IDEAS home Printed from
   My bibliography  Save this article

Financial assessment of government subsidy policy on photovoltaic systems for industrial users: A case study in Taiwan


  • Chou, Shuo-Yan
  • Nguyen, Thi Anh Tuyet
  • Yu, Tiffany Hui-Kuang
  • Phan, Nguyen Ky Phuc


Due to Taiwan's limited energy resources, the development of solar photovoltaic (PV) in Taiwan has become one of the most important solutions for meeting future energy supply needs and ensuring environmental protection. A huge amount of researches about renewable energy sources has emerged recently in response to these issues. However, the amount of researches considering the effects of various influential parameters on the efficiency and performance of PV systems remains small, and is still limited to some specific parts of PV systems. In particular, researches considering thoughtfully the influence of government subsidies on PV financial assessment are still in development. This paper proposes an approach to analyze the benefit of installing a PV system under the impact of government financial subsidies, focusing especially on feed-in-tariff (FIT) and tax abatement policies for industrial users in Taiwan. In addition, a method for selecting the most appropriate policies is proposed for the government through the analysis of both user demand and the government's PV installation capacity target.

Suggested Citation

  • Chou, Shuo-Yan & Nguyen, Thi Anh Tuyet & Yu, Tiffany Hui-Kuang & Phan, Nguyen Ky Phuc, 2015. "Financial assessment of government subsidy policy on photovoltaic systems for industrial users: A case study in Taiwan," Energy Policy, Elsevier, vol. 87(C), pages 505-516.
  • Handle: RePEc:eee:enepol:v:87:y:2015:i:c:p:505-516
    DOI: 10.1016/j.enpol.2015.09.039

    Download full text from publisher

    File URL:
    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

    1. Solangi, K.H. & Islam, M.R. & Saidur, R. & Rahim, N.A. & Fayaz, H., 2011. "A review on global solar energy policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 2149-2163, May.
    2. Menanteau, Philippe & Finon, Dominique & Lamy, Marie-Laure, 2003. "Prices versus quantities: choosing policies for promoting the development of renewable energy," Energy Policy, Elsevier, vol. 31(8), pages 799-812, June.
    3. 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.
    4. Cossent, Rafael & Gómez, Tomás & Olmos, Luis, 2011. "Large-scale integration of renewable and distributed generation of electricity in Spain: Current situation and future needs," Energy Policy, Elsevier, vol. 39(12), pages 8078-8087.
    5. Mekhilef, S. & Saidur, R. & Safari, A., 2011. "A review on solar energy use in industries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 1777-1790, May.
    6. Grau, Thilo & Huo, Molin & Neuhoff, Karsten, 2012. "Survey of photovoltaic industry and policy in Germany and China," Energy Policy, Elsevier, vol. 51(C), pages 20-37.
    7. Lo, Chih-Cheng & Wang, Chun-Hsien & Huang, Chun-Chien, 2013. "The national innovation system in the Taiwanese photovoltaic industry: A multiple stakeholder perspective," Technological Forecasting and Social Change, Elsevier, vol. 80(5), pages 893-906.
    8. Avril, S. & Mansilla, C. & Busson, M. & Lemaire, T., 2012. "Photovoltaic energy policy: Financial estimation and performance comparison of the public support in five representative countries," Energy Policy, Elsevier, vol. 51(C), pages 244-258.
    9. Singh, G.K., 2013. "Solar power generation by PV (photovoltaic) technology: A review," Energy, Elsevier, vol. 53(C), pages 1-13.
    10. Chen, Falin & Lu, Shyi-Min & Tseng, Kuo-Tung & Lee, Si-Chen & Wang, Eric, 2010. "Assessment of renewable energy reserves in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 2511-2528, December.
    11. Hwang, Jenn Jiang, 2010. "Promotional policy for renewable energy development in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(3), pages 1079-1087, April.
    12. Almonacid, F. & Rus, C. & Pérez, P.J. & Hontoria, L., 2009. "Estimation of the energy of a PV generator using artificial neural network," Renewable Energy, Elsevier, vol. 34(12), pages 2743-2750.
    13. Mekhilef, S. & Saidur, R. & Kamalisarvestani, M., 2012. "Effect of dust, humidity and air velocity on efficiency of photovoltaic cells," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2920-2925.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. Orioli, Aldo & Di Gangi, Alessandra, 2017. "Six-years-long effects of the Italian policies for photovoltaics on the pay-back period of grid-connected PV systems installed in urban contexts," Energy, Elsevier, vol. 122(C), pages 458-470.
    2. repec:eee:appene:v:217:y:2018:i:c:p:336-345 is not listed on IDEAS
    3. Wang, Hongwei & Zheng, Shilin & Zhang, Yanhua & Zhang, Kai, 2016. "Analysis of the policy effects of downstream Feed-In Tariff on China’s solar photovoltaic industry," Energy Policy, Elsevier, vol. 95(C), pages 479-488.
    4. repec:gam:jsusta:v:9:y:2017:i:6:p:874-:d:99597 is not listed on IDEAS
    5. repec:eee:appene:v:212:y:2018:i:c:p:895-908 is not listed on IDEAS
    6. Zhang, M.M. & Zhou, D.Q. & Zhou, P. & Chen, H.T., 2017. "Optimal design of subsidy to stimulate renewable energy investments: The case of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 873-883.


    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:enepol:v:87:y:2015:i:c:p:505-516. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.