The history and future of incentives and the photovoltaic industry and how demand is driven


Paula Mints, Solar Services Program, Navigant Energy Division, Palo Alto, CA, USA.




This figure shows the trend in average photovoltaic technology prices during a period of significantly high demand growth. Growth in demand during this period was driven by the feed-in tariff incentive model. During this 5-year period, average module prices fell by a compound annual 8%, with demand growing by a compound annual rate of 65%, into gigawatt level. This paper analyzes the industry shift from high incentives to a period of low to no incentives.