Progress in markets for grid-connected PV systems in the the built environment

In the last decade of the 20th century a wide variety of promotion strategies increased the market penetration of small grid-connected PV systems world-wide. The objective of this paper is to assess the impact of these promotion strategies on the market for and on the economic performance of small grid-connected PV systems. The most important conclusions of this analysis are: Pure cost-effectiveness is not crucial for private customers. Affordability is rather what counts. Non-monetary issues play an important role for a substantial increase in market deployment. Comprehensive accompanied information and education activities are also important along with financial incentives. There are still considerable barriers in the market: on the one hand transparent and competitive markets exist in only a few countries; on the other hand non-monetary transaction costs still represent a major barrier. Progress with respect to cost reduction has been achieved, but mainly for non-module components. Copyright (C) 2004 John Wiley Sons, Ltd.