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I myself have always been in this field for the green aspects. You know, I'm a climate warrior, proudly, and I am optimistic that we're going to win this fight, but it's not because of ethics. Strangely enough, we're going to win it on economics. And so right now, the reason why data centers are clamoring for batteries is because they can't get the interconnections they need.
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Are you speeding the energy transition? Here at the Clean Power Hour, our host Tim Montague, bring you the best in solar, batteries and clean technologies every week. Want to go deeper into decarbonization.
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We do too. We're here to help you understand and command the commercial, residential and utility, solar, wind and storage industries. So let's get to it together. We can speed the energy transition.
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Today's guest is Wes Kennedy, one of the industry's most respected solar plus storage and micro grid experts. Wes has nearly 30 years of renewables, starting in the off grid era in the 90s, going into CO founding namaste solar, helping grow it into a leading regional integrator. He's held senior engineering and leadership roles at companies like SMA America, dynapower and blue planet energy, and has trained hundreds of professionals as an instructor on heat spring today, he leads middle market battery storage deployment at Hanwha Q cells, and I am simply thrilled to have the solar Pro. Wes Kennedy.
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Welcome to the show.
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Hey. Thanks, Tim. I appreciate being here.
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Yeah, I really, I really appreciate you making time. And it's heady days in solar and storage. Never a dull moment. I think it would be great if we could kick this off.
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Wes with how storage has changed in the last five years. I mean, you've worked in all aspects of the solar and micro grid industries, including off grid, micro grids, utility scale storage. But what has changed most in the last five years?
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Wes, well, I think the big change has been, and hopefully will continue to be, cost. You know, even five years ago, you mentioned Blue Planet energy. I was working there for for quite a number of years, interesting company founded by Hank Rogers, the guy that invented Tetris, or at least brought Tetris, the video game, to the to the world. And what Blue Planet energy was doing was bringing, at the time, the exotic chemistry of lithium iron phosphate, that was the the new kid on the block. And we were bringing LFP to the market and selling that all day long for over $1,000 a kilowatt. And that was just a few years ago. And now LFP has dominated the market, especially in stationary storage and pricing, you know, at larger scales, is under $100 a kilowatt hour. So you know, that's really, really been the biggest change. And as with everything in our market, every time price goes down, market, the market grows. You know, there's more marginal use cases that then open up. And heck with cheap storage, there's not any place on the grid where it's not a good play to put storage on.
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Yeah, the value of storage is only going up as the value of solar goes down. And, you know, things like net metering going away in more mature markets, drives up the value of storage. The other thing that, well, there's two meta or mega trends. The cost of energy is going up. We're going to talk about that AI is changing the economics of energy, and the cost of technology is coming down, as you mentioned. And what that does is it increases our viability in renewables. There is no cheaper, faster way to clean your grid than with solar, wind and batteries, and those you know, those technologies, of course, are going head to head with all of our fossil cousins.
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So what about AI? How is AI changing project economics and May. Be if you could put a pin in. Where do people get stuck trying to learn the storage game today?
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Yeah, so, huh, two kind of related topics there.
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Let's, let's take the second one. First, you know, the the landscape for the use cases for storage is changing all the time. You know, as we said, costs drop, markets open up. You know, my my approach, you mentioned my instructing at heat spring. My approach is to instruct the fundamentals of what storage is good for and how it works, and what the components are, and how the finances like more in a generic way, how the finances impact and how policy impacts. So I've always strived to teach, you know, and the The analogy I use is teach people how to fish, not just give them a fish. So the the key is to understand, you know, how storage differs from PV. You know, storage is really about time, and that time is giving us the flexibility on wind to spend or hold on to our electrons, whether we make them with solar or from the grid, and as soon as you put the element of time into an energy equation, you have much more flexibility on how to use it. So, so really, I think the biggest barrier to people using storage is still getting up the learning curve on what it's, what it's actually good for? You know, oftentimes we'll get approached with someone that that just knows about storage, and maybe they're coming from a PV background, and they're like, Well, you know, we're selling PV all day long, and storage is the next thing.
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So I just want to add storage to every single one of my PV projects, but if you don't have a time adder, for example, a time of use, rate, times of the day or power is more expensive if you don't have that, then Adding storage doesn't add value to the project. And that's, of course, just a tiny example, but getting up that curve on where it's applicable on the AI side, I think it's kind of still too early to see AI with the the huge Gold Rush every all the all of our big, mega cap companies are investing hundreds of billions of dollars into AI development. So that has created a tremendous growth in the need for energy, and that was in a climate before AI. That was we were pretty flat in the US in terms of our growing energy demand. So now, once again, we've got this tremendous pull from the market caused by AI uptick has yet to match all the investment going into it. It's still kind of a promise that our tech giants are kind of holding on to but in the near term, what it's doing is creating this opportunities to deploy storage, deploy deploys solar, for these huge pipelines of data centers that are either going in the dirt or still in the planning stages.
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I recently reported on a article from El PC here in Illinois, the Environmental Law and Policy Center that basically proposed a TSA Pre check style interconnection for data centers if they would do a certain number of things, like bring their own clean power. Do you think we're headed towards an era of more self generation with regards to data centers?
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Well, it certainly seems to look like that. You know, I myself have always been in this field for the green aspects. You know, I'm a climate warrior, proudly, and I am optimistic that we're going to win this fight, but it's not because of ethics. Strangely enough, we're going to win it on economics. And so right now, the reason why data centers are. Are clamoring for batteries is because they can't get the interconnections they need.
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We've seen essentially off grid deployments, either happening or in the very near term, works that wildly exceed the off grid hippies, craziest, you know, mushroom fueled fantasies. You know, we're talking, you know, hundreds of megawatt off grid deployments, co located with data centers. The good news about that is, it's maturing the technology. You know, we're starting to see more and more just that the scalability and the deployment of megawatt and, you know, soon to be more common, gigawatt scale storage.
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So it's definitely, it's kind of working in tandem right now, not necessarily in series, if that makes any sense,
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yeah, I, I get the feeling we're headed towards a terawatt world. You know, in the US, our our solar deployment is around 50 gigawatts, and storage is not far behind that. Now let's talk a little bit about engineering and design.
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You know, you're
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making a mark, both on heat, spring and elsewhere, for talking about DC coupling. What is that about?
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And why should when and why should EPCs choose DC coupling of storage?
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Sure, DC coupling is kind of where the roots of solar and storage began. You know, in the old days, when I started a project was a cabin in the woods and a solar panel went through a charge controller and charged a battery, and that was all done DC, and then the inverter was connected to that battery and pulled energy out and gave you your AC You needed to keep your refrigerator going.
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What we're starting to see now is because of issues with grid congestion and restrictions at the point of interconnection, you know, limits that the what has become the common way to co locate solar and storage, which is AC coupling, and by the way, that word coupling just means, how is the solar and storage electrically connected, either AC or DC, When we when we run into an environment of constrained AC capacity, then the answer is to connect solar and storage on the DC side. And the kind of the full realization of this idea is you could take any given interconnection. Let's say you've got a one megawatt allowed connection to the grid.
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You can conceivably put enough solar and storage behind, on the DC side to back feed that one megawatt connection for 24 hours a day. So you turn a one megawatt connection into a 24 megawatt hour revenue stream from the host perspective, but a true one megawatt dispatchable resource from the utilities perspective. So it's really win win. So DC coupling is at this scale, you know, at the hundreds of kilowatts to hundreds of megawatts, there's just a small handful of players making components. That continues to be the bottleneck for it. But the thing to keep in mind with folks is there's basically two flavors of DC coupling. We won't go too deep into this, but just to start normalizing this, there's solar prime DC coupling and battery prime DC coupling. And so with solar prime DC coupling, it's a solar project, solar panels feeding solar inverters, feeding solar transformers, solar inverter transformers and the battery connects to that solar bus through a DC. To dc converter. So we call that solar prime because the connection to the grid is a solar inverter, and that's the most widely adopted DC coupling use case.
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Battery prime is where that inverter at the point of interconnection is a battery inverter, so a full four quadrant off grid capable best inverter. And in that situation, the PV connects to the battery bus via those same DC to DC converters. The advantage of battery prime is the battery inverter is interfacing with the grid with all of those capabilities so you can get much faster response times, you know, like these fast frequency response programs. You can also have resiliency micro grids, you know, islanding, because your inverter that's touching the grid is a, you know, full off grid capable battery inverter.
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So there's those two different flavors and different use cases will push one or the other to the four, but that's that's DC coupling in a in a nutshell.
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So we often talk about micro griding as one of the key value stacks of storage.
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Can you have micro gridded capabilities in both a battery prime or solar prime scenario,
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not not as strictly, you know, described, because in the solar prime, your connection to the grid is just a solar PV inverter. So it's not a bi directional device. You can't buy and sell power, and it's not able, able to connect, I'm sorry, to island the grid. Now you can have, you know, solar PV, connected to the grid, and you could certainly co locate a battery, and you could have the battery island the facility, but if it's not dc coupled to that battery through a battery inverter, then you don't have that resiliency capability.
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Why do you think there's so few hardware options in the DC coupling space right now?
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Yeah, it's good question. I think because these dc coupled programs, there's only a handful. The most successful right now is in Massachusetts. They don't specify dc coupled but they allow you to build out big PV and DC behind that restricted point of interconnection that I described before. So it has spurn spurred rather a, you know, a solar and storage dc coupled market. But it's it's just something that, from an engineering perspective, it's more complicated and the exist, like the less sexy stuff, the balance of systems equipment, like breakers, fuses, combiner boxes, that kind of equipment is less readily available, so it's more expensive to procure. One of the only companies that I know of right now that will do large capacity, 1500 volt DC switch gear and combiners, is shoals technologies, those guys out of Tennessee. So it's one of those situations where, as we get some more projects spun up in the dc coupled space, we'll see more component manufacturers enter this space.
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Is Massachusetts the only market that is truly incentivizing DC coupling
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right now, I believe so. And the rest has been, you know, pilots. You know, previously, when I was at dynapower, we did some really fun projects in the Caribbean islands where the utilities were interested in doing this, and we built out some, you know, five or 6x DC to AC ratio projects, so you can do a lot of really cool stuff with it. But it's still, it's just on the edge of getting out of what would be a science experiment and into just deploying.
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Climate, the Clean Power Hour is brought to you by CPS America, maker of North America's number one three phase string inverter with over 10 gigawatts shipped in the US. The CPS product lineup includes string inverters ranging from 25 kW to 350 kW. Their flagship inverter, the CPS 350 KW is designed to work with solar plants ranging from two megawatts to two gigawatts. CPS is the world's most bankable inverter brand, and is America's number one choice for solar plants, now offering solutions for commercial utility ESS and balance of system requirements go to Chintpowersystems.com or call 855-584-7168, to find out more, let's talk a little bit about sourcing equipment. You know, the the land of tariffs and ITC compliance really has people in a tizzy right now. We are, we are headed to a post ITC world. And for all intents and purposes, I think that's really where developers and installers and EPCs should be focused. But what are your thoughts about domestic content in here in 2026
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Well, it's interesting, because up until fairly recently, I was of the mind where I think where you're coming from, which is, let's just do this without incentives.
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Let's let our our equipment, stand on its own two feet, and then there's truly nothing stopping us. And although I think that still is like a, you know, a laudable goal, what I've been educated recently on is how much of the financial institutions eagerness to participate in the US. Green tech revolution hasn't been about green or tech. It's been about tax credits. So the tax credit is, in and of itself, a fungible device, and the way that those get bundled and traded and go on balance sheets of financial institutions is really been a major, major, kind of unspoken driver of this awesome growth curve that we've seen in our industry. So I don't know if I can say that the tax credit world is dead. But back to the DC coupling thing, which is, of course, I should have mentioned this right out of the bat with the new ITC regime, we still have a tax credit for energy storage. So it's been stripped from solar. So if you build a dc coupled project, then that that battery, that battery inverter, that battery inverters, transformer, that skid those cables, all that stuff. Is ITC capable, and then the PV is like an adjunct to it.
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So anyway, so there's still an ITC play, and that's going to be a tailwind towards DC coupling.
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So I had a bit of a senior moment. They're not bringing that up in the previous chapter.
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That's a very good point. I hope, I hope the listeners take note of that. I mean AC and DC coupling is, as you've mentioned, partially driven by policy, and so I'm not even sure if DC coupling gets you some of the ESS incentives in Illinois, for example, there may be an exclusion for DC coupling, but so let's talk a little more about the middle market. That's one of the areas you and I both play in on a regular basis. What is, in general, winning in the middle market?
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Well, I think the reason why middle market remains a vibrant market in general is, first of all, the scale of what's middle keeps growing. You know, and I first was experimenting with C&I, like a big project was one megawatt. So it was like 50 kilowatts to one megawatt. And now you know 1010, megawatts, 20 megawatts, 50 megawatts, might be considered middle market. But what makes it so? Viable is it's the one market that resists being proceduralized and cookie cutter and just having a, you know, a big player come in with a cost optimized solution that's just going to roll across the whole market. Because that's what we've really seen on both ends, you know, smaller and bigger.
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You know, in the residential market, you've got your power walls and you've got your solar edges, and they basically own it all. And then at the mega scale, you've got just a small handful of players that win all of those, those those project opportunities. So the middle is really the battleground, and it's where all the different players have an opportunity to carve out these projects. So, you know, that's, that's why I see that, that it's, it really is the most kind of vibrant, you know. And back to my, my day job at q cells. And then back to this tax credit and domestic content concept. I would be remiss if I didn't just share, you know, q cells is launching a middle market skid. So it's a 1.25 megawatt, five megawatt hour. So it's a, you know, a four hour skid that's non Fiat.
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So everything is made in non fiock nations and totally domestic content compliant with at least 70% so that'll get you a 40% tax credit on it for the you know, the foreseeable future. US inverters, US main LFP batteries and then q cells with our our controls brand, which is called Jelly, is doing the skid level controls, the site level controls, and all the dispatch algorithms. So, you know, optimize your investment, figure out the best time to spin that, that battery you've got stored. So that's that's kind of our, our latest baby that I'm working as part of a team to bring to the market. Can you say anything about
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what's not working in the middle market? I mean, you mentioned that it is battleground, and I would agree.
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The cool thing is, there's no clear winners, really. And the challenge is that it's it's messy projects do pencil in some markets, there are many markets where they don't pencil very well. What do you see in terms of winners and losers.
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Yeah, you know, I do have a bit of my own, you know, my own kind of blinders on at this moment, you know, Tesla continues to dominate on anything that's, you know, at least Mega Pack scale, you know, which is, you know, a one megawatt or a two megawatt kind of project size, what I see, and to roll it back out of key cells, what I see is what developers, or, you know, EPCs, are looking for is, as much you know, support soup to nuts of the project development cycle as possible. And so accused cells, like our approach, what we're doing, what we call ourselves, is a value added reseller. So we resell the Mega Pack. We resell the sun grow. They have, they have a dc coupled solution built on their somewhat older power Titan one platform. And we work with the French company called Soka Mac. That is on the smaller scale of things. They do things in 50 megawatt or, sorry, 50 kilowatt increments. But what q cells does is it's like, okay, we're going to sell you this hardware that you may or may not be able to go out by yourself, but we start with Project analytics using that jelly tool.
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We do guys like me support the design and the integration onto the site. I hand it off to a team that does logistics support and manages everything getting to your site. And then we have a commissioning group so we do our commission. And we manage whoever the hardware manufacturer is doing the commissioning. We have O and M.
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We have NOx services that can be procured. You know, has a big, you know, 100 billion dollar balance sheet of Hanoi behind us. So we do performance guarantees. And so what I'm getting at is is these projects are complicated, and to partner with a partner that's not, it's not their first rodeo, and to get that support moving through, I think, is a really it's a really good strategy for solar primary EPCs to start putting their toe in the water with deploying storage.
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All right, let's change gears a little bit and talk about workforce and skills staying competitive. What skills matter most right now,
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what I run into, you know, in my career has been changing, changes after changes.
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You know, as you mentioned, 30 years and you know, had I really like drilled into a specific area and just gone as deep as I could, I think I would have siloed out my own career many times over. And I think we're all feeling in in all aspects of our lives, that flexibility and a willingness to learn is, I think, the number one element to this, and that ties back into what you're saying about AI.
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People are worried about AI, or it's going to come and take my job. Well, it's only going to come and take your job if your job is a very narrowly defined situation that you're just doing a routinized cookie cutter every day, the same thing people, if you're in that situation, you may be in danger of AI taking your job, but really it's the flexibility, willingness to learn more, and, you know, bringing our whole selves and our creativity to our work situations, and continuing to just roll with the punches and see what's coming down the pike and have the courage to move forward.
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I love the saying, If you always do what you've always done, you'll always get what you've always gotten. I think riding the solar coasters successfully requires a very dynamic perspective and a willingness to constantly learn.
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What else would you like to share with us about how companies can and should Up skill their employees?
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Yeah, I think that as AI is rolling into enterprise, I think we all need to figure out how we're going to embrace it and work with it. And you know, the best approach is that it's a great assistant. And same thing with companies like the heat spring and solar energy International. You know, I think that what companies need to do is to continue to have the foresight, to provide training resources to their staff to continue to upskill them and actually support that instead of, you know, feeling maybe threatened by people continuing to learn more. But this is it's really, everything is just opening up so rapidly and changing so rapidly that I think companies best place to spend their money is on training and new experiences for their for their employee base.
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Yeah, if you don't know about heat spring, go to heatspring.com. Just like it sounds and check out. Wes is landing page. He's got two courses, one hour course how storage paves the way for the grid of the future, and a 13 to 15 hour course on comprehensive solar plus storage. And I'm looking forward to taking both of those myself. Let's do a quick lightning round and wrap this up. So what is the biggest storage myth?
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Wes that we're going to run out of lithium before we get as much storage as we need. I'm pretty bullish on recycling and. The richest mine on the planet is a fraction as rich as a recycled battery mass as your feed stock to extract and rebuild again. You know what the guys at Redwood recycling are doing? And, of course, many, many, many others. We're going to get to a point where we've actually got all the raw materials we need, you know, virtually all out and in circulation, sure. And then the circular economy is going to just keep remanufacturing them, redeploying them. So, yeah, there's, we're not going to run into any sort of a material shortage, getting the whole world off grid,
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not to mention that lithium is the third most common element in the universe.
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What about one test stupidity?
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What is one technology that you think people should really pay attention to?
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Well, maybe this is an opportunity to take this into the left field for you and your in your listeners real quick, and it's a technology of our own attention. So, you know, I've been an Apps engineer, been working on like optimizing solutions my whole career, and I've also, 20 years ago, started looking at what I call internal engineering. So attention is our mind's currency. It's what we spend to actually make things happen. And in the world that we're in right now that attention is constantly, constantly being pulled 1000s of different ways, and our mind is such that biochemically, we can't tell the difference between a crisis on social media and a tiger getting ready to jump on us in real life and bite our face off. So we have to take control and command of our own attention. And the most you know, the one takeaway, if this is new to your to your listeners, is we are not just our mind. Our mind is just this thing that takes in data and crunches it and tries to solve problems and spits out answers where humans are a little bit more than that. And so when we can kind of relax into our whole self enough to see when our attention is being hijacked.
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That gap right there that's a key, key, key element. And when you notice that happening, you want to just stop what you're doing, put it down, and go do something else. So I always remember that thing from when we were kids. If you were, you know, in the kitchen and your clothing caught on fire, what are you supposed to do? Stop drop and roll. So when you're involved in your computer and your phone and your social media, and you see that you are hijacked. You put it down, and you just go take a walk. So I think that's, that's the one thing, and I would say all of us could gain, you know, much, much gains in our lives, just by being able to take control of our attention back to ourselves.
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Thank you.
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What is your best advice for EPCs in 2026
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I don't have a super good best advice for EPCs this year. I would say, to repeat what I've been saying.
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Take a look in your local market. See where storage has a play, whether it's residential, middle market, upper market. See where the that spot where tariffs from your local utilities and policy, where those things intersect, and then where you find that sweet spot, then put together for best in class, tier one equipment, lean on the apps, engineering groups of those manufacturers to support you in getting an offering together and then go deploy it.
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Yeah, my advice is, form deep partnerships, find groups of people and the companies behind them that you resonate with, whether those are manufacturers, developers, a.
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Other EPCs and build true, deep relationships with them, so that you can grow together and go further faster. You know that is one of the things that separates us humans, apart from other animals, is our ability to work tribally and collectively. We're not the only animal that does this, but we do it to an extreme, and it has given us the ability to pretty much dominate the biosphere.
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So go long and
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do more to build those deep relationships. All right, so I guess I'll wrap this up with one final question. Wes, what is it that excites you most here in 2026 looking, you know, five years out, what is it that you're most pumped up about?
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This is a time of extreme, extreme change. And what makes me most excited is is, I think that we are in equal parts potential upside and potential doom. But I think it's, it's up to us to, like, push to the upside. If your readers haven't heard of these consulting firm called rethink X, check them out. They're the quintessential techno optimist, and we can engineer our way to a future of abundance, and I think it's really picking up steam now. And you know specifically this new buzz about data centers in space. I think it's just so cool having solar panels and solar synchronous orbit, looking at the sun, 24/7 with no weather in the way, and dumping heat into the vacuum of space, and having that actually be, not just discussed, but actually being engineered and will be deployed in the next couple of years. It's cool. We're on our way to the Star Trek future.
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I'm glad you mentioned rethink X Tony ceba, one of the co founders there, is one of my favorite authors, and he's written a wonderful book called Clean disruption, which is still very relevant today. So check that out. It's on audio, any kind of any way you consume books, you can get it. Hey guys, are you a residential solar installer doing light commercial but wanting to scale into large C&I solar? I'm Tim Montague.
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I've developed over 150 megawatts of commercial solar, and I've solved the problem that you're having you don't know what tools and technologies you need in order to successfully close 100 KW to megawatt scale projects. I've developed a commercial solar accelerator to help installers exactly like you just go to cleanpowerhour.com click on strategy and book a call today. It's totally free with no obligation. Thanks for being a listener. I really appreciate you listening to the pod, and I'm Tim Montague, let's grow solar and storage. Go to clean power hour and click strategy today. Thanks so much.
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I want to thank Wes Kennedy for coming on the show today. Check out all of our content at cleanpowerhour.com Tell a friend about the show. That is my only ask of you. Listener, tell a friend. There are so many people that do not know that this channel exists on YouTube, on Spotify, on Apple, etc. Wes, how can our listeners find you? LinkedIn?
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Wes Kennedy. We solar plus. So it's a little play on Wes we solar heat spring. And if you're in this mid market and looking for a solid partner to help you break into best deployment, you know, reach out to us at q cells.
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Well, we're here. Your partner that's been there and done that.
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I'm Tim Montague.
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Let's grow solar and storage.
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Thanks so much. Wes Thanks.
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Appreciate it. You.