Solar power generation in the US: Too expensive, or a bargain?

This article identifies the combined value that solar electric power plants deliver to utilities' rate payers and society's tax payers. Benefits that are relevant to utilities and their rate payers include traditional, measures of energy and capacity. Benefits that are tangible to tax payers include environmental, fuel price mitigation, outage risk protection, and long-term economic growth components. Results for the state of New York suggest that solar electric installations deliver between 15 and 40 ¢/kWh to ratepayers and tax payers. These results provide economic justification for the existence of payment structures (often referred to as incentives) that transfer value from those who benefit from solar electric generation to those who invest in solar electric generation.

► The article presents a valuation of the energy produced by solar generators. ► Valuation accounts for physical, socio economic, and environmental attributes. ► Value depends upon solar penetration and location and is likely to exceed cost. ► The article shows that incentives for solar deployment are justified. ► Incentives should be a function of solar energy's site and penetration dependent value.