Analysis of International Policies In The Solar Electricity Sector: Lessons for India

Although solar costs are dropping rapidly, solar power is still more expensive than conventional and other renewable energy options. The solar sector still needs continuing government policy support. These policies are driven by objectives that go beyond the goal of achieving grid parity. The need to achieve multiple objectives and ensure sufficient political support for solar power makes it difficult for policy makers to design the optimal solar power policy. The dynamic and uncertain nature of the solar industry, combined with the constraints offered by broader economic, political and social conditions further complicates the task of policy making.

This report presents an analysis of solar promotion policies in seven countries — Germany, Spain, the United States, Japan, China, Taiwan, and India — in terms of their outlook, objectives, policy mechanisms and outcomes. The report presents key insights, primarily in qualitative terms, and recommendations for two distinct audiences. The first audience consists of global policy makers who are exploring various mechanisms to increase the penetration of solar power in markets to mitigate climate change. The second audience consists of key Indian policy makers who are developing a long-term implementation plan under the Jawaharlal Nehru National Solar Mission and various state initiatives.