Maximizing Solar PV Dissemination under Differential Subsidy Policy across Regions

Jeongmeen Suh and Sung-Guk Yoon
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Jeongmeen Suh: Department of Global Commerce, Soongsil University, Seoul 06978, Korea
Sung-Guk Yoon: Department of Electrical Engineering, Soongsil University, Seoul 06978, Korea

Energies, 2020, vol. 13, issue 11, 1-15

Abstract: This study investigates the effect of a renewable energy dissemination policy on investment decisions regarding solar photovoltaic (PV) installation. We present a theoretical model and conduct a simulation analysis to estimate the total capacity of solar PV generators according to a given subsidy policy. We show how the capacity maximizing subsidy policy depends on the total amount of subsidy budget, interest rate, the expected amount of solar resource and land price in each region. We particularly focus on the improvements of solar PV capacities under the same subsidy budget when the subsidy policy is changed from uniform (equal for all regions) to differential (varying over regional characteristics). This improvement is shown through a case study using Korean data.

Keywords: dissemination; renewable energy policy; renewable energy subsidies; solar PV (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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