The macro view of solar policy

Abstract

New solar energy generation is drastically needed as a source of clean electricity as the U.S. and the globe make the transition away from fossil fuels. Yet, even as solar costs have dramatically declined, solar sources still provide less than 5% of global electricity. We examine issues in solar policy leading to this low adoption rate. Examining the variables of cost, baseload power and intermittency, and land use, we evaluate the tradeoffs among policy support for utility-scale, commercial and residential solar systems. We argue that utility-scale solar power makes far more sense if there is adequate grid integration, so that such installations can be placed in locations that minimize land use tradeoffs. By focusing policy support on a few large solar installations, governments can vastly increase the solar contribution to electricity generation.