Hot spots in large solar: Evaluating policy contexts contributing to the growth of utility-scale solar installations

Several regions, including Spain and California, have recently seen increases in large solar energy installations. Despite ample solar resources and government and popular support due to environmental and energy security attributes, it is theorized that their growth is largely in response to government-administered policies. Policies ensuring solar-derived electricity subsidies and guaranteed returns to financial backers were believed to be the most crucial for growth. By analyzing geographic and economic factors from the Energy Information Administration, European Commission, California Energy Commission, and the Asociacion de la Industria Fotovoltaica and evaluating policies implemented in Spain and California through an evaluation framework established by Sawin (2004), it was found that while these policies are important, a mix of policies which both incentivize development and penalize utilities for not meeting regulations are essential to the growth of large solar. Policies must be credible, predictable, and flexible to ensure future deployment of this technology.