home solar and batteries have provided thousands of Texans peace of mind when their power goes out. And now some of those systems are being harnessed together and provide even more resilient power to the state’s strained grid.
Called virtual power plants (VPPs), this solution can help ERCOT continue to provide power as heat waves push traditional power plants to their max. Virtual power plants are created by aggregating resources such as consumer solar paired with batteries, smart thermostats, efficient appliances and even EVs. When those devices are connected with software that measures, manages, and dispatches power – you’ve got a mini power plant.
“Virtual Power Plants can harness power from the people, to help the grid when it needs power the most,” says Amy Heart, VP of Public Policy for Sunrun. “Up until now, these systems have been helpful to manage energy bills, passively alleviate demand when the sun is shining, and provide backup power during outages. But with a managed VPP, these resources are leveraged to their full potential, sharing electricity exactly when the grid and Texans need it most to reduce peak demand and avoid outages.”
Texas launched a pilot project called Aggregated Distributed Energy Resources (ADERs) in 2022 that aims to open a pathway to VPPs. Heart, Sunrun’s VP of Public Policy, is a member of that pilot team working with the Public Utility Commission of Texas and ERCOT to understand how ADERs can support reliability, enhance the wholesale market, incentivize investment, potentially reduce transmission and distribution investments and support better load management during emergencies.
In fact, it might be one of the most affordable grid-backup options. The Brattle Group estimates that ADERs could be 40-60% cheaper to implement compared to traditional backup services such as peaking power plants (power plants that only burn fossil fuel when the grid exceeds usual demand) or utility-scale battery storage systems.
So far, Houston has been a leader in the ADER pilot, having approved 5.2 megawatts (MW) enrolled in the program.
Challenges exist, however. For example, the current regulatory framework restricts the ability of wholesale electric negotiations between retail electric providers (REPs) and ERCOT. A household with a solar and battery system must find an REP that is willing to enroll and pay for that system to participate in the ADER program. To increase access, third-party aggregator models could be considered to manage the enrollment for consumers, while eliminating duplicative parties. Tesla has had some early success in the ADER Pilot enrolling customers as an REP.
Additionally, it is unclear how municipal utilities and rural electric cooperatives are able to participate, and none have created a pathway for their residents to participate yet, missing valuable resource opportunities. During times of high demand, municipalities could operate a mini-VPP within their areas, drawing on locally created ADERs before purchasing additional power at the high market rate from ERCOT.
Virtual Power Plants bring valuable distributed resources together as a critical solution for Texas’ grid and our growing electricity demand. Ultimately, we all benefit from greater affordability, performance and grid resilience. Accepting the fact that extreme weather events are now the norm, why not deploy strategies like ADERs that will provide significant grid resilience and compelling financial benefits to all Texans? It’s plain common sense.
Special thanks to Amy Heart and Sunrun for their valuable insight and input into this article.
Disclosure: Amy Heart is a Texas Solar Energy Society board member, and Sunrun is a Business Member of The Texas Solar Energy Society.
By Patrice ‘Pete’ Parsons | TXSES Executive Director
It’s June in Texas, another day of unrelenting headlines about excessive heat warnings and triple-digit temperatures and ERCOT asking us to conserve electricity. It’s not surprising that more and more Texans are looking to solar and storage to ensure continued electric service during grid emergencies.
Texas’ solar industry is in overdrive, and it’s not just because of the extreme weather.
With hardware costs down nearly 50 percent over the past decade in the residential and small commercial markets, coupled with the Inflation Reduction Act’s 30 percent tax credit for residential systems installed through 2034, the Texas solar industry can realistically plan for growth and hire more people to respond to the demand. Demand is also on the rise for batteries as homeowners combine solar with storage for reliable backup power. Storage is also eligible for the 30 percent tax credit.
But falling hardware prices and tax credits aren’t the whole picture.
Currently representing about 8 percent, soft costs like permitting, financing and installation make up a growing share of the total solar system’s costs. There is no standardized permitting process. Authorities Having Jurisdiction (AHJ) have their own set of rules and processes for solar that can take anywhere from two weeks to two months. Mistakes in the paperwork and it’s a do-over. This doesn’t include the interconnection process which can take up to six months in certain parts of the state. Ultimately, speed
In 2021 and in response to the overwhelming volume of residential solar permitting applications nationwide, the National Renewable Energy Laboratory (NREL), along with code officials, AHJs and the solar industry developed a standardized plan review software to run compliance checks and speed up building permit approvals for eligible solar rooftop systems. Known as Solar APP+ (Solar Automated Permit Processing), this free, innovative software is a lifesaver for permitting departments. Here are some key facets of the Solar APP+ software:
It integrates with existing government software.
It automates plan review, permit approval, and project tracking.
It standardizes up to 90% of standard system plans.
It provides an inspection checklist and final sign-off after installation.
According to a 2022 NREL report on Solar APP+ performance, communities that have adopted SolarAPP+ have saved more than 12,800 hours in plan review time, and projects are installed about two weeks faster, given that permits are issued instantly for code-compliant systems. This groundbreaking software has the potential to speed up installations and reduce costs while addressing climate change.
Currently, 15 AHJs have publicly launched SolarAPP+, and 16 more are piloting the platform including AHJs in Tool, Waco and Houston, Texas.
With the relentless growth of solar in the state, we want to help more Texas municipalities adopt Solar APP+, and thanks to our friends at the State Energy Conservation Office (SECO), we’ll be able to do just that.
Once approved by the Department of Energy (DOE), SECO will offer a $25K funding opportunity for each qualified municipality to adopt Solar APP+. In addition to SECO funding, NREL will support the municipalities with free technical assistance and hardware upgrades – this means NO cost to municipalities! It’s our intention to help a minimum of seven additional municipalities adopt Solar APP+ beginning October 1.
If you’re interested in helping your municipality adopt Solar APP+, email me at pparsons@txses.org
