Economic Drivers of Utility Scale Solar Development

Solar development benefits economic development while providing an alternative to fossil-fuel based energy sources, and the industry has been growing steadily over the last several years. Yet, solar electricity is still more expensive than traditional energy sourcesdue to the material costs of an installation. Policy measures intended to accelerate solar development and lower costs through economies of scale and advanced technologies have created an industry dependent on and driven by subsidies and incentives. In order to better understand the interactions between policy decisions, siting decisions, economic incentives and market development, we will outline a brief history of key federal and state political milestones and track them against growth of the solar market. Through this lens we will discuss the barriers and drivers of utility-scale solar development.