Residential solar photovoltaic market stimulation: Japanese and Australian lessons for Canada

Paul Parker

Renewable and Sustainable Energy Reviews, 2008, vol. 12, issue 7, 1944-1958

Abstract: Canada is a leading electricity consumer, yet lags behind other industrial countries (14th out of 20 reporting IEA countries) in the installation of solar photovoltaic systems. The factors (environmental benefits, health benefits, network benefits, need for new production capacity, etc.) promoting solar or other renewable sources of electricity in other countries are also present in Canada, but effective policy mechanisms to stimulate Canada's photovoltaic industry are only starting to appear. Discussions of policy options focused initially on renewable portfolio standards and then on feed-in tariffs. This paper reviews the Japanese and Australian experience with capital incentives to stimulate the residential market for photovoltaics. It demonstrates the ability of a market-sensitive program to stimulate industrial growth, achieve unit cost reductions and shift the market to include a large grid-tied share. Residential respondents to surveys report high costs as their primary barrier to installing photovoltaic systems and state a strong preference for capital incentives to reduce their investment costs. The Canadian government needs a market stimulation policy if it is to join those countries where a decentralized photovoltaic generation system strengthens the electricity supply system. A balanced solar energy market stimulation program is proposed that combines a feed-in tariff with a declining capital incentive.

Keywords: Solar; energy; policy; Photovoltaics; Residential; market (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364-0321(07)00059-7
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:12:y:2008:i:7:p:1944-1958

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().