The Impact and Cost-Effectiveness of the Missouri Solar Rebate Erin Noble Nicholas School of the Environment Duke University Advisor: Randy Kramer.

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Presentation transcript:

The Impact and Cost-Effectiveness of the Missouri Solar Rebate Erin Noble Nicholas School of the Environment Duke University Advisor: Randy Kramer

Evaluating the Missouri Solar Rebate: Scope and Objectives Growth Cost-Effectiveness Economic, Environmental and Public Health Impact

Solar Industry Overview

Reason for Rapid Expansion #1: Decreasing Price of Solar

Solar Industry Overview Reason for Rapid Expansion #2: Higher Electric Rates

2008 Prop C: Missouri Clean Energy Initiative $2 15% by 2021 RES $2/watt solar rebate Applies to Missouri’s three Investor-owned Utilities Ameren Missouri (St. Louis) Kansas City Power and Light (KCPL) Empire Electric (Springfield). Not offering the rebate – Challenged in court.

Part 1: Growth Method In-state comparison Empire vs. Ameren vs. Kansas City Power and Light Out-of-state comparison Missouri vs. Kentucky vs. Nebraska

Comparison: In-state Growth

Comparison: Out-of-state Growth

Part 2: Cost-Effectiveness Method Solar rebate vs. new generation U.S. Energy Information Administration The high cost of peak power Solar helps decrease expenditures on expensive peak power

Solar Rebate ($2 per watt) Natural Gas: Conventional Combined CoalWind Natural Gas: Advanced Combustion Turbine Nuclear Capital Cost per MWh $60.88$17.5$65.3$83.9$31.6$90.1 Operation & Maintenance $0$1.9$3.9$9.6$5.5$11.1 Variable O&M incl. Fuel $0$45.6$24.3$0$62.9$11.7 Transmission $0$1.2 $3.5 $1 Utility Cost per MWh $60.88$66.20$94.70$97.00$103.50$ U.S. Average Levelized Costs (2009 $ per MWh) for plants entering service in 2016 The Solar Rebate – A Cost-Effective Investment: It is cheaper for Missouri utilities to invest in the solar rebate than to build new power plants

Solar offsets expensive peak power

Slow the dollar drain by creating energy in-state Source: University of California Berkeley Putting Renewables to Work: How Many Jobs can the Clean Energy Industry Generate.

Cleaner Air, Healthier Families: Solar Rebate Reduces Fossil Fuel Emissions Average Missouri home uses lbs. of coal a day. 1 kilowatt hour of power = 1 pound of coal

Cleaner Air, Healthier Families: Decrease air emissions and reduce fatalities Coal plant emissions Mercury: neurological disorders in children 55,000 premature deaths a year Asthma and lung disease.