Impact of Renewable Energy Policies on Solar Photovoltaic Energy: Comparison of China, Germany, Japan, and the United States of America

Abstract

Solar photovoltaic (PV) technology has developed rapidly in the past decades and is essential in electricity generation. In the last few decades, driven by advanced technology and improved regulations, solar PV technology has experienced growth rapidly. Solar PV generation increased a record 156 TWh in 2020 to reach 821 TWh globally. It confirmed the second largest absolute generation growth of all renewable technologies in 2020, barely at the back of wind and ahead of hydropower. In the past several decades, Germany, Japan, China, and the United States of America (USA) spurred a remarkable growth in PV capacity additions. Solar PV is turning into the lowest-cost choice for electrical energy generation in most of the world, which is expected to propel investment in the coming years. In fact, the development of solar PV energy extremely relies on incentive policies. In this chapter, we demonstrate the relationship between PV incentive policies, technology innovation, and market development in China, Germany, Japan, and the USA. We investigate the key policies affecting the development of PV technology from the perspective of solar PV research and development (R&D), industry, and market development. The significant impact of the performance of renewable energy policies during different periods on PV development is shown. Our study contributes to improving the understanding of PV technology innovation, its market development, and its policy evolution through a multiple-perspective analysis of PV development processes.