It's only going to get hotter in Houston — can the grid take it? Switching to solar is a way to avoid having to worry about that question, says this expert. Photo courtesy of Freedom Solar

You know the old adage: "If you don't like the weather here, wait five minutes." Texas weather is not just unpredictable; it can be downright bipolar. I don't need to remind you of the knockout punch Old Man Winter delivered last February, even to parts of the state where hard freezes are few and a "snow event" usually amounts to a dusting. It will be a long time before Texans forget spending a week without power in single-digit temperatures — huddled together in their homes under mountains of blankets — with no heat, no way to bathe or cook, and no escape.

The massive power outages of Valentine's Day week spurred public outrage and a full-throated demand that state leaders take decisive steps to make Texas' electric grid sustainable. The legislature was only a month into its 140-day regular session at the time, but still failed to do anything substantial to fix the grid before adjourning May 31.

Now — well ahead of the hottest days of summer — Texans are wondering why the Electric Reliability Council of Texas (ERCOT) is already asking them to set their thermostats at 78 degrees, turn off lights, avoid using their ovens or doing laundry in the evenings, and otherwise conserve energy. It was ERCOT's second such call since April. Some local energy companies have recommended setting thermostats even higher, and local rolling blackouts have continued in Dallas, Houston, and elsewhere in the state throughout the months of June and July. That may be fine for some people during Texas' scorching summer heat, but for others, it is untenable. For the elderly or infirmed, it could be deadly.

Experts have warned the grid is unreliable, the system is strained, and homeowners and businesses hover at near-constant risk for blackouts, unless the state does more to weatherize the grid, bring more generators back online, and provide more emergency backup power. Meanwhile, when temperatures hit triple digits and stay there for days, the blackout risks will skyrocket.

But there is one obvious solution to grid instability that will enable Texans to keep their homes and businesses comfortably cool during the hot summer months ahead, without setting their thermostats higher or timing their activities to government guidelines. Widespread distributed generation of solar energy, instead of the current emphasis on remotely located utility-scale solar, would provide a highly effective, long-term solution to decreasing strain on the ERCOT power grid.

That means dramatically increasing the number of solar installations on residential and commercial properties statewide. Consider the distance and infrastructure required to bring power from a West Texas solar farm to the state's big cities. That's not only a costly undertaking, it exposes the system to many vulnerabilities along the way. It makes more sense to install solar panels on-site, behind the meter, and pair them with storage for backup power.

The logic is simple: Increasing the number of homes and businesses with on-site solar power would decrease the burden on the grid and help insulate it against failure. Further, by installing home batteries such as the Tesla Powerwall for backup power, residents can control their own power supply and ensure its reliability, even during extreme weather events—summer or winter.

These technologies are cost-efficient and readily available today. A few months ago, Congress extended the 26 percent federal solar investment tax credit (ITC) — which also applies to batteries paired with solar — through 2021 (dropping to 22 percent in 2022), making the move to solar and backup power even more sensible.

State leaders have tried to lay the blame for last winter's power outages on renewable energy. But failures of natural gas power plants, not renewable generators, caused the grid failures that led to those deadly blackouts.

On July 6, months after declaring "everything that needed to be done was done to fix the power grid in Texas," Governor Abbott ordered the PUC to take steps to overhaul the state's electric system. But the solutions he's offering—like constructing new coal, gas, and nuclear power plants and building their transmission lines faster—are giveaways to the fossil fuel industry and will take a long time to complete. Texas needs reliable power NOW.

Meanwhile, state officials are increasingly emphasizing conserving power during extreme temperatures, which suggests they don't even believe their assurances that no more blackouts lie ahead. On-site solar power is the obvious solution, both today and for the long-term health of our rapidly growing state and rapidly warming planet.

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Bret Biggart is CEO of Austin-based Freedom Solar, the leading turnkey solar energy installer in Texas, providing high-quality, cost-effective, reliable solar solutions for the residential and commercial markets.

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Houston VC funding surged in 2024, fueled by major Q4 activity

by the numbers

The venture capital haul for Houston-area startups jumped 23 percent from 2023 to 2024, according to the latest PitchBook-NVCA Venture Monitor.

The fundraising total for startups in the region climbed from $1.49 billion in 2023 to $1.83 billion in 2024, PitchBook-NVCA Venture Monitor data shows.

Roughly half of the 2024 sum, $914.3 million, came in the fourth quarter. By comparison, Houston-area startups collected $291.3 million in VC during the fourth quarter of 2023.

Among the Houston-area startups contributing to the impressive VC total in the fourth quarter of 2024 was geothermal energy startup Fervo Energy. PitchBook attributes $634 million in fourth-quarter VC to Fervo, with fulfillment services company Cart.com at $50 million, and chemical manufacturing platform Mstack and superconducting wire manufacturer MetOx International at $40 million each.

Across the country, VC deals total $209 billion in 2024, compared with $162.2 billion in 2023. Nearly half (46 percent) of all VC funding in North America last year went to AI startups, PitchBook says. PitchBook’s lead VC analyst for the U.S., Kyle Stanford, says that AI “continues to be the story of the market.”

PitchBook forecasts a “moderately positive” 2025 for venture capital in the U.S.

“That does not mean that challenges are gone. Flat and down rounds will likely continue at higher paces than the market is accustomed to. More companies will likely shut down or fall out of the venture funding cycle,” says PitchBook. “However, both of those expectations are holdovers from 2021.”

Justice Department sues to block Houston-based HPE's $14B buyout of Juniper

M&A News

The Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration that is expected to take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

HPE and Juniper issued a joint statement Thursday, saying the companies strongly oppose the DOJ's decision.

“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market,” the companies said.

The combined company would create more competition, not less, the companies said.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise. Most predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden’s watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for $40 a share in a deal expected to double HPE’s networking business.

In its complaint, the government painted a picture of Hewlett Packard Enterprise as a company desperate to keep up with a smaller rival that was taking its business.

HPE salespeople were concerned about the “Juniper threat,” the complaint said, also alleging that one former executive told his team that “there are no rules in a street fight,” encouraging them to “kill” Juniper when competing for sales opportunities.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the U.S.'s second- and third-largest providers of wireless local area network (WLAN) products and services for businesses.

“The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U.S. enterprises facing two companies commanding over 70% of the market,” the complaint said, adding that Cisco Systems was the industry leader.

Many businesses and investors accused Biden regulatory agencies of antitrust overreach and were looking forward to a friendlier Trump administration.

Under Biden, the Federal Trade Commission sued to block a $24.6 billion merger between Kroger and Albertsons that would have been the largest grocery store merger in U.S. history. Two judges agreed with the FTC’s case, blocking the proposed deal in December.

In 2023, the Department of Justice, through the courts, forced American and JetBlue airlines to abandon their partnership in the northeast U.S., saying it would reduce competition and eventually cost consumers hundreds of millions of dollars a year. That partnership had the blessing of the Trump administration when it took effect in early 2021.

U.S. regulators also proposed last year to break up Google for maintaining an “abusive monopoly” through its market-dominate search engine, Chrome. Court hearings on Google’s punishment are scheduled to begin in April, with the judge aiming to issue a final decision before Labor Day. It’s unclear where the Trump administration stands on the case.

One merger that both Trump and Biden agreed shouldn’t go through is Nippon Steel’s proposed acquisition of U.S. Steel. Biden blocked the nearly $15 billion acquisition just before his term ended. The companies challenged that decision in a federal lawsuit early this year.

Trump has consistently voiced opposition to the deal, questioning why U.S. Steel would sell itself to a foreign company given the regime of new tariffs he has vowed.

Houston space company lands latest NASA deal to advance lunar logistics

To The Moon

Houston-based space exploration, infrastructure, and services company Intuitive Machines has secured about $2.5 million from NASA to study challenges related to carrying cargo on the company’s lunar lander and hauling cargo on the moon. The lander will be used for NASA’s Artemis missions to the moon and eventually to Mars.

“Intuitive Machines has been methodically working on executing lunar delivery, data transmission, and infrastructure service missions, making us uniquely positioned to provide strategies and concepts that may shape lunar logistics and mobility solutions for the Artemis generation,” Intuitive Machines CEO Steve Altemus says in a news release.

“We look forward to bringing our proven expertise together to deliver innovative solutions that establish capabilities on the [moon] and place deeper exploration within reach.”

Intuitive Machines will soon launch its lunar lander on a SpaceX Falcon 9 rocket to deliver NASA technology and science projects, along with commercial payloads, to the moon’s Mons Mouton plateau. Lift-off will happen at NASA’s Kennedy Space Center in Florida within a launch window that starts in late February. It’ll be the lander’s second trip to the moon.

In September, Intuitive Machines landed a deal with NASA that could be worth more than $4.8 billion.

Under the contract, Intuitive Machines will supply communication and navigation services for missions in the “near space” region, which extends from the earth’s surface to beyond the moon.

The five-year deal includes an option to add five years to the contract. The initial round of NASA funding runs through September 2029.