The Impact and Cost-Effectiveness of the Missouri Solar Rebate

Erin NobleNicholas School of the Environment

Duke UniversityAdvisor: Randy Kramer

Evaluating the Missouri Solar Rebate:Scope and Objectives

Solar Industry Overview

Solar Industry Overview

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

Part 1: GrowthMethod

Comparison: In-state Growth

Comparison: Out-of-state Growth

Part 2: Cost-EffectivenessMethod

Solar Rebate ($2 per watt)

Natural Gas: Conventional Combined

Coal Wind 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 $1.2 $3.5 $3.5 $1

Utility Cost per MWh

$60.88 $66.20 $94.70 $97.00 $103.50 $113.90

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. 2004. 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 uses30-60 lbs. of coal a day.

1 kilowatt hour of power = 1 pound of coal

Cleaner Air, Healthier Families: Decrease air emissions and reduce fatalities