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A review of solar energy : markets, economics and policies

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

Abstract

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.

Suggested Citation

  • 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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    5. Reichelstein, Stefan & Yorston, Michael, 2013. "The prospects for cost competitive solar PV power," Energy Policy, Elsevier, vol. 55(C), pages 117-127.
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    9. Hung Tran Van & Irina Onyusheva & Denis Ushakov & Radj Santhanakrishnan, 2018. "Impedimental Policies Impacting Shrinking World Solar Industry Eco-Economic Development," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 21-27.
    10. Dhruv Chakravarty Nath & Indranil Kundu & Ayushi Sharma & Pranav Shivhare & Asif Afzal & Manzoore Elahi M. Soudagar & Sung Goon Park, 2024. "Internet of Things integrated with solar energy applications: a state-of-the-art review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 24597-24652, October.
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    12. Koo, Bonsang, 2017. "Examining the impacts of Feed-in-Tariff and the Clean Development Mechanism on Korea's renewable energy projects through comparative investment analysis," Energy Policy, Elsevier, vol. 104(C), pages 144-154.
    13. Devabhaktuni, Vijay & Alam, Mansoor & Shekara Sreenadh Reddy Depuru, Soma & Green, Robert C. & Nims, Douglas & Near, Craig, 2013. "Solar energy: Trends and enabling technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 555-564.
    14. Jun Li & Lisi Jia & Longjian Li & Zehang Huang & Ying Chen, 2020. "Hybrid Microencapsulated Phase-Change Material and Carbon Nanotube Suspensions toward Solar Energy Conversion and Storage," Energies, MDPI, vol. 13(17), pages 1-11, August.
    15. Ewa Chodakowska & Joanicjusz Nazarko & Łukasz Nazarko & Hesham S. Rabayah & Raed M. Abendeh & Rami Alawneh, 2023. "ARIMA Models in Solar Radiation Forecasting in Different Geographic Locations," Energies, MDPI, vol. 16(13), pages 1-24, June.
    16. Průša, Jan & Klimešová, Andrea & Janda, Karel, 2013. "Consumer loss in Czech photovoltaic power plants in 2010–2011," Energy Policy, Elsevier, vol. 63(C), pages 747-755.
    17. Toroghi, Shahaboddin H. & Oliver, Matthew E., 2019. "Framework for estimation of the direct rebound effect for residential photovoltaic systems," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    18. 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.
    19. 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).
    20. 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.
    21. 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.
    22. 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.
    23. 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.
    24. 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.
    25. Sıdıka Ece Yılmaz & Hasan Yildizhan & Cihan Yıldırım & Chuang-Yao Zhao & João Gomes & Tarik Alkharusi, 2023. "The Drivers and Barriers of the Solar Water Heating Entrepreneurial System: A Cost–Benefit Analysis," Sustainability, MDPI, vol. 15(20), pages 1-20, October.

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