This is Episode 5 of 5 in our Community Solar Series
Learn more here.
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“Community solar is very attractive, because the market has shifted towards offering fixed percentage discounts to the underlying bill credit, which is a long winded way of saying almost guaranteed savings. If you’re a potential subscriber, why wouldn’t you want to take guaranteed savings, right?”
If you’ve been following along the touchstones that make up the community solar market…
“In this final episode of our 5-part series, we still have one more segment of this quilt of knowledge left to weave - the money - how does it work? You heard David Sandbank in Episode 1 refer to the Value Stack. The ways in which the market participants are incentivized to participate is an important element of any complete understanding of an industry sufficient that you could actually begin to participate in it. So, today I’m sitting down with Sy Kim, an industry veteran who has become a go-to resource for those who wish to develop market entry and business development plans for community solar. I first met Sy back when he was a project developer at SunPower before he went on to take senior leadership roles in NRG Energy and what would become Clearway. Sy’s market understanding surpasses most others I’ve met when it comes to explaining the one piece left to unravel in this tapestry - just how does the revenue in these projects stack up?
We discuss RECs, Tax Equity, market constraints & More.
From types of offtakers to credit risk, incentives and customer mix, this final discussion will hopefully help fill any remaining gaps in your understanding of just exactly what community solar is and how you can participate in this high-growth opportunity.
You can learn more about today’s guest and our expert lineup along with what else is to come in the series at www.mysuncast.com/communitysolar
Did you miss the series so far?CONSIDER THIS YOUR “COMMUNITY SOLAR 101”
In this 5-part series, we answer:
How does Community Solar work, and what are the Policy frameworks that support it’s expansion?
Is the development of Community Solar that much different from other solar verticals (C&I, Utility)?
How does this segment of the industry enable a more just & equitable solar offering?
Who are the customers and how are they acquired for Community Solar as compared with other verticals?
And, How does the money flow into, through and out of these projects for the various stakeholders?
The Community Solar series presented in partnership with EDP Renewables N. America, Distributed Generation.
You can learn more about all the sponsors who help make SunCast free for you, here: www.mysuncast.com/sponsors
And you can always find the resources and learn more about today’s guest, recommendations, book links, and more than 485 other founder stories and startup advice at www.mysuncast.com.
You can connect with me, Nico Johnson, on Twitter, LinkedIn or email.
Here’s a peak at the Community Solar Series:
Episode 1: The Role of Policy in Community Solar with Jeff Cramer, CCSA & David Sandbank, NYSERDA
Episode 2: The Project Developer Perspective: Is it really that different?
Episode 3: Federal support for equitable access to solar
Episode 4: Customer acquisition for Community Solar
Episode 5: Understanding the “Value Stack” for Community Solar
TIMESTAMPS:
(04:25) Sai's expectation of community solar in 2014
(05:42) How Sai help partners in community solar marketplace
(08:22) What is unique about community solar revenue streams
(10:17) Areas of revenue for community solar
(11:52) What offtake agreement is all about
(15:50) How PPA impacts project viability
(16:55) How community solar redefines the nature of offtakers
(21:33) Financiers' comfortability with contracted revenue
(23:54) Impact of customer fungibility on asset flexibility
(26:39) How Renewable Energy Credits work
(30:50) Importance of incentive program to community solar
(33:29) How incentives contribute to cash flow
(35:49) Constraints of going into community solar from developers perspective
(38:10) Community solar attractiveness to equity providers
(40:42) Best way to reach Sai Kim
(41:17) Wrap up
ABOUT SY KIM:
Sy has more than 13 years of renewable energy origination and development experience. This expertise is utilized by the commercial clients he advises on behind-the-meter (BTM) and community solar opportunities nationwide. Prior to starting his own renewable energy consulting practice, Sy managed origination and development at NRG Renew/Clearway and SunPower. He received a B.S. degree in Management Science from UC San Diego, and an MBA from UCLA.
Energy leader committed to driving results throughout the value chain, from Market Development and Strategy to Project Development and Originations. Thrives while spearheading multi-stakeholder BTM, Community and Utility transactions.
RESOURCES:
Find SY on LinkedIn.
CHECK OUT THE ENTIRE COMMUNITY SOLAR SERIES:
ABOUT THE HOST OF SUNCAST:
Nico Johnson is the creator and host of SunCast, consistently rated a top solar podcast in the clean energy sector. The content of the show is geared towards listeners looking for insights on where the markets are headed, how to position themselves or their companies, and what today's market leaders do to stay ahead of the pack.
Nico is an Investor, Executive Coach, and 15-year veteran of the solar industry, having led development in the US and Latin America for global companies like Trina Solar and Conergy.
You can connect with Nico Johnson on Twitter, LinkedIn or email.
If you’ve been second-guessing your work decisions or maybe trying to reconsider how you "fit" in the renewable energy industry -> grab 20 minutes on Nico's calendar and discuss whether having him as Your personal coach might be the right next step.