Positioned for Change: Partnerships and Experience as Tools to Guide Through Unstable Times

A Conversation with Solaris Energy Leadership

The future of renewable energy investments and development in the U.S. has been unstable, with ongoing regulatory and policy changes clouding future planning and prediction. The industry is working to adjust, and we at Solaris Energy have been adapting, too.

We recently attended RE+ in Las Vegas, one of the largest events for the renewable energy industry. Based on our conversations at the event and our own adjustments, we are optimistic about the industry’s future and confident that solar investing will continue to be a strong lever for a climate-smart future and sound investments.

“We’re aware and acknowledge that current challenges are real and require solutions,” says Solaris Energy CEO Nick Perugini. “With our organization’s expertise, strong partnerships, and experience navigating stormy seas, we believe Solaris Energy is well-positioned for change and adaptation as the reality continues to unfold.”

Below, find insights from Nick, our Chief Investment Officer, Justin Bzdek, and our VP of Strategic Partnerships, Shaun Laughlin, on how Solaris is positioning itself in the market for a bright future of development.

How is the market navigating the short-term policy and regulatory changes?

Shaun: In conversations with small- to mid-sized developers, most are optimistic and acknowledge that we are in a frothy environment. They are mainly focusing on projects that are 1.5MW AC and smaller until the end of the year, based on the regulatory changes.

Nick: The regulatory guidance remains unstable, but models show a likely manageable increase in Power Purchase Agreement (PPA) rates that is a less drastic impact than anticipated. We believe financially viable and successful projects can and should continue to be developed to meet the current regulatory reality, but also that go beyond the end of the Investment Tax Credit (ITC), especially in specific viable markets, such as California and New England, where current PPA rates are most competitive.

How is Solaris responding to the market realities?

Nick: Planning for 2026 is happening now. The dust is still settling, and we are deepening relationships and strengthening our partnerships. We are experienced and skilled at that, and we are in a good place to find opportunity in the chaos.

Justin: Currently, a significant portion of the work done to secure tax credits ultimately benefits other parties. Without the associated overhead, including legal and compliance costs, we could see less of an impact on PPA rates than originally expected. We are making adjustments to be self-sufficient from government incentives.

Shaun: We continue to engage our partners. We have created strong relationships over the years, and we communicate with them to adjust as the new reality continues to develop. We are not in denial about the challenges, but we are confident in our capacity to address them.

How is Solaris preparing for the longer term?

Justin: Solaris is optimistic about the company's future and the resilience of the solar market. Initial concerns of a drastic market shift have subsided because of our team’s ability to adapt and navigate challenges. While individual projects might yield slightly less, our organization, process efficiency, and effective use of legal resources put us in a strong position.

Shaun: For the renewables industry, it's a time of both uncertainty and momentum. At Solaris, we're navigating the former and leaning in hard to the latter. We're actively connecting and engaging with peers, partners, and investors, and seizing opportunities to bring energy products to fruition and continue expanding our healthy and growing pipeline.

Nick: Our ability to control processes and make decisions independently is a significant advantage. We’re proud of what we’ve developed and implemented, and we can maintain optionality in our paths to navigate with an altered direction more easily. Our team is well-positioned to be prepared for change. We are guided through periods of uncertainty like this by our mission to transition to 100% renewable, affordable energy for all.