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A review of solar energy : markets, economics and policies


  • Timilsina, Govinda R.
  • Kurdgelashvili, Lado
  • Narbel, Patrick A.


Solar energy has experienced phenomenal growth in recent years due to both technological improvements resulting in cost reductions and government policies supportive of renewable energy development and utilization. This study analyzes the technical, economic and policy aspects of solar energy development and deployment. While the cost of solar energy has declined rapidly in the recent past, it still remains much higher than the cost of conventional energy technologies. Like other renewable energy technologies, solar energy benefits from fiscal and regulatory incentives and mandates, including tax credits and exemptions, feed-in-tariff, preferential interest rates, renewable portfolio standards and voluntary green power programs in many countries. Potential expansion of carbon credit markets also would provide additional incentives to solar energy deployment; however, the scale of incentives provided by the existing carbon market instruments, such as the Clean Development Mechanism of the Kyoto Protocol, is limited. Despite the huge technical potential, development and large-scale, market-driven deployment of solar energy technologies world-wide still has to overcome a number of technical and financial barriers. Unless these barriers are overcome, maintaining and increasing electricity supplies from solar energy will require continuation of potentially costly policy supports.

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  • Timilsina, Govinda R. & Kurdgelashvili, Lado & Narbel, Patrick A., 2011. "A review of solar energy : markets, economics and policies," Policy Research Working Paper Series 5845, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5845

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    References listed on IDEAS

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    3. Karel Janda & Štěpán Krška & Jan Průša, 2014. "Česká fotovoltaická energie: modelový odhad nákladů na její podporu [Czech Photovoltaic Energy: Model Estimation of The Costs of its Support]," Politická ekonomie, Prague University of Economics and Business, vol. 2014(3), pages 323-346.
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    9. Jan Prùša & Andrea Klimešová & Karel Janda, 2012. "Economic Loss in Czech Photovoltaic Power Plants," Working Papers IES 2012/18, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jul 2012.
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    15. Uniіat, Lіudmyla, 2018. "Economic Efficiency Of Using Solar Energy In The Agroindustrial Business," EUREKA: Social and Humanities, Scientific Route OÜ, issue 2, pages 9-18.
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    17. Ansari, Md. Fahim & Kharb, Ravinder Kumar & Luthra, Sunil & Shimmi, S.L. & Chatterji, S., 2013. "Analysis of barriers to implement solar power installations in India using interpretive structural modeling technique," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 163-174.
    18. Punia Sindhu, Sonal & Nehra, Vijay & Luthra, Sunil, 2016. "Recognition and prioritization of challenges in growth of solar energy using analytical hierarchy process: Indian outlook," Energy, Elsevier, vol. 100(C), pages 332-348.
    19. Nejat, Payam & Morsoni, Abdul Kasir & Jomehzadeh, Fatemeh & Behzad, Hamid & Saeed Vesali, Mohamad & Majid, M.Z.Abd., 2013. "Iran's achievements in renewable energy during fourth development program in comparison with global trend," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 561-570.
    20. Janda, Karel & Krska, Stepan & Prusa, Jan, 2014. "Odhad nákladů na podporu české fotovoltaické energie [The Estimation of the Cost of Promotion of the Czech Photovoltaic Energy]," MPRA Paper 54108, University Library of Munich, Germany.
    21. Nandal, Vinod & Kumar, Raj & Singh, S.K., 2019. "Barriers identification and analysis of solar power implementation in Indian thermal power plants: An Interpretative Structural Modeling approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.

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