IEA-PVPS Archive

The Archive section contains a library of publications produced by the IEA Photovoltaic Power Systems Programme (PVPS) since its inception in 1995. These documents are organized by type, activity, year, country and task. For a hint to find specific documents please read the "How to Find Documents in the Archive" link.


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Title:Market deployment strategies for PV systems in the built environment An evaluation of incentives, support programmes and marketing activities
Issue date:2002/09/01
Description:In the last decade of the 20th century the market penetration of decentralised grid-connected PV systems has increased tremendously worldwide. This development was brought about by means of a wide variety of promotion strategies and dissemination programmes. These initiatives were launched by quite different organizations and institutions. Governmental bodies on national and local levels have launched strategies, as have electric utilities and NGO´s. Examples are: rebate programmes (e.g. the German 1000 roofs program or the Japanese residential PV promotion programme), regulated rates (e.g. enhanced feed-in tariffs or rate-based incentives); green pricing models (e.g. green tariffs, solar stock exchange, contribution programmes, shareholder programmes); NGO marketing (e.g. "SOLARIS" in The Netherlands, "SONNENSCHEIN" in Austria); public building programmes (e.g. "Sonne in der Schule" in Germany or SCOLAR in UK). The core objective of this report is to determine the criteria for successful market deployment strategies for the broader dissemination of grid-connected PV systems in the built environment. Derived from this core objective the intentions of this work in detail are: to determine the major barriers for the broader market penetration of PV systems; to identify the major areas of activity and target groups for the removal of barriers, to document and evaluate the most important past and current programmes; to identify the relevant criteria for successful market deployment strategies; to derive recommendations for further actions required with respect to different target groups. The most important results and conclusions of this analysis are: Pure cost-effectiveness is not crucial for private customers. Affordability is rather what counts. Comprehensive accompanied information and education activities are also important along with financial incentives; High environmental credibility of the institution/company which launches a voluntary strategy based on customers willingness-to-pay (WTP) e.g. Green Pricing or a Solar Stock Exchange is a very important precondition; Moreover, with respect to financial incentives it is of tremendous importance that they show a decreasing characteristic over time and that they are designed dynamically; Promotion programs should take into account consumers' willingness to pay (WTP). Optimal financial incentives would provide only the difference between the system costs and the WTP for PV. Consumers WTP for PV appears to be higher than expected by most program designers. Predictability and continuity over time are important: Avoid “Stop and Go”- strategies! Finally, eight key factors for successful dissemination strategies of small grid-connected PV systems have been identified: Provide a minimum of a financial incentive that allows to fully exhaust customers WTP Improve the market Ensure that the competitiveness and the transparency of the PV system market as well as of the market for electricity (e.g. by means of a power content label) is enhanced Ensure continuity of the strategy over time and sustainable growth of the industry Strive for a guaranteed technical performance, an increase of standardization and efficiency Try to make the programme a social event and to address the public as well as the mass-media Strive for setting the correct regulatory conditions from societies point-of-view Remove barriers for access to the grid and introduce environmental pricing Minimize the costs for the public Strive for low administration and transaction costs and minimize monetary financial support to reach a certain amount of PV capacity. Provide comprehensive detailed and targeted information for potential programme participants Conduct marketing Identify the potential customers and their needs All in all, to be successful, it is necessary to design strategies in a way where governments, the PV industry, utilities, NGO’s and potential investors co-operate closely.
Creator / Publisher:R. Haas  /  IEA PVPS
Copyright:IEA PVPS
Filesize:617 Kilobyte
Category:Technical report
Task 7