IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v12y2008i7p1944-1958.html
   My bibliography  Save this article

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

Author

Listed:
  • Parker, Paul

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.

Suggested Citation

  • Parker, Paul, 2008. "Residential solar photovoltaic market stimulation: Japanese and Australian lessons for Canada," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(7), pages 1944-1958, September.
    • Handle: RePEc:eee:rensus:v:12:y:2008:i:7:p:1944-1958
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364-0321(07)00059-7
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Huang, Y.H. & Wu, J.H., 2007. "Technological system and renewable energy policy: A case study of solar photovoltaic in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(2), pages 345-356, February.
    2. Jackson, Tim & Oliver, Mark, 2000. "The viability of solar photovoltaics," Energy Policy, Elsevier, vol. 28(14), pages 983-988, November.
    3. Lauber, Volkmar, 2004. "REFIT and RPS: options for a harmonised Community framework," Energy Policy, Elsevier, vol. 32(12), pages 1405-1414, August.
    4. Rowlands, Ian H., 2005. "Envisaging feed-in tariffs for solar photovoltaic electricity: European lessons for Canada," Renewable and Sustainable Energy Reviews, Elsevier, vol. 9(1), pages 51-68, February.
    5. Talavera, D.L. & Nofuentes, G. & Aguilera, J. & Fuentes, M., 2007. "Tables for the estimation of the internal rate of return of photovoltaic grid-connected systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(3), pages 447-466, April.
    6. Unknown, 2005. "Forward," 2005 Conference: Slovenia in the EU - Challenges for Agriculture, Food Science and Rural Affairs, November 10-11, 2005, Moravske Toplice, Slovenia 183804, Slovenian Association of Agricultural Economists (DAES).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Tiantian & Nakagawa, Kei & Matsumoto, Ken'ichi, 2023. "Evaluating solar photovoltaic power efficiency based on economic dimensions for 26 countries using a three-stage data envelopment analysis," Applied Energy, Elsevier, vol. 335(C).
    2. Clastres, C. & Ha Pham, T.T. & Wurtz, F. & Bacha, S., 2010. "Ancillary services and optimal household energy management with photovoltaic production," Energy, Elsevier, vol. 35(1), pages 55-64.
    3. Ayoub, Nasser & Yuji, Naka, 2012. "Governmental intervention approaches to promote renewable energies—Special emphasis on Japanese feed-in tariff," Energy Policy, Elsevier, vol. 43(C), pages 191-201.
    4. Zhao, Zhen-Yu & Yang, Hui-Jia & Zuo, Jian, 2017. "Evolution of international trade for photovoltaic cells: A spatial structure study," Energy, Elsevier, vol. 124(C), pages 435-446.
    5. Yamamoto, Yoshihiro, 2015. "Opinion leadership and willingness to pay for residential photovoltaic systems," Energy Policy, Elsevier, vol. 83(C), pages 185-192.
    6. Oh, Si-Doek & Lee, Yeji & Yoo, Yungpil & Kim, Jinoh & Kim, Suyong & Song, Seung Jin & Kwak, Ho-Young, 2013. "A support strategy for the promotion of photovoltaic uses for residential houses in Korea," Energy Policy, Elsevier, vol. 53(C), pages 248-256.
    7. Arie ten Cate, 2012. "The socially optimal energy transition in a residential neighbourhood in the Netherlands," CPB Discussion Paper 222.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Olatayo, Kunle Ibukun & Wichers, J. Harry & Stoker, Piet W., 2020. "The advanced and moderate-growth development paths for the viability and future growth of small wind energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    9. Lau, Lee Chung & Tan, Kok Tat & Lee, Keat Teong & Mohamed, Abdul Rahman, 2009. "A comparative study on the energy policies in Japan and Malaysia in fulfilling their nations' obligations towards the Kyoto Protocol," Energy Policy, Elsevier, vol. 37(11), pages 4771-4778, November.
    10. Ayompe, L.M. & Duffy, A., 2013. "Feed-in tariff design for domestic scale grid-connected PV systems using high resolution household electricity demand data," Energy Policy, Elsevier, vol. 61(C), pages 619-627.
    11. Focacci, Antonio, 2009. "Residential plants investment appraisal subsequent to the new supporting photovoltaic economic mechanism in Italy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2710-2715, December.
    12. Pi-Chuan Sun & Hsueh-Mei Wang & Hsien-Long Huang & Chien-Wei Ho, 2020. "Consumer attitude and purchase intention toward rooftop photovoltaic installation: The roles of personal trait, psychological benefit, and government incentives," Energy & Environment, , vol. 31(1), pages 21-39, February.
    13. Cédric Clastres & T.T. Ha Pham & F. Wurtz & S. Bacha, 2010. "Optimal household energy management and participation in ancillary services with PV production," Post-Print halshs-00323576, HAL.
    14. Garcez, Catherine Aliana Gucciardi, 2017. "What do we know about the study of distributed generation policies and regulations in the Americas? A systematic review of literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 1404-1416.
    15. Arie ten Cate, 2012. "The socially optimal energy transition in a residential neighbourhood in the Netherlands," CPB Discussion Paper 222, CPB Netherlands Bureau for Economic Policy Analysis.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sener, Can & Fthenakis, Vasilis, 2014. "Energy policy and financing options to achieve solar energy grid penetration targets: Accounting for external costs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 854-868.
    2. Lewis, Joanna I. & Wiser, Ryan H., 2007. "Fostering a renewable energy technology industry: An international comparison of wind industry policy support mechanisms," Energy Policy, Elsevier, vol. 35(3), pages 1844-1857, March.
    3. del Rio, Pablo & Gual, Miguel A., 2007. "An integrated assessment of the feed-in tariff system in Spain," Energy Policy, Elsevier, vol. 35(2), pages 994-1012, February.
    4. Agnolucci, Paolo, 2007. "The effect of financial constraints, technological progress and long-term contracts on tradable green certificates," Energy Policy, Elsevier, vol. 35(6), pages 3347-3359, June.
    5. van Alphen, Klaas & Kunz, Huden S. & Hekkert, Marko P., 2008. "Policy measures to promote the widespread utilization of renewable energy technologies for electricity generation in the Maldives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(7), pages 1959-1973, September.
    6. Li, Shin-Je & Chang, Ting-Huan & Chang, Ssu-Li, 2017. "The policy effectiveness of economic instruments for the photovoltaic and wind power development in the European Union," Renewable Energy, Elsevier, vol. 101(C), pages 660-666.
    7. Toke, David, 2008. "The EU Renewables Directive--What is the fuss about trading?," Energy Policy, Elsevier, vol. 36(8), pages 2991-2998, August.
    8. Schallenberg-Rodriguez, Julieta, 2017. "Renewable electricity support systems: Are feed-in systems taking the lead?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 1422-1439.
    9. Moosavian, S.M. & Rahim, N.A. & Selvaraj, J. & Solangi, K.H., 2013. "Energy policy to promote photovoltaic generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 44-58.
    10. Hsu, Chiung-Wen & Ho, Shu-Ping, 2016. "Assessing feed-in tariffs on wind power installation and industry development in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 548-557.
    11. David MacLaughlin & Steffanie Scott, 2010. "Overcoming latecomer disadvantage through learning processes: Taiwan’s venture into wind power development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 12(3), pages 389-406, June.
    12. Breukers, Sylvia & Wolsink, Maarten, 2007. "Wind power implementation in changing institutional landscapes: An international comparison," Energy Policy, Elsevier, vol. 35(5), pages 2737-2750, May.
    13. Darmani, Anna, 2015. "Renewable energy investors in Sweden: A cross-subsector analysis of dynamic capabilities," Utilities Policy, Elsevier, vol. 37(C), pages 46-57.
    14. Focacci, Antonio, 2009. "Residential plants investment appraisal subsequent to the new supporting photovoltaic economic mechanism in Italy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2710-2715, December.
    15. Thiam, Djiby Racine, 2011. "An energy pricing scheme for the diffusion of decentralized renewable technology investment in developing countries," Energy Policy, Elsevier, vol. 39(7), pages 4284-4297, July.
    16. Pilar Lopez-Llompart & G. Mathias Kondolf, 2016. "Encroachments in floodways of the Mississippi River and Tributaries Project," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 81(1), pages 513-542, March.
    17. Cheng, Jianquan & Bertolini, Luca, 2013. "Measuring urban job accessibility with distance decay, competition and diversity," Journal of Transport Geography, Elsevier, vol. 30(C), pages 100-109.
    18. M. De Donno & M. Pratelli, 2006. "A theory of stochastic integration for bond markets," Papers math/0602532, arXiv.org.
    19. Prilly Oktoviany & Robert Knobloch & Ralf Korn, 2021. "A machine learning-based price state prediction model for agricultural commodities using external factors," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 44(2), pages 1063-1085, December.
    20. Michelle Sheran Sylvester, 2007. "The Career and Family Choices of Women: A Dynamic Analysis of Labor Force Participation, Schooling, Marriage and Fertility Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 367-399, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:12:y:2008:i:7:p:1944-1958. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.