TXSES’s new report analyzes the economic impact of grid service interruptions caused by extreme weather events in Texas.
Executive Summary
The Texas Solar Energy Society (TXSES) is dedicated to enhancing Texas’s energy infrastructure. This report presents an analysis of the economic impact of grid service interruptions across Texas, a project led by our research department. In 2022, these interruptions cost the Texas economy an estimated $6.97 billion. This analysis is based on data from 68 Transmission and Distribution Utilities (TDUs), utilizing refined methodologies and comprehensive data sources. The findings aim to provide actionable insights and drive necessary grid reforms.
Introduction
A reliable energy grid is vital for Texas, given its significant economic role and the essential services reliant on continuous electricity. Historically, grid interruptions have posed severe challenges, disrupting daily activities and economic operations. The objective of this report is to estimate the economic impact of grid interruptions in Texas for the year 2022. By understanding these impacts, TXSES aims to advocate for policy reforms and infrastructure improvements to enhance grid reliability.
TXSES is pleased to announce that the Texas Solar for All Coalition, of which TXSES is a participant, was awarded nearly $250 million in grant funding on Earth Day to deliver residential solar to more than 46,000 low-income and disadvantaged communities and households across Texas. The U.S. Environmental Protection Agency (EPA) grant will accelerate investment in clean energy, reduce greenhouse gas emissions, close the solar equity gap, and create green jobs.
TXSES Executive Director Patrice “Pete” Parsons shared that, “TXSES is delighted to be a part of the Texas Coalition Solar for All Grant and to take part in this historic advancement for solar energy in our state.”
The funding is part of $7 billion in federal grants announced by President Biden for residential solar projects this Earth Day. Coordinated by the EPA, 60 recipients (49 states, six Tribes, and five multistate awards) were chosen to provide solar to nearly 1 million households in low- and middle-income communities across the country, providing an estimated savings of $350 million annually on electric bills.
The Texas Coalition, led by Harris County, and including cities, counties, and community-based organizations, serves over 11 million low-income and disadvantaged communities in Texas. The Coalition’s goal is “to transform access to distributed solar in Texas, creating new community wealth and savings through energy cost reductions, equity opportunities, and access to good-paying clean energy jobs.” To do this, the program will “leverage federal funds, tax credits, and other sources to provide financial assistance and access to private capital to support residential multifamily and single family solar, battery storage, and energy efficiency deployments to improve community well-being and resilience to power system failures.”
In addition, the Coalition will “support workforce training to serve low-income and disadvantaged residents, support minority-and women-owned businesses, and collaborate with community-based organizations.” The programs are designed “to be extended within the member jurisdictions and expanded to other parts of Texas during and beyond the SFA grant period.”
Over the next five years of the project, the program is expected to deliver about 225 MW of distributed solar facilities, along with 85 MWh of battery storage, and provide an average of $17 million in annual household electricity bill savings, according to TXSES partner and Coalition member Texas Energy Poverty Research Institute (TEPRI). It will also reduce statewide emissions by over 310 thousand tons/year. These savings are estimated to translate into at least 20% savings on customer electricity bills in the targeted residential communities.
by Steven Ùgalde, Marketing & Outreach Coordinator
Recently, I had the privilege of attending a solar installation training program, where prospective students gathered to learn how to properly install solar panels. Organized by Green Careers Texas, this two-day event aimed to empower participants with the skills they need to kickstart their journey in the solar industry.
The training took place at American YouthWorks in Austin on March 22nd and 23rd, and offered participants a hands-on learning experience. This opportunity was made possible by the generous donation of solar panels from TXSES Business Members, Lighthouse Solar. Among those present were Tracy Wallace, executive director of Green Careers Texas, and TXSES’s Patrice “Pete” Parsons, along with 12 students.
Green Careers Texas is a guiding light, providing numerous solar PV installation trainings that serve as a pathway to stable income in the solar sector. Their mission is clear: to tackle poverty and increase solar energy head-on by providing green career training and education. They strive to bridge the gap between employers and diverse qualified individuals in the field of solar PV installation, ensuring opportunities for all.
As I spoke with participants and trainers, it became evident that access to jobs in the solar industry is not only crucial for economic gain, but also about equality and protecting our planet through environmental justice and advocacy of underrepresented groups within the solar field. The National Solar Jobs Census revealed the struggles solar companies face in hiring skilled workers, especially from underrepresented groups, such as people of color and women. However, initiatives like Green Careers Texas are actively working to address this issue by equipping students with the skills they need and the tools needed to thrive in the clean energy industry.
One attendee, Aaron who is from west Texas, shared his motivation for joining the program: “I’m eager to learn about solar energy and contribute to a healthy change, especially in depleting natural resources.”
Similarly, Annie, another participant, emphasized the importance of cleaner and sustainable energy, stating, “I want to build a better platform and make a positive impact on the environment.”
Katelyn, who is participating through the YouthWorks program with Green Careers Texas, said she dreams of a future where she can install her own solar panels on her van and lead a life on the road.
As for Angel, another attendee, he stated, “I’m participating in the YouthWorks program and am eager to explore new opportunities and industries, particularly renewable energy. My parents keep me motivated, and I’m interested in keeping up-to-date and informed. This is my first time taking the class, and I appreciate the hands-on learning and the enthusiasm from the instructors.”
Nacho Ignacio Martinez, one of the training’s instructors, shared his motivation in wanting to teach these students: “I’m thrilled to have had the opportunity to instruct at the Solar Installation training program hosted by Green Careers Texas. Witnessing participants embrace new skills and knowledge, and the prospect of passing that on, is truly gratifying. Having completed the training myself, I now look forward to teaching others about solar and embarking on personal projects, including one for myself. A big shoutout to Tracy and Mark (McCollum), Ed (Wise), and Dylan (Brown), the lead trainers, for their invaluable support throughout.”
Green Careers Texas is hoping to change lives and communities for the better by offering opportunities in sustainability-focused jobs, particularly for those who’ve been overlooked in the past. These programs aren’t just empowering individuals, but also driving positive change in our local communities.
Tracy Wallace of Green Careers Texas explained, “We are thrilled to be working with Austin YouthWorks. Trainees who have experience with power tools and construction already are ideal to work with. The bonus is they each have a heart for service.”
As the solar industry continues to evolve, the need for a skilled and diverse workforce becomes increasingly important. By supporting organizations like TXSES and Green Careers Texas, we can all play a role in shaping a brighter, more sustainable future.
If you would like to hire one of these students, please reach out to Tracy Wallace at tracy@greencareerstexas.org.
Learn more about Green Careers Texas and how you can get involved at: greencareerstexas.org.
In our ongoing commitment to strengthen Texas’s energy infrastructure, the Texas Solar Energy Society is proud to update our members on a crucial initiative. Spearheaded by our research team, we have embarked on a project to estimate the economic impact of grid service interruptions across the state due to the extreme weather events our state has been experiencing.
In our initial estimate, we encountered the problem of drawing on data from multiple sources, introducing the challenge of instrumentation bias if each source calculated the reliability indexes different. However, we have refined our methods and adjusted our focus to EIA-only, in order to take advantage of the more comprehensive data available. This change allows us to provide a more accurate and actionable analysis as we advocate for necessary grid reforms.
A significant hurdle was choosing the right data sources to accurately capture the frequency and duration of power outages. The PUCT’s Annual Service Quality Reports provided some insights but were limited to private TDUs and lacked comprehensive customer data. Thus, we opted for the broader and more detailed EIA 861 dataset, which aligns with the standards set by the Institute of Electrical and Electronics Engineers for 2022. This decision has enhanced the reliability of our preliminary estimates.
To date, we have completed estimates for 42 out of the 71 utilities, suggesting a potential cost of $2.065 billion in 2022 alone. We continue to seek IEEE-compliant data from other utilities and will update our findings accordingly.
The insights garnered from our detailed analysis not only quantify the financial impacts of grid interruptions but also illuminate the path forward for enhancing grid reliability. The Texas Solar Energy Society is committed to using this crucial data to advocate for comprehensive grid maintenance strategies that are not only responsive but also proactive. By presenting our findings to decision-makers, we aim to underline the economic necessity of investing in our grid infrastructure. This initiative will support the development of well-informed policies and funding allocations, ensuring that future grid interruptions are fewer and less severe. Our goal is to equip Texas with a robust and resilient energy system that can withstand the challenges of tomorrow, safeguarding our economy and enhancing the quality of life for all Texans.
As we proceed, your insights and inquiries are invaluable. For further information or to engage in this discussion, please contact Ethan Miller at ethan@txses.org, or Mohammad Alkhatib at mohammed@txses.org. Together, we can pave the way for more resilient energy solutions in Texas.
Each month we highlight one of our esteemed Business Members with an interview in our newsletter. This month, we feature Platinum Business Member, Axis Solar. TXSESMarketing & Outreach Coordinator Steven Ùgalde reached out to Axis Solar CEO Graeme Walker for a chat about their business, vision, accomplishments, projects and more.
Thank you for sharing a bit about Axis Solar with us today, Graeme. Please start by telling us about yourself and your background in the solar industry.
My background is actually in finance. I started training as a CPA with Arthur Andersen, then Deloitte in the UK. After a few years working in audit, I moved to the Corporate Finance department helping support transactions in the upstream Oil and Gas Sector in Scotland. After a brief stint in renewable energy banking which was abruptly ended by the 2008 financial crisis, I joined one of my offshore wind farm clients as head of finance to help them raise debt end equity to support their upcoming developments. After that business was successfully sold, the leadership team moved to Texas in 2009 to form an offshore wind company to explore operations in the Gulf of Mexico. Realizing that the economic and political headwinds were strongly against us at the time, we opted to mothball that company in 2012. I took up a position as CFO with a small residential solar installer, however after 9 months, decided to form my first solar company. In 2014, I started Alba Energy as a commercial solar company, serving primarily the multifamily industry. In late 2015, we expanded into residential solar and that became our primary focus.
How did AXIS get its start and how did you come into the position?
Axis was formed in late 2018 by myself and Jason Thomas who previously served as master electrician at Alba. We had grown disenchanted with the residential sales side of the industry, and wanted to concentrate on our core strengths of operations and construction. Initially, we focused on operating as an EPC for large residential sales companies such as Sunrun. However, seeing early the impending crunch that high interest rates have caused to the residential sector, we began to pivot heavily towards commercial solar in mid 2022. Over the last 2 years we have built on our previous commercial experience and molded the company into an extremely efficient EPC of commercial projects. We act as an EPC for certain large developer groups, but we also directly source our own projects alongside that effort.
What is the vison and mission of AXIS?
Our mission is to be the go-to expert for C&I (commercial and industrial) solar in each geographic market in which we operate. We look to achieve this through only hiring the best team members and being laser focused on project execution for our customers and stakeholders.
What is AXIS’ approach to projects, whether residential or commercial?
Since 2022, we have not been involved in the residential sector. The larger scale C&I solar sector is a highly specialized industry. There are always unique engineering and construction challenges on every project. Our success comes down to detailed upfront planning and engineering to ensure a smooth project, but also in our effective communication with customers and stakeholders. One of the most important traits we look for in new hires is their ability to communicate and present themselves well in front of customers.
What has been the biggest impact on your career in this industry?
Over the last 10 years in solar, it’s been a steep learning curve for myself on two fronts. Firstly, learning the ropes of running a company and the responsibilities that that brings. Secondly, dealing with the ever evolving nature of the solar industry as it matures.
What would you consider are AXIS’ biggest company accomplishments?
We just commissioned the largest behind-the-meter private solar system in Austin Energy in late 2023 — 3.4MW of rooftop and carports. A great effort by the team that has set the platform for our continued growth in the sector.
What surprises can be expected when first entering the solar industry?
The constantly changing industry dynamics. The change that has happened in the last decade has been dramatic, but there are still challenges to the industry as it matures and potentially starts to threaten entrenched legacy interests in Investor Owned Utilities or fossil fuel sectors.
What is the biggest hurdle AXIS has faced?
Navigating (& surviving) through the Covid years. There was a short period when work really dried up, and survival looked tricky. But fortunately, there was then a very strong rebound as folks capitalized on low interest rates to go solar.
What does the future look like for AXIS?
We are very positive about the future. We already have a very strong pipeline of deals through the remainder of 2024 and into 2025. Our focus continues to be on excellent execution of our projects as well as measured growth. There are very few companies with our experience and focus on the large scale C&I space, so we feel we are in a good position to continue to capitalize on the growth in that sector spurred by the IRA 2022.
Thank you for taking the time to answer our questions, Graeme, and for being a valued TXSES Platinum Business Member!
“There are a lot of great solar installers in the industry who provide reliable products to build affordable arrays with quality and skill. However, from time to time, we hear reports of the ‘other guys’ – the companies that are in it to make a quick buck and move on to the next sale.”
TXSES Executive Director Patrice “Pete” Parsons co-authored the Op-Ed, “Protecting Yourself from the ‘Other Guys’“ on what to watch out for when getting solar panels installed in Solar Today magazine with Roger Horowitz (Solar United Neighbors) and Rich Strömberg (ASES Photovoltaics Division).
Warranty service or Operations & Maintenance? These may be lacking or nonexistent.
Solar arrays that miss the energy production estimates by a significant margin? These can leave well-intentioned array owners with a bad experience.
While this is not the norm, we want to caution would-be solar-array owners and provide pathways to prevent poor customer satisfaction.
Some recent anecdotes about poorly installed solar that we are personally aware of include the following:
1) A woman purchased a home with a preexisting leased solar array that was installed on an older roof. The original installer should have advised the prior homeowner to get a new roof before installing an array that would undoubtedly require removal and reinstallation before the end of the 25-year PV module warranty period.
That installer went out of business, but a new company bought the lease and now wanted to charge the woman a lot of money to remove the array for the roofers to do their work and then reinstall the system. They quoted her a price for the work equal to buying a brand-new solar array.
Since the lease company owned the array, they wouldn’t let another installer do the work at a lower cost. The homeowner was also offered a buyout of her remaining lease at a price much higher than the current value of her PV system.
2) A company installed solar panels on any available roof space instead of focusing on unshaded roof space that would have a good power-production factor.
3) A commercial solar array was mounted horizontally (instead of at an angle) on a flat roof in Florida where rainwater was allowed to pool on the modules and seep behind the front-side glass, causing rippling of the ethylene vinyl acetate encapsulant film and allowing algae to grow between the glass and the silicon cells.
Further, the inverters were mounted outside, which resulted in the ventilation fans pulling in corrosive, salty sea air into the sensitive internal electronics. This system stopped working and the customers did not have a good solar experience.
4) A commercial array in Colorado had a building owner who had a third-party power purchase agreement and was billed regularly for the supposed solar production despite the system not producing.
The installer had not worked to repair the offline inverters for more than a year, but was providing a fraudulent bill to the building owner, who was double-paying for electricity.
5) A large, extremely reputable national solar company worked with a company that was providing it sales leads in the Houston area. After the large company had installed a system based on one of these leads, the customer didn’t understand why her bill was not zero.
She had been promised by the salesperson that her solar array would cover her entire electric bill. She didn’t have a clear understanding of the contract and certainly didn’t understand the credit that would be paid to her.
When the solar company heard about all the promises that had been made on their behalf, they went back and repaid her the entire amount of the system, which was fortunate for her in this case, but there are plenty of examples of these poor practices happening across Texas.
While several of these anecdotes relate to leased arrays, this is not to say that all leased arrays should be avoided. In many larger commercial arrays, any system larger than what is allowed for net metering (typically larger than 25 kW) is frequently owned by a solar company that operates and maintains the system and sells the power produced to the building owner at a rate less than the utility retail rate.
Residential lease arrays might be an attractive option for homeowners who don’t want to buy or finance their own systems. The primary considerations for leased arrays are 1) to be cognizant that the lease is an encumbrance should the homeowner wish to sell their home before the end of the lease period and 2) to seek transparency about the energy produced and system health/performance.
What are the costs to buy out the lease early? Are there penalties to an installer if the system underperforms? What are the costs and logistics if the array needs to be removed for roof repairs? These factors might cause a prospective solar array owner to revisit a home equity loan or even forego a solar array until a later date.
Inspired by the Inflation Reduction Act of 2022, lots of folks are interested in installing solar all over the country. Along with reputable solar companies, there are plenty of solar scams and misleading solar advertisements out there, particularly on social media. Here are several pathways a prospective solar-array owner can follow to protect their interests and ensure the best possible option based on their particular needs.
1) You should beware of ads and salespeople claiming free systems or a time-limited program that you need to sign up for immediately.
2) Some companies are counting on you not doing your research and selling expensive systems or systems without warranties. Do you really need an array this large? Is a battery/energy storage system actually needed if the local utility doesn’t have time-of-use rate structures?
Time-of-use rates are used when an electric utility charges a higher per-kWh rate at times each week when energy demand is high and lower rates when demand is low.
A battery energy storage system can help the array owner draw excess power from the battery rather than from the grid during high-usage-rate periods. The system can also push excess power back onto the grid during high-usage-rate periods and use nighttime power from the grid to recharge the battery when usage rates are low.
2) Solar United Neighbors (SUN) has a National Solar Help Desk (https://www.solarunitedneighbors.org/helpdesk), which provides free support for people looking to go solar. SUN is a 501(c)(3) nonprofit that can help you find local installers and can review solar proposals and contracts free of charge. We and SUN always recommend getting three solar proposals and making sure to check the warranties on the systems to make sure that the installer and manufacturers have a long-term plan to help you if your system isn’t working.
3) In general, we recommend using the monitoring app that comes with your solar systems to track performance. We also advise having a solar professional take a look at your system in person every five years.
4) When it comes to choosing an installer, make sure to read every online review that you can find and call or meet multiple local references from the solar installer. A lack of local references and lack of online reviews is generally a red flag when it comes to solar companies. Scrutinize these online reviews to confirm their legitimacy.
5) Talk with your neighbors who have solar arrays.
6) Lastly, join your local chapter of the American Solar Energy Society (www.ases.org) to network with system owners who can provide advice and share their knowledge.
Best of luck in finding the right solar array for your needs. We love our systems and want the same for you.
About the Authors
Roger Horowitz is the director of Go Solar Programs at Solar United Neighbors, where he combines his passion for community organizing with his love of solar energy. He loves supporting families as they go solar and is especially interested in equitable financing.
Patrice “Pete” Parsons is a seasoned strategist with more than two decades of experience. She is the executive director of the Texas Solar Energy Society, where she creates programs to educate and inspire every Texan to adopt solar energy as part of an equitable 100%-clean energy future. She is a member of the American Solar Energy Society (ASES).
Rich Strömberg is the vice chair of the ASES Photovoltaics Division. He is a doctoral student focusing on the reuse of solar photovoltaic systems for social and ecological benefit. He is a co-founder and the director of Equitable Solar Solutions.™
Photo Credit: Laksh Muchhal, U.S. Department of Energy, Flickr
