Energy policy and financing options to achieve solar energy grid penetration targets: Accounting for external costs

This paper presents a review and assessment of public-policy options for supporting large-scale penetration of photovoltaics (PV) in the United States. The goal therein is to reduce the costs both of solar technology and of grid integration, so enabling solar deployment nationwide. In this context, we analyze the solar PV markets and the solar industry globally, and discuss the external benefits of PV that must be advertised, and perhaps marketed, to assure an increase in social support for PV. We discuss existing energy-policy mixes in those countries leading to the development of solar power, highlighting the lessons learnt, and outlining areas of improvement of the existing policy mix in the United States. We highlight that there is a need for a holistic approach including social in addition to economic considerations, and we discuss policy options for supporting the continuation of PV market growth when the current investment tax credits expire.