Simulating Utility-Scale Solar Energy Profitability in Florida.

Is solar energy an economically competitive option for Floridian consumers? By 2028, Florida Power and Light (FPL), the leading electricity provider for the State of Florida, projects to source nearly 15% of its electricity supply from solar power. As an Investor-Owned Utility serving the electricity needs of approximately half of Floridians, policy changes to its energy portfolio greatly impact consumers through base rate increases to subsidize the technological transition. The present study investigates the potential profitability of FPL's solar projects by conducting a cost-benefit analysis (CBA) and a sensitivity analysis to determine how varying generation parameters impacts profits. This research simulates 110,880 CBA scenarios with only 2.4% of scenarios showing profit while holding base rates constant. Among scenarios with a time-period of 30 years, this study finds approximately 19.5% are profitable. However, this study shows that FPL's solar projects are profitable, but likely not within the regulatory rate of return. Simulations in this study show less than 1% of scenarios are profitable. This research suggests that consumer base rate increases are likely to enable FPL to achieve its allowable rate of return for its future solar projects. [ABSTRACT FROM AUTHOR]