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Carbon drawdown potential of utility-scale solar in the United States: Evidence from the state of Georgia

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  • Brown, Marilyn A.
  • Tudawe, Ranal
  • Steimer, Hamilton

Abstract

Governments around the world recognize the need to identify options for reducing their carbon footprints, tailored to local conditions. In an analysis of the U.S. state of Georgia, both utility-scale and rooftop solar were down-selected among 20 from a set of 100 options, prompting analysis of the pros and cons of different types of solar systems. Analysis included simulating a modest carbon tax (starting at $10/tonne CO2) in a computable general equilibrium model of the U.S. energy system. On the one hand, the results indicate that utility-scale solar could reduce Georgia's carbon footprint by an additional 10% by 2030. Currently, 98% of Georgia's solar electricity comes from utility-scale solar and only 2% from rooftop solar. Each additional tonne of CO2 avoided in 2030 would have private costs of -$3.9 to +$71 and would produce significant social benefits of $68 to $79. On the other hand, the modeling suggests that a $10 carbon tax is not sufficient to spur the growth of rooftop solar in Georgia. Additional incentives would be needed, but their traditional design could hurt low-income customers. As a class, low-income households subsidize affluent homeowners who own rooftop solar by paying higher electricity prices that allow utilities to offer solar incentives. These trade-offs are prompting proposals to grow utility-scale solar at the expense of rooftop solar. However, choosing one or the other type of solar represents a false dichotomy. Ultimately, meeting science-based climate goals will require a broad, deep, and rapid response that engages both utility-scale and rooftop solar.

Suggested Citation

  • Brown, Marilyn A. & Tudawe, Ranal & Steimer, Hamilton, 2022. "Carbon drawdown potential of utility-scale solar in the United States: Evidence from the state of Georgia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    • Handle: RePEc:eee:rensus:v:161:y:2022:i:c:s1364032122002325
    DOI: 10.1016/j.rser.2022.112318
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    References listed on IDEAS

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