The Role of Government Policy in the Development of Solar Photovoltaic Power

This briefing from the Climate Policy Initiative (CPI) outlines a study initiated in late 2010 to analyze how national and international policies impact the development and cost reduction of Solar Photovoltaic (PV) technology. The document describes the motivations for the study, the primary policy questions being addressed, and the analytical framework used to evaluate policy effectiveness across the PV value chain.

• The Climate Policy Initiative identifies cost as the primary barrier to the widespread adoption of Solar PV, noting that costs must decrease by an additional 50% to 70% to achieve economic competitiveness in general applications.
• CPI's research focuses on several critical policy questions, including the relative effectiveness of targeted versus broad-based policies (such as carbon pricing), the interaction between local and national policies on a global scale, and the ability of policies to achieve multiple goals, such as combining clean technology progress with national industrial development in Germany and China.
• The study employs a four-step framework to evaluate policy impact on long-term costs by breaking the PV sector into value chain segments. This framework links 'Objectives' (cost reduction) to 'Activities' (e.g., research, manufacture, installation), then to 'Drivers' (levers to improve performance), and finally to the 'Policies' that influence those drivers.
• The document highlights that different policy tools impact cost reduction through different mechanisms: feed-in tariffs primarily drive 'learning by doing' and economies of scale, while research grants are more effective for achieving technological breakthroughs.

APA

Nelson, D. (2011). The Role of Government Policy in the Development of Solar Photovoltaic Power. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2011/12/Role-of-Government-in-PV-Power-Development.pdf

Chicago

Nelson, David. The Role of Government Policy in the Development of Solar Photovoltaic Power. Climate Policy Initiative, 2011. https://www.climatepolicyinitiative.org/wp-content/uploads/2011/12/Role-of-Government-in-PV-Power-Development.pdf.

Wikipedia

{{cite report |last1=Nelson |first1=David |title=The Role of Government Policy in the Development of Solar Photovoltaic Power |publisher=Climate Policy Initiative |date=31 May 2011 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2011/12/Role-of-Government-in-PV-Power-Development.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nelson2011role, author = {Nelson, David}, title = {{The Role of Government Policy in the Development of Solar Photovoltaic Power}}, institution = {Climate Policy Initiative}, year = {2011}, month = may, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2011/12/Role-of-Government-in-PV-Power-Development.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }