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Drivers of growth in commercial-scale solar PV capacity

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  • Crago, Christine L.
  • Koegler, Eric

Abstract

This paper examines the impact of policy incentives for solar power on capacity growth of the commercial market segment. We use county level data from 2005 to 2013 for 13 states in the Northeast United States including the District of Columbia. In estimating the relationship between incentives and solar PV capacity, we control for insolation, market factors, and demographic characteristics. We also account for indicators of pro-environmental attitudes and preferences for solar technology. Results indicate that factors affecting financial returns from a solar PV installation like electricity price and insolation are highly significant. Among policy variables, rebates, solar renewable energy credit price, and sales tax waivers are significant, along with years of Renewable Portfolio Standard implementation. Indicators of environmental preferences and familiarity with solar technology are not as important, which is in contrast with findings in the residential solar market. This suggests that commercial installations are driven mostly by its promise of financial returns, and continued growth in this market segment is likely to depend on falling installation costs and availability of incentives.

Suggested Citation

  • Crago, Christine L. & Koegler, Eric, 2018. "Drivers of growth in commercial-scale solar PV capacity," Energy Policy, Elsevier, vol. 120(C), pages 481-491.
    • Handle: RePEc:eee:enepol:v:120:y:2018:i:c:p:481-491
    DOI: 10.1016/j.enpol.2018.05.047
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    References listed on IDEAS

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    5. Best, Rohan & Burke, Paul J., 2023. "Small-scale solar panel adoption by the non-residential sector: The effects of national and targeted policies in Australia," Economic Modelling, Elsevier, vol. 120(C).
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    8. Müller, Jonas & Trutnevyte, Evelina, 2020. "Spatial projections of solar PV installations at subnational level: Accuracy testing of regression models," Applied Energy, Elsevier, vol. 265(C).
    9. Shihao Wang & Xujing Tang & Xionghang Liu & Chen Xu, 2022. "Research on Low Voltage Ride through Control of a Marine Photovoltaic Grid-Connected System Based on a Super Capacitor," Energies, MDPI, vol. 15(3), pages 1-19, January.
    10. Obadia Kyetuza Bishoge & Lingling Zhang & Witness Gerald Mushi, 2018. "The Potential Renewable Energy for Sustainable Development in Tanzania: A Review," Clean Technol., MDPI, vol. 1(1), pages 1-19, July.
    11. Stecanella, Priscilla A. Juá & Camargos, Ronaldo S.C. & Vieira, Daniel & Domingues, Elder G. & Ferreira Filho, Anésio de L., 2022. "A methodology for determining the incentive policy for photovoltaic distributed generation that leverages its technical benefits in the distribution system," Renewable Energy, Elsevier, vol. 199(C), pages 474-485.
    12. Jérôme Payet & Titouan Greffe, 2019. "Life Cycle Assessment of New High Concentration Photovoltaic (HCPV) Modules and Multi-Junction Cells," Energies, MDPI, vol. 12(15), pages 1-24, July.
    13. Uzair Jamil & Joshua M. Pearce, 2022. "Energy Policy for Agrivoltaics in Alberta Canada," Energies, MDPI, vol. 16(1), pages 1-31, December.
    14. Reindl, K. & Palm, J., 2021. "Installing PV: Barriers and enablers experienced by non-residential property owners," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).
    15. Best, Rohan & Trück, Stefan, 2020. "Capital and policy impacts on Australian small-scale solar installations," Energy Policy, Elsevier, vol. 136(C).
    16. George E. Halkos & Apostolos S. Tsirivis, 2023. "Sustainable Development of the European Electricity Sector: Investigating the Impact of Electricity Price, Market Liberalization and Energy Taxation on RES Deployment," Energies, MDPI, vol. 16(14), pages 1-21, July.
    17. Pedro I. Hancevic & Hector H. Sandoval, 2023. "Solar Panel Adoption in SMEs in Emerging Countries," Working Papers 222, Red Nacional de Investigadores en Economía (RedNIE).

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