The high cost of the technology represents the main reason for relatively low deployment of PV in both grid-connected markets and developing countries.

• In developing countries, the lack of spending power and financing options create the biggest deployment barriers.
• Significant public support over an extended period of time will be required for achieving the technology cost reductions needed to underpin PV pricing that is competitive with the alternatives.

In practice, support can involve a combination of measures that will usually function more effectively together. Funding issues, awareness raising and stakeholder engagement are critical to the success of any mechanism.

In the IEA PVPS countries, the main support measures that are being used to address deployment barriers are:

• Payments for the PV electricity produced (enhanced feed-in tariffs or FiT’s)
• Subsidies to reduce the up-front cost of PV systems
• Various forms of tax credits

Many governments turning their attention to longer-term approaches to climate change and energy security issues are implementing or considering the regulatory approach commonly referred to as the renewable portfolio standard (RPS) to increase renewable energy deployment in their countries. Sustainable building requirements are also attracting interest.

As the PV market matures and opportunities for business are identified, various non-utility as well as utility-based commercial initiatives are emerging. These include activities such as:

• Preferential home mortgage terms and green loans from commercial banks
• Share offerings in private PV investment funds
• Other schemes that focus on wealth creation and business success using PV as a vehicle to achieve these ends

Within the electricity utility sector, different business models of PV promotion are emerging, partly in response to public policy and regulation and partly to realize business opportunities. Many electricity businesses worldwide promote “green power” initiatives in which customers can purchase green electricity.