Solar energy strategies in the U.S. utility market
2017
Given the exponential cost decline trend of solar energy generation technologies, and the targeted tax incentives and loan guarantees for renewable energy in the American Recovery and Reinvestment Act of 2009, and other policy measures, solar energy generation has been enjoying rapid growth in the United States. This paper examines the incorporation of solar renewable energy into generation portfolios, and the effects of natural capital – specifically the geospatially calculated potential solar energy generation as measured by potential average annual kilowatt-hours per square meter per day − and respective state mandated “renewable portfolio standard” targets on utility-scale solar energy generation. Findings suggest that a state's natural solar energy potential is a predictor of solar energy generation development, and further this relationship is significantly moderated by state-specific renewable energy portfolio standard targets.
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