Pere Mir-Artigues

Economics of Solar Photovoltaic Generation

The aim of this chapter is to address solar PV generation from the perspective of economic analysis. In order to do so, we will start describing the main stages and links in the supply chain of this sector, taking into account the firms which have a worldwide leadership in the solar PV market. A simple model to analyse the costs and prices of modules and solar PV installations is provided. Finally, the last section addresses the social value of solar PV electricity, which involves addressing the problems and perspectives of its integration in the electricity grid.

Public Support Schemes for the Deployment of Commercial Plants

The determinants to the deployment of renewable energy technologies in general and solar PV in particular are multifaceted. They include technoeconomic factors (e.g. resource potentials and investment and variable costs), legal and administrative barriers, political factors, social acceptability and other factors (e.g. subsidies and other advantages to fossil fuels, lack of information, human capital factors and the role of pioneers) (del Rio in Renew Sustain Energy Rev 15(5):2520–2533, 2011). However, public policies have been a critical driver in this context. In fact, solar PV has been, and to large extent still is, policy-driven. Relevant aspects with respect to support for solar PV include framework conditions, instruments, design elements within the instruments and the stability of support.

Support for Research, Development and Demonstration

Technologies in general and renewable energy technologies in particular go through different stages over time. They start being an idea which may become an invention. After the first prototype is built, they become an innovation. Innovation is defined as the implementation of a new or significantly improved product (good or service) or process, or a new organisational method in business practices that reduces costs or improves performance.

Principles for the Public Promotion of Photovoltaic Generation

Policy evaluation in general, and the assessment of support for solar PV in particular, needs to take into account several elements, including assessment criteria, market failures, policy areas to address those failures, goals, targets, technologies, instruments, design elements and different administrative levels. A holistic picture which coherently links those elements is needed in order to fully understand the justification for solar PV support policies as well as their assessment.

Photovoltaic Demand-Side Generation

Photovoltaic demand-side generation (PV-DSG) can be defined as the production of electricity by means of panels or arrays (the energy conversion units), which are installed on the customer’s side of the meter (Alanne and Saari 2006).

Short History and Recent Facts of Photovoltaic Generation

Although solar PV is a recent technology for the wider public, it has a long history. This chapter discusses the main technical and economic aspects of the different stages in the history of PV generation.