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

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  • 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.

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  • 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
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    1. 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.
    2. Yamamoto, Yoshihiro, 2015. "Opinion leadership and willingness to pay for residential photovoltaic systems," Energy Policy, Elsevier, vol. 83(C), pages 185-192.
    3. 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).
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    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.

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